Admission season is here!
Indian and international universities are rolling out application windows, entrance tests, and interview calls, and for thousands of students (and parents), it’s decision time, education planning is no longer optional, it’s urgent. Whether you’re planning to study in Delhi or Dublin, Mumbai or Melbourne, one thing’s clear: higher education requires smart financial planning, and it should start early.
Let’s break down why, how, and when to plan, and whether taking an education loan is the right move for you.
Planning for higher education is not just about picking a course or a college – it’s about preparing for an important financial milestone in your life. Tuition fees, living expenses, exam costs, travel, and emergencies all add up. Starting early helps you:
Even starting 3-4 years before higher education can make a significant difference.
Not every family can pay upfront for higher education – and that’s okay. Education loans are a valuable financial tool when used wisely. But they’re not one-size-fits-all.
Pro Tip: Always check for moratorium options – many banks let you pay only interest while studying. A strong co-applicant (like a parent) can also help secure better interest rates.
Even if your child is in middle school or early high school, the best time to start planning was yesterday. The next best time? Today.
Here’s how parents can get a head start:
If your child plans to study in India, focus on building a corpus aligned with specific entrance exam timelines (e.g., JEE, NEET, CAT). You can stagger payments based on semester fees.
For international education, the approach is different:
Whether it’s Delhi University or Duke University, knowing your “total cost of education” is half the battle.
Higher education isn’t just an academic goal – it’s a financial journey. And like any journey, it’s smoother when you have a map.
Whether you’re eyeing a top college in India or a dream university abroad, planning 3 to 5 years in advance gives you more options for child education plan, more peace of mind, and fewer surprises.
And remember, it’s okay to take a loan – as long as you understand what you’re signing up for and have a strategy to pay it back.
Need help building a custom financial roadmap for your child’s education?
CrispIdea offers personalized wealth planning that helps you prepare for education expenses with clarity and confidence.
Book a free consultation today, send us a message on WhatsApp and we’ll guide you.
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The best time to start is as early as possible, ideally when your child is in primary or middle school. The earlier you begin, the more your savings can grow through compounding.
Even a small monthly SIP of ₹5,000, if started early, can grow to ₹10–₹15 lakhs over 10–12 years. That’s not necessarily enough to fund an entire degree, but it’s a great starting point to reduce loan burden or cover entrance exam, visa, or hostel costs.
The point isn’t how much, it’s how soon.
Start small, start early, and let time do the heavy lifting.
College costs vary widely depending on the course and institution. Here’s a quick overview:
Engineering (BTech): ₹5–₹15 lakhs
Medical (MBBS): ₹30–₹70 lakhs (private colleges)
MBA: ₹10–₹25 lakhs (top-tier)
Arts & Science: ₹1–₹8 lakhs
These costs often exclude accommodation, exam fees, study materials, and living expenses. Planning early helps absorb these extras without financial strain.
An education loan can be a smart option if:
✅ Your child has a confirmed admission
✅ The course has strong ROI (like STEM, MBA, medicine)
✅ You get a moratorium or subsidized interest
✅ You don’t want to liquidate long-term investments
However, reconsider if EMI burden post-graduation will be high or if job outcomes are uncertain. Always compare multiple lenders and interest rates before deciding.
The total cost of international education includes tuition, living expenses, travel, visa, and exam fees. Here’s a general breakdown:
USA: ₹33–₹66 lakhs/year
UK: ₹15–₹30 lakhs/year
Canada/Australia: ₹20–₹35 lakhs total
Germany/France: Tuition may be free, but living expenses still ₹10–₹15 lakhs
Additional costs like GRE/GMAT/IELTS (₹10K–₹25K), visa fees, and flight tickets can add ₹2–₹4 lakhs more. Start planning 2–3 years in advance.
For long-term education goals, SIPs (Systematic Investment Plans) tend to outperform traditional FDs. Here’s how they compare:
Returns: SIPs, especially in equity mutual funds, can offer average returns of 10–12%, while FDs typically offer only 5–7%.
Inflation Protection: SIPs are inflation-beating, while FD interest often fails to keep up with rising education costs.
Tax Efficiency: SIPs held for over 3 years enjoy long-term capital gains (LTCG) tax benefits. In contrast, FD interest is fully taxable.
Risk vs Reward: While FDs are safer, SIPs provide better wealth creation over 10–15 years when planned early.
If your goal is to build a corpus for your child’s future education, SIPs are the more effective route, especially when you have time on your side.
