Every child deserves a path toward higher education, however, for many, this is only a dream that is never going to become true. The surging inflation rate in the education sector and higher education costs in private institutes make it very difficult for parents to cope. Parents can only take a step backwards toward low-cost institutions where education quality is most compromised. This way the most talented student also becomes a rotten brain.
Higher Education, Only A Dream For Many
CEO and Founder of Kuhoo Fintech, Mr Prashant K Bhonsle said, “Indian parents usually support their kids for at least 20 years of life without expecting any returns. However, for middle-class parents, it is fairly difficult to finance their children’s expensive study abroad dreams. In most cases, they do it by making huge sacrifices and often using their retirement savings or putting their properties/homes as collateral against loans.”
Further added, “Similarly, many talented students drop their study abroad dreams just because they don’t want to burden their parents or start working early to save a few bucks.”
How Parents Can Financially Support Their Child To Get Higher Education:
Remember even the probability of getting an opportunity is very low in today’s world, so don’t miss any. Be always prepared for your child’s future financial needs with these ideas:
Education Loan
Educational Loans are the best option for a middle-class family to support their child to get higher education. Parents can avail of education loans at low-interest rates, repay in flexible EMIs, and get tax benefits on the interest paid.
Mr Bhonsle said, “With the advent of new-age fintech platforms specialising in providing assistance in financial higher education, planning for the future has become more accessible, affordable, and convenient.”
“Student loans are no longer subjected to uncertainty, long queues and chaotic documentation. Fintech platforms like Kuhoo are using technology to provide student loans at utmost ease,” he said.
He asserted, “Undoubtedly, today, Student loans are the easiest way to give wings to your study abroad dreams. It can easily support your financial troubles and will not add pressure or burden on the parents or guardians.”
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Make Investments And Save
In the view of the future parents should start saving at an early stage and let their savings be invested in high return paying schemes. With surging inflation value of your savings are inversely proportional to time, and it becomes very essential for you to invest.
Bhonsle suggests, “Most parents are continuously under pressure to ensure the financial constraints don’t hinder their child’s educational journey. Therefore, parents must start planning finances ahead of time and take the right steps to support their child’s future endeavours, especially in terms of education.”
Further added, “Foremost, it is vital to set a goal for higher education. This can vary between Rs 2.5 lakh to Rs 1.5 crore or more, depending on your child’s aspirations, capabilities, and higher education dreams. It is advisable to start investing in regular SIP and compounding so that you can reach your fund goals with ease and efficiency.”
