Check out these 3 steps that can help you plan your study abroad

Planning your finances for international education is crucial for a successful study abroad experience. With rising costs and various funding options available, having a clear financial strategy can help you navigate expenses and avoid surprises. Here you will find a simple 3 step brief that can help you plan your study abroad journey well.

Step 1: Research the cost involved

Each country has different expenses and conversion rates to INR, so it’s important to first research all the costs involved before estimating the total. This will help you to have a clear picture of what is the total sum of money you will need. Here are the factors to consider when estimating your costs:

Standardised Exams (GRE/ GMAT/ IELTS/ TOEFL)
Tuition Fee
Accommodation (On-campus or Off-Campus)
Cost of Living
Visa Application
Insurance (Travel/ Health & more)
Airplane Ticket
Miscellaneous

Ankit Mehra, Cofounder and CEO, GyanDhan, says, “Start by checking tuition fees on your chosen university’s website. For accommodation, explore online resources and student forums to gauge housing costs at your study destination. Don’t overlook hidden expenses like travel insurance, medical checkups, and visa-related fees. Visit the relevant country’s visa website and do thorough online research to get a clear picture of all the costs involved. As a general rule, budget an additional ₹1-2 lakh to cover any unforeseen expenses.”

Step 2: Identify sources of funding

Once you have an overview of the required funds, start exploring the different channels to secure them.

Self-financing: Some students have the required funds so, they can self-fund their international education. If this is your situation, ensure you maintain a clear record of all transactions and financial sources.
 
Education Loan: If self-financing isn’t an option, consider applying for an education loan. Mehra says, “Since loan processing can take time, it’s best to apply before submitting your visa application.”

Scholarships and Financial Aid: Many government schemes and universities offer scholarships and financial aid. These can either be need-based or merit-based, therefore, any average student can also apply for them. For more information, check government portals or university websites for available scholarships and eligibility criteria.

Step 3: Develop financial spending timeline

Once you have estimated your total expenses and secured the necessary funds, it’s important to prepare a financial timeline. Ensure you budget for at least one year of living abroad and include an emergency fund.

Pre-departure expenses

This category encompasses costs such as English proficiency tests, standardized exam fees, and other out-of-pocket expenses incurred before submitting your visa application. “Include the visa application fee, accommodation arrangements, and any surcharges. Additionally, account for all costs leading up to your departure, such as health checkups, travel insurance, education loan processing fees, and other pre-departure formalities. These expenses typically begin to accumulate 12 months before your departure,” says Mehra.

Post-departure expenses

Upon arrival in your host country, budget for essential expenses, including rent, utility bills, and local transportation. Don’t forget to factor in costs for necessities like laptops, mobile phones, groceries, and other living expenses.

Mehra says, “A solid financial plan is essential for a successful study abroad adventure. While financial planning for international education can come with unexpected surprises, careful preparation can help you navigate these challenges. Consider adding a buffer amount to your budget for added flexibility. Take your time with expenses and paperwork to avoid any mistakes. With thorough preparation, you can focus on your studies and fully enjoy the enriching experiences that come with international education.”