As the cost of education rises in the UAE, families are increasingly turning to personal loans and financial aid to fund their children's university education. Despite careful budgeting, many parents dip into their savings or take out substantial loans to cover the rising expenses. Unlike Western countries, UAE banks offer education loans based on the financial status of parents rather than students.
UAE students, especially citizens, can access scholarships, but international students often struggle to find financial support. Afreen Abdulla, a student at the American University of Sharjah, received 45% financial aid, sparing her the need to take out a loan. However, she acknowledged that financial aid requirements have become more stringent, and the process involves submitting numerous documents for review.
Some families, like Filipino expat Ben Lebig's, prioritize savings over loans, putting aside a fixed monthly amount for their children's higher education. However, others find student loans a necessary option, despite recent interest rate hikes.
In terms of loans, UAE banks offer a repayment period of 48 months with a maximum loan amount of Dh750,000 for UAE nationals and Dh500,000 for expats. Education finance, however, is only available to parents with proof of relationship and immediate repayment requirements after loan approval.
Experts like Rajeed Varghese advocate for policy changes, suggesting that real estate assets should be leveraged to fund education, which would provide more options for parents to finance their children's studies.
