Planning to study abroad on a loan? Here’s how you can tackle the debt if unemployed
“What if I am unemployed after graduating. How will I repay my loans?” the prospect of studying overseas on a loan may lead to worrying thoughts. Indeed, such apprehension can trigger stress and ignite second thoughts about the decision.
But, the script does not have to be this dire. You can rewrite it and ensure a happy ending.
Experts we spoke to have outlined some solutions that — if executed well — should allow students to push their loan repayment worries away and focus on their academic pursuits.
Investment tools
In the absence of a current source of income, the most foolproof alternative is to explore investing through a well-diversified portfolio. “Utilising their savings in varied, well-researched investment tools and earning returns will help students be prepared for loan repayments,” says Amit Singh, Founder of education loan firm UniCreds.
You can always refinance the loan
Universities have dedicated career centres that work around the clock to help students find meaningful employment that not only helps them repay loans but also eventually apply for a valid work permit, says Akshay Chaturvedi, Founder and CEO of study-abroad platform Leverage Edu.
Nevertheless, in the event a student is unable to repay a loan, he says it can be refinanced. “Depending on the student and cosigner's CIBIL score, they end up sometimes paying a lower interest rate, too.”
However, Chaturvedi has a note of caution: if the student has defaulted on any payments, the refinancing lender may either not consider the application or demand a very high interest rate to offset their risk.
So, what are your other options?
Don’t shy away from part-time jobs and internships
When Mansi Shenoy (name changed) was not able to secure a full-time job opportunity in Ontario, Canada, after completing her Master’s, she turned to side gigs and later got an internship completely unrelated to her field of education.
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