Savanna Hoffman
International students have several options to fund their degrees. While some students pay for college with their own money or with financial support from their family, others rely on scholarships, financial aid, or loans. The average cost to study in the US for an international student is $41,000 USD per year, so students and their families must consider their funding options carefully.
| Characteristics | Values |
|---|---|
| Scholarships | The Fulbright Program for Foreign Students offers scholarships to 4,000 international students annually. Many schools also offer scholarships to admitted international learners. |
| Financial aid from home country | Many foreign governments offer programs that grant money to citizens pursuing a college degree in the U.S. |
| Private family funds | Many international students use private family funds held in savings or checking accounts to show proof of financial ability. |
| Loans | International students can take out private loans, although many financial aid experts advise against taking on too much debt. |
| Work | International students can work on campus in libraries, labs, food service and residence halls. |
| Health insurance | International students need to pay for health insurance while earning their degree. |
| Payment methods | Payment methods include the university's online payment portal, international wire transfer, credit card, money order, cash, and foreign currency demand draft. |
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What You'll Learn
Scholarships and grants
International students qualify for multiple scholarship and grant opportunities. These include specialized scholarships for international students and scholarships open to all students regardless of their citizenship. Scholarships and grants can fund a portion of an undergraduate or graduate degree. Private foundations, professional organizations, and businesses offer scholarships to help international students pay for college. Many schools also offer scholarships to admitted international learners.
International students can research financial aid through their home country. Many foreign governments offer programs that grant money to citizens pursuing a college degree in the US. Foreign Fulbright Student Program offers scholarships for graduate students from around the world (as well as young professionals and artists) to study in the USA. The Fulbright Program for Foreign Students offers scholarships to 4,000 international students annually. The Aga Khan Foundation International Scholarship provides scholarships to students from select developing countries who have no other source of financial help for their graduate studies. The American Association of University Women offers fellowships for non-American women who want to pursue a Master's or doctorate in the USA. The Marten Bequest Traveling Scholarship is open to native-born Australians aged 21-35 who are of outstanding ability and promise in one or more categories of the Arts. MPOWER Financing offers scholarships for international and DACA students. Its Global Citizen Scholarship Program has the broadest eligibility criteria and is offered throughout the year, and niche scholarships are also available. MPOWER Financing's Chasing Dreams Scholarship celebrates promising international graduate students from China, with awards up to US$5,000. The Joint Japan/World Bank Graduate Scholarship Program provides comprehensive financial coverage, including tuition, a monthly stipend, airfare, health insurance, and travel allowance, to students from developing countries who have provided support to their home country's development and who are applying for a development-related Master's program. Many prospective students find funding through international organizations listed in scholarship databases like the IIE database of grants, scholarships, and fellowships for international students.
Several online platforms provide scholarship search engines for international students. These include International Student, which provides a comprehensive and searchable database of grants, scholarships, loan programs, and other information for international students. Fastweb provides access to 1.5 million scholarships worth $3.4 billion. Students create a profile and are able to keep track of their applications on the website. Buddy4Study is a scholarship search engine for Indian students applying to schools in the USA and other countries. InternationalScholarships.com is another platform that allows users to browse scholarship organizations and private sponsors for international students.
Some international students pay for college with their own money or with financial support from their family. These students use college savings accounts and income to pay for their tuition, fees, and living expenses. Graduate school comes with a significantly higher likelihood of scholarships or assistantships being offered. Many graduate students receive some or all of their funding from the university in the form of graduate assistantships.
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Loans
International students have access to fewer student loan options than most US borrowers. Unless they are eligible non-citizens who can qualify for federal student loans, they may need to borrow from a private lender. Most lenders require a US co-signer for international students because they do not have a US credit history.
International students can research financial aid through their home country. Many foreign governments offer programs that grant money to citizens pursuing a college degree in the US. Foreign companies and organisations also provide funding to international students. Several international organisations offer financial support for international students, including scholarships, grants, and fellowships.
Students can borrow up to their school's total cost of attendance, minus any other financial aid received. The "total cost of attendance" includes tuition, room and board, books and supplies, personal expenses, and transportation. The repayment period typically ranges from 10 to 25 years. There are several repayment plan options, depending on the loan selected. Students can defer payment of interest and principal until six months after graduation, as long as full-time status is maintained. Students can defer payments for a maximum of four years consecutively, which is the typical length of a degree. Students may have to start repaying the principal immediately if they drop their course load to part-time.
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Personal or family funds
International students can pay for their degrees using personal or family funds. This can be in the form of cash or cheques, or direct payments from a family member to the educational institution. However, direct gifts may present issues when filing a Free Application for Federal Student Aid (FAFSA). If the gift is made before the FAFSA is filed, it must be reported as an asset, which may reduce the student's eligibility for financial aid.
Some students use college savings accounts, such as a 529 plan, to pay for their tuition, fees, and living expenses. A 529 plan is a state-run program that allows assets to be transferred to an account for the benefit of a student. The assets in the account grow over time, and there is no tax on distributions out of the 529 plan when the beneficiary goes to school. However, there are limitations on who can contribute to a 529 plan, and there were previously limited options for leftover funds in these accounts. Starting in 2024, 529 account holders will be able to transfer up to a lifetime limit of $35,000 to a Roth IRA for a beneficiary.
