A student when flies to some other country to pursue his/her studies many questions run in his/her mind, especially related to money. Rajesh Subramanian is going through similar thoughts as he is flying out of India on September 5 to pursue his Masters in Information Management from the University of Washington, Seattle. He says, “Right now, questions like how to remit fees and living expenses, how much travel insurance to take, how much foreign exchange to carry etc. are on the top of my mind.” Here, we try and give answers to all the questions of Rajesh.
1. Best way to remit fees.
The total fee for Rajesh's course adds up to $42,000. His fee for the first semester, $8,000, needs to be paid by the 1st of October. There are many ways of remitting fees.
Scenario 1: bank loan
If you have taken a loan, bank remits fees directly to the University as per the documents submitted by you.
Scenario 2: Wire transfer from India
If you are paying the fees out of your own sources, you can wire the funds while you are in India. This would be the most cost effective way.
Scenario 3: Demand Draft
You can also carry a demand draft in the name of the University while you travel.
Lump sum or installments: It is a good idea if a student has the confidence of carrying huge amount of money with him.
According to P Srieedharan, managing director of Mancomp Professional Services “Some universities offer a substantial discount if you pay in lump sum. A student can weigh the cost-benefit and then take a call.”
2. Best way to remit regular living expenses.
Other than fees, Rajesh will need money for his other expenses as well.
A student can carry an amount of $10,000 for other expenses out of which $3,000 can be carried in the form of foreign currency.
However, according to Vinay Doggalli, Founder & Managing Partner of Global Education Consultancy Services, “The best way would be to open an account after the student lands in the country and get the money transferred to that account from India. Alternately, if the student is confident to take responsibility of high value cheques, he can carry traveller's cheques."
3. Best way to pay education loans installments.
As banks allow you to pay loan only after you complete your course, the best way to reduce the burden of loan from your shoulders is by paying the rate of interest on loan. “We usually recommend students to keep paying the interest portion of the loan so that it does not compound into a large interest outflow." says Srieedharan.
4. To take travel insurance or not.
Though many universities provide medical insurance to students yet it is advisable for Rajesh to take travel insurance as the medical insurance starts from 25 September and the travel insurance would cover anything that may occur while traveling like loss of luggage, etc.
5. Opening a bank account abroad.
The most important thing when you go to some other country to study is try to open your bank account as soon as possible especially if you are carrying high value drafts and checks.
6. Remitting money back to India.
You can remit money back to India anytime. You can either carry foreign exchange with you or can wire the proceeds to your bank account or parents' bank account in India.
Hope this guide helps you in your future ahead.