Education loans have become the primary source of funding for many students to pursue higher studies abroad. These loans help students cover their entire expenses associated with studying abroad. A student loan disbursement is crucial for students to access their loan funds. 

A student forex card is a secure way to disburse your student loan funds. Disbursing your education loan into a Forex card helps you manage your funds while studying abroad. 

In this article, we will walk you through what a student forex card is and how it helps education loan disbursements. We have also covered the benefits of using a Forex card for education loan disbursements.

Understanding Education Loan Disbursement Meaning

Before learning about education loan disbursements via Forex cards, let’s first understand what a student loan disbursement is. Education loan disbursement is the process of releasing or transferring the sanctioned student loan funds to the borrowers. It refers to the transfer of the sanctioned loan amount from the lender to the university’s or the student’s account to cover educational expenses, as specified in the loan agreement.

  • It is the final step in the education loan application process, which occurs after approval. 
  • Lenders often disburse the loan amount required to cover the tuition fees directly into the university’s account, depending on the university. The rest of the loan amount is released into the student’s account either in a lump sum or multiple disbursements, according to the loan agreement and the student's requirements.
  • However, most universities do not accept payment of tuition fees directly from the banks. They rely on third-party mediators, like Flywire, who receive tuition fees and other university expenses from the bank and then transfer the funds to the university's account.
  • Many lenders are reluctant to disburse tuition fees through third parties. This often results in a delay in the disbursement. Delays in the disbursement process can lead to late payment penalties and visa application issues. 

Now, when you go via WeMakeScholars, an organization funded and supported by the Ministry of IT, we have a dedicated post-sanction team to resolve any Disbursement issues you may face after sanction in no time. Get in touch with our team today to avoid issues in your student loan disbursement process.

What is a Student Forex card?

Student forex cards refer to foreign exchange cards used by students studying abroad. They are designed to help international students manage their expenses while abroad. Students can load their student forex cards with money in foreign currency and use them to cover their expenses abroad. Students can loan the forex cards before and during their course. 

Student forex cards are a convenient way for students to carry money while pursuing higher studies abroad. They reduce the risk of carrying large amounts and offer protection against currency exchange rates*, which we will learn further in the article. Now that we have covered what education loan disbursement and student forex cards are, let’s learn about student loan disbursements through a forex card.

*Read: How Exchange Rates Affect Repaying Foreign Student Loans

Using a Forex Card for Student Loan Disbursement

So, is it possible to disburse education loan funds into a student's forex card? Yes, student loan funds can be disbursed into a Forex card. Students should opt for a Forex card from their lender before disbursing their education loan funds into one. However, many banks are offering a student forex card option along with their education loans for abroad studies, further simplifying the process. Here’s how students can use a Forex card for education loan disbursements.

  • As we discussed earlier, banks often transfer the tuition fees directly into the university’s account. 
  • Banks can disburse the rest of the student loan funds directly into the student’s forex card either in a lump sum or multiple disbursements, depending on the loan agreement and the student.
  • Students can use their Forex cards to cover their living expenses and other educational expenses.

Read: Can You Pay Tuition Fees Using a Forex Card?

To disburse your student loan funds via a Forex card, you should choose the right lender offering a Forex card option with education loans. However, choosing the right lender for an education loan to fund your studies can be quite challenging, as different lenders offer varying options. 

Contact WeMakeScholars, an organization partnered with over 15 public and private lenders. When you apply for an education loan through us, our experienced team will help you find the most suitable lender providing forex card services along with education loans, according to your profile. Request a callback today to contact our team.

Benefits of Using a Forex Card for Student Loan Disbursement

The following are several benefits of using a student forex card for education loan disbursements.

  1. Exchange Rate Lock-in: This is one of the major benefits of disbursing your education loan funds into a student forex card. A student's forex card is a secure way to carry and spend education loan funds for students pursuing studies abroad. Forex cards reduce the risk of currency exchange rates. When you load a Forex card with your student loan funds, you can lock in the exchange rate on your student loan funds on that date. This means that your loan amount in the forex card will not be affected by fluctuations in the currency exchange rate.
  2. Quick Disbursement: Banks can generally disburse the student loan funds relatively quickly into a Forex card. When you use a student forex card for your education loan disbursement, banks load the necessary student loan funds in a relatively short period.
  3. Track Expenses: Students can monitor the transactions on their Forex cards. This helps them track their expenses and manage their student loan funds abroad.
  4. Financial Management: As we already discussed, student forex cards are specifically designed for students studying abroad. Students can load their education loan funds onto the forex card in foreign currencies before their course. This helps them easily access and manage their education loan funds while studying abroad. 

Conclusion 

Managing your educational expenses while studying abroad can be quite challenging. Fluctuations in the exchange rates are a major challenge for education loan disbursements for students studying abroad. This is why most banks offer a Forex card along with education loans to help students manage their funds abroad. Using a student forex card for education loan disbursement can help you avoid that risk. 

Disbursing their education loan funds on a Forex card allows students to avoid the risk of currency exchange rates. However, students should choose the right lender offering student loans along with a Forex card. Contact WeMakeScholars to find the right student loan provider for you. 

When you apply for your student loan through us, one of our experienced financial officers carefully analyze your profile before connecting you with the most suitable lender, according to your requirements and eligibility. The financial officer will take care of your entire loan process. We also have a dedicated post-sanction team to help you resolve any issues with your education loan after the loan is sanctioned. Request a callback today, and a dedicated financial officer will soon reach out to you.