Scholarships vs loans: what’s the right mix for you?

You’ve got your university offer. Now comes the practical question, how are you going to pay for it?

Most students do not rely on one source alone. They usually combine scholarships, savings and loans to build a plan that works for their situation.

The challenge is working out the right balance. Should you wait for scholarship results, use your savings first, or arrange funding earlier so your plans can move forward?

Here’s a simple way to think about it.

First, understand the difference

Before deciding on the right mix, it helps to be clear on what each option does.

Scholarships: support you do not repay

Scholarships are financial awards that can help reduce your study costs.

They may be based on merit, need, background, subject area or other eligibility criteria.

They can help because they:

• Do not need to be repaid

• Reduce your overall education cost

• Can support part, or in some cases all, of your tuition or related expenses

The challenge is that scholarships are often competitive, limited and not always enough on their own.

Loans: structured funding for your studies

Loans can help cover costs upfront when scholarships and savings do not cover everything.*

They may help cover:

• Tuition fees*

• Living costs, within approved limits*

Prodigy Finance offers loans for eligible international postgraduate students studying abroad.* Our current standard product includes USD 100 per month in-school payments, and full monthly repayments begin 6 months after your course is complete.*

That means a loan can form part of a wider funding plan while giving you a clearer route to move forward.*

Why most students use a mix

In practice, very few students receive a full scholarship.

A more typical funding plan might include:

• Scholarships to reduce the total cost

• Savings or family support to cover part of the expense

• A loan to help bridge the remaining gap*

This can work well because it reduces the amount you may need to borrow, while helping you avoid delays if scholarship funding is partial or still uncertain.*

Step 1: Start with scholarships, and stay realistic

It makes sense to apply for scholarships early and broadly.

That may include:

• University scholarships

• Government or country-based funding

• Programme-specific awards

At the same time, it helps to stay realistic.

Scholarship decisions can take time. Some awards only cover part of the cost. Some applications are unsuccessful.

A good approach is to treat scholarships as an important part of your plan, not the only plan.

Step 2: Calculate your funding gap

Once you know your total cost, you can work out what is still left to cover.

Start with your full cost of attendance, then subtract:

• Any scholarships you have secured

• Savings or family support

What remains is your funding gap.

For example:

• Total cost: USD 60,000

• Scholarship: USD 15,000

• Savings: USD 10,000

• Remaining gap: USD 35,000

That gives you a much clearer idea of what you still need to plan for.

Step 3: Use loans to bridge the gap

This is where a loan often becomes useful.*

A loan can help you move forward without waiting until every other source is fully confirmed.*

For eligible students, this type of funding may:

• Help cover the remaining study cost*

• Be assessed based on your profile and chosen programme*

• Be completed through an online application process*

• Go directly to your university when we send the funds to your school*

For many students, that creates more certainty at a point when deadlines and deposits are already approaching.*

Step 4: Think long term, not only upfront

It is easy to focus only on how much you need right now. It also helps to think about what the decision means after graduation.

A few useful questions to ask are:

• How much of my total cost can I reduce through scholarships or savings?

• What loan amount would still feel manageable within my wider plan?*

• Does this degree support the career path I want?*

• Am I making a decision based only on lower upfront cost, or on longer-term value too?

A lower-cost option may be right for you. A higher-cost option may still be worth considering if it supports better outcomes for your goals.

A simple student example

Imagine you receive:

• A partial scholarship from University A

• No scholarship from University B, though stronger career outcomes

At first glance, University A may seem like the safer financial choice.

Even so, University B may still make sense if the long-term value is stronger and you can combine savings with a loan to cover the difference.*

The better choice depends on the full picture, not only the scholarship result.

So, what’s the right mix?

There is no single formula that works for everyone.

A balanced funding plan often looks like this:

• Scholarships, where possible, to reduce your cost

• Savings, to give you flexibility and lower the amount you need to borrow

• Loans, to help you move forward with a clear plan*

The right mix is the one that:

• Covers your full cost

• Feels realistic for your situation

• Supports your longer-term goals

Final thoughts

You do not need to choose between scholarships and loans as if they are opposing options.

For many students, the most practical plan is to use both in a way that fits their timeline, costs and goals.

When you build the right mix, you can reduce pressure, keep your options open and move forward without unnecessary delays.

Ready to plan your funding?

If you’re mapping out your funding mix, you can explore loan options for international students and check your loan eligibility based on your profile and chosen programme.*

*Loan and promotion offers are subject to our eligibility, funding, and credit assessment criteria. Loan amounts are subject to the cost of attendance limits set by schools.