Education loan to bridge the shortfall

Riya is in the final year of her bachelor's in medicine and aspires to go abroad next year for higher study. Riya's father, Anil, is happy with the fact that his little daughter will become a doctor in a few years. But at the same time, he is worried because the money that he has been accumulating for her education may not be enough to finance her study in a foreign country. He is likely to fall short of about Rs 15-20 lakh, despite the fact that he started investing soon after Riya's birth about 20 years ago. Now, he has two options-one is to dip in his retirement savings and the other is to ask his daughter to pursue higher study within India instead of going abroad. This is a very common situation that most parents get into. Nobody wants to compromise on their child's education and try to do the best they can. But the situation like this is common too. Although starting to invest as early and as much as possible helps, it does not ensure that one will be able to accumulate enough corpus for financing the higher education of one's child. The rapid growth of education costs is, undoubtedly, a reason behind it. The other reason is the difficulty to precisely estimate and plan the amount that would be required in the future. Education costs vary widely based on the stream your child wants to opt for. Of

This article was originally published on November 14, 2020.