Foreign Students: Vital Cash Flow For Universities?

Foreign students are a vital source of funding for universities, especially in countries like the US and UK, where international students make up a significant proportion of the student population. With rising education costs, many universities rely on foreign students to bring in additional revenue through higher tuition fees and other expenses. This has led to a growing trend of universities targeting international students as a key source of income, with some institutions offering limited financial aid packages specifically for this group. However, it's important to note that foreign students themselves often struggle to secure funding, with minimal scholarship opportunities and strict work restrictions in their host countries. As a result, many are forced to rely heavily on personal and family sources for financial support.

International scholarships

International students play a significant role in university funding, especially in countries like the United States, where nearly 60% of tuition and fee payments for the 2022-23 academic year came from international students and their families. However, minimal scholarship aid is available to international students, and most of it is reserved for graduate study.

Undergraduate international students often rely on personal and family sources of funding, and scholarships for this group are highly competitive. Nonetheless, there are several scholarship opportunities for international students, and I have provided a detailed list of some of these below.

MPOWER Financing

MPOWER offers scholarships for international and DACA students. Its Global Citizen Scholarship Program is open throughout the year and has broad eligibility criteria. MPOWER also offers niche scholarships, such as the Chasing Dreams Scholarship, which is open to international graduate students with Chinese citizenship, with awards of up to $5,000.

The Aga Khan Foundation International Scholarship

This scholarship provides support to students from select developing countries who have no other source of financial help for their graduate studies. The scholarships are 50% grant and 50% loan.

The American Association of University Women Fellowships

These fellowships are offered to non-American women seeking a Master's or doctorate in the USA. Priority is given to women committed to the advancement of women and girls, and the scholarship may be reapplied for every year of the program.

The Civil Society Leadership Awards

This program offers full scholarships for Master's students from specific countries dedicated to fostering social change.

Conacyt Scholarships

Conacyt provides scholarships for Mexican students pursuing postgraduate studies in institutions abroad.

Foreign Fulbright Student Program

This program offers scholarships for graduate students from around the world, as well as young professionals and artists, to study in the USA.

Joint Japan/World Bank Graduate Scholarship Program

This scholarship program provides comprehensive financial coverage, including tuition, a monthly stipend, airfare, health insurance, and a travel allowance, to students from developing countries who have supported their home country's development. It is for those applying for a development-related Master's program.

IEFA

IEFA is a database of scholarships for international students and information for US and international students wishing to study abroad. It has partnered with leading providers of international student loans to enable talented students to pursue their dreams of an international education.

College Board

The College Board supports 7 million students annually as they prepare for college and oversees the SAT college admission test. Their website offers scholarship and financial aid information from more than 2,200 programs.

Fastweb

Fastweb provides access to 1.5 million scholarships worth $3.4 billion. Students can create a profile and track their applications on the website.

InternationalStudent.com

This website has a comprehensive and searchable database of grants, scholarships, and loan programs for international students.

Fulbright U.S. Student Program

This program sends recent college graduates and early career professionals to live, study, and conduct research abroad in 140 countries.

Fulbright English Teaching Assistant Program

This program places recent college graduates in classrooms in 75 countries to help teach English and serve as cultural ambassadors.

The Boren Award for International Study

This initiative provides funding for US undergraduate students to study less commonly taught languages in world regions critical to US interests and underrepresented in study abroad.

Critical Language Scholarship (CLS) Program

The CLS Program offers fully-funded intensive summer language institutes overseas in fifteen critical languages.

Congress Bundestag Youth Exchange (CBYX)

CBYX provides merit-based scholarships to recent vocational graduates and young professionals for a one-year professional study and training experience in Germany.

Benjamin A. Gilman International Scholarship Program

This program supports US undergraduate students of limited financial means who wish to study or intern abroad. It includes the John McCain International Scholarship for Children of Military Families, which specifically supports US undergraduate students who are children of active-duty military personnel.

Foreign Language and Area Studies (FLAS) Fellowships

FLAS Fellowships provide opportunities for outstanding undergraduate and graduate students to engage in area studies and world language training.

There are also country-specific scholarship opportunities:

• ColFuturo provides scholarships for Colombian students pursuing postgraduate studies abroad.
• Buddy4Study is a scholarship search engine for Indian students applying to schools in the USA and other countries.
• Edukasyon lists various scholarships for students from the Philippines.
• The Organization of American States, based in Washington, DC, offers interest-free loans through the Rowe Fund program to students from Latin American and Caribbean countries to finance their graduate, postgraduate, and final two years of undergraduate studies in the USA.

Private international student loans

Foreign students are a vital source of funding for universities, especially in the United States. Many international students opt for private international student loans to fund their education. Here is some information on private international student loans:

Private student loans are available for international students who do not qualify for federal aid. These loans often require a co-signer who is a U.S. citizen or permanent resident. The co-signer is responsible for repayment if the borrower defaults. Some lenders may offer loans without a co-signer, but interest rates tend to be higher.

Lenders and Requirements:

Several banks and online lenders offer private international student loans, including:

• MPOWER Financing
• Prodigy Finance
• Ascent Funding
• Citizens Bank
• College Ave Student Loans
• SoFi
• Nelnet Bank

Requirements vary by lender, but generally, borrowers need to be enrolled at an eligible school, have a creditworthy co-signer, and meet minimum income requirements. International students must also provide proof of their student visa or residency status.

Interest Rates and Repayment Options:

Interest rates for private international student loans can vary significantly and may be higher than federal loans. Some lenders offer fixed or variable interest rates, and some provide interest rate discounts for automatic payments. Repayment options differ, with some lenders offering deferred payments until after graduation, while others require interest or full payments during school.

Loan Amounts and Eligibility:

Loan amounts vary by lender and can range from $1,000 to the total cost of attendance. Eligibility criteria include credit score, income, debt-to-income ratio, and enrollment status. Lenders may also consider the borrower's program of study and future career prospects.

Alternatives to Private Loans:

Before opting for private loans, international students should explore other financing options, such as scholarships, grants, and fellowships. They can check with their home country's embassy or their university's financial aid office for scholarship opportunities. Additionally, organisations like the Fulbright Foreign Student Program and Open Society Foundations offer aid for non-citizens studying in the U.S.

Part-time work

However, the drawbacks of part-time work during university cannot be ignored. The additional pressure of a job might leave students feeling exhausted and affect their social life and mental health. It can also be challenging to balance work and academic commitments, potentially impacting grades and academic performance.

The choice to work part-time during university depends on various factors, including financial need, time management skills, and individual priorities. While part-time work can provide financial support, it is essential to consider the potential impact on academic and personal well-being.

In the context of university funding, part-time work can help students cover personal expenses and supplement financial aid. However, it may not always be sufficient to cover the full cost of tuition and fees, and students need to carefully manage their time to avoid negative consequences on their academic performance.

Personal and family sources

International students are a significant source of revenue for universities in many countries, and their tuition fees can account for a substantial portion of a university's budget. This has led to a perception that international students are "cash cows"

Graduate assistantships

To become a graduate assistant, students typically need to meet certain academic requirements, such as maintaining a minimum grade point average. The application process may include an interview with the supervising professor. Graduate assistantships are often competitive, with limited spots available. While the work can be time-consuming and may involve repetitive tasks, it offers a convenient way for graduates to gain experience and earn money while pursuing their degree.

Overall, graduate assistantships play a crucial role in providing financial support and professional development opportunities for graduate students. By working closely with professors and contributing to academic projects, graduate assistants gain valuable skills and experience that can enhance their career prospects.

Frequently asked questions