The best way to accumulate funds to finance the study abroad dream of your child is by planning early and investing regularly. If your child gets a scholarship, it will greatly help in reducing the fund allocation.
However, in case you have not been able to accumulate enough money on time, you have to find ways to get an education loan in favourable terms.
“It is every parents’ dream to see their child pursue the right education and achieve their potential. As simple as it may sound, the journey to one’s dream education is challenging and needs navigating through right information and planning. Parents should find the right balance of funding their child’s education through savings, loans and scholarships or grants etc,” said Prashant A Bhonsle, Founder of Kuhoo Fintech.
“Following the dynamic changes of the education landscape in the past decade which got accelerated by the pandemic, we are living in a perpetually changing world of new jobs, new technologies and different skill requirements. The rapidly rising costs of education makes It imperative for parents to plan finances in advance and for that a diligent research and timely advice are needed,” he added.
“Online student loans companies use data science and analytics to create student loan products that depend on a student’s potential rather than parents’ income profiles. Kuhoo Fintech has built technology platforms and processes to make this journey easy for the aspiring students,” Bhonsle further said.
Bhonsle lists some pertinent aspects that one must take into account while choosing the right financial partner for a student loan:
- Check their processing fees, insurance and other charges not only the rate of interest.
- Look at the overall loan structure including the moratorium period and tenor of the loan.
- One thing people tend to overlook initially is the overall processing time including the dispersal turnaround time. Many times, the loan gets sanctioned but then the person is left chasing the company for disbursal, losing crucial time in the bargain.
- The loan servicing policies and processes of the company. Education loans are unique in a way that most of the time, people take disbursals in tranches spanning over a period of a few years based on their fees due dates. One should ensure that the process to get disbursals for the following tranches is well defined and not too complicated.
- If you are going to go abroad, then one should explore different lending companies based on the ancillary services provided by them which might include travel insurance, foreign exchange, bank accounts, credit cards and remittances are few possible options.