Invest in Yourself! Financing your U.S. Education

Invest in Yourself!
Financing your U.S. Education

Is studying in the U.S.A. part of your plans? Does paying for study abroad seem like an impossible task? It’s not!

You are probably a little bit worried about how you will pay for your studies in the U.S.A. Don’t let this ruin the exciting plans you have made. With a little planning, you will come out ahead. Plus, the money isn’t all going towards boring lab fees and library late book charges! You are going to be having fun and spending money on things like ski trips and nights out on the town, eating sushi with your new friends!

Make an accurate estimate for overall cost of your study in the U.S.A., and create an accurate budget. There will be many components to your budget that you need to take into account. Note that many U.S. colleges and universities require that international students pay for their first year’s tuition in one installment. In order to pay this sizable amount, you and your family will likely need to start saving well in advance.

Despite this, do not let the cost of an education in the U.S.A. scare you off! If you are feeling overwhelmed by the cost, consider what an education in the U.S.A. will mean to your future. Education is one of the best investments you can make—an investment in yourself! A U.S. education and proficiency in English paves the way to more secure and higher paying jobs. In the end, your U.S. education will pay for itself many times over.

To finance your U.S. education, you will have to rely on financial aid packages, which include grants, scholarships, loans and work/study options. Make time to research the funding opportunities available to you.

Free money: Scholarships, financial aid and other monetary sources

Scholarships

Very few U.S. colleges or universities are able to offer financial aid to international students, so it is critical for you and your family to be responsible for all of your education, personal housing and food needs. Those scholarships that are issued only cover a small portion of the total amount necessary for an academic year in the U.S.A.

You can write the school of your choice to ask for a scholarship consideration form, but please check first with your family, government, home institution, and any other organizations you belong to as a source for funding your studies. Consider working extra hours while still in your home country, before visa restrictions in the U.S. reduce the number of hours you are able to work.

Loans

Loans can make it possible for you to study in the U.S.A. There are certain types of loans which are available to international students. Compare interest rates and terms at several different financial institutions to find the best deal. In order to keep a handle on your expenses, it is best to use a loan for a maximum of 35% of your total costs.

Work/ Study

An estimated 75% of all full-time students studying in U.S. colleges and universities hold at least part-time jobs. If you are coming to the U.S.A. for more than a short course or exchange, it is likely that you will have an F-1 visa. With this type of visa you may qualify for work/study programs at your college or university.

Be sure not to stress yourself out too much by overloading your schedule with lots of work and a full load of classes. You have come to the U.S.A. to study and you want to be able to enjoy, and succeed in, your classes. The advantage to holding a part time job, however, is the extra money as well as the practical work experience.

Preliminary Costs

Entrance Exams: $500

College or university entrance exams can cost up to $500, plus the additional cost of travel to the test site.

Application Fees: $250-$600

Application fees to cover administration and processing range from $35 to $75 dollars per application. Most applicants apply to four to ten schools.

Basic Costs

Tuition: $5,000-$30,000

Tuition varies greatly, by school and location. Depending on where you choose to study, your yearly tuition can vary from $5,000 to $30,000. Typically, English as a Second Language schools and community colleges cost less than colleges or universities. State schools, which are financed by the local state and U.S. government, cost less than a private college or university. However, most state schools charge a higher “non resident” rate to international students.

A helpful web site for comparing tuition is: www.collegeboard.com.

Room and Board: $3,000-$7,500

Most students choose a dormitory or residence hall for at least the first academic year. Some schools require that freshman live in the dorms during their first year. Two or more people usually share dorm rooms, which is a great way to make friends and have someone to explore your college or university with. Housing is also available on many campuses for married students and families. Keep in mind that rural areas are often much less expensive than larger cities. In larger cities and at English language institutes, students can live more economically off campus. Rental agreements in the U.S.A. often include first and last month’s rent plus a security deposit.

Another option many students enjoy is living with a family. Your college or university can provide you with a list of companies that help arrange stays in family homes. The family provides you with your own or a shared room as well as breakfast and dinner in a family setting. Living with a host family is an especially good option for younger students who aren’t used to living on their own. It is also one of the best ways to become fluent in English and gain an understanding of U.S.A. family life.

No matter where you choose to live, take a thorough inventory of the apartment with your landlord and note any pre-existing damage. Make sure to have a signed contract with rental terms and conditions for returning your deposit. If you don’t understand something in your rental contract, have a friend help you. It is important that you understand what you are signing; don’t feel pressured by your landlord to hurry.

Travel Costs: $500-$4000

To calculate your travel costs, research ticket prices from your country to the U.S.A. Travel within the United States typically ranges from $300 to $700 per roundtrip ticket.

Books and Materials: $900

You are responsible for paying for books, notebooks, computer accessories and other study supplies. Expect to spend around $900 dollars on books and materials each year. Use www.efollet.com and www.amazon.com to save money on used books. Save money by not buying your own computer; almost all campuses have extensive computer labs

Health Insurance: $350-$500

As an international student at a U.S. institution, you will likely be required to have health insurance. To begin your search for insurance, check with the college or university you would like to attend to see what policies they have available for international students. You can then compare the services and prices offered through your college to those of other organizations and companies.

Additionally, most colleges and universities have a medical center that provides examinations or treatment for minor injuries and illnesses for a small fee. Campuses usually have counseling centers as well, where students can seek professional help for any struggles they may be going through, especially as related to the stress of studying away from home, immersed in a foreign language and culture.

Personal Expenses: $2,500

Of course you will need all of the things you usually need at home, such as personal care items, stamps, newspapers and medicine, as well as money for laundry, dry cleaning, transportation, recreation, entertainment and so on. Carrying large amounts of cash is not advised anywhere in the U.S.A. Very rarely is cash even needed; most purchases can be made by debit or credit card. You will probably be able to set up a bank account and apply for credit cards if you have good credit in your home country.

Don’t let all of this serious talk about money stress you out! Remember, you are going to the U.S.A. to study—and to have fun! Some of your money will be spent on fun things like ordering in pizza, or going out dancing! Maybe you’ll want to splurge on an “I Love New York” T-shirt, or a pair of authentic, vintage Levi’s. Balance thrift and fun, and your study abroad experience is sure to be a financial success!