The real cost of studying abroad: Expenses students often forget to budget for

There are four components to the cost of studying abroad:   

1. Tuition fees    

2. Up-front expenses include visa fees, test fees, insurance, and flights.    

3. Living costs: mortgage/rent, utilities, groceries, transportation, phone bills, insurance, childcare, etc.    

4. One-time expenses: Initial settlement, books, bank fees, emergency expenses   

Most students focus on the first one, however, the remaining three components can contribute up to 40-60% to the total cost of tuition. Your planning for all four will help you avoid stress later on.    

Tuition is only part of the picture

Tuition is the biggest single cost, however it is not the full cost. Here are typical yearly tuition ranges for international students in five popular destinations. Please get in touch with the respective universities to find out the latest tuition fees.   

Note: Ranges are approximate. Medicine, dentistry, veterinary and some MBA courses cost much more. Master's degrees in the UK, Ireland and Australia are often shorter (1 to 2 years), which can lower your total cost. 

You incur these expenses before landing. Many of these expenses must be paid months in advance, so it is important to plan early.   

Visa or application fees  

You will be charged fees for your student visa and, in some cases, for related health services. Some universities also charge application fees. The following fees apply to a single student visa: 

*These fees are rounded and may change as governments update their regulations regularly.

You may also need to provide evidence of funds. This is proof to the government that you can afford housing. For instance, Australia requires approximately USD 29,710 per annum. The UK asks for £1,171 a month (£1,529 in London) for up to nine months. Ireland asks for €10,000 a year. You don't pay for this visa, but you need to have it ready.

Also budget for:    

• Processing fee: usually between AUD 150 or US$100 per university   

• Document cost: Translation, certified copies, and courier expenses.   

• Medical checks and police certificates may be required for your visa if needed.  

IELTS test and English preparation 

It is required by most universities to submit evidence of English language skills. Thousands of institutions across the world accept IELTS. The test fee varies according to the test location. Typically, it is in the range of US$200 - US$300 (or local currency).

Keep these in mind:    

• If you don't get your desired score on the first try, you may need to retake the test.   

• Practice books, online courses, or prep classes are additional.    

• If your English score is just a little lower than the requirement, some universities provide English pathway courses. These are pricier but may save a re-take.     

Health cover and insurance

Health insurance is generally required for international students. Here’s how it works in different countries:   

• Australia: Student Health Cover (OSHC) is compulsory in Australia. The cost for a single student is estimated at AUD 600 - AUD 700 per year, to be paid annually; it will be higher for longer courses and larger plans.   

• United Kingdom: The Immigration Health Surcharge must be paid in advance: £776 per year of your visa. This gives you access to the National Health Service (NHS).   

• United States: Most universities require insurance. University plans typically range from US$1,500 to US$3,500 per year.   

• Ireland and New Zealand: Insurance will be required, and the costs of that insurance will depend on the provider. Research alternatives prior to purchasing.   

Please take note that basic health covers do not necessarily cover dental, glasses, or mental health coverage. Make sure you understand what your plans cover. 

Flights and travel

The price of a one-way ticket ranges from US$600 to US$2,000, depending on the route and the time of year. If you plan to visit home, make sure to book ahead to save on travel costs.  Don't forget:    

• Extra baggage fees   

•  Airport transfer costs upon arrival 

• Hotel or hostel expenses for your first few nights if your accommodation isn't ready 

Tip: Book in advance, avoid the holiday season, and make sure to check for student discounts.  

Living costs depend on your city. Big cities such as London, Sydney, Melbourne, Dublin, and New York are more expensive than smaller cities. Here is a rough guide to yearly living costs, including rent, food, transport, and personal spending.  

*Ranges are estimates. Your own costs will depend on your city, housing and spending habits.  

Accommodation and bond or deposit

The cost that most students miss is the bond or deposit. This is money you pay upfront to your landlord. It is usually refunded when you move out, if there is no damage. Expect to pay four to six weeks of rent in Australia and New Zealand, and often one to two months of rent in the UK (deposits for private rentals are capped at five weeks' rent in England).

