3 Most Preferred Funding Options of Overseas Education: Pros and Cons

Education abroad is definitely worth investing looking at the global needs for all professional grounds. Students today are more alerted and aware of the updates and developments around. Parents have got equally supportive and encourage the kids for higher education for more value and recognition.

People manage the expenses by paying the tuition fees through their savings, educational loan or scholarships. But each of the paying method has to be understood thoroughly. Let’s take a look.


Scholarships are mainly categorized for students that are academically bright and score high and very few are need-based.

There are many popular scholarships to study overseas that are offered by the government of the home country or the study country and the education institutions as well. These scholarships cover full tuition fees, air-travel fare with return, living expenses and other educational expenses for research and stationery too. Now, this is not applicable for all the scholarships, all the students or all the universities.

If you receive a scholarship; you should be careful towards what all it covers. Does it cover only your tuition fees, full or partial, any travel fares provided, living expenses or any other expenses? Based on this, you need to arrange for the other remaining expenses.

Self Funding:

This is no doubt one of the best ways to stay away from any financial debts or liabilities in the future. There would be no stress for the students to complete their educational course and head straight to their professional career.

  • Having enough funds to pay all the fees, living expenses and other educational requirements
  • After gauging the assets and finance with oneself if need be apply for an education or a personal loan. But the issue with the loan application is it is not possible to apply from home country for any kind of loan from the home country
  • In few cases there are chances that the student might have to show emergency funds requirement even if, you show all savings, fixed deposits and other assets to show that you are capable to pay for your expenses

Now, it is on you to decide if self-funding is a good idea until you are super rich and can afford all the expenses and keep some funds for yourself.



Study Abroad Loan:

The foreign education loan is the last method of repayment that we would be discussing in this article. The biggest advantage is that, it proves a stable flow of funds available for the student during the entire educational tenure. This is the most important aspect for the visa officer to grant the visa to the student as well.

  • This method has proven fruitful for many, those with less funds and those even with available funds.
  • Firstly, you need not have a count of all the expenses one by one. For self-funding, students and parents have to ensure they are able to cover all the expenses required. For educational loan, all the expenses are covered that are mentioned in the admission letter. For scholarships, you need to arrange for other funds that are not covered within.
  • Secondly, the repayment is made easier over a long term for the student with affordable monthly instalments. And most importantly, the student is benefitted by the moratorium period. This helps him to study burden-free to repay till he completes the course. After completion of the course / getting the job, the repayment EMIs begin. So, the student can focus on his main objective to study.
  • Lastly, the student receives the tax benefits that are applicable towards having an educational loan.
  • The student can repay the loan if he has gathered some funds meanwhile, or by utilizing his own savings.


Now, that you know all the 3 funding options and its pros and cons, decide for yourself which is the best suitable for you.

Hope this was informative.

Stay connected for more such articles on overseas education loan.

Read more: The Not So Frequent but Very Essential Questions on Study Abroad Loan

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