Most parents want to provide the best education to their children. However, high cost of education in the private institutions and higher rate of inflation in the educational sector make it difficult for many parents to do it.
“Indian parents usually support their kids for at least 20 years of life without expecting any returns. However, for middle-class parents, it is fairly difficult to finance their children’s expensive study abroad dreams. In most cases, they do it by making huge sacrifices and often using their retirement savings or putting their properties/homes as collateral against loans,” said Prashant K Bhonsle, founder CEO and Founder of Kuhoo Fintech.
“Similarly, many talented students drop their study abroad dreams just because they don’t want to burden their parents or start working early to save a few bucks,” he added.
How to finance higher education
To avoid missing an opportunity of getting higher education of choice in a preferred institution, you may arrange finances in the following ways:
Student loans may be used to fill the gap between the finances available and finances required. Such loans generally provide flexibility in repayment and also tax benefits on interest paid.
“With the advent of new-age fintech platforms specialising in providing assistance in financial higher education, planning for the future has become more accessible, affordable, and convenient,” said Bhonsle.
“Student loans are no longer subjected to uncertainty, long queues and chaotic documentation. Fintech platforms like Kuhoo are using technology to provide student loans at utmost ease,” he added.
“Undoubtedly, today, Student loans are the easiest way to give wings to your study abroad dreams. It can easily support your financial troubles and will not add pressure or burden on the parents or guardians,” Bhonsle further said.
Saving and Investment
To ensure that the available finances don’t fall short of the finances required, parents should plan early and start saving and investing as soon as possible.
“Most parents are continuously under pressure to ensure the financial constraints don’t hinder their child’s educational journey. Therefore, parents must start planning finances ahead of time and take the right steps to support their child’s future endeavours, especially in terms of education,” said Bhonsle.
“Foremost, it is vital to set a goal for higher education. This can vary between Rs 2.5 lakh to Rs 1.5 crore or more, depending on your child’s aspirations, capabilities, and higher education dreams. It is advisable to start investing in regular SIP and compounding so that you can reach your fund goals with ease and efficiency,” he added.