When planning to study at one of the top study abroad destinations and universities in the world, a good financial sustenance plan becomes crucial to the entire plan. With the turn of the century and easier access to financial plans, loans, scholarships and financial aids, with the help of 21st-century technology, financial planning to study abroad has become that bit easier.
There are several aspects to planning your finances to study abroad, including researching the best loans, scholarships and other financial aids. Additionally, certain tips and tricks can also help you save on money and costs, thus, making the entire study abroad experience better.
However, a good financial plan to study abroad is a must if you wish to study at the top universities abroad. Your sponsor, be it your parents, guardians, or any other third party, must be aware of the costs of studying abroad and should take up the responsibility to help you achieve your dreams.
One of the best ways to know the closes approximate costs of studying at any one of the study-abroad destinations, such as the US, the UK, Canada, Germany, New Zealand, Australia, etc, is to reach out to study abroad specialists or experts, who have helped thousands of students to enrol at different universities across the globe.
If you are planning to study abroad and are confused about how to begin planning your studies abroad, then we recommend connecting with our study abroad experts who have helped students enrol across different universities all over the world. Register with us now and reap the benefits of receiving top-class study abroad tips and tricks to ease your study abroad journey.
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Study Abroad Financial Planning: Factors to Determine Overall Budget
To begin planning your finances to study abroad, the first step should be determining the common costs and other factors that come along with studying abroad. These factors range from day-to-day costs to monthly expenses and semester expenses, along with yearly and one-time costs. Here are some of the factors to consider when determining your budget to study abroad.
Day-to-day or Weekly Expenses: Find and calculate the estimated expenses that you will have to pay every day such as travel expenses or grocery expenses. While the costs will remain at the minimum, small amounts every day can add up to large sums over a period of time.
Monthly Expenses: Costs such as rent, electricity and water bills, mobile/network costs, etc. are just a few of the common monthly expenses that all students studying abroad incur. One of the major components to studying abroad is paying the students health insurance, which in some countries is collected monthly, quarterly or annually, depending on the insurance and insurance provider chosen by the student.
Semester/University Expenses: Depending on the university, department and course, students may be required to pay administrative fees for the semester exams and additional fees such as library charges, etc. Some universities or institutions may even charge their tuition fees semester-wise as well.
Yearly Fees: Major expenses such as renewal of a students health insurance, annual tuition fees, subscriptions, etc are all charges that students will have to pay at the end of each year or whenever due.
Miscellaneous Expenses: When living anywhere in the world, every individual is bound to incur miscellaneous expenses such as emergency runs to the hospital, social events, unforeseen expenses, etc. Since miscellaneous expenses cannot be predicted, it is often better to keep a certain amount saved up in the bank accounts for such purposes.
Once an estimate of the costs, as mentioned above, have been made, it is crucial for the student and his/her sponsor to define their budget. Each country abroad has defined a minimum amount to be available in an international students bank account each month, for instance, in Germany, an international student living and studying in the country must have access to 863 euros every month or 10,356 euros each year (This is a federal requirement for visa purposes).
However, it should be noted, that there will be one-time payments that students may be required to pay even before entering the country. This will differ from country to country and usually include student visa costs, travel and health insurance costs, accommodation costs, and specific to Covid-19 and similar global health situations, health or other test reports, recognised vaccine certificates, etc, will all be required.
How to Fund Your Studies Abroad?
When planning to study abroad, we cannot just ignore the elephant in the room, which are finances. Figuring out the best way to fund your studies abroad will be the most crucial aspect of beginning your journey to study abroad. While some can fully fund their studies abroad, many will find themselves applying for education loans, study abroad scholarships and other financial aids that will cover the costs of studying abroad.
Here are some of the ways you can choose to fund your studies abroad.
Self-fund: If you are fortunate enough to find yourself capable of paying the costs of studying abroad from your own pocket, then this is the perfect option for you. This option can also be possible for those who have enrolled in a university that does not charge tuition costs, such as the public universities in Germany or other countries. Additionally, students can also choose to pursue this option if they wish to split the bill between education loans and themselves.
Education Loans: One of the most common options chosen by students planning to study abroad are the different education loans. In India, the central government along with the RBI and other banks offer good education loans at low costs to the students.
Scholarships: Scholarships are a highly sought after option by all those looking to study abroad, however, only a few ever get the opportunity to reap the benefits. Students can apply to state-sponsored scholarships to study abroad, or even scholarships offered by different countries, universities and even university departments. It should be noted that the scholarships that a student may receive may not fully cover the costs of studying abroad. Therefore, additional financial support will be required in this case.
Financial Aids: Similar to scholarship aids, financial aids seek to reduce the financial burden of students aspiring to study abroad. Financial aids such as bursaries, awards, and even discounts are some of the common aids that students have received. Similarly, the financial aid will not cover the entire cost of studying abroad and therefore, may require additional funding to cover the costs of studying abroad.
