An education loan is a robust bridge between students and their academic aspirations. With student loans, you can fund your education independently. Many students, who are often first-time borrowers, are unaware of the costs that are covered by education loans. So, let’s understand what exactly is covered by student loans and does an education loan cover living expenses.
Key highlights:
- About Education Loans
- Benefits of Education Loans
- Expenses Covered by Student Loans
- Tuition Fees
- Does an Education Loan Cover Living Expenses
- Accommodation Costs - Do Student Loans Cover Room and Boarding
- Travel Costs
About Education Loans
An education loan in India is a fantastic tool to fund your academic ambitions independently without depending on your parents. Education loans are available for courses in India and abroad, which gives you the freedom to make choices that align with your academic plans. You can repay your student loan in the form of simple interest (SI)/partial interest (PI) or Equated Monthly Instalments (EMIs).
Benefits of Education Loans
An education loan provides several advantages. Education loans can help gain access to quality education that would otherwise be unachievable because of high costs. An important aspect of a student loan is financial responsibility and independence. An education loan gives you an opportunity to fund your own education while not relying on parents for financial support.
This also means that students will not have to liquidate or sell family assets or their family’s long-term savings. In addition, a timely repayment of the education loan will also provide a model to build a healthy credit history, giving students an early head start in developing a positive credit score. This can unlock several benefits when opting for other financial solutions, such as a home loan, car loan, or credit card.
Expenses Covered by Student Loans
Tuition Fees
Tuition fees represent one of the most significant components of an education loan. These fees are charged by educational institutions for courses and for providing other educational facilities. Tuition fees are applicable for courses offered in Indian as well as international universities, and are meant to cover everything from lectures to seminars, assessments, academic facilities, and other services, depending on the educational institution. An education loan covers the tuition fee, as stated under your chosen university or college’s fee structure.
Does an Education Loan Cover Living Expenses
Living expenses constitute an essential part of an education loan, especially for study abroad students. These expenses are your day-to-day needs like food, groceries, electricity, internet, mobile charges, and other miscellaneous day-to-day expenses. Living expenses will also include the cost of study materials and learning devices.
So, you must be wondering - does a student loan cover living expenses? Yes, most student loans cover the living expenses. However, it is advised to check the percentage of living expenses and which components will be covered by your chosen lender. When living expenses are covered by student loans, it becomes easier to concentrate on your studies with no additional stress regarding the management of money. So, you can use student loans for living expenses and leave your finance-related worries behind.
Accommodation Costs - Do Student Loans Cover Room and Boarding
It is imperative to consider accommodation costs, as they add up quickly. Various types of accommodations will include on-campus and off-campus spaces such as dormitories, apartment homes, home stay, private apartments, and shared housing facilities. Education loans cover the accommodation expenses.
Some lenders may require proof, such as your rental agreement or confirmation of your hostel stay, before disbursing funds towards accommodation. Including accommodation costs in an education loan will help student return to a safe and readily available living environment without causing undue financial stress on their families.
Travel Costs
You have to consider travel expenses that you will incur when travelling to your study destination, as well as those that you will incur when travelling between your university and your accommodation. The student loan will also cover your travel expenses. Travel-related documents, such as flight tickets or visa-related documents, are usually required during the education loan process.
So, can you get student loans to cover living expenses and other education-related expenses? The answer is yes, student loans cover the educational costs, enabling you to focus on your academic journey. Before applying for an education loan, consult with your chosen financial institution to understand the expenses that will be covered, so you can make wise decisions.
At Avanse Financial Services, we offer student loans that cover the holistic cost of education, including tuition fees, travelling expenses, accommodation costs, the cost of learning devices, living expenses and education-related expenses. You can try our EMI education loan calculator to calculate the education loan EMI that will best suit you. If you have any questions, please don’t hesitate to contact us. We will be glad to assist you.
Also Read: Education Loan vs Self-Finance - Best Option in 2025
.png)
.png)
