In this article, we present some factors that parents should consider when saving for their child’s educational corpus. read more
For a child from a middle-class family, the path to fulfilling dreams of studying abroad is filled with challenges and hurdles. Unlike affluent families (who face their share of troubles), common people and their goals are subject to ample money. Considering that the total cost of an international degree can range from Rs 35 lakh to Rs 2 crore, financial aid is a relevant factor in fulfilling one’s study abroad goals.
However, in a dilemma to find a solution, people usually ignore other vital steps required for a smooth journey towards higher education abroad.
Against this backdrop, CNBC-TV18 spoke Prashant A Bhonsle, founder of Kuhoo Fintech. Here is a list of five broad steps parents/guardians should take as they prepare to send their children for this:
Meet the education and financial expert in good time
Since the educational and financial landscape is constantly changing, and it is often difficult to keep up with the changes (even with all the research), it is advisable to get in touch with experts.
While this may seem like an unnecessary investment, it can be incredibly helpful and straightforward to have an expert on board with your preparation process. An education expert can help your child balance the subject/course that interests him/her and the opportunity for lucrative job opportunities. Similarly, a financial expert can give you valuable tips on how to properly plan your finances (spoiler alert: it’s not just about saving money),” Bhonsle said.
Don’t forget to choose the right country, university and education
Understand that just having an international degree on your CV will not be enough in today’s highly competitive world.
Choosing the right study program and university is paramount. Since financial planning is the centerpiece of your preparation process, selecting the right country is crucial to budgeting. Therefore, do not under any circumstances delay this step as it may cause unwarranted chaos at a later stage, Bhonsle told CNBC-TV18.com.
Research scholarships and education loans
Since adequate funds are relevant to your child’s dreams of higher education abroad, it is binding to thoroughly research the most relevant scholarships and education loans. Today, government agencies and many universities offer great scholarships that cover tuition fees and provide a stipend to selected students.
Do groundwork to research immigration policy details
If your child is planning more than just an academically oriented dream in a foreign country, a thorough understanding of immigration policies is essential. Over the past few years, Canada’s pro-immigration policies have attracted a lot of interest from Indian students, Bhonsle said.
Earlier this year, research found that between 2016 and 2019, the number of Indian students opting for a master’s or engineering degree in the United States fell by about 40 percent. This drop has been attributed to former US President Donald Trump’s anti-immigration policies. It is clear that immigration policies can drastically influence people’s choice of country in which to pursue higher education.
Do not underestimate the occurrence of currency fluctuations
When planning and preparing your child’s aspirations to study abroad, it is highly recommended to take into account currency fluctuations. The depreciation or strengthening of the Indian rupee against the US dollar/foreign currency can affect your financial planning. If the INR strengthens, that’s good news for Indian students residing abroad and paying tuition and living expenses (two critical components of a student’s expenses), but the write-off could lead to financial hardship.