Financial Difficulties

It is no secret that although studying overseas is a unique experience for many individuals, it can also be considerably expensive affair. According to the Times Higher Education report (2021), approximately 75% of students that were surveyed reported feeling concerned about day-to-day finances, and 67% said that financial anxiety impacted their mental health. Being away from family and friends combined with the high costs of studying abroad make international students often feel this sense of concern more acutely. 

Nevertheless, financial considerations should not be an obstacle to canceling or delaying the dream of studying abroad. Here are several tips to make the overseas education experience smoother for international students who are experiencing financial strain. 

Overcoming Financial Burden

  • Planning and managing a budget

One of the most useful ways to take control of your personal finances is to create a budget and stick to it. The first step in doing that is to define your savings goals. Only this way can you avoid unnecessary spending. 

You can create a simple budget plan in 4 steps:

Step 1: Track income

The best time to plan a budget is at the beginning or end of the month. List all sources of income that you have available including personal and family sources, outside assistance and sponsors. 

Step 2: Estimate fixed expenses

Take note of all fixed expenses, including tuition fees, rent, bills, insurance, and student debts. After this, determine the amount of money left over for variable expenses. 

Step 3: Control daily expenses

Organize your expenses into categories, determining what your needs are, and what your wants are. Maslow’s hierarchy of needs is a method that helps you differentiate needs from wants and work towards a better budget. Knowing the difference between needs and wants allows you to prioritize funds more effectively. 

Step 4: Set a savings goal
Once estimating personal finances and monthly expenses, set up a savings budget for yourself which would be comprised of short-term and long-term savings goals. For instance, if you don’t have enough savings to cover the estimated costs of studying abroad, you can set a short-term savings goal of bridging that gap. 

  • Taking advantage of student status 

There are various special deals or discounts offered to students who are currently studying at an educational institution, including transportation, food, entertainment, clothing, online subscription platforms, and online academic sources and courses. The savings from those student discounts can accumulate quickly and make a considerable difference in your financial standing While some of these may only be available to national students, there are still additional options for international students. 

In addition, a student discount card can be a lifesaver for international students, because they can take advantage of exclusive deals and promotions that are only available to cardholders, making it easier to “stretch your dollar.” Here are a few student discount cards that international students can utilize.

    • National Union of students (NUS)
    • International Student Identity Card (ISIC)
    • Student Advantage Card (SAC)
  • UNiDays
  • Searching for scholarships and financial aid

Thorough research is never in vain. With regard to financial matters for education, it is crucial to conduct thorough research and consider all of the options. Even if you benefit from low tuition fees, or pay nothing for tuition at all, there are monthly living costs to pay, including bills, rent, food, transportation, and entertainment. According to the Value of Education released in 2018 by HSBC Holdings, living expenses are the number one expense that is covered with parental funding. Therefore, don’t miss out on scholarships and financial aid programs specially for international students. Let’s look at a few. 

  • Merit-based scholarships

Merit-based scholarships are awarded based on a number of criteria, including academics, achievements, hobbies, talents, affiliations with various groups or career aspirations. Typically, these scholarships are divided into three types: university scholarships, government scholarships, and sports scholarships.

  • Need-based scholarships (grants)

Grants are need-based financial aid that doesn’t have to be repaid. Grants or bursaries are usually based on financial circumstances but may also consider other factors such as physical or mental disabilities. However, the number of grants and bursaries is normally limited in each year, so it’s probably best to apply early.

  • Specific scholarships

Most specific scholarships are given to students with a certain ethnic background or family affiliation. These scholarships are designed to benefit gender or ethnic minorities.

  • Student loans 

Student loans function similarly to any other loan, with a few differences. International students can get a student loan from the government or a private bank. The repayment normally starts six months after the degree’s completion, known as the grace period. Depending on the amount of the loan and certain national policies, it is requested that students repay the loan within 5-15 years.

Living, studying, and working abroad can be challenging in terms of finances, yet this does not mean that you have to give up on pursuing an education abroad. If you understand how to manage finances well and start planning early, you can significantly lessen the financial burden of studying abroad. Whatever route you decide to follow, remember that there is assistance out there – you’re not alone.

By Vivian Nguyen 

Former undergraduate student at RMIT  

 

Reference

Friedgut, V. (2021). How to budget as an international student. The Times Higher Education. https://www.timeshighereducation.com/student/advice/how-budget-international-student

HSBC. (2018). The value of education higher and higher – HSBC Holdings plc. https://www.hsbc.com/-/files/hsbc/media/media-release/2017/170628-the-value-of-education-higher-and-higher.pdf