More Indians are now going abroad for higher studies with plans to stay and work. But living costs, the lack of job opportunities and the burden of education loans could often pose a problem. Assess the opportunities and be practical before making such a decision

Going abroad for higher studies has become common; the recent trend now is to stay back and take up a job in the country. Sample this: From 2019 to 2023 (till October 2023), the number of Indian students who went to study abroad increased from 586,337 to 765,411, according to data from the Ministry of External Affairs (MEA). Of course, some countries are more popular than the others. From 2019 to 2023, the number of Indian students who received study permits in Canada rose 95 per cent from 218,540 to 427,085, according to data from Immigration, Citizenship and Refugees Canada (IRCC).

Zhran Varghese, 30, who studied MBA in Canada from March 2020 to December 2021, and is now back in Kerala, said that 90 per cent of his peers who went from India to Canada for education, preferred to stay back and looked for a job opportunity there.

But going abroad to study and then hoping to stay back is not easy for multiple reasons, such as huge cost and lack of job opportunities.

Most students bank on an education loan, as there are fewer scholarships available at the undergraduate level compared with what is available for masters’.

Says Charushilla Narula Bajpai, a Delhi-based career counsellor and college planner, and founder director of UniversityConnection.in: “There are fully funded central and international scholarships available at the graduate level, although they may be less common compared to scholarships available for post graduation. This is true for most countries. However, the US offers most merit-based scholarships at the undergraduate level.”

However, those who fail to find a job can face difficulty, as the education loan could become a burden. Says Zhran: “It was challenging for those who stayed back to find a job that met their expectations. Many of them took education loans and the pressure of repayment made them settle for jobs that didn’t interest them.”

Many graduates face difficulties in finding a good job after their studies. Talking about the problem in Canada in particular, Zhran says: “The main challenge arises from the requirement for ‘Canadian experience’ in the job market. Canada’s economy is largely service-oriented and is heavily reliant on petroleum and gas industries, outside of which finding a job becomes tough.”

Here are some strategies to help you cope with these aspects if you want to take up a job abroad after studying there.

The Cost Strategy

Estimate The Cost: The first step is to estimate the tuition fees, which will differ between countries, universities and even courses.

Says Neeraj Saxena, managing director and chief executive officer, Auxilo Finserve, a non-banking financial company (NBFC) that offers student loans: “The cost of education differs between countries and the chosen university. It averages between Rs 20 lakh and Rs 40 lakh per annum and may also vary based on the university and the stream.”

Also, if you are taking an education loan, factor in possible payment delay and/or default charges and loan moratorium period after completing your course. The tuition fee, visa charges, travel cost, accommodation and food cost, medical and travel insurance cost should be factored in. Further there are minimum bank balance requirements for certain countries.”

The living costs may add up to the overall cost even if the tuition fees is lower. For instance, in Germany, several state universities may have minimal or nil tuition fees, but the living cost may be substantial.

Aswin Aji Raj, 28, from Peermade in Kerala, who is now working as a full-time crew member at Wendys in the UK, and is a former student of international hospitality management at the University of Essex, the UK, says that rent is usually the biggest expense when living in a foreign country. As such, preparing a budget for daily expenses can help in estimating the cost.

Also, some of the countries have tightened financial and other rules for students, which may take the cost further up. In December 2023, Canada almost doubled the Guaranteed Investment Certificate (GIC) amount, the balance you are required to keep in your bank account, from 10,000 Canadian dollars (CAD), about Rs 6.07 lakh, to over CAD 20,635 (Rs 12.52 lakh).

Germany and Australia too increased this amount last year. The amount required to apply for a German visa is up to €11,208, up from the earlier cap of €10,000.

Rohit Gajbhiye, founder and managing director of edu-fintech company LEO1, says that factoring in all the expenses, from visa application expenses to potential loan repayments, is crucial.

Manage The Cost: As a first step, look at the cost of your loan. The rate of interest on education loans is usually in the range of 10.5-13 per cent per annum depending on their risk categorisation.

