Banks and non-banking financial organizations (NBFCs) are taking extra care when reviewing education loans as a result of the pandemic. For their master’s programs this year, numerous overseas colleges are not requiring GRE or GMAT scores. As a result, financial institutions are more careful when evaluating a student’s profile.
For example, if a student received a GRE score of 320 out of 340, she would be considered a good student in the lender’s system, and her application would be forwarded for further review. “If a student does not have a scorecard from the admissions exam, we must now evaluate other variables such as financial goals and payback plans once the course is completed. We analyze students’ employability once they complete the program they enrolled in, and we forecast their income ranges,” says a retail banker who asked to remain anonymous. Banks also consider whether the co-applicant or guarantor can repay the education loan if the student fails to do so. If the lender is not satisfied with the applicant’s educational background, internships, or work experiences, the education loan application may be denied or sanctioned with higher interest rates.
The preceding evaluation criteria go beyond the typical criteria used by financial organizations to examine applicants. This involves assessing the student’s previous educational profile, international university acceptance, course enrolment, employment history if any, entrance exam scorecard, collateral security for an education loan, and so on.
“After considering aspects such as the impact of the pandemic on economies and the job situation in their chosen country,” says Arijit Sanyal, MD & CEO of HDFC Credila Financial Services.
“After evaluating considerations such as the impact of the pandemic on economies and the employment environment in the country of their choosing, many students have decided to pursue their higher education ambitions rather than postpone them,” says Arijit Sanyal, MD & CEO of HDFC Credila Financial Services.
Tuition costs in the United States and the United Kingdom generally increase by 5% each year. However, the average rises this year is roughly 2.5 percent. “Due to the epidemic, there has been very little growth in tuition prices imposed by these overseas universities,” says TNI Career Counselling CEO and Founder Dhaval Mehta.
Due to the pandemic, several colleges in the United States, the United Kingdom, Canada, and elsewhere have announced more scholarships this academic year than in previous years,” says Naveen Chopra, Founder & Chairman of TCGlobal. However, not all students are qualified for overseas university scholarships. This is due to the fact that the student has not taken the GMAT or GRE admission exam.
Quarantine guidelines for students travelling overseas are in place, but they are always changing. “Norms differ from one country to the next, as well as from one university to the next. According to Chopra, “some colleges are reimbursing the entire cost or 50% of the cost of quarantine in foreign countries.”
In the United Kingdom, for example, most colleges cover the entire expense of quarantine. The tuition payments will be decreased by this amount. “Likewise, top Australian universities will cover the cost of quarantine for international students. Most Canadian universities, on the other hand, do not repay this expense,” says Mehta.
In the US and Canada, there are no quarantine requirements if a student travels from India and has had both vaccinations. “However, this may vary depending on the scenario in August-September, when students prefer to travel overseas for the fall semester. The delta plus variation, as well as the prospect of a third pandemic wave in India, could provide difficulties,” says Rohan Ganeriwala, Co-Founder & Director, Collegify. He adds that in such a situation, the foreign country may ask students to be quarantined despite there being fully vaccinated.
If a student travels from India and has had both immunizations, there are no quarantine restrictions in the United States or Canada. “However, depending on the situation in August-September, when students opt to travel abroad for the autumn semester, that could change. The delta plus variation, as well as the possibility of a third wave of the pandemic in India, could cause disruptions,” says Rohan Ganeriwala, Co-Founder and Director of Collegify. He goes on to say that in such a case, despite being fully vaccinated, the other country may ask students to be confined.
If you don’t get the vaccine, you’ll have to go through mandatory quarantine according to the foreign country’s rules, which might last anywhere from 10 to 14 days. This will be an additional expense for students who are studying abroad.
“Many parents are unable to cover the costs of mandated quarantine,” says Eela Dubey, founder of EduFund. In the education loan, ICICI Bank allows students to claim up to 15 days of quarantine expenditures.
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