Hi guys,
I am currently working for an MNC in Hyderabad. I am planning for MS from abroad. Hopefully US or Canada? can you suggest me what is the best way to finance my education? My parents and I have savings …should I go ahead with the savings or apply for a loan once my admission gets confirmed?
Please advise
Thanks in advance
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@Ritika
Unless you are ultra rich, spending personal savings for abroad education is never a smart financial decision. In my opinion, you should try for SCHOLARSHIPS or education loans if you find difficulty in getting scholarships
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Hi,
Thanks for the reply. Sadly no, I am from a middle-class family. I dont get it why is it a poor financial decision?
You should definitely apply for a loan. Even if you intend to use your savings for financing your education, think of the loan as a backup option at this stage. You will have an option at a very low cost (processing fees).
As suggested by @momita you should definitely look for scholarship options as Step1.
Tactically speaking, if you are taking a loan from an Indian bank your co-applicant / you will be eligible for tax deductions under Sec80E. This effectively reduces your interest rate by a third if the person repaying the interest is in the highest income earning bracket. You could invest the savings in other asset classes and secure a better return. A lot of high net-worth individuals also end up taking the education loan as a tax saving instrument even though they have liquid funds to pay for education.
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Go for loan… definitely loan…from a financial standpoint… loan is always a better option
How much is your current salary here?
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Whats with salary? In any case, if she study masters in the US, the salary hike will exponential after getting US tag…
Thanks William… hmm… I get it now why is it a better decision… thanks once again
Hi Viswa… My annual package is 13.5L…
Oh alright…thats great… I was asking for the salary cuz if it is quite high as in 30L or 40L… then it wont make sense.
I asked about the salary coz I thought if she is earning in 30s or 40s… then i dont think it is a gud decision.
@Vishwanath…Come on… Someone who already earns 30 40 L per annum wont even think of it…moreover do you think… someone who is in her mid twenties can earn this much that too with an undergrad degree… Use some common sense man…
@ritika as William said… its a smarter decision because you can always use that savings for a good investment with high returns or some emergencies… so if you compare both the options…you will be left with a hefty amount and sense of security
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