Studying abroad in your 40s and education loans: Pros and cons

Today, pursuing higher education in your 40s is considered a good way to fulfil your academic goal that you might have had left incomplete in your younger age, besides unearthing new opportunities for a career switch. But you require a considerable amount of money to study abroad and arranging them can be quite a task. Thanks to the loan opportunities in the market, you can take an education loan to study abroad to ease your finances to a large extent.

To ease your journey, let's look at a few factors you can consider before applying for an education loan for studies abroad in your 40s.

Factors to evaluate for an education loan in your 40s
 

·     Your current age
 

It is crucial to consider the loan repayment terms compared to your age while taking one. This does not mean you should not pursue your higher education altogether. But you need to be careful with your financial decisions, consider the cost of education, and make sure you have compared the age criteria before arriving at your final decision. 

·     Loan tenure
 

Taking an education loan to study abroad in your 40s would mean you might have to pay the EMIs till your 50s. For example, if you have taken a loan for a tenure of 10 years at the age of 45, your EMIs might end when you reach 55. This could impact your retirement planning and post-retirement life. Hence, choose your loan tenure wisely.

Also, read – Education loan eligibility for students: Challenges and solutions

·     Your existing financial liabilities
 

You may have other financial obligations to complete during this phase of your life. For example, you might have to care for your child's education, living expenses, and your parents'/spouse's needs. You might also be paying home loan EMIs and monthly utility bills. Thus, before applying for an education loan to study abroad, it is advisable to plan for your existing financial obligations and their EMIs.

·     Career prospects
 

Before signing up for a higher education course, understand the career prospects and the kind of jobs/salaries you can get after completion. Additionally, try to find out about the growth prospects in that particular industry and alternate career paths before taking an education loan to study abroad. 

·     Cost of education
 

The total cost of education in a foreign country may run into lakhs or even crores of rupees. You may incur significant expenses on food, accommodation, travel, and other overheads. These expenses could balloon into a considerable sum. Research and compare the total cost of education as per the course and country before applying for an education loan to study abroad.

Also, read - Are you making these 5 mistakes with education loans?

To conclude

Apart from the factors that are mentioned above, you should also check your education loan eligibility and the interest rate before applying for it. These parameters may vary from one lender to another. IDFC FIRST Bank offers student education loans of up to Rs 1 crore at competitive interest rates starting from just 9% annually. To know more and apply for this loan, click here.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.