How Parents Can Financially Plan for Their Child’s Study Abroad Dream

The earlier you start saving, the better. Financial planners suggest parents begin when the child is in high school or even earlier. Here’s how you can start:

• Set a goal amount: Consider tuition, cost of living, insurance, flights, visa, and buffer funds.
• Use SIPs and education funds: Systematic Investment Plans (SIPs) in mutual funds offer long-term returns and flexibility.
• Explore dedicated child education plans: These often come with built-in insurance and maturity benefits aligned to university-age milestones.

Studying in the USA, UK, Canada, Germany, Australia, or anywhere else comes with different cost structures. Parents should research:

• Tuition fees (₹10–50 lakhs depending on course and country)
• Living costs (₹6–12 lakhs/year)
• Visa and travel expenses (₹1.5–2.5 lakhs)
• Hidden costs like exam fees (IELTS, TOEFL), insurance, deposits, etc.

Use university portals or consult a trusted study abroad counselor to get updated and personalized estimates.

Many Indian students win partial or full scholarships from foreign universities. Parents can:

• Encourage academic excellence early on
• Help prepare strong SOPs and application essays
• Research country-specific and university-specific scholarship options
• Look into government and private scholarships for Indian students

Tip: Scholarships are not just for toppers. There are awards based on community work, sports, financial need, and leadership too!

If savings fall short, education loans bridge the gap. Key pointers:

• Apply for secured or unsecured loans from national banks, NBFCs, or international lenders.
• Choose loans with flexible repayment, moratorium periods, and low interest rates (8%–12%).
• Ensure the course and university are approved by the loan provider.
• Compare loan margin, processing fees, and co-borrower requirements.

Using an education loan for study abroad also helps parents preserve retirement savings and maintain liquidity.

Always plan for the unexpected.

• Keep an emergency fund: For medical, relocation, or unexpected delays (₹1–2 lakhs minimum).
• Use forex cards or remittance services with better exchange rates than banks.

Monitor currency fluctuations and try to lock-in rates before the academic year begins.

In India, parents can claim tax deductions on education loans under Section 80E. This includes:

• Interest paid on loans for higher education (for up to 8 years)
• Loans taken for a spouse or child (not just for self)

This benefit reduces your tax liability while supporting your child’s global education.

Navigating foreign admissions, currency planning, and financial documentation can be overwhelming. This is where My Study Offers- Abroad education consultant-comes in:

• We help you estimate realistic study costs across countries
• Assist with scholarship applications and loan documentation
• Guide you through visa, SOPs, financial affidavits, and more
• Offer pre-departure and post-arrival financial advice
• Help you build a country-wise financial roadmap for your child’s education

Financial planning for study abroad is not just about numbers-it’s about enabling your child to chase their potential. With the right blend of early savings, strategic borrowing, and expert support, parents can play the most empowering role in their child’s international journey.

Thinking of starting this journey?
Book a free consultation with our experts today and get a complete financial planning roadmap tailored to your family’s goals.