Did you know that for doing a two-year MS in the US, you have to pay an average tuition fee of USD 40,000, which roughly comes to be around INR 29,60,000? And you certainly have to keep aside approximately $15,000 towards your living cost in the US for two years. And the expenses do not stop just at that, you also need to shell out a substantial amount on VISA, application, admission tests, travelling, and so on. So, we see that even if we keep our calculations conservative, an Indian student headed for a two-year MS in the US has to keep at least $58000 for the program! This number is certainly quite high and a major reason why thousands of Indian students shelve their dream of studying an MS in the US.
But there is a way to make your MS in the US dream come true. Adequate financial planning – whether you plan to take an education loan or self-fund your education – is a sure-shot way of doing an MS in the US without any financial obstacles. In this blog, readers will not only understand why financial planning is important but also some tips on how to plan their finances wisely when planning to do an MS from the US. Let us begin without any further ado.
4 Reasons Why Financial Planning Is Important
Listed below are 4 reasons why financial planning is important for making your study abroad dream come true.
- Whether students are self-funding their education abroad or taking an education loan for it, financial planning will keep them informed about their cash inflows and outflows which will help them stick to their budget and make their financial path a cakewalk.
- Financial planning will help you not only take care of your expenses when living abroad but also help you concentrate on your studies, extra-curricular and co-curricular pursuits with a single minded focus. With your finances taken care of and planned well, you will not have to constantly worry about paying your tuition fees, bills, etc.
- Having a financial plan will help you avoid unnecessary expenses and burn a hole in your pocket. Students can create a budget and stick to it. Without a proper financial plan in place, you may spend on that designer dress or parties without any second thoughts. Financial planning will help them know the difference between their needs and wants. This will also be an important lesson for their future.
- Since students will be aware of their cash inflows and outflows, they can try and supplement their income by finding a part-time job in the country of their stay or even try and get a scholarship or financial aid. They can use this additional income in case an unexpected expense arises or simply pay a part of expenses too.
Four ways in which you can plan your finances and expenses better
Now that you know that financial planning is extremely important, it is time to discuss some methods that will help readers plan their finance and expenses better.
- Take an education loan rather than self-funding for abroad studies. In fact, an education loan is one of the best ways to finance your education loan abroad. Most Indian banks offer education loans for abroad studies at varying terms and conditions. Look out for the best bank for an education loan that offers education loans at the most favourable terms and conditions. Education loans do not just cover the tuition fees for your MS abroad but also cover a part of study-related expenses and living expenses. Try and look out for education loan subsidies too since they cut the expenses by a major portion. If you are unaware about how to take an education loan, you can get in touch with GyanDhan and know more.
- Keep a lookout for various scholarships that you are eligible for and apply for them. Try and find out information about the details of scholarships offered not just by the University but also by private organizations. Getting a scholarship will help readers lower their financial burden while studying abroad. And if they have taken an education loan, the scholarship amount can lower their financial debt too.
- Students can take up part-time jobs to supplement their income. Most countries allow international students to work for a fixed number of hours every week. Find out about that and take up a job that suits you. Students must, however, remember that while working part-time, they have to ensure that their academic performance does not suffer.
- Get a student card and make use of it. A student card will help you get discounts while shopping, travelling, eating out, etc. This will help you save some of your hard-earned money.
Studying abroad has definitely become expensive but it does not mean that it is impossible. With correct financial planning and guidance, it is very much possible to make your study abroad dream come true.
With GyanDhan, you can be assured that your study abroad journey will be nothing but a cakewalk! It is an education financing platform that offers free education loan assistance and a choice of loans from banks and other financial institutions.
Guest blog by GyanDhan