Saving Money on International Tuition Payments

International student tuition is already very expensive whether you’re a Canadian student in the US or a student from elsewhere in the world. What’s worse is inefficient and expensive currency exchange and wire transfers can cause unnecessary expenses. In between converting your domestic currency, finding a transfer provider, and actually making the transfer to a recipient, things can get very complicated. Luckily, there are a few rules to follow that can make paying international student tuition efficient and cost effective.

International Money Transfers

Sending large sums of money internationally can be risky, especially for students with no source of income and little experience. This makes it extremely important to be wiring the money to legitimate companies. To ensure that funds don’t get lost or stolen it is a good idea to contact the school via email or phone to find out which wire services the school uses. It is also a good idea to compare the cost of currency exchange between the different wire service providers and trusted banks to get the best deal.

Another way you can quickly check to see if the company you’re choosing is legitimate is through the media. A quick Google search can go a long way in providing credibility and reassurance. If the company is frequently or has been featured in the media in a positive way, it is likely that the company is legitimate. Also look out for reviews and comments on forums from people who have used the service before. They are usually good indicators as to how credible and trustworthy the company is.

Wiring money

You can potentially save money by wiring money directly to your university. Wiring money from one bank to another bank and then to the university can result in unnecessary fees. For example if transferring $50,000 being charged twice on a fee such as .5% can result in having to pay an extra $250. Schools generally charge fewer fees or no fees at all to receive wire payments. Using this option also ensures that your money arrives at the right place on time.

Choosing a Foreign Currency Exchange

When exchanging domestic currency to foreign currency, consider a non-bank foreign exchange provider. Banks charge high hidden mark ups on exchanging currency that can easily be avoided. Many non-bank foreign exchange providers offer much lower rates and can help you save a significant amount of money due to the large size of tuition transactions. For example, banks can charge up to 2.5% on a single transaction. On a $50,000 payment this can equate to $1,250 versus .5% charged by some independent providers which will equate to only $250.

To ensure that the transaction goes smoothly, it is important to confirm and markdown expected dates of payment and any fees that you will incur. It is important to be thorough and to take the time to double check the whole process. This will avoid potential hassle arising from hidden intermediary transfers that may increase the total cost of the exchange and potentially cause enrolment suspension.