Sponsorship: Students can also seek out sponsorship from companies, organisations and institutions that are willing to pay the costs of a students study abroad aspiration. In certain cases, companies and businesses sponsor the education of promising employees, in a bid to make them academically and professionally qualified to take up larger roles in their business/company.
If you are planning to study abroad and need funding, the best option may be to apply for education loans offered by different banks. It has been the highest opted choice by any Indian student planning to study abroad. In most cases, your study abroad counsellor will be better suited to tell you which options lay ahead of you and which loans can truly benefit you.
For assistance in choosing the right education loan to study abroad, register with us and connect with our study abroad experts who have helped thousands of students search for, apply to and begin their studies abroad. Our counsellors can also help you know which loans, scholarships and financial aids are available to you as well.
Arranging Funds for Emergencies While Studying Abroad
There are several ways students can arrange funds to study abroad, even before applying to any university abroad, since most expenses are either predictable or can be calculated. However, emergencies, as the name suggests, can arise out of nowhere, requiring students to pay up significant amounts of money.
However, there are several different ways to arrange funds for emergencies while studying abroad. Some of the popular methods often used by international students abroad include:
Credit Cards: For those with access to one, credit cards often allow students to pay up for emergencies quick and easy. However, a downside to using credit cards abroad is the unnecessarily high surcharges and currency conversion fees, that are applied to every transaction made with credit cards.
Wire Transfer Services: Wire transfer services have been among the more popular options used for emergency transferring of funds. Parents or guardians can usually transfer money on the wire, by submitting the necessary details such as the reasons for doing so and the beneficiary details along with the PAN card, passport and address proofs. However, wire transfer services are usually known to complete the transaction within two days.
ATMs: Recommended if students are in dire need of hard cash, they can visit an ATM of the corresponding networks and withdraw the required amount. However, similar to using credit cards, when used, debit cards will also see overseas usage charges, which include cross-currency markups and ATM withdrawal charges.
Forex Cards: For those in dire need of immediate monetary assistance, Forex Cards are usually the most optimal and pocket-friendly option. Apart from access to immediate money, forex cards can be refilled at any point of time online with absolutely no cost to the consumer. Unlike credit and debit cards, forex cards can help surpass currency conversion charges and overseas usage charges.
Bank-to-Bank Transfer: One of the more traditional, and probably the least opted option, is bank-to-bank transfers. The slow transaction times, high currency conversion rates and exorbitant transfer fees make it one of the most annoying options. However, this option can be beneficial if there are offers put up by the banks.
However, we recommend planning contingencies for emergency situations that need you to pay up large sums of money. While forex cards are the best option available to any international student planning to study abroad, it is better to consult with a financial expert on the situation before you travel abroad.
Or you can reach out to our study abroad counsellors who have helped thousands of students pursue their dream courses in their dream universities abroad. Therefore, register with us now and seek answers to your questions related to studying abroad now!
Things to Keep in Mind About Travelling to Another Country for Higher Studies
There are several different aspects that should be considered when travelling to another country for higher studies. However, financial, certain aspects may be more important than others, such as foreign exchange rates, bank accounts, health and travel insurance, and much more. Listed below are some of the things that you should keep in mind when developing a financial plan to study abroad.
Foreign Exchange Rates: Foreign exchange rates are constantly changing every day and sometimes several times a day. Therefore, understanding foreign exchange rates and keeping a tab on the exchange rates will help you in determining a better budget to study abroad. You can choose to talk to a financial advisor or a study abroad counsellor to know more about this and they will help you understand the foreign exchange rates better.
Local Bank Accounts: Each country defines the visa and study abroad regulations for students regarding their financial sustenance. In most cases, students will be asked to open a local bank account and deposit a minimum amount as a requirement for visa approval.
Health and Travel Insurance: Some countries require international students to apply for health or travel insurance before they arrive in the country as part of the student visa requirements. However, even if it is not a requirement, applying for medical or health insurance can make it easier in your pocket. In most countries, medical expenses are usually on the expensive side, however, there are countries that offer free medical aid, even to international travellers.
Insurance in General: While health and travel insurance may be compulsory in some countries, you can also look for other kinds of insurance such as renters insurance, or insurance on your belongings. The rules and regulations regarding this, especially for international students, will vary between different countries, therefore, it is important to go through the relevant information before applying for any type of insurance.
Keep a Tab on Estimated Expenses: As outlined above, keeping a tab on the daily, weekly, monthly and yearly expenses will help you greatly, in planning your expenses. Therefore, devise an estimated expense sheet for each university and location, which will directly help you make a financially informed decision.
While the pointers outlined above will help you make an informed decision, the key fact is that you should be informed and have access to all relevant information. Therefore, our recommendation is to first complete your research on the university you wish to attend, the country and location you aspire to travel to, the estimated cost of living and studying in the location of your choice, and the methods to keep your finances in check and even reduce your financial burden.
Researching and deciding between the numerous options can be a hectic task, however, our study abroad experts, who are dedicated to helping you pursue your dreams, can help you through the entire process. Register with us now and seek the answers to your queries only here!
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