Tuesday, April 12, 2016

Education loans for studying abroad get dearer



Education loans for studying abroad get dearer

Weakening rupee, hike in tuition fees are forcing students to scale up loan amount
Mumbai, April 11:   

The sharp hike in tuition fees and gradual depreciation of the rupee has significantly increased the education loan burden on students studying overseas. 

In the last five years, the rupee has fallen 40 per cent against the US dollar, from 44.30 levels in April 2011 to around 66.50 now.

Credila Financial Services, a subsidiary of HDFC engaged in the business of providing education loans, has seen the loan size for students going abroad increasing by 5-17 per cent over a period of four years.

The education loan burden, according to Neeraj Saxena, CEO of Avanse Financial Services (an education loan provider), is likely to increase by 3 lakh to around 35 lakh for a student planning to pursue an MS in the US, and by 5 lakh to around 45 lakh for an MBA in the US.

Ajay Bohora, Co-Founder and CEO of Credila Financial Services, said since the global financial crisis in 2007, most states in the US reduced their funding to state-owned education institutions, which has resulted in an annualised increase in tuition fees of 5-6 per cent.

Bohora added that the increase in tuition fees coupled with rupee depreciation has resulted in education loan expenses increasing by around 15.5 per cent annually.

Saxena expects some students, who have already applied for education loans for studying overseas, to come back to enhance or extend their loan. This could be the case for those students who are not able to arrange extra funds.

Credila too has seen parents and students seek an enhancement in their approved education loan amount by 4-8 per cent, mainly due to the currency depreciation.

“We have noticed that most students and parents have now started thinking about payback period and return on investment on their cost of higher education abroad. A depreciating rupee works in favour of Indian students who take up jobs abroad after graduating there,” Bohora said. 

Saxena said there has been a sharp decline in the number of students going to the UK where there are work visa restrictions post-study. 

Between 2010 and 2013, there was a sharp dip in the number of Indian students going to the US. This period saw steep volatility in the rupee and eventually a steep devaluation of the rupee against the dollar. 

Rajika Bhandari, Deputy Vice-President for Research and Evaluation at the Institute of International Education, said that Indian students rely more on US-based funding for their studies than their counterparts in some of the other countries.

Source | Business Line | 12 April 2016

Regards

Pralhad Jadhav
Senior Manager @ Library
Khaitan & Co

Upcoming Event | National Conference on Future Librarianship: Innovation for Excellence (NCFL 2016) during April 22-23, 2016.

Note | If anybody use these post for forwarding in any social media coverage or covering in the Newsletter please give due credit to those who are taking efforts for the same.

10 comments:

  1. Thank you for sharing such great information. It has help me in finding out more detail about Educational Loans For Studying Abroad

    ReplyDelete
  2. Thank you for sharing this information. It has helped me to know more about
    Educational Loans

    ReplyDelete
  3. Nice and interesting information and informative too.
    Can you please let me know the good attraction places we can visit: Best Education Loan In India

    ReplyDelete
  4. Thanks for the wonderful and such informative blog... Also for the student who wants to know more about the same check out this blog which solves all your queries - Auxilo Finserve

    ReplyDelete
  5. This article was quiet helpful , looking out for Overseas Study Loan . Hope to find the best option.

    ReplyDelete
  6. Study in india is made easy with are - Education Loans For Studying Abroad. This will help you remove the barrier and achieve you career goals sooner.

    ReplyDelete
  7. Thank you for sharing the information, i have got the best information. best student loans for studying abroad are wider concept and helps in building your career so that we can get exciting opportunity in future

    ReplyDelete
  8. It was really pleasure to read such a beautiful piece of Article. It just should have elaborated more to get the proper insights but if you are looking for more information just continue to - Education Loans In India

    ReplyDelete
  9. Had a wonderful insight reading this article on Education Loan. If you want to have more such insights and in dept information than you can continue to - Best Education Loan In India

    ReplyDelete
  10. Found a relevant link on Educational Loan, Check this more details :
    Educational Loan

    ReplyDelete