What is World Students Day?

World Student’s Day is observed on 15 October, the birth anniversary of Dr. A.P.J. Abdul Kalam, an aerospace scientist and 11th President of India. A.P.J. Abdul Kalam’s birthday is celebrated as World Student’s Day to recognise his contribution to the education sector and encourage students to march towards their academic goals.

“Ultimately, education in its real sense is the pursuit of truth. It is an endless journey through knowledge and enlightenment.”- Dr. A.P.J. Abdul Kalam.

Key Highlights

·         How to become financially independent from parents

·         What is financial literacy?

·         The role of an education loan in financial independence for students

·         Find the right education loan partner

How to become financially independent from parents

To seek true knowledge, students must give importance to Quality education which can be expensive, and education inflation can hinder your academic path. This forces a lot of parents to liquidate their savings to ensure their children can access best-in-class education. But breaking family savings can be stressful for you and your parents.

To overcome this challenge, students opt for student loans in India which come with a bundle of perks. It allows students to fund their education independently. It is imperative that every student learns to be financially independent and hence must possess financial literacy.

What is financial literacy?

Financial literacy is the ability to make financially prudent choices by developing various strategies such as budgeting, saving, investing and understanding various facets of financial products, including education loans. So, this World Students Day, let’s understand some financial skills.

Budgeting

Financial discipline is essential in your student life. So, budgeting is necessary to define your expenditures to learn to spend judiciously. You can chalk out a monthly budget by figuring out the fixed and variable monthly costs. Once the plan is ready, ensure you religiously follow it to save at the end of the month.

Savings

You may wonder how you can start saving when you are not actively working and how savings will help you. So, the amount doesn’t have to be large. Therefore, even if you save some part of the pocket money, internship stipend or salary from your part-time job, you will be amazed by the money you can save. What is important is that you set aside some amount to help in your higher educational journey.

The role of an education loan in financial independence for students

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When you opt for an education loan, you repay the borrowed amount once you find suitable employment opportunities. Therefore, you don’t have to depend on your parents or relatives to finance your higher studies. It gives an excellent opportunity to parents to plan their retirement and save money for a rainy day. This is how you can become Atmanirbhar.

Credit score

In the near future, you will require other financial products such as car loan, home loan and credit card. Your creditworthiness will play a crucial role when you opt for these financial solutions, which largely depend on your credit score. When you repay your education loan, you build a healthy credit score. This will unlock multiple benefits if you opt for other financial services.

Secure a seat at your dream university

The study programs at reputed and well-ranked universities are expensive. Whether you choose to study abroad or in India, quality education is a must. Higher education at legendary colleges will be within your reach with an education loan. Also, please bear in mind the education expenses other than tuition fees, such as:

·         Accommodation costs

·         Living expenses

·         Study material expenses

·         Cost of learning devices

·         Travelling expenses

·         Other education-related expenses

Did you know that study loans offered by most financial institutions cover all the major educational costs? In fact, at Avanse Financial Services, we offer student loans that cover the holistic cost of education, including all the expenses mentioned above. So, you can leave your financial worries to us and embark on your higher academic journey.

Find the right education loan partner

When you develop financial acumen, you understand various elements of an education loan, such as interest rates, tenure, loan amount, etc. You can always use Education Loan EMI Calculator to find the estimated EMIs and College Course Expense Calculator to understand the potential educational expenses.

When looking for a student loan provider, ensure you look beyond just interest rates. Many students make the common mistake of shortlisting the lender based on the low-interest rates. However, you should consider the overall benefits such as the costs covered, speed of sanction, customer service, customer rating etc.

So, this is how you can become financially independent this World Students Day by opting for a study loan. If you want more information, we will be glad to assist you and guide you on your academic path. If you want any insights into education loans, please feel free to connect with us. Wish you a Happy World Students day!