Scholarships vs. Loans: What’s Best for International Students?

International education is a dream for almost every student across the world. However, every dream comes with certain challenges, especially for international students. When you think of pursuing higher education from a country like the United Kingdom, you need a plan.

From colleges to student accommodation, there is a cost for everything. While some students prefer getting admission on scholarships and some on loan. Have you ever thought about what is better for you: SCHOLARSHIPS or LOANS as international students? Well, if you haven’t thought about it yet, let us explain it to you better. This particular blog will cover the intricacies of both scholarships and loan through which you can make an informed decision. Let’s find out further!

Brief on Scholarships

Scholarships are a financial award given by the university on the basis of merit and not references. One has to prove the worth for getting a scholarship. Simply put, scholarships are granted on the basis of merit, financial needs and other academic achievements.

Along with academic achievements, international students can get scholarships on the basis of athletic performance and community service. Besides universities, government, private organizations and non-profit organizations also offer scholarships.

Pros of Scholarships

Some of the key advantages of getting a scholarship include:

• No Repayment: Unlike loans, scholarships are free and you can be stress free from debt after graduation.
• Recognition: Scholarships minimize the cost and add prestige to your academic profile.
• Comprehensive Support: Besides student housing and other expenses, you don’t have to take stress for tuition. Some scholarships also take care of the cost of student accommodation, visas, travel and even insurance.
• Focus on Studies: Without the burden of repayment, international students can concentrate fully on their academics and extracurricular activities. As a result, you have to pay back with good marks and achievements.

Cons of Scholarships

From student apartments to scholarships, everything comes with its own pros and cons. Similarly, some of the disadvantages of scholarships include:

• Highly Competitive: Every university has limited scholarships and are often awarded to the ones who are most deserving. Hence, you have to fight well to get a scholarship.
• Strict Guidelines: University lays down strict guidelines and eligibility criteria to maintain the value of these scholarships. 
• Renewability: Some scholarships require maintaining a specific GPA or meeting other conditions to remain eligible.

Brief on Loans

Now that you are aware of scholarships, you must know about loans too. Loan are basically borrowed funds from banks, private lenders or government departments. The amount of loan has to be repaid along with interest over a specific time period. Simply put, loan provide financial assistance to the ones who may not qualify for scholarships.

Pros of Loans

Some of the top advantages of getting a loan for international students include:

• Easy Availability: There are no specific requirements to fulfil to get a loan. As a result, loans are more widely available and often require fewer eligibility criteria like acceptance letter from college, financial conditions, etc.
• Immediate Funding: With its quick access, every student can get a loan for tuition fees, student rooms and other costs
• Credit Building: Loans help in building a credit score over the time period. This is beneficial for future financial dealings in the United Kingdom.
• Flexible Use: Unlike scholarships, you can use the amount of loan for anything in academics. In short, be it student accommodation, tuition fees or other expenses as international students, you can use the amount.

Cons of Loans

Here’s are some key disadvantages of loans for international students:

• Repayment: Unlike scholarships, you are required to pay back the amount along with interest over a specific period of time.
• Currency Fluctuations: With daily fluctuations, international students might face a risk of increase and decrease of interest.
• Stress: Most of the banks ask for repayment after graduation which often impacts mental health and career choices. This also results in students prioritizing high paying jobs over passion.

Comparison Between Scholarships and Loans

The decision to choose between scholarships and loans totally depends on the situation and resources. You might be the most deserving candidate in your eyes but may not qualify for scholarships. Scholarships are undoubtedly the more desirable option, offering financial relief and recognition without the burden of repayment. However, loans can be a lifeline when scholarships fall short or are unavailable.

To make the best choice, start by comparing the both, explore all your options and start applying to as many as possible. If loans become important, make sure to compare with different banks and know the terms well. You can plan your expenses like student accommodation, tuition fees and others with careful planning.

Plus, remember education is an investment you will do now for your future. As a result, be it scholarship, loan or a mix of both, ensure to give your best!

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