Financial Planning for overseas study

Choosing a university can be very confusing. Teachers, parents and older siblings always want to give you their worldly opinions, and the whole process can sometimes feel like a life-or-death situation.It’s not, though – and the best advice you can take is to follow your heart. And your budget, of course.

Apart from the course fees, candidates need to make allocations for the countless other expenses likely to rear their heads one after another. Here’s taking a look at what you may have to budget for, if you nurture dreams of studying abroad.

Consultant/Counsellor fees

The hunt for universities that offer courses that interest you isn’t easy and so most of you may need help from the consultants. While an expert’s proficiency and experience, which is what such consultants offer, will surely be of great help, remember the service comes at a price. But for a few who are paid directly by the institutes/universities, most consultants work only for a fee. On an average, this fee may be pegged at about Rs 20,000.

That, however, can be higher depending on the service, which, in turn, will be a function of the region and the country you wish to go. And note, these are, more often than not, non-refundable. While some consultants offer free registration, you may be charged any which ways for the processing. So, this may well be an expense that may be hard to avoid.

However, a word of caution here. In an effort to cut costs, do not go to consultants without established credentials in the field — not everyone is authentic. Do your homework well and get to know the consultant’s background and experience before you zero in on one.

Qualifying tests & Application fees

Once you have narrowed down on the University and the course, you will have to take up the Institute’s qualifying test such as TOEFL, IELTS, GRE, GMAT and score in the band outlined by the Institute to become an eligible applicant. Here too, you may have to shell out some cash by way of registration fee for these tests. For instance, TOEFL will cost you $150, IELTS Rs 7,200, GRE $170 and GMAT $250. Besides, score reporting to additional colleges will be charged separately. Taking up coaching classes or buying self-tutor books or CDs may only add up to the cost.

Once test scores start coming, you can apply to the institutes you had earlier short-listed. However, for processing the applications for admission, you may need to also make allowance for the application fee that most universities charge.

To find out the exact numbers, you can mail the college in advance. This will help since most universities charge in dollars and prior knowledge may help you make use of the dollar-rupee arbitrages.

VISA and Medical Check-up

The visa fee is payable in cash or demand draft taken in favour of the respective High Commission or embassy. For instance, for a student permit to Canada, you may have to pay a fee of Rs 5,080 (Source: VFS-Canada) while for the US the student permit fee is $131 (Source: VFS-US, Rs 6,550 at the exchange rate of Rs 50). Service charges will be additional.

And once you get the initial response from the embassy you will be required to produce the medical check-up reports. Note that the check-up should be done only in hospitals authorised by the embassy.

These clinical tests will cost you anywhere around Rs 3,000-5,000 or even more depending on the mandated tests and the country you visit. And if you are taking your spouse along, expenses may only go up further. The spouse will also be required to produce medical-test reports for the visa.

Air-tickets & Dormitory booking

A little bit of planning in this regard may help immensely as the earlier you book your air tickets, the less they will cost. Note that ticket costs aren’t fixed and they rise with demand, which typically peaks closer to the journey date. So, to save on cost here, you may have to start the complete process early on and plan the date of departure in advance and book or at least block your tickets.

Also, all students must have the ISIC — International Student Identity Card. This card is the only internationally accepted proof of student status and can get you discounts in flights, bookshops, restaurants and also retail shops. All students going abroad for a full-time study above the age of 12 years are eligible to get an ISIC.

ISIC Association (member of the World Youth Student and Educational Travel Confederation) has offices in India across major cities. The card costs Rs 250 (subject to change). A student can go to an ISIC office, show his proof of admission and get a card. Though you can buy this card from the destination country, buying it here in India is cheaper. The ISIC will have a validity of 16 months from the start of the academic year, after which you can renew it in the country of stay.

Further, students who don’t have or either don’t want to avail of the college’s dormitory facility should book accommodation outside well in advance. August-September is the peak season as students from across the globe land up looking for accommodation. Acting early could help you save on this cost. Also, it is advisable to ask the colleges themselves for options rather than look for options over the Internet. Having the ISIC would help you save on cost here too.

Shopping & Shipping

However thrifty one may be, the impulse to shop can become irrepressible when going abroad. This means, you may also need to budget for splurging. And if you are moving with your spouse and are carrying a good part of your household stuff along, then shipping them to your place of destination place may cost you more.

While banks offer finance covering the tuition fees and living expenses till you finish the course, they do not fund the aforesaid incidental expenses. Planning and budgeting for such expenses in advance may, therefore, be your only recourse.

Study Abroad, 8.2 out of 10 based on 5 ratings