International Student Fee Charging: What You Need To Know

International students often face challenges when it comes to paying tuition fees, as they may be subject to additional charges and strict payment standards. There are several methods available for international students to pay their tuition fees, each with its own pros and cons. These include foreign exchange cards, international wire transfers, payment portals, and money orders. It is important for international students to be aware of potential hidden charges and to consider factors such as safety, flexibility, and transaction costs when choosing a payment method. Additionally, living expenses in a foreign country can be higher, adding to the overall financial burden. Proper financial planning and exploring scholarship opportunities can help international students manage their educational and living costs more effectively.

Payment methods

Credit and Debit Cards

Many universities and colleges accept credit and debit card payments for tuition and related fees. This option is often available through online payment portals on the institution's website. However, it is important to note that some institutions may charge a processing fee for credit card payments, which can range from a fixed amount to a percentage of the transaction value.

Online Banking

For students with a local bank account, online banking is often the preferred method of payment. It is fast, secure, and may not incur additional fees. However, for international students without a local bank account, using online banking in their home country may result in uncompetitive exchange rates and high fees.

Wire Transfers

International wire transfers are a common method for international students to pay their tuition fees. This method allows students to transfer funds directly from their bank account to the institution. While wire transfers are secure and convenient, they can be costly due to associated fees and unfavourable exchange rates.

Cash Payments

Some educational institutions accept cash payments, although this may not be the most convenient or secure option for students. Carrying large sums of cash can be risky, and exchanging money abroad can be subject to cash limits and unfavourable exchange rates.

University Partnerships

Some universities have partnered with specialised payment platforms, such as Flywire or Convera Global Pay, to streamline the payment process for international students. These platforms often offer competitive exchange rates, multiple payment methods, and the ability to track payments. They can be a great way to save money and simplify the payment process.

Funding Options

International students can also explore funding options to help cover the cost of their tuition. These include internal university funding programs (scholarships, awards, loans), external sources (government grants, study loans, sponsorships), or a combination of self-funding and external funding.

Scholarships

The University of Minnesota, for example, offers a Global Excellence Scholarship to all international freshman and transfer students on an F1 visa who are admitted for the fall semester. Students are automatically considered for this scholarship based on an overall assessment of their admission application, with no separate scholarship application required. The University of Minnesota also offers scholarships of $20,000, $15,000 or $10,000 per year for up to four years to international freshmen, and $10,000 per year for up to three years to transfer students entering in the fall semester.

There are also several other scholarships available for graduate international students, such as the Aga Khan Foundation International Scholarship, which provides scholarships to students from select developing countries who have no other source of financial help for their graduate studies. The scholarship is 50% grant and 50% loan. The American Association of University Women offers fellowships for non-American women pursuing a Master's or doctorate in the USA, with priority given to those who demonstrate a commitment to the advancement of women and girls. The Civil Society Leadership Awards offer full scholarships for Master's students from specific countries dedicated to fostering social change. Additionally, the Foreign Fulbright Student Program offers scholarships for graduate students worldwide to study in the USA.

There are also scholarship databases that can help you find scholarships that fit your specific profile, such as International Student and Fastweb. These databases provide information on grants, scholarships, and loan programs for international students. It is important to be cautious of dishonest scholarship offers and never send money or personal financial information to any organization promising a scholarship in return.

Additionally, some universities may offer financial incentives for students to attend their institution, and both private and public institutions may waive application fees in certain situations. It is always a good idea to consult with the university to take advantage of any financial supplements or waivers they may offer.

Interest rates

International students need to be aware of the interest rates they will be subject to when taking out a loan to fund their studies. Interest rates are a crucial factor to consider when borrowing money, as they determine the total amount that needs to be repaid. The interest rate is a percentage of the borrowed money that must be paid back on top of the original loan amount. For example, borrowing $1000 for a year at 10% interest (APR) would result in monthly repayments of $87.92, with a total repayment of $1054.99 ($1000 principal + $54.99 interest).

International student loans often come with higher interest rates than those offered to domestic students, which can lead to higher overall debt. These interest rates can vary between lenders and may be subject to change based on the duration of the loan. It is important for borrowers to understand the terms and conditions associated with their loans, including the potential for variable interest rates that can fluctuate over time due to market and economic factors.

When considering how to finance their education, international students should explore all available options, such as scholarships, grants, and federal or private loans. Credit cards are another option for paying tuition fees, but it is important to be mindful of the high-interest rates and potential compound interest that can accumulate with delayed payments. Additionally, currency exchange rates and transfer fees can impact the overall cost when sending money internationally.

To make informed financial decisions, international students should carefully research the different types of loans and their associated interest rates. Understanding the financial commitments and creating a financial plan are crucial steps to ensure responsible borrowing and a positive global learning experience.

In addition to tuition fees, international students should also consider the cost of living in their chosen country. Maintenance rates for living expenses are often set in advance based on inflation forecasts, but actual costs may be higher by the time of arrival. It is important for students to plan their expenses, including daily needs, travel, and settling-in costs, to ensure a smooth transition to their new country.

Additional costs

International students are often faced with additional costs on top of their standard tuition fees. These extra charges can include annual college fees, living expenses, and other miscellaneous costs.

Annual college fees, which vary between institutions, are used to cover a range of educational, domestic, and pastoral services and support. For example, the University of Cambridge estimates that international students will need a minimum of £14,880 for living expenses for a full 12 months, excluding tuition and college fees. This amount can vary depending on the student's lifestyle and whether they stay in Cambridge or the UK during vacations.

Living expenses for international students can be higher than for local students due to the need to cover accommodation, food, transportation, and other daily necessities in a new country. These costs can be particularly high in cities with a high cost of living or when the student requires specialized equipment or resources for their studies.

When it comes to paying tuition fees, international students may also incur additional charges. These can include service charges associated with the payment portal, bank transfer fees, or credit card interest rates. For instance, using a credit card to pay tuition fees can result in high-interest rates, especially if there are delays in payment. Similarly, online banking may have extra fees compared to in-person transactions at a bank.

To save money, international students can explore options like Forex cards (prepaid cards with foreign currency) or international wire transfers, which may offer better exchange rates and lower fees. Additionally, scholarships for international students in specific fields, such as law or architecture, can provide financial support and reduce the overall cost of studying abroad.

Discounts

International students can avail of several discounts to help them save money. These include discounts on entertainment, food, clothing, electronics, and travel.

Entertainment

Many entertainment services offer student discounts. For example, Amazon, Hulu, and Spotify all offer student discounts on their annual and monthly plans. Prime Student offers a free six-month membership, while Audible offers a free audiobook when signing up. Apple Music is also available at half price to students.

Food

Several food chains offer discounts to students, including Subway, Chipotle, Burger King, and McDonald's. These deals vary by location, but students can typically receive between 10% and 20% off their purchase by presenting their student ID at the till.

Clothing

Many clothing brands offer discounts to students worldwide. For example, students in Canada can get discounts at Roots, Eddie Bauer, and TOMS Shoes.

Electronics

Students can get discounts on electronics such as laptops, phones, and tablets through companies like Dell, Microsoft, and Apple.

Travel

International students can benefit from travel discounts with an International Student Identity Card (ISIC). The ISIC is available to both international and domestic students and is recognized in 130 countries. It provides access to discounts on travel, shopping, and museums. Additionally, Etihad Airways offers international students exclusive discounts on flights, with 10% off in Economy and 5% off in Business.

It is always worth inquiring about payment-size discounts and checking for any hidden charges. Students can also save money by using a foreign exchange card, which is prepaid with foreign currency and can be used for withdrawals and payments.

Frequently asked questions