You have dreams of studying at a prestigious college. But to make it a reality you need to chalk out a financial plan.

ambitious girl's guide

Your academic dreams hold great importance not just for you, but for your parents as well. There’s no doubt they are doing everything they can to ensure that you receive a good education. But that’s no reason why you shouldn’t take up part of the responsibility.

Current trends indicate that the cost of higher education is constantly increasing by approximately 15 percent each year. This expense can go even higher if you choose to study abroad.

But don’t be disheartened. Here are some ways to help you put yourself through your dream course:

1. Education loans

Many students have realised their dream of studying at a prestigious college by availing of education loans. This helps you pay your tuition fees and you can repay the amount, with interest, over the next few years. Here some things you should know before you apply for an education loan:

Eligibility – Any Indian student who has secured admission in an Indian or foreign college/university recognised by an educational authority can apply for a loan. Naturally, you should have completed your higher secondary education.

What will it cover? – All full-time, part-time, and vocational courses of graduate or postgraduate level. It will also cover accommodation and stationery expenses.

How much will it pay? – Some banks sanction a loan for the whole amount, while others give a loan up to Rs 4 lakh. For Indian institutions, you’ll be required to pay 5 percent of the total amount to get a loan for the rest of the amount. For foreign institutions, you’ll be required to pay 15 percent of the total amount.

Collateral and guarantee

  • Collateral is required for loans above Rs 7.5 lakh
  • Third-party guarantee for loans from Rs 4 lakh up to Rs 7.5 lakh
  • No collateral or guarantee required for loans up to Rs 4 lakh

Interest rate – Varies from 8% to 10% p.a. (can go up to 12% in some cases)

Documents required -

  • Admission letter from the educational institution
  • Fee structure of your chosen course
  • 10th, 12th, and graduation (if applicable) certificates
  • Salary slips or Income Tax returns of your co-applicants (parents/guardians)

Repayment – Some banks may provide a relaxation period of six months or a year after you complete the course or secure a job. An education loan is usually supposed to be repaid in 5-7 years but can be extended.

What’s more, you can avail of a deduction on the interest you pay on your education loan for up to eight years. As you can see, an education loan provides much-needed financial support so you can concentrate on your studies without having to worry about fees.

2. Internships

If you have some free time after you are done attending classes and completing assignments, enrol for an internship. Whether it’s data entry or writing blogs, organisations are always on the lookout for interns. An internship will prove to be not only a valuable learning experience but also a source of income.Even a small amount will make a great difference if your parents are paying your fees or if you’ve taken a loan.

3. Scholarships

To encourage excellence in a particular field, many colleges and institutions provide scholarships to their students. The procedure typically involves a few exams and interviews, after which the concerned authorities decide whether you are eligible. Whether the scholarship covers your entire fees or a part of it depends on the institution’s discretion. Why not apply for one? You never know; you might get the scholarship – and some financial relief.

You can also avail scholarships under government programmes. For instance, Finance Minister Arun Jaitley announced the 'Prime Minister’s Research Fellows (PMRF) Scheme' in this year's budget. The scheme aims to identify 1,000 best B.Tech students each year from premier institutions and provide them with a handsome fellowship to pursue Ph.D in IITs and IISc. 


You may not be able to fund your college or university education on your own, but don’t let that discourage you from doing whatever little you can do. The cost of higher education is rising year after year, so not letting your parents bear the whole burden is the least you can do.