Studying abroad can be one of the most exciting adventures of your life, but it is also a significant financial commitment. It’s normal to worry about whether you can afford to take your university studies internationally, but one way to find out is by setting a budget.
We know there’s a lot to consider when calculating your budget. To help you get started, we’ll cover all the key areas you need to think about, from essential costs like tuition fees and accommodation to additional expenses like hobbies and entertainment. We’ll tell you what options are available to help fund your studies, and share our best budgeting tips to help you manage your finances effectively.
What to include in your budget
Application fees
- Submission fee
Many universities charge a non-refundable fee when you submit your application. Costs will differ depending on the country you apply to study in. Between 2022-2023, the average undergraduate application fee for a four-year public university in the USA was around $48 USD, and up to $57 USD for four-year private universities. Meanwhile, in Australia, the average application fee can be between $50 and $100 AUD.
Not all universities will expect you to pay a fee to apply, but it’s worth looking into your options and calculating how much your application could cost you, if at all. If you want to apply to multiple universities, the cost can quickly add up.
- Language proficiency test
When applying to an international university, you’ll likely need to take a language proficiency test. This helps universities ensure that you understand the language you will be taught in. Most universities teach international students in English, as this is the most commonly used language worldwide.
TOEFL (Test of English as a Foreign Language) and IELTS (International English Language Testing System) are the most widely accepted English Language Tests (ELTs). IELTS tests assess both British English whereas TOEFL tests primarily assess American English. It will typically cost you between $150 to $300 USD to take an ELT, but test fees vary from country to country.
For more information on ELTs, read our guide here.
- Student visa
You need to apply for a student visa in order to study in most foreign countries. This gives you legal permission to live and study in your chosen destination for the duration of your program.
The specific type of student visa you need and how much it will cost you will depend on your country and the course you plan to study. To study in the USA, you could spend up to $510 on your visa application. Meanwhile, in Canada, a study permit costs $150 CAN, and $379 if you want to restore your status as a student.
When applying for a student visa, you must show that you can pay for your first year of studies and living expenses. In most cases, you should have at least $15,000 USD in your bank account to meet this requirement. However, the exact amount may be higher or lower depending on the country where you plan to study.
Check out our detailed guide on visas here to learn more.
- Passport
You must have a valid passport in order to travel to foreign country. Some countries require you to have at least six months remaining on your passport, so make sure to check the expiration date before traveling abroad.
How much money you need to put aside for your passport will be determined by the cost of renewing your passport in your home country and the length of time that it will be valid for. For example, applying for an Australian passport can be quite expensive, costing $398 AUD for persons aged 16 and over. However, passports here are valid for 10 years, reducing the amount of times you need to renew it. On the other hand, Spanish passports only cost €30, but need to be renewed every 5 years if you are under the age of 30.
If you need to renew your passport while you are studying abroad, contact your country’s embassy or consulate, or see if your university has a dedicated office for international students. They will be able to guide you through the process and provide you with any information or resources you need.
Make sure to leave plenty of time to renew your passport. You could be charged a higher fee if you apply for a new passport at the last minute.
- Health insurance
Health insurance is mandatory for international students in many countries, and may be required when you apply for a student visa. Healthcare is notoriously expensive in some countries, yet can cost very little for international students in others. Here are some examples of how health insurance can vary in different countries:
USA: Known for having the most expensive healthcare in the world, costing over $12,000 USD per person on average. As such, health insurance plans for international students can also be costly here.
You could expect to pay as much as $2,500 annually depending on how comprehensive your insurance is and how many extra features you want on your healthcare plan.
UK: International students receive healthcare through the National Health Service (NHS) and pay for this when you apply for your student visa.
This is called the Immigration Health Surcharge (IHS). It will cost you £776 per year so remember to budget according to the length of your visa. You can also choose to pay for private health insurance, but bear in mind that this will cost extra.
Canada: Healthcare options vary by province. Most universities require international students to have a private healthcare plan in place, but some provinces will allow you to enroll in their public health system after a specific waiting period.
For example, international students studying in British Columbia for more than six months are eligible for the Medical Services Plan (MSP). This costs students $75 CAD per month and applications take an average of three months to process.
In other provinces, such as Ontario and Quebec, private insurance is necessary and costs around $600-$900 annually.
Brazil: Offers free healthcare for all residents, foreigners, and international students through their public health system, Sistema Único de Saúde. However, due to the limitations of this service, including long wait times for non-emergency treatments, many students may opt for private healthcare during their studies abroad to ensure faster access and higher quality care.
