International financial aids are provided to those students who are keen to avail this form of financing to study in foreign countries. Financing an education, in any foreign country, is becoming easier day by day. In the recent past, it was not so easy to manage finances for educational purpose and that also in any foreign country.
In some countries like US, the national students are eligible to get education loans, guaranteed by the government, but this process is not for the international students. Recently, the private student loans emerged as a long desired solution for the aspiring students.
Once somebody has decided to avail a private student loan, there are several things which should be considered carefully:
One should carefully asses the need of money and his/her own economic condition and resources because he/she is going to borrow money and bound to return them with interest.
The aspiring students need a guaranteer or co-signer who must guarantee the return of the loan amount. The guaranteer must hold a good employment, credit and income history.
Loan amount is paid to the particular student and not the institution where is is going to study. This has both merits and demerits. If the student is efficient enough to manage financial aspects then it is good. The student would then prefer the tuition, room and board, health insurance and books first. If the student is not eligible, the direct funding will create financial crisis.
These are long term loans carrying duration of 15-20 years. The borrower student, from the beginning of course till six months after the course completion, is free from paying any installment of the loan. After that the re-payment starts in monthly installments and even here, if the borrower is facing some economic hardship, there is the option for the extension of the loan term.
The interest rates are differs from plan to plan. There are several factors which are considered before fixing the interest rates. The important factors are the credit history of the guaranteer and the particular re-payment plan. In any case, the interest generally remains stable between 3 % to 8 % approximately.
No application fees, but an origination fee is needed and that also if somebody has received the loan, and here also the amount gets included in the loan amount, relieving the borrower from paying out of his/her pocket.
Budget After receiving the loan amount one faces the real test of his/her personal financial management abilities because the next step is of making a perfect budget. An all new currency and an unknown cost of living makes the matter more difficult.
An international student is required to have the necessary money to fulfill all these following expenses:
If anyone is getting any kind of grants or assistance from the institution or the university, the important factor that should be considered here is that there are taxes imposed on these awards. Again if somebody is getting any kind of assistance, the first months expenses should be arranged on their own.
Restrictions Regarding Employment:
This is very necessary for an prospective student to think about the financial arrangements before leaving for a foreign land with the purpose to study. One thing should be always kept in mind that, the student cannot depend on the option of joining a job in that country to arrange funds for the purpose. The immigration rules are very much strict and if there is no work permit for any kind of job in the visa, one cannot do that. Again, before sending an application, the evidences of income must be produced and the sources must not be provisional.
There are several types of visa and some of these does not allow the holder to join any kind of job in that particular country and if somebody violates these restrictions, legal actions would be the destiny. Again, the jobs which are offered on campus, are nothing more than a supplement to the original funds. So, make plans for the future only after considering the above factors and also with a realistic view.
A student, who wants to study abroad, and for the purpose wants to avail a students loan can, look for the loan providing companies online.
Last Updated on : 1st August 2013