The government recently revealed that the number of students availing education loans to study abroad has increased by 215 per cent from 2012-13. Recently, Bhagwat Karad, Minister of State for Finance shared in Lok Sabha that around 4.61 lakh students availed educational loans from 2012-2022. Even the number of students taking education loans took a massive jump from 22,200 in 2012-13 to 69,898 in 2021-22.

The Education Ministry too shared the number of Indian students going abroad for higher studies has increased to 750,365, as against 4,44,553 students in 2021. While the number of students is increasing, the question of whether or not it is economically feasible to head abroad remains a big deciding factor.

Usually, a higher education degree in the US may cost around Rs 40 to 50 lakh. A similar, if not more, expense can be seen in Canada, the UK, Australia, and other European countries — some of the most popular study abroad destinations for Indian students. However, is it possible to repay your loan amount by working part-time in these Western countries?

Work hours in US, Canada and European universities 

In the UK, a student on a study visa is allowed up to 20 hours per week during the semester. Considering students can work up to 20 hours per week during the semester in the US too, the added cost of one year might make it more difficult for students to earn their daily expenses, as well put some money aside in savings.

(Data from Erudera.in)

“In the US, Canada, and Australia even the master’s programme is for two years and the cost of tuition fees is relatively higher as compared to the UK. In the UK, it is only one year of post-graduation. The tuition fees in that way are economical as compared to the rest of the world, except the European countries which are Germany, Spain, etc, however, there is a language problem. So, for Indian students, the UK becomes a favourite destination in terms of the tuition fees being comparatively less to other countries,” explains Mayank Maheshwari, Co-Founder and COO, University Living.

Canada, as of now, is on the regulations of allowing full-time work hours to students along with their studies. The same has been done by Australia too, but this facility will be available till June 30, 2023.

Dhruvin Gabani, a first year student at the University of Adelaide says he gets to work 40 hours per week, which helps him take care of his expenses comfortably, however, he is struggling to balance between work and studies. “I am working as a customer service officer but devoting 40 hours a week is getting difficult for me to manage my studies with so much office work. I am going to request my employer to reduce it to probably 30 hours per week,” he told indianexpress.com. 

Currently, students in Australia are being paid approximately AUD 20-21 (for 18-year-old students working in retail chains), Gabani said.

Some countries support it, some not

However, there are some countries such as Singapore where Indian students find it hard to find a part-time job. “There are some private universities in Singapore that do not allow students to get part-time jobs as they want us to focus on our course. But there are also major employment issues, as in, employers take note of the study visa and it gets difficult to get a part-time job,” says Aishwarya Sebastian, who recently completed her BSc (Hons) International Relations from the Singapore Institute of Management.

She also added that part-time jobs pay very less in Singapore. “Students usually get paid SGD 5-7 per hour, which is not enough as the monthly rent is SGD 600 per month for a single room, shared facilities in the faraway areas of the city. Our tuition fee is approximately 10000-12000 SGD per year, so part-time jobs don’t help much in surviving, forget paying off education loans,” Sebastian added.

However, unlike Singapore, some other countries that have higher minimum wage also have more costs of living, experts believe. “Australia, Luxembourg, New Zealand, France, the UK and Germany are some of the countries where per hour minimum wage for international students is among the highest. But a higher minimum wage may also mean a higher cost of living. Students need to be wary of the other determining factors involved like inflation in the desired country, cost of living, and work hours allowed,” said Matthew McLellan, Co-Founder, and CEO of Halp.

Can students pay off their education loan through part-time jobs?

Post Covid-19, the prices for studying abroad have shot up due to the increased cost of accommodation, food prices etc across the world. In such a situation, it is a task to pay off an education loan by working part-time jobs abroad.

“It all depends on the opportunities a student gets in those countries and the possibility of getting a part-time job to cover the maximum expenses for living. But if we have to pick one, it will be a little bit of Europe which can be the cheapest option for Indian students. All the developed countries like the USA, Canada, the UK, and Australia, have a similar range of living expense ratios. There is a bleak difference in money spent by the students on the living expense,” said Rohit Sethi, Director, ESS Global.

(Data from Erudera.in)

“My tuition fee was nearly Rs 2,271,636.57. I stay in student accommodation, for which I pay nearly Rs 12 lakh for a period starting in September 2022 till July 2023, which comes down to 290 pounds per week. The accommodation fees include energy, heat, WiFi, a private room and bathroom and a common kitchen. For groceries and miscellaneous items, my monthly expenditure is 200-250 pounds per month,” shared Mallika Barsaley, who studies in London.

Some students who are currently studying abroad believe that it is difficult to pay off your education loan simply by working part-time (20 hours per week). “The part time job does not help us to cover the education loan but it supports the international students very well in bearing their daily expenses and all other minor costs, bills etc.,” said Sharwi Gadhikar, an Indian student in the UK.

Part-time jobs — entry into the job market

Part-time jobs can act as an entry point into the foreign job market if chosen correctly. If students select a part-time job which aligns with their course of study, they will be able to bag a full-time offer or a part-time extended work experience after their graduation.

“Once students graduate from their respective colleges, the majority of the countries offer post-study work visas which allow students to stay there, use their knowledge and put their talent into the local job market. Thus, it is very important what type of part-time jobs and the working hours are available before choosing the destination,” Sethi said.

These part-time jobs give the students access to the local job market which teaches them how the companies work and also helps build references and contacts in the chosen field, which can become a major plus point for future jobs.

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