{"id":846,"date":"2016-10-28T12:36:21","date_gmt":"2016-10-28T12:36:21","guid":{"rendered":"https:\/\/www.extravelmoney.com\/blog\/?p=846"},"modified":"2025-12-09T17:26:24","modified_gmt":"2025-12-09T17:26:24","slug":"how-to-pay-us-university-fee-from-india","status":"publish","type":"post","link":"https:\/\/www.extravelmoney.com\/blog\/how-to-pay-us-university-fee-from-india\/","title":{"rendered":"All You Need To Know About Paying US University Fee From India"},"content":{"rendered":"\n

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Did you know? It\u2019s expected that more than 2+ lakh students would be going to study abroad from India to USA this academic year!  Higher education in a US university has become synonymous with sophistication & success and everyone knows about the many study abroad benefits<\/a>. If you are planning on going to US for study abroad, here is some information you should know about remitting money for US university fee from India.<\/p>\n\n\n\n

How much can you expect the whole study abroad program in USA to cost?<\/strong><\/h2>\n\n\n\n

Usually, a study abroad program in the US falls within the range \u20b933 Lakhs – \u20b960 Lakhs and on average around costs around \u20b947 Lakhs. This figure varies for different countries and can be found here: Cost of a degree in the top 10 study abroad countries for Indian students<\/a><\/p>\n\n\n\n

A significant chunk of this cost is due to the factors mentioned below :<\/p>\n\n\n\n

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  1. Interbank charges and higher rates of exchange levied by banks and money changers <\/strong>can impact your total amount spent for studying abroad by 2-3%. Now this may seem like a small percentage, however remember that when you apply this percentage for the range of study abroad cost for US (\u20b933 Lakhs – \u20b960 Lakhs) it would fall in the range \u20b91 Lakh to \u20b91.8 Lakhs!<\/li>\n\n\n\n
  2. Paying Tuition Fees in Instalments and sending money for maintenance from time to time. The nature of the above two activities is such that it happens over the duration of the study abroad programme which can be anywhere from 2-5 years or even more depending upon the chosen field of study. Now, as we all know the US dollar is appreciating in value when compared to the Indian Rupee. What this means is that the money you are going to end up paying out of your pocket for the study abroad programme will be higher than your cost estimates at the beginning of the study abroad programme. The appreciation of the US dollar value vs Indian Rupee<\/strong> will be reflected in this increased cost. So you would need to take this situation also into account when planning the expenses.<\/li>\n<\/ol>\n\n\n\n

    So how can you manage and reduce these additional costs?<\/strong><\/h2>\n\n\n\n

    Well let\u2019s first look at how we can manage these massive costs with the help of scholarships and student loan facilities.<\/p>\n\n\n\n

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    1. Scholarship:<\/strong> For students going to study in US, there are a number of avenues from where to avail a scholarship. A scholarship can remove the expenses by as much as half of the total cost to sometimes even the full cost. Yes! You can study abroad for free or for less cost in countries like Germany where there is minimal to no tuition fee. You can refer to this article here on scholarship opportunities available for Indian students in popular study abroad destinations including the United States: Study abroad scholarships for Indian students<\/a><\/li>\n\n\n\n
    2. Student Loans:<\/strong> After exhausting all possible scholarship opportunities only should you look into applying for a student loan. When applying for loans most people usually approach a bank in India and don\u2019t go any further. However, it is also possible to apply for international student loans from the country you are going to study from, and this option often get\u2019s overlooked. These are all the factors you should consider for your study abroad funding, before finalizing on a student loan. As an example let\u2019s consider education loan from India and international student loan from USA.<\/li>\n<\/ol>\n\n\n\n
      Loan from India<\/u><\/strong><\/td>Loan from USA remittance<\/u><\/strong><\/td><\/tr>
      Can be availed relatively easily<\/strong>. Just requires collateral and acceptance letter by the foreign university.<\/td>Difficult to avail<\/strong>. In addition to your proof of funds, You would also need a US cosigner with good credit score.<\/td><\/tr>
      Interest rate around 10.8%<\/strong><\/td>Interest rate around 4%<\/strong><\/td><\/tr>
      E.g. Loan Amount \u20b930,00,000(Loaned in Rupees)<\/strong><\/td>E.g. Loan Amount \u20b930,00,000(Loaned in dollars)<\/strong><\/td><\/tr>
      Interest paid = \u20b93,24,000<\/strong><\/td>Interest Paid = \u20b91,20,000<\/strong><\/td><\/tr>
      Additional Costs Incurred<\/u><\/strong><\/td><\/tr>
      Dollar appreciation vs rupee<\/strong>. This means for the same amount of rupee, you would be able to send lesser amount of dollar the next year as the price of dollar keeps rising.<\/td>This amount is in a US bank account and is in dollars. Hence no worries of dollar appreciation vs the rupee. No risk of currency fluctuation here.<\/strong><\/td><\/tr>
      Currency conversion fee. <\/strong>Money changers don\u2019t convert your currency at exact market rates. When you convert your rupee to dollar for sending money abroad you\u2019d be losing some money in the form of currency conversion fee applied by money changers<\/td>No currency conversion fee<\/strong>, since your currency is already in dollars. Just have to remit it directly to the concerned university.<\/td><\/tr>
       Remittance Fee.<\/strong> There are interbank charges on money transfer from one bank\/money changer in India to another in USA.<\/td>No remittance fee. <\/strong>Since the money is already in a bank account in USA no remittance fee would be applicable.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

      So what\u2019s the next step? Finding out how to transfer money from India to USA for paying the tuition fees, maintenance money, medical expenses or a gift remittance.
      Again, there are two ways of doing things here and let\u2019s take a look at them both :<\/p>\n\n\n\n

      Sending Money Via Banks<\/u><\/strong><\/td>Sending Money Via Money Changers<\/u><\/strong><\/td><\/tr>
      Bank rates for money transfer are pretty high<\/strong> in the industry and it\u2019s better to go for cheaper options.<\/td>Money changers give more profitable exchange rates<\/strong> than banks in general.<\/td><\/tr>
      Banks usually don\u2019t take care of the paperwork for customers<\/strong><\/td>Money changers are more customer friendly and usually take care of the paperwork for customers. <\/strong><\/td><\/tr>
      You may have to open an account with the bank<\/strong> before being able to access their money transfer abroad facility.<\/td>No need to open an account<\/strong> here. Money changers simply accept money from your existing bank account through a NEFT transfer and send it abroad to the beneficiary bank account.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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