In addition, you possibly have to pay rent in advance for the initial month. This means that your initial rent payment may be two or three times the usual monthly rent.

Note: Check on-campus housing options before deciding on your accommodation. Never send a deposit without verifying that the accommodation and landlord are legitimate. 

Utilities, internet, and mobile

In private residences, rent frequently does not cover bills.  Make sure to check what's included before signing your rental agreement. 

Budget for:    

• Electricity, gas, and water    

• Home internet    

• A local mobile plan   

Approximately US$60 to US$150 a month for all three combined, depending on your country and whether you share costs. Heating in winter can push the total up, especially in the UK, Ireland, and parts of the US.

Groceries and eating out

Preparing most meals at home typically costs between US$200 and US$400 per month. When eating out, it is usually costly. The price of a meal at a casual restaurant can be up to US$12 to US$20 for one person. 

You can keep these costs low by:    

• Cooking in batches    

• Shopping at discount supermarkets  

• Using student discounts    

• Treating eating out as a weekly treat rather than a daily habit.  

Local transport    

Many cities offer student travel cards that can help you save on transport costs. Typical transport fees are between US$30 and US$130 per month. It's pricier in some areas, such as London or Sydney. Consider walking or cycling if you are living near campus.

These are the expenses that often catch students off guard. While they may seem individual, they can cost between US$1,500 and US$4,000 in your first few months.   

Setup costs (bedding, kitchenware, and warm clothing)  

The majority of rentals are unfurnished or have minimal furnishings. You may need to buy:    

• Pillows, bedding, and towels    

• Pots, pans, plates, and utensils    

• A winter coat, boots, and warm layers if you are relocating to a cold area    

• Toiletries and cleaning supplies     

Secondhand shops, student groups, and the online market are excellent ways to save money.     

Textbooks, course materials, and tech    

The costs of books and materials range from US$300 to US$1,200 per year, depending on your course. A few classes require equipment, special software, lab supplies, or field trips. A laptop might also be necessary.    

Hints: Look in your library first. There are many universities that offer free e-books and software. You can also purchase used books or trade with other students.   

Emergencies and a buffer fund   

Unexpected costs happen. Your laptop might fail, or you might need to get home urgently, and it's not covered by your insurance. The recommendation is to have an emergency reserve of 3 months of living expenses. If it seems too much, begin with 1 month and build it up. 

Create a monthly budget 

Tracking your monthly spending budget gives you a clear picture of where your money is going. Please complete the blanks in this table with your numbers.   

*Examples are rough and vary widely by city. 

The simple way to plan is:    

• Consider tuition and visa fees first.    

• Add upfront expenses (deposits, flights, insurance).    

• Include 12 months of living expenses in your city's area.    

• Include 10% - 15% contingency costs.    

• Look at the total in comparison to your savings, family support, scholarships, or loans.   

Ways to lower your costs

Studying abroad can fit more budgets than you might think. Try these ideas:  

• Check out scholarships: There are plenty of universities and governments providing scholarships for international students. Submit applications early—deadlines are often months ahead of courses beginning!    

• Choose your city carefully: When it comes to cost, smaller cities are far less expensive than capitals.   

•  Compare course length: The overall cost of a one-year master's may be less than a two-year course.    

• Consider shared accommodation: You might be able to save a considerable amount of rent by sharing a flat.    

• Check your work rights: In most countries, students are allowed to work during term time. In the UK, Ireland, the US (on campus only), and New Zealand, for instance, limits are approximately 20 hours per week and 48 hours per fortnight in Australia. Please note there are a number of rules for each visa and course, and you should check yours. Avoid working a second job to offset the major bills.   

• Take advantage of student discounts: There are student discounts for transport, phone plans, software, food, and more.      

Want to understand which destination suits your budget?

An IDP counsellor can help you make a side-by-side comparison of countries, courses, scholarships, and overall costs.  

You now have an idea of what to include and what to focus on. The next step is to compare the actual costs of countries/courses you prefer. Meet with an IDP counsellor at no cost for one-on-one discussions on destinations, scholarships, visas, and budgeting.