International Student Financial Strategies: Easing The Burden

Studying abroad can be a life-changing experience, but it can also be expensive. International students often face financial challenges due to the high cost of tuition, accommodation, and living expenses. To ease the financial burden, it is important to explore various funding options, such as scholarships, grants, fellowships, and loans. Additionally, learning to budget and spend within your means is crucial. This involves listing down expenses, planning your finances, and considering sharing your living space or restricting credit card usage. International students can also take advantage of platforms that offer hassle-free and money-saving global transaction solutions, making it easier to receive money from their families while studying abroad.

Scholarships, grants, and fellowships

To find scholarships, you can use online search tools that provide access to scholarship databases. These allow you to filter awards by what and where you are studying, and where you are from. You can also find out about scholarships by consulting your university and academic department directly. They may have funds allocated specifically for international students.

When applying for scholarships, you may be asked to answer personal questions, write an essay, or even make a video. It is important to pay attention to smaller scholarships, as well as larger ones, as these are often less competitive and can still provide a good source of funding.

In addition to scholarships, grants, and fellowships, you can also consider work-study programs. These allow you to earn your degree while gaining valuable connections and experience within your future career field.

It is worth noting that not all schools offer international financial assistance, so this may be a factor to consider when deciding where to apply. Additionally, while you may not be eligible for federal financial aid, your home country's government may offer aid for students studying abroad.

Student loans

International student loans can be an essential financial solution for international students looking to study abroad. They can offer loan amounts high enough to pay for your entire education, but it's important to carefully evaluate how much money you will need. The loan limit is an essential factor to consider when looking at financial aid, as it determines the maximum amount of money that can be borrowed from a lender during a specific period. Different lenders have various loan limits and allowances for what expenses can be covered, so it's essential to choose a lender whose loan limit and terms meet your financial needs.

When it comes to taking out a loan, the interest rate is an important factor to consider, as it can significantly affect the total amount you'll need to repay. Fixed interest rates remain the same throughout the loan, making budgeting easier, while variable interest rates can change over time and may become more expensive.

Some lenders require a cosigner, who is legally obligated to repay the loan if the borrower fails to pay. The cosigner must be a permanent US resident with good credit who has lived in the US for the past two years. However, there are also no-cosigner loans available, such as those offered by MPOWER Financing.

There are several lenders that offer international student loans, including:

• Ascent: Offers loans for eligible international students studying in the US with a cosigner. These loans offer fixed and variable interest rates, along with flexible repayment options.
• College Ave: Offers eligible international students a range of flexible payment options and a streamlined process to apply for a loan. Requires a US cosigner and a valid social security number.
• Earnest: Provides loans to international students with a US cosigner. There is a 9-month grace period and flexible repayment terms.
• MPOWER Financing: Offers scholarships and no-cosigner, no-collateral loans to international students studying in Canada or the US.
• Sallie Mae: Provides loans to qualifying international students with a US cosigner. They offer both fixed and variable rate options with multiple repayment options.
• SoFi: Offers loan options to eligible international students with a cosigner, allowing them to choose between fixed or variable rates with flexible repayment options.

Budgeting and spending within your means

Identify Essential Expenses:

Firstly, it's important to list down all the essential expenses that you need to cover. These typically include tuition fees, monthly rent or accommodation costs, phone bills, transportation costs, food, and other living expenses. Be sure to review the specific costs associated with each of these categories, as they can vary depending on your location and personal circumstances.

Assess Your Financial Situation:

Take an honest look at your current financial resources. Calculate any income or support you receive, such as scholarships, grants, personal savings, or funds from your family. This step will help you determine how much you can realistically allocate towards your expenses and identify areas where you may need to cut back or save.

Set Spending Limits:

Based on your financial assessment, decide on reasonable spending limits for each category of expenses. Allocate your funds accordingly, ensuring that your basic needs, such as accommodation and food, are prioritized. Consider using budgeting tools or spreadsheets to help you stay organized and track your spending over time.

Plan for Emergencies:

It's important to prepare for unexpected expenses and emergencies. Set aside a small portion of your funds as an emergency cushion. This will provide you with some financial security and peace of mind, knowing that you have a backup for unforeseen situations, such as medical expenses or unexpected travel needs.

Explore Cost-Saving Measures:

Look for ways to reduce your overall spending. Consider sharing accommodation to split rent and utility costs, restrict your credit card usage to avoid accumulating debt, and take advantage of student discounts whenever possible. Shopping during sales and using second-hand items can also help stretch your money further.

Maximize Your Student Status:

Don't forget to leverage the benefits of your student status. Many businesses and services offer student discounts on everything from transportation to entertainment. Keep an eye out for student nights or promotions, and always carry your student ID to take advantage of these opportunities.

Remember, budgeting is a personal process that requires discipline and adaptability. Be prepared to make adjustments as you go, and don't be afraid to seek advice or support from your university's financial aid office or student services.

Foreign transactions

To ease the burden of foreign transactions, international students can explore alternative options for receiving funds. One approach is to utilise international student-specific loan companies, such as MPOWER and Prodigy Financing, which have gained popularity among graduate students. These companies offer loans tailored to the unique needs of international students, providing a convenient source of funding.

Additionally, international students can investigate the possibility of securing scholarships, grants, or fellowships. Various scholarships are available for those studying in the USA and worldwide, offered by both the institutions themselves and external organisations. These scholarships can be merit-based, rewarding special skills, talents, or academic, artistic, musical, or athletic abilities. Alternatively, they can be need-based, catering to students who can demonstrate a financial need. Students can use scholarship search tools, such as the one offered by internationalstudent.com, to find opportunities that align with their profiles.

Another strategy to mitigate the costs of foreign transactions is to plan and budget effectively. International students should be aware of the expected expenses they will incur, including tuition fees, rent, food, transportation, and other living expenses. By creating a comprehensive budget, students can make informed decisions about their spending and identify areas where they can cut back if needed.

Lastly, it is worth noting that the choice of university can significantly impact the financial burden of foreign transactions. Different universities have varying policies regarding the calculation of the cost of attendance and the types of documents accepted as proof of financial ability. Some universities may offer more competitive tuition rates or provide financial incentives for students to enrol. Exploring these options can help international students find institutions that better align with their financial capabilities.

Work-study programs

Dauphine-PSL Paris

Dauphine-PSL University in Paris, France, offers over 50 work-study training programs that provide students with highly sought-after skills in the business world. The programs combine theoretical courses with practical, real-world experience, allowing students to build significant professional experience from the start of their program. Students sign a contract with a company for one year if they are pursuing an undergraduate degree or the second year of a master's program, and for two years if they are applying for both years of a master's program. During this time, students divide their time between working at the company and taking classes. The host company covers all tuition costs, and students are remunerated for their work. The remuneration depends on the student's age and degree year, with students under 18 receiving a salary equivalent to a percentage of the minimum wage that increases each year. Applicants for professionalization contracts must be no older than 25, and for apprenticeship contracts, younger than 30. International students from outside the EU must have a "student" residence permit and have been resident in France for less than a year to be eligible for a contract.

University of Pennsylvania

The University of Pennsylvania (UPenn) in the United States also offers a work-study program for international students. This program provides on-campus employment opportunities, where students can work for UPenn, on UPenn premises, and be paid for the hours they work. Students are required to present a copy of their class schedule during the interview to ensure there are no conflicts between class times and the work schedule. To work in the United States, students need a Social Security Number, which can be applied for after securing a job offer. Students cannot work more than 20 hours per week when classes are in session, but during school breaks, they may work full-time up to a maximum of 40 hours per week.

Frequently asked questions