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For international students, using specialized money transfer services can reduce costs associated with tuition, accommodation, and other expenses abroad. These services offer competitive rates, lower fees, and the flexibility of multi-currency accounts, which help avoid costly exchange rates from traditional banks.
Investing in education is both smart and expensive. Especially if you're taking the chance to study abroad and experience a new culture.
That's why it's important to avoid wasting money on expensive international money transfers.
In this short guide I'll explain how to beat the banks, minimise fees, and enjoy great exchange rates.
The problem with international student payments
Exchanging currency using typical international bank transfers can cost you heavily.
As an international student, you'll be familiar with the long list of things you'll need to pay for, including tuition fees, accomodation and expenses.
Students will need to tap into family support, personal savings, scholarships, part-time work or loans to cover these costs. Often more than one.
If the source of these funds is in your home country, then you'll probably need to make a currency transfer.
Probably quite a few over the duration of your studies.
This is where using typical bank transfers can cost you - potentially as much as $5,000 for some students.
Fees are hidden in the form of poor exchange rates, which could leave you with thousands less to spend.
Why use a money transfer specialist?
The right alternative is to use a money transfer company to transfer funds abroad.
Avoid high exchange rate markup - instead, pay the mid-market rate or close to it
Low and transparent fees - clearly see what you'll be charged for your transfer
Great options for regular payments - helpful for recurring costs like monthly rent or quarterly tuition payments
Two main options: online-first, or managed service
International students can and should avoid losing money on FX transactions.
Online-first companies | Managed services |
|---|---|
Preferred by students who want self-service international transfers via app or web | Preferred by students who are making larger transfers and appreciate personal customer service |
Instantly see transparent rates & fees online | Offers FX advice over the phone |
Best quality mobile apps | Provides high-touch email and phone support during your transfers |
More likely to offer multi-currency accounts and additional benefits | Bank-beating exchange rates, some with rate match guarantees |
Examples: Currencies Direct, Regency FX |
Multi-currency accounts
If you would like more flexibility and control over your currency conversions, a multi-currency account might be right for you.
These accounts let you easily switch between, and hold, more than one currency at the same time.
There are still costs involved in converting, but they are far cheaper than bank rates.
Read our guide to choosing a multi-currency account for more information.
Let's look at an example.
Alice was starting a three-year degree course at Bocconi University in Milan, Italy.
Her tuition was €16,500 per year, accomodation €9,000 per year, and she budgeted €10,000 per year for general living expenses.
In total, in US dollar terms, this adds up to over $120,000 total cost to be paid.
Alice was offered fee-free international transfers by her bank, which sounded great. However, when looking more closely, the currency conversion rate was more than 5% worse than the top deals on the market.
That would have cost her $6,000 in additional transfer fees.
Alice used a money transfer company to make her transfers, and also opened a multi-currency account. This allowed her to conveniently spend in Euro in Milan, as well as on weekend trips to surrounding Italian towns and countryside.
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