Best Ways to Finance Your Studies in Abroad

Doing a graduate degree outside involves expenses, although a budget helps you know how much you will need; know the financial alternatives to find educational options within your reach.

Studying abroad is the golden dream of more than one, however, the costs involved in a postgraduate abroad are in many cases the first challenge to overcome.

To achieve this objective, the first step is to inform you, you must make a budget of the costs that you will have to assume , because in addition to the maintenance and the tuition it is important to consider the travel expenses and the contingencies.

"Before knocking on doors to obtain a loan, it is important to have a budget of the expenses that will be assumed, so that the amount of financing is not insufficient," explains Alejandro Carriedo, director of university credit at Santander.

To make a successful budget take into account:

* The cost of the trip

* Payment of tuition (with and without scholarships)

* Rent where you will live

*Feeding

* Transportation from the place where you stay to school

* School material (books, material for practices and travel expenses for some field practice)

* Medical insurance and incidentals

"Many people consider that they can work at the same time they do a master's degree, but the extra income for a part-time job should not be considered until there is a solid offer of employment,"

Once you are clear about the budget that you will need, it is necessary to create a strategy to fund it, for which you can choose two paths: financing and a savings fund.

The savings or investment fund will take time , your ability to save and the level of risk that you can tolerate will define the term you will need to reach the goal.

How do Educational Loan work?

Unlike in the United States, where 90% of students fund their studies with bank loans, in Mexico the offer of special loan to study abroad is reduced , Santander for example works on the development of a financing product that can cover Up to 90% of the cost of the degree or postgraduate, with a maximum duration of 2 and a half years in the case of master's degrees, 3 years for a bachelor's degree and six months for special or diploma courses.

The maximum amount of the loan will be 500,000 and the term to pay will depend on the amount, in addition to which it will begin to pay from the first month after the first provision, with a term of up to 10.5 years according to the following mechanism:

- The duration of your career or graduate will pay only interest.

- When you finish your degree or graduate, you will have a maximum tolerance of six months. To find a good job.

- Once this time has ended, what you have not paid (the unpaid balance) will be changed to the payment scheme in equal installments with a maximum term of five years to settle.

It is still a matter of time for this scheme to become a reality in the market, however, it promises to be an option for those interested in going abroad to train.

In the case of Laudex, which is a non-bank financial specialized in educational loans, the mechanics are that semiannual or quarterly payments are made and the interest is paid monthly, the maximum term to settle once you return and find work is five years and the maximum amounts are 350,000 or 400,000 depending on the graduate program.

Process to request financing

1-Be clear about what masters and university you chose

2.-Budgeting how much you will need and in what term

3-Collect requirements as proof of identity and the signature of a joint obligor (endorsement).