With over two million Indian students expected to pursue international education in 2025, studying abroad is becoming an increasingly popular choice. Offering world-class faculty, diverse academic programmes, and valuable global networking opportunities, an international education can be a significant career booster. However, the journey comes with its own set of financial challenges.
From selecting the right programme to managing expenses, careful financial planning is crucial. To help students navigate educational financing in 2025, here are some key dos and don’ts.
“Being well-prepared and informed can make all the difference. For students planning to study abroad in 2025, financial options from Prodigy Finance, particularly their newly launched co-signer loan options, can be a smart choice. Stay informed, plan wisely, and let your education dreams take centre stage,” said Sonal Kapoor, Chief Business Officer at Prodigy Finance.
Plan Your Finances Early
Start by creating a detailed budget covering tuition fees, living expenses, travel insurance, and health check-ups. A well-structured financial plan will help ensure a smooth experience. If considering an education loan, apply well in advance to avoid last-minute delays. Understanding eligibility criteria, interest rates, and repayment plans early on will also facilitate a hassle-free visa application process.
Make Early Repayments During Study
Most education loans start accumulating interest as soon as they are disbursed, even while students are still in school. Though lenders often offer a grace period, making small early repayments can significantly reduce the total cost of borrowing.
Use Education Loan Calculators for Comparison
Education loan calculators can be invaluable for comparing different loan options. These tools allow students to input loan amounts, interest rates, and repayment terms to estimate monthly payments (EMIs) and total repayment costs. Prodigy Finance, for instance, offers a loan calculator that enables easy side-by-side comparisons, ensuring students can identify the most affordable option for their needs.
Watch for Promotions and Discounts
Financial institutions often provide promotional interest rates and discounts for students. In 2025, staying updated on these offers could lead to significant savings. Signing up for email notifications from reputable lenders ensures students do not miss out on cost-saving opportunities.
Research Scholarships Thoroughly
Scholarships can provide much-needed financial relief. Many universities and institutions offer merit-based and need-based scholarships that can significantly reduce expenses. Prodigy Finance, for example, provides scholarships such as the Allan & Gill Gray Philanthropies African Student Scholarship and the University of Louisville – College of Business Scholarship. Students should thoroughly explore the various scholarships available for their chosen programmes.
Be Aware of Hidden Costs
Unexpected expenses, including fluctuating exchange rates, visa fees, health insurance, accommodation deposits, loan processing fees, and textbook costs, can disrupt a student’s financial plan. Reviewing the total cost of borrowing and seeking a clear breakdown of all expenses from lenders is essential.
Avoid Overborrowing
While it may be tempting to secure more funds than necessary, students must remember that every borrowed penny must be repaid with interest. A well-planned budget should focus on securing only the required amount for tuition and essential living expenses.
By strategically planning finances, leveraging scholarships, and staying informed about loan options, students can embark on their study abroad journey with confidence and financial security in 2025.