Some universities will include health insurance in their tuition fees or provide health insurance plans for their international students that can be more affordable. Reviewing your options and considering how comprehensive you want your healthcare insurance to be can help you to determine how much you need to budget. It is often more beneficial to find a healthcare plan that offers the best coverage for your needs, instead of just going for the cheapest option.
- Audition fees
Students applying for performing arts programs like music, drama, or dance will likely need to attend an audition as part of their application. You may be required to pay an audition fee, and the price will be set by the university. For instance, the fee to audition for the BA Acting program at the Royal Conservatoire of Scotland, UK, is typically around £55.
Contact your university directly to confirm whether you need to pay and how much to budget. Some universities may offer fee waivers if financial hardship is a concern.
If you have multiple auditions, prioritize them based on your goals and chances of success rather than just the audition fee.
- Credential evaluation
In countries like the United States and Canada, credential evaluation is a typical requirement when you apply to study there. This process involves evaluating your academic qualifications to determine their equivalence in the country where you want to study. It helps universities understand how your academic achievements compare to their standards.
World Education Services (WES) and Educational Credential Evaluators (ECE) are two of the most popular providers. WES charges around $111-$225 USD for their services, and ECE charges around $100-$275 USD.
Tuition fees
Tuition fees can be your biggest expense when studying abroad and may require a loan in order to cover this cost. Research the cost of your chosen program at different universities, as fees can vary significantly depending on the country and institution.
Countries like the USA, UK, Australia, New Zealand, Canada, and Hong Kong have some of the highest tuition fees in the world. For instance, in Australia, international students can expect to pay up to $40,000 AUD per year for an undergraduate degree, up to $42,000 AUD for a doctorate, and up to $52,000 AUD for a postgraduate degree.
On the other hand, countries like Germany, Austria, and Norway are more financially accessible, offering education to students at a low cost. To study in most German universities, students only have to pay an administrative fee that is typically between €100-€350 per semester.
However, in order to prove that you can cover your administrative fee and living costs, you must show that you have at least €11,904 in a blocked bank account for each year of your studies when applying for your student visa or residence permit.
Living costs
Budgeting for university isn’t just about paying for your program. You’ll also need to factor in the costs of everyday expenses while you live in your new country.
It's important to know if you can afford to live in your chosen study destination before making a decision. This is because you may need to provide a bank statement as part of your student visa application to prove you can cover both living expenses and tuition fees. The cost of living in some countries is significantly higher than others. Calculating how much you could spend on average can help to determine which location best suits your budget.
For example, in the USA, the average monthly living expenses can range from $1,000 to $2,500 USD per month, with cities like New York and San Francisco among the most expensive. In the UK, students might spend between £900-£1300 per month on living costs, or £1300-£1400 if you live in London.
Some expenses to consider are:
- Accommodation
Most universities offer affordable housing options on campus so that students can settle into university as part of a student community, and live close to where they study. This will typically include private or shared rooms in apartments, houses, or halls.
Alternatively, you could choose to live in private housing, either through third-party accommodation providers or local estate agents. These can be more expensive but provide greater opportunities as to where you can live in the community.
If you want to immerse yourself in the local culture, consider living with a host family who will put you up in their home for the duration of your studies.
- Utilities and internet
When you live in a property, you'll be responsible for paying utilities such as gas, electricity, water, and internet. These may be included in your rent, particularly if you live in accommodation provided by your university.
However, if you live in private housing, you'll likely need to pay for them separately. Research local utility providers and compare options to estimate your monthly costs and find the best value for money.
- Food
Create a weekly meal plan and set a budget based on your current grocery spending. While costs may vary abroad, this will give you a good idea of the average expense for food.
Explore any meal plans offered by your university and compare them to the cost of cooking your own meals.
- Transport
If you need to commute to and from campus while studying abroad, make sure to factor the cost of this into your budget. In some cities, public transport is affordable and efficient, while in others, you might need to budget for a car.
Look out for travel passes as they can help you save money on multiple modes of transport. For example, a monthly travel pass in Lisbon, Portugal costs around €40, and provides unlimited access to buses, trams, and the metro.
Study materials
Some study materials may be included in your tuition fees, but you may need to pay for others. Items like textbooks, software, laptops, lab equipment, and specialized tools can be expensive. For example, in the United States, students typically spend over $1,400 per year on textbooks and supplies.
Review your program syllabus early and budget accordingly to avoid unexpected expenses. You can manage costs and save money by buying used textbooks, renting them, or using digital versions when available. Many universities also offer library resources and campus facilities where you can access the materials you need for free or at a reduced cost.
Travel expenses
Travel is an important part of studying abroad, but getting to your destination doesn’t come for free. For instance, if you need to fly between London and New York, the average round trip costs around £779.
