With the rising demand for abroad studies, many students rely on education loans to fund their studies abroad. These loans help students cover various expenses associated with pursuing higher education abroad. Many students often change their preferred country of study due to financial and visa approval conditions. However, changing the country on an education loan application midway significantly affects the terms of the loan.

This article covers the Impact on education loans after changing the country of study midway. We have also included a few tips for students to improve their chances of changing the country in the middle of the student loan process.

Understanding How Abroad Education Loans Work

Before understanding the impact of changing country on education loan applications midway, let’s look at how these loans work. Abroad education loans are a financial aid offered to eligible students for education abroad.

  • These loans enable aspiring students to pursue their higher studies at a well-recognized foreign university.
  • These loans make overseas education more affordable by helping students cover their entire educational expenses, including the tuition fees, living expenses, cost of study materials, and other course-related equipment.
  • The student loan eligibility and the loan terms offered for students depend on several factors, including the country of study, the loan type, the field of study, the university, the student’s profile, and the co-applicant’s financial condition.

Obtaining an education loan to fund your studies can be quite challenging, with varying eligibility criteria from different lenders. Contact WeMakeScholars, an organisation 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 loan for your studies abroad, according to your eligibility. Request a callback today to contact our team.

Now, let’s look at the role of the country of study in education loan applications.

Role of Country of Study on Student Loan Applications

The country of study is one of the major factors that impact education loan applications. Your education loan amount and other terms can vary depending on the country you are going to. The cost of living in a country is a major expense that students should consider while planning to pursue higher studies in that country. 

  • Students can use their education loan funds to cover their living expenses while studying abroad.
  • However, the cost of living expenses significantly varies from country to country. 
  • Hence, lenders consider your country of study while processing your education loan application. 
  • It helps them assess the total funds required for pursuing higher education in their preferred country, including the living expenses. And many lenders often prefer to provide student loans for countries with a higher employment rate. This is how your preferred country of study plays a major role in your student loan application.

Can You Change Country on Education Loan Applications Midway?

Yes, you can change country on education loan applications midway, depending on the lender. However, it will significantly impact your education loan by affecting the loan terms, such as loan amounts and interest rates, which we will learn further in this article.

You should inform your lender about the reason for changing the country on the education loan application. Lenders will reassess your loan eligibility based on your updated preferred country and university. 

Why Students Change Country on Education Loans Midway?

Many students opt to change country on education loan applications midway for several reasons, including…

  1. Change in Academic Plans: Students can opt for a country change on the education loan application midway, when they change their academic plans, such as changing their field of study or university. Students often change their preferred country for education loans, considering the university's reputation, quality of education, and career opportunities in the country.
  2. Change in Financial Condition: Co-applicants’ financial condition plays a major role in education loan eligibility. A sudden change in the financial condition of the co-applicant, usually a parent ot guardian, is one of the major reasons for changing country on education loan applications. A sudden dip in the financial condition affects the repayment capacity, making students change their preferred country to make the repayment period more affordable. 
  3. Currency Exchange Rates: Fluctuations in the exchange rates can increase the repayment of an education loan. This ultimately influences students to change their preferred country midway through the education loan process. 
  4. Visa Approval Issues: This is one of the most common reasons why many students change their preferred country mid-way through their education loan process. Students often change the country on education loan applications when their visa for the initial country is rejected or delayed.

These are the common reasons why many students are opting for a country change on study abroad loans midway through the loan process. Keep reading to find out the impact on education loans after changing the country of study midway.

Impact on Education Loan after Changing Country of Study Midway

Changing the preferred country in the middle of the student loan process affects the loan terms offered by the lender. Here’s the impact on education loans after changing the country of study midway through the loan process.

  1. Lenders will reassess the Eligibility: Upon changing the country of study on your education loan application, the lender will reassess your eligibility according to that country and the new university. The lender will then modify your initial loan terms depending on your updated eligibility.
  2. Affects Interest Rate: As we have discussed, the country of study plays a major role in deciding the student loan terms, including the loan amounts, interest rates, and repayment terms. 
    When you change the country on an education loan application midway, the lender will modify the interest rate, according to the new preferred country on the loan application. This means that your education loan interest rate will either increase, decrease, or remain the same when you change country on your education loan application.
  3. Affects Loan Amount: When you change the preferred country, the lender will consider the living expenses of that country and the tuition fees of the new university, and modify the loan terms. This means that your loan amount will change when you change the country on your education loans application. If the new loan amount increases than the initial amount, lenders can require you to include an additional co-applicant or collateral in the loan.
  4. Impact Repayments: Education loan repayments, i.e., the EMIs of the loan, are made up of the principal loan amount and the interest of the loan. Changing the country of study on an education loan application changes the repayments of the loan by affecting the principal loan amount and the interest rate.
  5. Additional Documentation: To change country on the education loan application midway, you should again submit the necessary documents, such as an admission letter from the new university. Lenders can also require additional documents depending on the loan amount and interest rate modifications.

Study Abroad Loan Country Change: What to do?

Many students often struggle to change the country on their education loan application midway without the right guidance. Here’s what you should do about changing the country midway through the education loan process.

  1. Inform the Lender: The first thing you should do about changing country on an education loan is notify your lender. Inform them of your reason for the country change and provide the details of the new country and university.
  2. Consider Including Collateral: Involving collateral reduces the risk for the lender. Consider including collateral to increase the chances of approval for a country change on the education loan from the lender. 
  3. Review Loan Terms: After successfully changing the country, carefully review the new terms offered by the lender. Check whether the modified terms align with your needs and offer affordable repayments.
  4. Seek Professional Guidance: Seeking advice from an education loan expert can guide you on changing your preferred country on the student loan application midway. Contact WeMakeScholars for complete student loan support. 

When you apply for an education loan through us, our team of expert financial officers will carefully analyze your profile to provide the best student loan deals based on your eligibility. They will guide you throughout your loan process to help you resolve your student loan problems, including changing the country. Get in touch with our team by requesting a callback today.

Conclusion

Changing the country of study mid-way through the education loan process significantly impacts the loan. It affects the loan terms such as the loan amounts, interest rates, and repayment terms. Lenders will reassess the eligibility of the students based on the new country and university. However, with careful consideration and seeking advice from an education loan expert, you can change the country on the education loan application without any hassles.

Contact WeMakeScholars for an effortless student loan journey. When you apply for a study abroad loan through us, our team provides complete education loan support and can help you change your country even in the middle of the loan process. Get in touch with us today and get the best study abroad loan for you.