Funding Your Studies: Scholarships vs Loans vs Part-Time Work

Studying abroad is one of the best investments you can make, but it has to be paid for. Most international students combine three sources of money: scholarships, loans and part-time work. Each has advantages and risks. Understanding them helps you build a funding plan that keeps you safe financially.

Option 1: Scholarships

Scholarships are money you do not repay. They range from small one-time awards to full scholarships that cover tuition, living costs and travel.

Pros

• No debt after graduation
• Prestige that strengthens your CV and network
• Often include extras such as insurance, flights and alumni events

Cons

• Highly competitive and time-consuming to apply for
• Some have conditions, such as returning home for two years or keeping a minimum grade
• Deadlines are often a year before you start

Start with our guide on how to find fully funded scholarships.

Option 2: Education loans

Loans can come from banks in your home country, lenders that specialise in international students, or, in a few cases, government schemes.

Pros

• Available quickly and for larger amounts
• Can cover the gap left by a partial scholarship
• Repaying on time can build your credit history

Cons

• Interest increases the total cost, sometimes significantly
• Many loans require collateral or a co-signer
• Repayment pressure can limit your career choices after graduation
• Currency changes can make repayments more expensive

If you borrow, compare the total cost (interest rate, fees and repayment period), check whether interest is charged while you study, and borrow only what you need.

Option 3: Part-time work

Many countries allow international students to work part-time during term and full-time during official breaks.

Pros

• Helps with living costs
• Builds local work experience and references
• Improves your language and networking skills

Cons

• Work hours are legally limited and cannot pay for tuition alone
• Too many hours can hurt your grades
• Finding a job can take weeks after arrival
• Breaking the work rules can put your visa at risk

See the current limits in our guide to part-time work rules for international students.

Comparison table

Building a safe funding plan

1. Calculate the full cost: tuition, housing, food, transport, insurance, visa, flights and an emergency buffer of at least 10%.
2. Apply widely for scholarships first. Even partial awards reduce how much you need to borrow.
3. Use savings and family support next.
4. Borrow only the remaining gap, choosing the lowest total cost.
5. Treat part-time income as a bonus, not as money you depend on to pay tuition.
6. Keep proof of funds ready. Most visas require you to show you can pay for your first year.

First, know your full cost

You cannot choose a funding option until you know the number you need to cover. Count the cost of the whole degree, not only the first semester.

• Tuition and university fees for every year
• Living costs: rent, food, transport, phone and books, for 12 months a year
• Health insurance
• Travel: flights at the start and the end
• One-time costs: visa fees, medical tests, the housing deposit and winter clothes
• A safety margin of about 10% for price rises and changes in the exchange rate

Use the cost-of-living figures on the university’s own website. They are more reliable than general estimates.

A simple budget sheet

COSTS (whole degree)
Tuition and fees            ........
Living costs x months       ........
Insurance                   ........
Travel                      ........
Visa, deposit, set-up       ........
Safety margin (10%)         ........
TOTAL NEEDED                ........

FUNDING
Scholarship (confirmed)     ........
Family or savings           ........
Loan                        ........
Work (low estimate)         ........
TOTAL AVAILABLE             ........

GAP = needed minus available ........

If the gap is not zero, change the plan before you travel, not after.

What "fully funded" and "partial" mean in practice

These examples come from official pages we checked in October 2026.

• Full package: Knight-Hennessy Scholars at Stanford pays tuition and fees, a stipend for living and academic costs, and a travel stipend.
• Tuition plus a small allowance: the GSFS scholarship at Seoul National University pays the full tuition fee and 500,000 won a month for living costs.
• Living costs but not tuition: the Swiss Government Excellence Scholarship pays a monthly amount but does not cover tuition fees.
• Tuition only: the Uppsala University Global Scholarship covers tuition, not living costs.
• Part of tuition: the Boustany Foundation’s Harvard MBA scholarship covers 75% of tuition.

Put each award into your budget sheet with its real amount. A partial award in a low-cost country can leave a smaller gap than a bigger award in an expensive one.

Assistantships and funded positions

For research degrees, the university itself is often the funder. EducationUSA, the US government’s advising network, notes that working as a teaching or research assistant in return for a tuition waiver, a stipend or both is very common at PhD level. If you plan a PhD, look at the department’s funding page and at the positions that professors advertise before you look at loans.

Education loans: questions to ask before you sign

This is general information, not financial advice. Rules and rates differ between lenders and countries.

• Is the interest rate fixed or can it change?
• When do repayments start: during study, or after a grace period?
• Do you need collateral or a guarantor?
• In which currency do you repay? If you earn in one currency and repay in another, a fall in the exchange rate raises your debt.
• What happens if you do not finish the degree, or cannot find a job quickly?
• What is the total amount you will repay, not only the monthly payment?

Compare at least two lenders in writing. Borrow for the gap in your budget, not for the whole cost.

Part-time work: what it can and cannot cover

Work can help with food, transport and small costs. It is not a safe way to pay tuition.

• Your visa sets how many hours you may work, and the limits differ by country.
• Some scholarships restrict work. Commonwealth Scholars, for example, must not take paid employment without approval.
• It can take weeks or months to find a job in a new country.
• Too many working hours can hurt your grades, and many scholarships need a minimum grade to continue.

In your budget, count only a low estimate of work income, and none for the first three months. See our guide to part-time work rules.

How to make the cost itself smaller

Funding is one side of the plan. The other side is the cost, and you control more of it than you think.

• Country and city: tuition and rent differ widely. In some countries public universities charge low fees, and a smaller city can cost far less than a capital.
• Housing: a university dormitory or a shared flat is usually the largest saving.
• Length of the degree: a one-year master’s costs less in total than a two-year one, although it may offer less time for research or internships.
• Daily habits: cooking at home, a student transport pass and second-hand books add up over two years.

Lower the cost first, then decide how much funding you still need.

Three example plans

• Plan A, full scholarship: the award covers tuition and living costs. Savings cover the costs before departure and the first month.
• Plan B, partial scholarship: a tuition waiver, plus family support for living costs, plus a small amount from work after the first semester.
• Plan C, no scholarship yet: a low-tuition country, savings and a small loan for the gap, while you apply for scholarships open to current students.

These are examples. Your own plan depends on your costs and on what each visa allows.

What can go wrong

• Your currency loses value: keep a margin, and avoid loans in a foreign currency if you can.
• The first stipend arrives late: carry enough money for the first weeks.
• You lose the scholarship: many awards continue only if you keep a minimum grade. Qatar University’s scholarships, for example, need a grade average of 3.0 out of 4.0.
• You cannot find work: your plan should still hold without work income.

Frequently asked questions

Can I work while I hold a scholarship?

It depends on your visa and on the scholarship’s rules. Some awards need approval before you take paid work. Read both sets of rules.

Should I take a loan to accept a partial scholarship?

Only if your budget shows that you can repay it in a realistic time, even with a modest salary. Work out the total repayment first.

Can I study abroad with no money at all?

A full scholarship can cover the degree, but the application year still has costs such as tests, documents and the visa. Plan and save for those early.

Do I need to show money for the visa if I have a scholarship?

Many countries ask for proof that you can pay for your studies. A scholarship award letter normally counts toward this. Check the official immigration website for the exact rule.