How To Pay Tuition Fees Abroad from India
Getting accepted at a university abroad is indeed a praiseworthy achievement. Many universities across the world are very competitive in their selection process and having an acceptance email in one’s inbox calls for a celebration. Amidst all the excitement are the worries regarding payment and finances. Tuition fee payment is usually a daunting process for many. Sending a big amount of money to the right place and at the right time is important and even small mistakes may lead to big losses.
One of the major confusions that students face is regarding the mode of payment. Are you also one of them? Do not worry, we’ve got it all covered for you!
Ways to pay tuition fees are as follows:
Bank Transfers:
Bank transfer is the universal way of sending and receiving money and it is one of the most convenient and quickest ways of transaction. Bank transfers are done both online and offline. In today’s digitized world, bank transfers happen within seconds during online payments and both the parties receive an online confirmation as well.
Making use of your own bank account to transfer money is the safest option when making online bank transfers. Bank transfers are also one of the most suitable ways for paying fees in installments.
However, it is important to note that direct bank transfers to overseas accounts often result in high charges and tend to become an expensive affair. Hence, we suggest you opt for some of our other options that are more affordable and efficient, as given below.
Debit and credit card:
Following bank transfer, debit and credit cards are the most used instruments of funds transfer. Most universities accept VISA cards, American Express and MasterCard which can be used for making the transfer in a quick and efficient way. The process involves going to the official university payment portal online (do ask your admin or professor about the same), entering the amount and the card pin and the university payment can be completed in seconds. If you have an existing card, using the same would be ideal. Yet again, it is to be noted that paying through your debit or credit card can incur high additional fees, so it is good to be wary about how much you will be charged for large amounts like tuition fees before opting for this mode.
Forex Card:
Forex cards[1] are similar to debit and credit cards. The process of using the card is also similar. The big difference is that they are filled with foreign currency exchange[2] which can be used to make international payments. Forex cards are common transaction instruments while traveling and studying abroad. With a wide range of currencies that are accepted in the card, it is the most suitable and convenient option for international students. The card is loaded with USD [3] and the transaction can be made in 25+ currencies. Furthermore, the transactions are safe and secure.
Thomas Cook offers forex cards for international travel and studies, a must-have for students aspiring to study abroad. With Thomas Cook’s Forex cards, you can load and unload the card anytime you want. Furthermore, we also have an application for both android and iphone to make the process simpler.
Wire Transfers:
A wire transfer is an electronic transfer of money that is administered by banks. Wire transfer facilities are available all around the world. All transfers go through a domestic automated clearing house before the transaction is settled. It is a safe and easy payment method for university payment and the whole process is clear and transparent. The transaction is usually completed in 24 to 48 hours.
Demand Draft
Although this method is not common in contemporary times, students can also make a demand draft for the amount that they wish to pay to the university. The outstanding amount will be converted to the currency of payment and will be deducted. The disadvantage of using a demand draft is that it takes 10-15 days for the process to be completed.
Money Order
This is another way to pay for college, among others. A money order is a request for payment from the Post Office of India to the person in whose name it is sent through the Post Office’s division. The person designated on a money order as the recipient of the funds is known as the “Payee.” Money-ordered payments have the advantage of being delivered to the recipient’s residence or place of business. Money orders are rarely used on the current day as there is a limit to the amount that can be transferred. Furthermore, it is a long process.
Additional charges involved while you perform an international transaction:
For all transactions, there are certain additional charges involved for legal and safety purposes. These include:
Nostro Charges
A bank account opened in a foreign nation with the intention of conducting transactions in that nation’s currency is known as a Nostro account. In simple words, it aids in simplifying the transaction. For facilitating the process, the bank charges a fee termed as Nostro charge. To avoid heavy charges, it is recommended to make the transaction online and by not going to the bank.
GST Charges
Like any other transaction that takes place in India, GST applies to international transfers as well. For transfers less than 1 LAC, 0.8% GST is charged. For transfers between 1 and 10 Lac, 0.9% GST is charged. For transfers that cross the 10 Lac limit, 0.018% GST is charged and 990 rupees as additional charges are to be paid.
KYC Charges
KYC charges are levied to ensure safe and secure transactions. There are two ways of going through the entire process, either at the bank itself or online. Online documentation may involve additional charges whereas getting it done at the bank is usually free of charge.
Things to consider while choosing the method of transaction
Choosing a method for paying for university can be confusing. All the above methods have their own pros and cons and choosing the most suitable method can be perplexing. Here is a list of things to consider while choosing the type of transaction for you to make the right choice.
Costs
Keeping a close eye on different costs before choosing the method of transaction can help save a lot of costs. Additional costs including service fee, account opening fee, transfer fee can add on to the total cost. Furthermore, knowing exchange rates [4] and markup involved in every method can also help save some money. Knowing all costs can help in reducing costs and making the right decision.
Speed
The quicker, the better. If your university has a specified time period to pay the fees, you would ensure you are making the payment within the specified time frame and not miss the deadline! Keeping timelines in mind, choosing the right method of payment also involves knowing the speed of the payment. While credit and debit card payments are fast, wire transfers take long. Making the right decision considering the timeline is imperative.
Convenience
Choosing a method that you are most comfortable with is important. If it is not convenient for you to visit the bank, making an online payment would be the best option. Pick the option that suits best
Trust and safety
Making sure that your money is being transferred through a trustworthy bank or institution is important. Check for legal documents and the organization’s brand image before making the decision. Utilizing a well established brand or making the transaction with the institute you have your account with is preferable.
Considering all of the above, making a Pros and Cons list would be the best way to make a decision. Making one all the options and then analyzing the same for choosing the right option would be helpful.
Conclusion
Going abroad to study is definitely going to be an experience that you will cherish throughout your life. As you embark on this journey, let nothing come your way, not even finances or transaction issues. To pay tuition fees abroad, ensuring a safe and secure transaction that is convenient to you is important. Keep in mind the above points regarding method of payment, additional charges and things to consider to make the right choice for payment.
