"₹" is Falling: Should This Affect Your Study Abroad Plans??

1. How an Education Loan Functions as a Safeguard Against Depreciation

Surprisingly, securing an education loan can actually help you counter currency devaluation. Here is why:

You borrow in INR, but repay in foreign currency later: Once you begin working abroad, your earnings will be in dollars or euros, whereas your loan remains in INR. If the rupee continues to drop, you will need fewer foreign units to clear the exact same loan balance.

Tax Advantages: Under Section 80E of the Income Tax Act, the interest paid on an education loan qualifies for tax deductions, further lowering your overall expenses.

Grace Period Benefits: Most educational loans provide a moratorium period during which repayment is not required until you finish your degree and secure employment.

Illustration: Assume you take out a loan of INR 20 Lakhs today. In 5 years when repayment commences, if the rupee has weakened further and you earn in dollars, the installment will feel significantly smaller than if you had originally borrowed in USD.

Expert Advice: Choose government-backed student loans or options with lower interest rates to maximize your savings. Review this loan eligibility tool for non-collateral education loans abroad.

2. Apply for Scholarships

Grants and scholarships can drastically lower your total expenditures. Consider pursuing these specific types of funding:

Merit-based scholarships: Intended for students with exceptional grades or strong academic records.

Need-based scholarships: Numerous universities offer financial aid if you can demonstrate monetary necessity.

University-specific scholarships: Certain institutions provide exclusive financial awards solely for international applicants.

Government scholarships: Programs like Fulbright, Chevening, and DAAD that cover both tuition and living costs.

Private organization grants: Many corporations and NGOs assist students pursuing specialized disciplines.

Expert Advice: Begin your scholarship search 6 to 12 months ahead of time and submit applications to as many options as possible to boost your approval odds. Keep in mind that competition is fierce.

Here is a compilation of the top 10 scholarships for studying abroad that you can review.

3. Utilize Forex Cards to Secure Favorable Exchange Rates

Instead of transferring funds when exchange rates are high, you can utilize forex cards or specialized currency services to lock in better rates. Here is how:

Forex Cards: Prepaid cards preloaded with foreign currency at a locked-in exchange rate. They shield you from currency volatility and generally feature lower transaction fees than traditional credit cards.

Remittance Services: Digital platforms such as Wise, Revolut, and Western Union deliver superior exchange rates and smaller fees compared to standard banks.

Lock-in Rates: Certain providers permit you to reserve a rate beforehand so that further drops in the rupee will not impact you.

Expert Advice: Always evaluate rates across multiple platforms prior to executing a money transfer. Even a marginal difference in exchange rates can preserve thousands of rupees.

Looking for a comprehensive forex card guide? We have got you covered.

4. Take Up Part-Time Employment While Studying

Numerous nations permit foreign students to engage in part-time work. Consider this: you can make between USD 15 and USD 20 per hour, or sometimes even more, while completing your studies. Popular part-time employment paths include:

On-campus positions: Library assistant, research assistant, or teaching assistant roles.

Retail and hospitality: Working in restaurants, serving as a barista or cashier, or handling food deliveries.

Freelancing: If you possess talents in graphic design, content creation, tutoring, or video editing, this represents an excellent choice.

Illustration: Working 20 hours per week at USD 15 hourly yields USD 1,200 monthly. That amounts to USD 14,400 annually, which is sufficient to pay for rent, groceries, or a portion of your tuition fees.

Below is some helpful material regarding top part-time jobs and strategies for securing them:

• Part time jobs in USA
• Part time jobs in UK
• Part time jobs in Australia
• Part time jobs in New Zealand
• Part time jobs in Canada
• Part time jobs in Netherlands

Expert Advice: Target universities located in countries offering post-study work permits so you can sustain your employment following graduation and fully leverage your international exposure.

Final Thoughts

Undoubtedly, a devalued rupee may feel like a major obstacle, but through prudent financial planning, your study abroad ambitions can still become reality. Scholarships, part-time jobs, foreign exchange tactics, and student loans can collectively lower your costs and successfully manage currency fluctuations.

The secret lies in planning early and taking calculated actions.

This concludes the very first edition of our newsletter. Please share your feedback on whether you enjoyed it or not. Was it too lengthy? Did I wander off the topic? Were you expecting something different? Readers might wonder where to send their thoughts, but here it is: jaideep.hooda@Ashiraj.in

Ha-ha, signing off now.

Jai