Meeting the skyrocketing costs of abroad education has become quite challenging nowadays. The exorbitant tuition fees, living expenses, and other associated costs can quickly burn a hole in anyone’s savings.
Nevertheless, with the wide availability of personal loans for education, students can feasibly fund their abroad studies without running their savings into the ground. However, before you apply for a loan, you must know what expenses the loan covers and what it doesn’t.
So, here’s a list of expenses covered under education loan.
Tuition fees amount to over half of the total education expenses of a student. So, these expenses are covered under all education loan lenders, regardless of whether they are NBFCs, public banks, private banks, international lenders, etc.
From accommodation and utility bills to food and travelling, living expenses are a broad category that includes various little costs associated with day-to-day life abroad. However, there’s no uniformity in how living expenses are covered under education loans.
Lenders usually put a limit on monthly living expenses, which is a percentage of the total loan amount. So, it’s best to discuss the coverage of living expenses at length with your lender before making the deal.
Additional Read –Facts you need to know about Education Loan
Most universities abroad require students to have health insurance before flying to the respective country. As a result, most education loan lenders cover the costs of health insurance. However, it’s best that you check with your lender, as the coverage of insurance costs varies from lender to lender.
Travelling abroad can itself be a considerable expense and one which can easily run into lakhs. Taking this into account, many banks now offer the provision to include travelling costs in the education loan coverage, allowing you to keep your savings intact.
With that said, it’s important to note that lenders don’t usually include the travelling costs as a default part of the loan. You may have to explicitly request this inclusion to enjoy this benefit.
As a side note, before you add more to your loan, run it through a personal loan EMI calculator to get hold of your future EMIs and interest payable.
Other study-related expenses
Not all your study-related costs are covered in your tuition. Many other expenses are associated with your academics, such as buying books, library subscriptions, field visits, trips, etc. Covering these costs out of your pocket may be a bad move, as they all carry a huge price tag.
Fortunately, many education loan vendors cover these costs as well. But it’s still best to clear it out with your lender before moving forward.
Additional Read – Things to Know Before Availing an Education Loan for Studies in India
Now that you’re aware of all the education loan inclusions, you can make an informed decision and get a loan in line with all your needs.
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