Additionally, international students may need to prove their ability to pay expenses when applying to U.S. colleges. Each college has its own requirements, but this can typically be demonstrated through bank statements or financial aid letters. Students usually need to prove that they can pay for the first year of their degree and indicate how subsequent years will be funded.
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Health insurance
International students are often faced with the challenge of navigating health insurance in their host country. The cost of health insurance for international students can vary depending on the country of study and the specific plan chosen. In the United States, for example, health insurance plans for international students can range from $1,500 to $2,500 annually, with the potential for additional costs for added extras and features. On the other hand, in Germany, the cost of student health insurance is between EUR 130 and EUR 150 per month, with cheaper options available through private insurance providers.
It is important for international students to understand the healthcare system in their host country and the specific requirements for their visa and institution. In the US, international students on an F1 visa may need to meet certain state-specific requirements, while J1 visa holders must meet government-mandated standards. Many US institutions also require international students to enrol in a health insurance plan, either through the school or by purchasing their own coverage that meets specific requirements. Similarly, in Germany, international students need to enrol in either public or private health insurance, with certain categories, such as students over 30 or those pursuing non-regular degree programs, being ineligible for public insurance.
When choosing a health insurance plan, international students should consider their personal circumstances, including their health status, finances, and risk tolerance. While lower-premium plans may be tempting, it is important to ensure that the coverage is sufficient and meets the minimum requirements of the host country, institution, and visa. Students should also be mindful of deductibles, allowed amounts, co-pays, and coinsurance, as these can impact the overall cost of healthcare.
To find the best health insurance plan, international students can compare the plans offered by different providers and select one that meets their specific needs and budget. Some highly-rated companies offering international student health insurance include IMG Global, with its Patriot Exchange Program, Student Health Advantage, and Student Health Advantage Platinum plans. Additionally, students can seek guidance from health insurance brokers or use online tools, such as the one provided by DR-WALTER in Germany, to find the most suitable plan.
Overall, having adequate health insurance is crucial for international students to safeguard themselves from unexpected medical emergencies and the associated financial burden. By carefully considering their options and selecting a plan that meets their needs, international students can ensure they have the necessary coverage during their studies abroad.
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Payment methods
International students can pay for their degrees using a variety of methods, including scholarships, personal funds, financial aid, and loans.
Scholarships
International students qualify for multiple scholarship opportunities, including specialized scholarships for international students and scholarships open to all students regardless of their citizenship. These scholarships can fund a portion of an undergraduate or graduate degree. Private foundations, professional organizations, and businesses offer scholarships to help international students pay for their degrees. Many schools also offer scholarships to admitted international learners. For example, the Fulbright Program for Foreign Students offers scholarships to 4,000 international students annually.
Personal Funds
Some international students pay for their degrees with their own money or with financial support from their families. These students may use college savings accounts, income, or investments to pay for tuition, fees, and living expenses.
Financial Aid
Financial aid is any form of funding that helps a student pay for college, such as grants, loans, or merit-based scholarships. International students may qualify for certain types of merit or need-based aid, and some colleges offer financial aid packages specifically for international students. Additionally, international students can research financial aid opportunities through their home country, as many foreign governments and organizations provide funding for citizens pursuing degrees abroad.
Loans
International students can take out private loans to pay for their degrees, although financial experts advise against taking on too much debt. Students can also demonstrate financial ability by providing proof of family funds held in savings or checking accounts.
When it comes to actually paying tuition fees, international students have several options, including:
- University payment portals: Many universities have online payment portals that allow students to pay their tuition quickly and easily.
- Credit cards: Credit cards are widely used in the US, and students can use them to pay tuition without having to carry large amounts of cash. However, students should be mindful of interest rates and maintain the minimum balance to avoid negative impacts on their credit history.
- International wire transfers: This method allows for secure electronic payment from one bank account to another. However, it can be costly and irreversible.
- Foreign currency demand draft: This option is considered reliable and low cost, but it may not be suitable for emergency money transfers due to the lengthy processing time.
- Cash: Depending on the educational institution, students might be able to pay tuition fees in cash. However, carrying large amounts of cash is generally not recommended.
It is important to note that universities typically have their own requirements and accepted payment methods for tuition fees, so students should research and plan their payment options accordingly. Additionally, international students may need to navigate fluctuating exchange rates and transaction fees when paying tuition in a foreign currency.
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Frequently asked questions
International students can pay for their degree through various methods, including scholarships, personal savings, family funds, loans, and on-campus jobs. While some students may choose to pay upfront, it is not a requirement, and there are alternative options available.
International students can explore multiple scholarship opportunities, including specialized scholarships for international students and those open regardless of citizenship. Scholarships can be offered by private foundations, professional organizations, businesses, or the university itself. Additionally, students can research funding opportunities from organizations in their field of study or their home country.
Yes, international students typically need to prove their ability to pay for academic and living expenses for at least the first year of their studies. This can be demonstrated through various documents, such as bank statements, investment statements, scholarship letters, or financial aid letters. The specific requirements vary depending on the university and legal regulations.
Aside from tuition and fees, international students may incur supplementary expenses, including visa application fees, international airfare, health insurance, and currency exchange fees. These additional costs can significantly impact the overall financial burden, especially with fluctuating exchange rates.
