Smart Funding Moves: How Students Combine Scholarships, Savings & Loans for a Stress-Free Journey

Dreaming of studying abroad? You’re not alone! Yet even though the admission letters are a cause of happiness, the financial aspect of it can be overwhelming. Studying abroad is one that must be planned out between tuition fees, living costs, traveling, and insurance.

The good news? Using a combination of scholarships, individual savings and a study abroad education loan, students can create a financial plan that will reduce stress and provide maximum opportunity.

Let’s break down how smart students fund their international education journey, without draining their bank accounts or losing sleep.

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Why Should I Start with Scholarships First?

When you’re planning to study abroad, your first thought should be: what financial help can I get without repaying it? Scholarships are a great place to start; they’re competitive, but free money that directly reduces how much you need to borrow.

Scholarships are often the first and best form of funding to explore. They don’t need to be repaid, and they can significantly lower your education loan burden.

Types of Scholarships for Students Studying Abroad:

• Merit-based: Awarded for academic excellence.
• Need-based: For students with demonstrated financial need.
• University-specific: Offered directly by institutions to attract international students.
• Government-funded: Programs like Fulbright (USA), Chevening (UK), and DAAD (Germany).
• Subject-specific or demographic-specific: Targeted at certain courses, nationalities, or backgrounds.

Tip: Apply early and to multiple scholarships to improve your chances.

Is Using My Savings Really That Important?

Many students assume they don’t have enough savings to matter, but even a small amount can go a long way. Your savings help with the initial expenses before classes begin and reduce how much you need from a loan.

Every bit saved is a step closer to your study abroad dream. Students often underestimate how much they can contribute from their own or family savings.

How Savings Help:

• Cover visa application and travel costs.
• Pay for accommodation deposits or emergency expenses.
• Reduce the loan amount you need to borrow.

Example of Pre-Departure Budget Using Savings

What If Scholarships and Savings Aren’t Enough?

Even with scholarships and savings, most students still face a funding gap. That’s where education loans come in. Understanding your loan eligibility and choosing the right lender can make all the difference in securing your education dream.

After maximizing scholarships and savings, an education loan for abroad studies helps fill the remaining financial gap.

Education Loan for Abroad Eligibility: Key Factors

• Academic Performance: A strong profile boosts approval.
• University/Course Recognition: Loans are easier to get for top-ranked or accredited institutions.
• Co-applicant Income: Usually a parent/guardian’s financials are required.
• Collateral vs. Non-collateral: Some lenders require property or assets as security.
• Country & Course Type: STEM programs often have higher loan approval rates.

Loan Example for Master’s in the US:

Nomad Credit can help you compare the best loan options from multiple banks and NBFCs, based on your profile and plans.

Can I Mix All Funding Sources Together?

Yes, and you should. Smart financial planning isn’t about relying on just one source, it’s about combining multiple streams to stay financially stable before and during your studies. Think of it like creating your personal funding ecosystem.

No single funding source is enough. The smartest students diversify:

• Use scholarships to cut down tuition costs.
• Tap into savings to manage upfront and emergency expenses.
• Use education loans strategically to cover the remaining, long-term costs.

This balanced approach keeps your credit burden manageable while giving you financial breathing room once you arrive.

What Mistakes Do Most Students Make While Funding Their Education?

Planning to study abroad is exciting, but rushing into financial decisions without proper research can lead to major stress. Learning from common mistakes helps you avoid unnecessary debt and keep your finances in check.

Here are some common mistakes to avoid:

• Waiting too long to apply for scholarships or loans
• Overestimating your savings or underestimating costs
• Ignoring hidden expenses like health insurance or inflation
• Taking a loan without comparison – interest rates and repayment terms vary widely

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Need Expert Guidance to Fund Your Study Abroad Journey?

The best strategy to manage your finances in studying abroad is to combine scholarships, savings and a well planned education loan. However these choices alone can be confusing and time consuming. This is the reason why a lot of students seek the services of a study abroad consultant.

As your personalized study abroad consultant, at Nomad credit, we will assist you in locating the most suitable loan products that meet your profile. Whether it is strategies of scholarship or comparing loans and assisting with applications, we are here to help you make your course load free and financially stable.

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