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.
Thank you for sharing such great information. It has help me in finding out more detail about Educational Loans For Studying Abroad
ReplyDeleteThank you for sharing this information. It has helped me to know more about
ReplyDeleteEducational Loans
Nice and interesting information and informative too.
ReplyDeleteCan you please let me know the good attraction places we can visit: Best Education Loan In India
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
ReplyDeleteThis article was quiet helpful , looking out for Overseas Study Loan . Hope to find the best option.
ReplyDeleteStudy 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.
ReplyDeleteThank 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
ReplyDeleteIt 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
ReplyDeleteHad 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
ReplyDeleteFound a relevant link on Educational Loan, Check this more details :
ReplyDeleteEducational Loan