Studying abroad is a dream for millions of Indian students. Access to world-class universities, global exposure and better career opportunities make international education very attractive. However, one major concern often stands in the way – finances.
Studying abroad can seem expensive and overwhelming due to tuition fees, living costs, travel costs and currency fluctuations. The good news is that with the right mix of scholarships, education loans and smart financial planning, studying abroad is more possible than ever.
This blog details everything Indian students need to know about financing their study abroad, from grants and loans to budgeting and long-term financial planning.
Understand the costs of studying abroad
Before creating a financial plan, it is important to understand where your money will go. The total cost of studying abroad usually includes:
1. School fees
● US and Canada: ₹15-40 lakh per annum
● UK: ₹15-30 lakh per annum
● Australia: ₹18-35 lakh per annum
● Europe (Germany, France, Nordic countries): ₹5-15 lakh per year (many public universities have low or no tuition fees)
2. Living expenses
Housing, food, transport, utilities and personal expenses may include the following expenses:
● ₹8–15 lakh per annum depending on the country and city
3. Other costs
● Visa fee
● Health insurance
● Flights
● Books and supplies
● Initial setup cost
Understanding the whole financial picture helps you plan realistically and avoid last-minute stress.
Scholarships for Indian students studying abroad
Scholarships are one of the best ways to reduce your financial burden. They are non-refundable, making them extremely valuable.
Types of scholarships available
1. Merit-based scholarship
Awarded on the basis of:
● Academic achievements
● Standardized test scores (IELTS, GRE, GMAT, SAT)
● Extracurricular achievements
Example:
● The university's merit scholarship
● Academic Excellence Award
After evaluating students from economically weaker backgrounds, they were given:
● Family income
● Financial documents
● Common in the US and some European universities.
3. State-funded scholarships
Very prestigious and competitive, for example:
● Chevening Scholarship (UK)
● Fulbright-Nehru Scholarship (USA)
● Australia price
● DAAD Scholarship (Germany)
These often include tuition, living expenses, travel and insurance.
Most universities offer:
● Partial exemption from tuition
● Program-specific scholarships
● Discount for early application
Many Indian students miss these simply because they do not apply in time.
5. Private and external scholarships
Suggested by:
● Foundation
● Businesses
● NGO
Examples include Tata Trust, Inlex Foundation and JN Tata Endowment.
Tips to Maximize Scholarship Chances
● Start research 12-18 months in advance
● Maintain strong academic records
● Create a compelling statement of purpose (SOP)
● Apply for several scholarships, not just one
● Adhere to all deadlines carefully
At NexCognitive, students receive personalized scholarship shortlisting and application guidance to improve their success rate.
Education loans for studies abroad
Even with the scholarship, many students are unable to cover their tuition fees. Education loan for Indian students is a practical and widely applicable option.
1. Safe loan
● Collateral required (property, fixed deposit)
● Low interest rates
● Higher loan amount (₹20 lakh to ₹1.5 crore)
Offered by public sector banks like SBI, Bank of Baroda, and PNB.
2. Unsecured loan
● No collateral required
● High interest rates
● Loan limit is usually ₹40–75 lakh
HDFC Credila, ICICI Bank, Banks like private banks and NBFCs and international lenders.
What does an education loan cover?
● School fees
● The cost of living
● Travel cost
● Health insurance
● Books and learning materials
● Laptop (in many cases)
● Interest rates vary from 8% to 14%
● Repayment usually starts after the end of the course + grace period
● Many lenders offer tax benefits under section 80E
Choosing the right lender is important to avoid long-term financial stress.
Scholarships vs Education Loans: Which Is Better?
The ideal approach is not choosing one over the other—but using both strategically.
Best strategy:
Use scholarships to reduce tuition costs and loans to manage remaining expenses comfortably.
Smart financial planning for studies abroad
Financial planning goes beyond grants and loans. It's about managing money wisely before, during and after your studies.
1. Budget for studies abroad
List:
● Annual tuition
● Monthly living expenses
● Emergency fund
● Currency exchange costs
Having a clear budget can avoid overspending.
2. Planning for currency fluctuations
Exchange rates can have a significant impact on expenses. Keep a buffer fund to deal with sudden changes.
3. Open an international bank account
Helps:
● Avoid high exchange fees
● Get part-time income easily
● Manage expenses effectively
4. Work part-time
Most countries allow international students to work:
● 20 hours per week during the semester
● Full time during holidays
Part-time work can help cover living costs, but should not be dependent on paying for tuition.
5. Avoid unnecessary debt
Only borrow what you really need. Lower loan amounts mean faster repayment and less financial pressure after graduation.
Long-term return on investment (ROI)
Although studying abroad is expensive, it is also an investment in the future.
Graduates from international universities often benefit from:
● High starting salary
● Global job opportunities
● Work visa after study
● Strong professional network
Countries such as Canada, Australia, the UK and Germany offer work-after-study options, allowing students to recoup the cost of education over time.
How NexCognitive Helps with Financial Planning
At NexCognitive, we understand that finances are an important decision-making factor for Indian students and parents.
● Scholarship identification and application
● University shortlisting based on budget
● Guidance for education loans and comparison of lenders
● Financial documentation support
● End-to-end study abroad planning
With the right guidance, students can fulfill their international education dreams without unnecessary financial stress.
Final Thoughts
Studying abroad doesn’t have to be financially overwhelming. With proper planning, timely applications, and expert guidance, Indian students can successfully manage their education expenses.
By combining scholarships, education loans, and smart financial planning, you can focus on what truly matters—your education, growth, and global career.
If you’re planning to study abroad and unsure about finances, NexCognitive is here to guide you every step of the way.