Sites like Skyscanner, Expedia, and Google Flights can help you to easily compare the cost of airfares and find you the best deal for your route. Book your flights well in advance to avoid paying expensive last-minute fares.
You can save money by taking advantage of student discounts or frequent flyer programs that offer rewards and perks like seat upgrades, fare discounts, additional baggage allowance, priority boarding, and lounge access. Some universities even partner with airlines to offer discounted flight tickets for international students, and often also cover any connecting transport taken between the airport and campus, such as buses, coaches, and taxis.
Non-essential expenses
Budgeting for your studies abroad isn’t just about the essentials; it's important to set money aside for the things that you enjoy too.
Monitor your current spending habits for non-essential expenses like shopping, dining, entertainment, and hobbies, then use these insights to set a monthly allowance.
Consider setting up a new bank account or a virtual money pot to transfer and store your non-essential budget separate to your essential budget. This will help you to easily keep track of your disposable income and encourage you to control your spending. Remember to consider exchange rates and the potential costs of transferring money between countries. Setting up a bank account in your host country may help you save on fees.
Take advantage of student discounts, vouchers, and free events both on campus and in the local area.
Emergency fund
Sometimes emergencies happen, which is why it’s important to have an emergency fund. This will give you a safety net for unexpected situations, such as medical emergencies, urgent travel, or sudden changes in your living arrangement. Set aside a small amount of money as regularly as possible so that your studies aren’t disrupted and you don’t have to rely on loans to cover your expenses.
Your university may also provide emergency aid or support services should you need help with your finances during your studies abroad.
How to fund your studies abroad
If your budget still seems unaffordable, there are plenty of financial aid options to help you make your study abroad dreams a reality:
- Application fee waiver
This is granted to students who are facing financial difficulty and allows them to apply to a university without paying an application fee. Some universities automatically offer fee waivers to eligible applicants, while others may require students to submit a form or provide documentation to prove their eligibility.
- Student loans
Students can borrow money to cover the cost of their tuition fees. This loan needs to be repaid after you have graduated. In some countries, international students won’t be eligible for a government loan and will instead need to rely on private loans. Some universities also offer loan programs specifically for international students.
- Grants, bursaries, and scholarships
These offer students financial support based on specific criteria, such as their financial situation, or their academic ability. They are typically awarded by educational institutions, non-profit organizations, charities, and trusts. Unlike loans, students aren’t expected to repay this money.
- Sponsorships
International students can be sponsored to study at university by a company, employer, government body, charity, non-profit organization, or individual. In most cases, a sponsor will be a family member or friend. How much money you receive is up to your sponsor, but in the majority of cases, sponsorships will cover most or all of your university fees. You may be required to fulfill certain responsibilities, such as achieving a minimum average grade, completing a work placement or internship during your program, or committing to work or volunteer after graduation.
- Part-time jobs
Part-time work is a great way to bring in a little extra money while you study. Bear in mind that you’ll need to prove that you have adequate funds to cover your first year of tuition and living costs during your university and visa applications, so don’t rely on a part-time job to completely cover your expenses.
Your university will likely have many job openings for students on campus, and you may even find work in your local area. Many universities offer work-study programs so that students can earn an income and gain experience that is relevant to their degree.
Make sure to research the regulations in your host country before you accept a job, as student visas often have restrictions on the number of hours you can work.
To learn more about how you can fund your studies as an international student, read our guide here.
Studee's top study abroad budgeting tips
1. Work out your income: Calculate the average amount you could receive through loans, scholarships, grants, employment, sponsorships, savings, and contributions from friends and family
2. Organize your expenses: List all of your potential expenses based on the categories above and separate them into essential and non-essential spending. Identify which expenses are fixed (e.g. rent, utilities, and tuition fees) and which can be adjusted based on your habits (e.g. shopping and entertainment).
3. Calculate your monthly budget: Subtract your expected income from your essential expenses, like tuition, rent, and groceries. The remaining amount is what you have available for non-essential expenses, such as dining out and entertainment. To find your monthly budget for these non-essential expenses, divide this remaining amount by the number of months you'll be studying abroad. Similarly, divide your total essential expenses by the same number of months to determine how much you’ll spend each month on necessities.
4. Adjust as needed: Be prepared to adjust your budget as you go. After a few months, you’ll have a clearer understanding of your spending habits and financial situation. You may find that some expenses are higher or lower than you initially expected, so it’s important to revisit and tweak your budget accordingly.
Ready to start your study abroad journey? Tell us your study plans and we’ll help find the ideal program to fit your budget.