Says Gajbhiye, “The risk categorisation varies based on the reputation and accreditation of the institution, the economic stability of the destination country, the borrower’s creditworthiness and the loan amount.” Also, one should go for a well-ranked college in a country with stable economic environment and a track record of successful students. These aspects could help get a lower rate of interest, adds Gajbhiye.

Students should start with their loan repayment journey during the moratorium period as it is not an interest-free period. They should also explore other loan repayment strategies to mitigate risks associated with currency fluctuations. Says Gajbhiye: “Go for fixed-rate loans or explore hedging options to mitigate risks. Regularly monitor the foreign exchange market and economic indicators to anticipate potential currency movements. Create a buffer by saving in the loan currency to offset sudden fluctuations. Lastly, diversify income sources by earning in the loan currency, or consider investments to act as a hedge.”

Many students also believe they can finance themselves by doing part-time jobs. But this is not easy to come by, and in some cases, it is restricted or not allowed.

Says Aswin, “As laws are getting stricter in foreign countries, it has become tougher to find part-time jobs. For instance, in the UK, finding a part-time job on the outskirts is extremely difficult, while in cities, it is possible. If you have a student visa issued for full-time degree-level studies, you can work for a maximum of 20 hours per week during the term. Keep this in mind while calculating loan repayments.”

Aswin took an education loan to fund his study abroad, and worked part-time while studying. He advises opting for colleges that offer maximum scholarship benefits. Though there are fewer scholarships available, rigorously hunting for them can help. He adds: “If a university program is ranked within 500 in the Times ranking, it will be easier to find a scholarship or loan for that program. Keep track of these scholarships well in advance and prepare for interviews and other scholarship requirements.”

Charushilla lists some of the scholarship options. “Some examples are central scholarships, government scholarships, Commonwealth scholarships and the Erasmus Mundus Scholarships. Then there are international scholarships offered by organisations or other institutions. Students can find these scholarships through various channels, such as university websites, government scholarship portals, scholarship search engines, and international organizations’ websites.”

The Stay-Back Strategy

Ashish Kumar Layak, 26, from Ranchi in Jharkhand, who is pursuing an MSc in Sports Management from the University of Sterling in Scotland, highlights the importance of comparing post-study work visa requirements. He took a loan from a bank to pursue his education and is working part time at a petrol bunk. He says he plans to stay in the UK for at least a couple of years after his course. “Typically, after graduation, international students get a 3-4 month buffer period to leave the country. So, it is crucial to compare the duration of the post-study work visa stipulations and the stayback period to ensure that there is enough time to search for a job,” says Ashish.

Every country may have different laws or regulations on visa requirements for graduating students. For instance, Canada offers students a post-graduation work permit of up to three years if they take a course that is of at least two years. Previously, even students doing one-year diploma courses were given this permit, but the rule was revised last year. Now, students have up to 180 days to apply for the permit after receiving their degree or diploma.

Students in the UK can stay two years after completing their graduation, either for work or to find work. Doctoral students could stay for three years.

International students in the US who have a degree in science, technology, engineering or mathematics (STEM) on the F-1 visa have up to three years to complete optional practical training (OPT).

International students in Germany can apply for an 18-month residency permit to look for a job after graduation, during which time they can do any kind of work. Once they have secured a job, they can also apply for the EU Blue Card or a German residency permit.

Assessing immigration policies, language proficiency requirements, and skilled migration programs is a must before choosing a foreign destination. The choice of a destination with transparent pathways, such as Canada’s Express Entry or Australia’s General Skilled Migration, is crucial.

Says a doctoral researcher at Universite Cote d’Azur in France’s Nice, on the condition of anonymity: “Countries such as the UK, Canada, New Zealand, and Ireland only require you to have good English-speaking skills for a stay-back. However, some European countries may require you to learn the local language if you wish to stay back after your studies.” He moved to France because he was attracted to the social security system that the country offered, including health insurance and unemployment insurance.

In any case, if you decide to go abroad for education, don’t do so because it is fashionable to get a foreign degree or someone you know is getting one. Knowing how long you plan to stay in that country for your education and afterwards, assessing post-study job opportunities, and other factors can give you more clarity in choosing your destination and course.

aaron@outlookindia.com