Scholarships vs. Student Loans: Which One Should You Choose?

Studying abroad comes with a variety of financial burdens, and this critical question arises whenever you plan your budget for international study.  However, confusion might arise. Initially, it is essential to weigh the pros and cons of both scenarios before making a definitive decision. 

Scholarships come with fewer liabilities compared to student loans, as they do not carry the burden of repayment along with interest, causing less financial pressure on the student. Student loans, on the other hand, offer greater accessibility, providing students with more funds to cover academic expenses. 

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It is essential to consider the key differences between the two to create a budget for your future study plans. For students who do not want to take on future liabilities, considering an option for financial aid or scholarships can be a feasible option. Let’s examine the table below to understand the key metrics that highlight the differences between the two.

Features	Scholarships	Student Loans
Type of repayment	Free, non-repayable	Interest-based repayment
Eligibility	Merit based	Need Based
Accessibility	Highly competitive	Widely available to all
Coverage	Partial coverage	Mainly covers the entire study expanse.
Repayment Timeline	Does not require repayment	Repayment begins after graduation.

 Scholarships: Pros & Cons

• Scholarships do not require repayment of the funds; therefore, they do not come with added financial baggage. 

• It helps students increase their knowledge due to high competition. 

• They are not widely accessible due to high competition; therefore, they are not inclusive of all students. 

• Some scholarships are for a limited period of time and do not cover the entire study abroad experience. 

• Depending solely on scholarships can be a risky choice, considering it's not accessible to all. 

  
  

Student Loans: Pros & Cons

• Student loans cover the entire expenses, including tuition fees, food, and lodging. 

• Student loans are easier to obtain, especially for those who might not meet the competitive expectations of the scholarship committee. 

• The downside of student loans is that high interest rates might be difficult to repay, adding to the burden on the student after graduation. 

• Failing to repay loans might negatively affect the financial reputation of the student or the guardian who has paid for it. 

Conclusion 

While it can be a difficult choice to pick one option, you should weigh the pros and cons of both to make a sound decision. 

Scholarships can be beneficial for someone who has financial backing for other expenses and can handle the competitive pressure that comes along with the tests. 

Student Loans can be favourable for someone who is not afraid of financial liabilities and burdens, who can plan their financial future without worrying about current expenses. 

We understand that the application process can be overwhelming, so we're here to support you. The study abroad experts at Hello Study Global are there for you every step of the way. From preparing for entrance exams to college applications, we will guide you to success.

Feel free to reach out to us at Hello Study Global.

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