Wise (TransferWise)
Studying abroad is a great way to expand your horizons, and many American students take advantage of this for a semester while at university. Figuring out how to pay for your study abroad can be tricky and stressful, but with online money transfer specialists, you can spend less time deciding how to pay and more time deciding where you want to study.
One of the most popular ways to pay for overseas tuition is using an online money transfer, but that isn’t your only option. Consider these five ways to pay for university abroad when making your decision:
An international money transfer can be sent directly to your university of choice through a money transfer provider. When making a money transfer for tuition payments, pay attention to:
Transferring money directly from your bank to pay for university fees abroad may be more expensive than using an international money transfer service. Because banks often charge high fees and offer poor exchange rates, consider avoiding this method when possible.
Let’s say you need to send $30,000 to pay for tuition at a university in the UK. Here’s what you might face as far as fees and exchange rates as of June 16, 2020.
| Money transfer provider | Bank transfer | |
|---|---|---|
| Fee | $0 | $25 + additional correspondent bank fees |
| Exchange rate | 1 USD = 0.792 GBP | 1 USD = 0.754 GBP |
| Transfer speed | 1-2 day | 2-5 days |
| Amount received | GBP 23,756 | GBP 22,601 |
| Verdict |
|
|
The bank option ends up being both the slower and more expensive option for paying tuition in the UK. If you go with the money transfer provider, your recipient ends up with GBP 1,155 more than the bank offers.
An international bank draft is similar to a cashier’s check, but is designed for larger amounts and international situations. Double-check that the university you want to pay tuition at will accept an international bank draft. Some of the pros and cons of international bank drafts include:
Many universities that welcome international students offer their own payment portals for international payments. Although these are convenient options for paying tuition abroad, they may not be the best choice when it comes to saving money. A few tips to keep in mind when using an international online payment portal for overseas tuition:
Cash should always be a last resort when making international tuition payments. When paying with cash in a foreign currency, you have two options: exchange the cash domestically or abroad. If you opt to exchange domestically, beware of cash limits when traveling internationally by plane. Typically, you can travel with any amount under $10,000, but it’s best to check for any additional restrictions based on your destination.
If you want to exchange cash abroad, consider using a money transfer service that allows you to pick up cash. WorldRemit and MoneyGram are major competitors in this field, and typically offer far stronger rates and lower fees than household names like Western Union.
There are a lot of stressful decisions to make when studying abroad, so figuring out how to pay tuition shouldn’t be one of them. Avoid excess fees and find the right fit for your situation by comparing international money transfer providers.
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