How to Finance Your Master’s Abroad: Loans, Savings & Scholarships | Mayuri Mhetre

Possibilities to Manage Your Finances to Study Abroad for a Master's Degree

If you are planning to pursue a master's abroad, one of the essential tasks is proving to the visa authorities that you can afford to live and study overseas. This is where managing your finances comes into play. While the dream of studying abroad is exciting, navigating the financial aspects can feel overwhelming. But I will walk you through the possible options for managing finances. Understanding how to finance your education is key to making this dream a reality. There are three main ways to fund your studies: education loans, self-funding, and scholarships. In addition to securing funds, you'll need to consider the various financial components involved, such as tuition fees, living costs, and visa (blocked account) requirements. Let’s dive into these options and the key financial factors to help you make informed decisions about financing your education abroad.

1. Student Education Loan:

Before finalizing the bank from which you can take an education loan, I researched options thoroughly. Comparing interest rates, moratorium periods, and additional benefits helped me make an informed decision. I chose State Bank of India for its competitive interest rate and the additional 0.5% concession offered to female students.

Key Steps in the Process:

a) Documents Submitted:

• Identity proofs (mine and my father’s, as he is the co-borrower).
• Original house documents, as I applied for a collateral loan.
• No Objection Certificate(NOC) from the housing society.
• My father’s income proof.
• Education-related documents: admission letter, fee structure, and living expenses estimate.

b) Processing Time:

As a government bank, SBI’s evaluation process can take longer than private banks. In my case, it took 45 days to assess the documents. Patience and regular follow-ups were key during this period.

c) Loan Sanction and Disbursement:

Once the loan was approved, I visited the main branch with my father to pay the processing fee and receive the sanction letter. This letter was vital for my visa application. Additionally, I requested the first disbursement for my blocked account, attaching proof of this disbursement to my visa documents.

2. Self-Funding Option:

Not everyone takes the education loan route. My friend Nihal, who is pursuing MBA from RWTH Business School, chose to self-fund his education. Here’s his advice for anyone considering this option:

a) Earn Before You Learn:

Nihal worked for six years before his MBA, including international experience. His advice? Don’t rush into a master’s program. Build up experience (and savings) before starting your degree—it’ll make your life much easier.

b) Family Support:

If you’re lucky enough to have supportive family resources, don’t hesitate to seek their help. While it might feel awkward after earning your own income, sometimes family support can ease the financial burden significantly.

c) Save and Work:

Apply early for a student dorm to reduce housing costs and free up your blocked account funds for upcoming tuition fees. Pair this with a work student or HiWi job to earn extra income, easing your financial burden and gaining valuable work experience.

3. Scholarships and Early Bird Discounts:

Various scholarship opportunities can help reduce the financial burden, including Early Bird discounts from RWTH Business School, RWTH scholarships, and DAAD funding options.

a) Early Bird Discount:

Apply early to take advantage of RWTH’s Early Bird Discount, which can save you up to €3,000. This is a great opportunity to reduce tuition costs simply by meeting the early application deadline.

b) DAAD Scholarships:

The German Academic Exchange Service (DAAD) offers a variety of scholarships for international students pursuing higher education in Germany. Explore DAAD funding options here

c) RWTH Business School scholarships:

In addition to securing an education loan, I explored scholarships offered by RWTH Business School. With seven years of experience in software development and data analysis, I applied for the Women in Tech Scholarship, which provides a €4,000 tuition fee waiver. I encourage all prospective students to explore the scholarship opportunities available at RWTH Business School. You can find more details here - Business School Scholarships

For me, taking out an education loan was the best option. The loan allowed me to manage both tuition fees and living expenses. One of the main reasons I chose this option was the flexibility it offered, especially the ability to start repaying the loan once I begin working full-time. This made it a practical choice for me, as I could focus on my studies without immediate financial pressure. However, it's important to note that the right financial choice depends entirely on your personal circumstances. Some students may prefer to self-fund, while others might find scholarships or family support more viable. Ultimately, the decision of how to finance your education abroad is deeply personal and should be based on a careful assessment of your own financial situation.

Warm Regards,

Mayuri Mhetre