{"id":16775,"date":"2022-09-11T13:31:16","date_gmt":"2022-09-11T12:31:16","guid":{"rendered":"https:\/\/studyabroadnations.com\/?p=16775"},"modified":"2022-09-11T13:31:16","modified_gmt":"2022-09-11T12:31:16","slug":"transferring-large-sums-money-students-pay-tuition-and-living","status":"publish","type":"post","link":"https:\/\/studyabroadnations.com\/transferring-large-sums-money-students-pay-tuition-and-living\/","title":{"rendered":"Transferring Large Sums Of Money As Students To Pay For Tuition And Living: How To Do This Right","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"
Price discrimination laws are what prevent a shop seller from charging two different customers two different prices for the same can of coke. Unfortunately, these laws go out the window when it comes to education and tuition for foreigners.<\/span><\/p>\n If we take the UK as an example, the government has capped annual tuition fees at \u00a39,250 for residents of the UK. It doesn\u2019t matter if it\u2019s an <\/span>ex-polytechnic university<\/span><\/a> or Oxford, it\u2019s \u00a39,250. For overseas students, however, you\u2019re looking at between \u00a328,950 and \u00a344,240 per year for Oxford university courses.<\/span><\/p>\n For Canada, tuition fees for international undergraduates average out to be almost CA$30,000 per year, whilst the US averages $37,000 per year, though the prices are the same for residents and internationals.<\/span><\/p>\n For a three-year undergraduate degree, it\u2019s not common for it to add up to \u00a3\/$100,000 for internationals. When considering the increasing costs of living in the west, it could be another \u00a3\/$50,000 on top of this, even if you find cheaper tuition in places like the Netherlands. If you want to avoid being a <\/span>camping student in Tilberg or Geneva<\/span><\/a>, you need to get the checkbook out, unfortunately.<\/span><\/p>\n With the notion of living in a tent or fighting for a place on a course looming, exchange rates when sending large amounts of money internationally aren\u2019t exactly going to be on the minds of a young student. But with tuition fees and living costs rising, it\u2019s important to recognize and avoid the hidden fees of international money transfers.<\/span><\/p>\n By definition, international students will need to exchange their money in order to pay for the local tuition and living – unless both countries share the same currency. Many students will consider setting up a local bank account in the new country they\u2019ll call home, but this is logistically difficult in most places. It may not be possible to do it remotely, or they may require proof of address before you have even found a place to stay yet.<\/span><\/p>\n In the end, it\u2019s common to simply use Visa or MasterCard on the online portals when paying for tuition abroad, using their bank card from back home, or making an international money transfer from their bank to the university.<\/span><\/p>\n The issue with the above method is that banks will make the transfer\/payment with a terrible exchange rate. Despite themselves having access to the true, mid-market rate, most will charge a 3-7% markup. So assuming a <\/span>1:1 Euro-Dollar parity<\/span><\/a>, a \u20ac10,000 payment in dollars <\/span>should<\/span><\/i> cost $10,000, but ends up costing between $10,300 and $10,700.\u00a0<\/span><\/p>\n Over the course of an entire \u20ac100,000 degree, this could become $7,000 more expensive in the worst-case scenario than it needs to be. $7,000 for something many will not give a moment’s thought – or even realize ever happened. After all, it\u2019s not like the bank will tell you the margin they\u2019re taking in big font as you\u2019re making the payment.<\/span><\/p>\n As for day-to-day living, it\u2019s the same story. Using a foreign bank card to make payments for groceries and such will all incur an exchange rate markup until you eventually get a domestic bank set up. But even then, sending funds from your old, now-foreign bank to the new one will also incur this 3-7% markup. Not to mention that many banks still charge a $\/\u00a3\/\u20ac30~ fee per international transfer.\u00a0<\/span><\/p>\nThe Common Logistics of Paying International Tuition Fees<\/span><\/h2>\n
The Hidden Costs of Paying International Tuition Fees<\/span><\/h2>\n
How to Avoid Fees and Get a Better Exchange Rate<\/span><\/h2>\n