Education has been the cornerstone of Indian culture, with a long-standing tradition of unwavering support from parents. From carefully planning educational trips to providing timely advice, parents have played an integral role in shaping the educational path of their children. Prime Minister Narendra Modi highlighted the importance of this role of parents during the discussion session on the 8th exam. Their emphasis resonated with the broader theme of nurturing resiliency through family support, acknowledging that the educational journey is not a solitary but a collective endeavor. To navigate this educational scenario effectively, parents can adopt practical strategies.
One particular area worth paying attention to is thoughtful consideration of education loans. Apart from being a financial tool, these loans have emerged as a powerful tool to inculcate financial responsibility in students. By encouraging students to actively participate in financing their higher education, parents empower them as independent individuals. It provides valuable lessons in financial prudence, preparing students for the responsibilities that come with adulthood.
Parents play an important role in fostering and enhancing the educational experience of their children:
Creating a supportive environment: Fostering a conducive and encouraging environment at home is essential for a child’s educational success. This includes inculcating a love of learning, maintaining open communication, and actively participating in their educational activities. Moreover, these days, students do not believe in depending on their parents for their education. Parents can welcome this pro-credit sentiment of their children and encourage them to become self-reliant. Lack of funds will never stop their children from getting quality education as taking an education loan is a viable investment in their children’s future.
Academic Counselling: Parents act as the first point of contact where children will approach them to share their academic aspirations. Students will discuss their plans related to their educational path, career opportunities they wish to pursue, and education loans. Therefore, parents can become their guides, showing them the right direction right from the beginning. They can bring their children on the right path by sharing their perspective, knowledge and latest information on the job market.
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Financial direction: Their experience can add value, particularly in financing. Generally, parents know how financial solutions work, things to keep in mind while applying for an education loan, basic documents required, etc. They can support their children by actively participating in the application process and co-signing on the loan as a co-borrower. , This can enhance the overall creditworthiness of the loan application. Parents can go a step further by considering providing collateral against a secured education loan by pledging assets such as property or fixed deposits. Their guidance and financial assistance can strengthen their child’s morale and contribute to successfully obtaining an education loan.
Teaching financial literacy: Along with encouraging education loans, parents can impart valuable lessons in financial literacy. Educating children about the importance of managing finances, budgeting, spending wisely, saving money and repaying debts responsibly equips them with essential life skills. They should encourage their children to pay Simple Interest (SI) or Partial Interest (PI) during the moratorium period, as it is not an interest-free period, and interest starts accruing from day one. Paying SI/PI develops financially prudent habits. Additionally, parents should encourage students to create an emergency fund in case of an emergency. This way, students can continue their education and pay their EMIs even during emergencies like the pandemic.
Nurturing Resilience: PM Modi’s emphasis on promoting resilience in children highlights the importance of equipping them with the ability to overcome challenges. Parents can develop resilience by teaching problem-solving skills, encouraging a positive mindset, and emphasizing the value of perseverance in the face of setbacks. For example, students who study abroad should take care of their health and finances and study rigorously.
Balancing support and independence: Parents can also encourage their children to develop a sense of independence and responsibility while providing unwavering support. Allowing them to make decisions, take ownership of their education, and learn from their experiences prepares them
