A STEPWISE FINANCIAL PLANNING GUIDE

Financial planning is a very important aspect in studies abroad and should be handled very meticulously. The admission decision is also based on candidate’s financial position after the clearance from academic department. This guide will help you understand all integrities of financial planning needed for MS program abroad.

STEP 1: Know your heads of expenses

A typical BS TRANSFER program is of minimum 24 months.

  1. Tuition Fees per years: Mandatory will vary as per university
  2. Books and other fees: Mandatory will vary as per university
  3. Health Insurance : Mandatory will vary as per university
  4. Living cost: Mandatory will vary as per university and location you stay on campus or off campus

Eg. Penn State University

Expense Head Cost Remark
Tuition Fees  28,000 USDMandatory to be paid yearly
Books & other Fees 4,000 USDMandatory to be paid yearly
Living Cost 11,000 USDMay differ as per the accommodation of choice
Health Insurance 2400USDOptional can be obtained from India
Total 45,500 USA / Year Financial Guarantee

 

 Step 2: Showing Finances

For a two years programs you need to show funding for two years. Out of which funding for year 1 needs to be showing in liquid assets( assets that can be en-cashed to suffice the first year expenses)  and finding for the year two can be shown in immovable assets ( Mostly Property) or can even be shown as liquid assets

Living expenses in CANADA is standard 10,000 CAD per year and that has to be paid to GIC ( Guaranteed Income Certificate) account. Student can withdraw about 800 CAD per month to take care of the living expenses.

Tuition fees to be paid directly to students university account as per the deadline before applying for the visa.

Step 4: Gather documents to prove funding

  1. Cash in Bank : Bank Balance certificate
  2. FDs : Letter on Bank letter heads stating amount of FDs
  3. Mutual Fund: – As on date value certificate
  4. Shares : As on Date statement
  5. Policy : As on date surrender value
  6. EPF : latest statement
  7. PPF : Latest Passbook copy stamped and signed
  8. Loan : Sanction letter

Note: CA certified fund letters or solvency certificates are not permitted now

Step 4: Additional Document

Universities will also require a letter from sponsor , most of the university will have their standard format where the sponsors have to give consent that they are willing to fund the candidates education

Step 5: Finding Partners

  1. Banks rate of interest 9 % – 11 %
  2. Private finance company HDFC CREDILLA , Avans , Financeperes rate of interest 14 % or more
  3. Paras education trust rate of interest 5 %-6 % , needs guarantor from USA

Timeline For arranging funds

Typically to get the Admission Letter released the financial documents need to be ready by January ( eg . If the students is flying in Aug 2020 , Financial Documents to be ready by Jan 2020 or even slightly earlier)

By | 2019-03-26T05:30:45+00:00 March 25th, 2019|0 Comments

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