Pay tuition fees abroad from India? Enrolling in a foreign college or university to pursue your higher education is a remarkable milestone. You must have dedicated quite some time to clearing the exam to get into a college or university.
The payment process differs from college to college.
To maintain the authenticity of the phase, you should contact your university to determine the best method for transferring your tuition fees. But let’s look into the best options to pay the university or college fees in 2023.
How to pay tuition fees abroad from India?
You can make overseas university fee payments with forex cards, wire transfers with banks, and money transfer providers.
Let’s break down how each one of them works.
Forex Cards
Forex Cards are a solid and smooth way to pay university fees abroad. You can make the payments locally with a swipe of the Visa or Mastercard or the participating payment company, and they will reduce the corresponding amount from your bank.
But Forex Cards for Students are distant from examined the cheapest way to go. They usually come with issuance fees, annual fees, and minimum balance and activity requirements. And will only let alone a hidden exchange rate fee. These extra fees can take a strong bite out of your savings.
Plus, all Forex Cards are not made the same. For instance, some have restricted currency options
Demand Drafts to pay tuition costs
This is an alternate method of paying tuition fees, albeit it is not often used. You will need to write a demand draft for the amount you intend to send to the university. The outstanding amount will be subtracted before the rupee value is converted into the foreign currency you choose to pay in.
However, there are several downsides to paying fees through demand draft. When the demand draft is complete, it will be submitted to the university, which will take much longer, and there is a potential that it will be ripped or misplaced, posing an even greater dilemma.
Because the entire process takes about 10-15 days, parents have ceased paying fees for foreign currency demand. However, a few overseas universities exclusively accept demand as payment. As a result, you must double-check with the university first.
Wire transfers with bank
One of the more traditional ways to pay university fees abroad is through a bank wire transfer. Most banks use the global SWIFT system to transfer funds to other nations.
Wire transfers with banks are best for transferring large sums. Ideally, you can do the wire transfer through the online banking portal your bank proposes, but some Indian banks will need you to reach out to a branch physically.
Under the SWIFT system, you will need to present exact details of the bank it is being sent to and the same amount. And the process takes 3-5 business days, but it could no longer be based on your exact bank.
As for fees, banks charge a SWIFT fee and an outward remittance fee for funds transferred abroad. In addition, you also get a hidden exchange rate fee with the bank given rate.
But if the bank’s exchange rate does not match the one you see on google or relevant sites, it becomes clear that the bank has tucked away a fee in every rupee you have to convert and transfer.
The endpoint to be discussed here is that wire transfers from banks are a convenient option for specific or periodic payments. But they cannot be regarded as the smoothest or fastest on the same mark if you want to transfer money frequently.
Money Transfer Providers
Money transfer providers are an extra convenient and more accessible way to transfer fees abroad.
And some money transfer providers allow you to send cash also.
But picking the best money transfer provider is necessary. They differ very much from the earlier said two processes, where some will require you to come to a branch for a transfer physically. In contrast, others use innovative technology to send money online and globally in minutes.
As for fees, they charge a transfer or service fee. Then depending on how they fix their exchange rate, they can give you the real exchange rate or sneak in a price where the exchange rate is marked up.
They can be faster than a regular average bank and offer deals to make cheaper transfers. But in most cases, you may have to keep a sharp eye on the currencies they provide, the delivery time and ensure there aren’t extra fees on your transfers.
Four easy steps to pay tuition fees abroad from India
Book Online or visit the nearest Bank branch – Compare bids from your most comparable exchange houses and banks. Then book online or call the nearest branch.
Verify KYC – Get the required KYC documents verified at home or the nearest branch.
Transfer Funds – Transfer the funds to the exchange house or bank account as NEFT/RTGS
Get Credit! – The University or College would receive the payments within the next two days.
Can I pay tuition fees monthly? Do you have to pay tuition fees all at once?
Even though different universities have varied rules and regulations regarding the fee policy, generally, almost in all universities, you can choose to pay your tuition fees in whole or in two separate installments.
If your choice is to pay in Instalments, you will have to pay 50% of the total cost at registration minus any deposit or prepayment you have already paid. Students starting in October will spend their second installment when they return from the winter break. Students starting in January will pay their second installment when they return from spring break.
Rules to remember when sending money to students abroad
Specific rules and regulations govern financial markets and foreign exchange for different countries. The RBI is obligated to fulfill this responsibility in India. The broad legislation regulating India’s inward and outward remittances is the foreign Exchange Management Act, 1999 (FEMA). Quite a few guidelines and rules have been established in the continuance of the Act.
The two-fold purpose of this legislation is below:
1. To ensure that the money remitted out of India does not have roots in some crime. It also ensures that such outward remittance is not used for illegal purposes, such as funding terrorism.
2. It helps the Reserve Bank of India stabilize the local currency markets by ensuring no sudden outflow of money from India, negatively affecting the economy.
FEMA substituted the Foreign Exchange Regulation Act, 1973 (FERA). When FERA was introduced, the Indian economy was meager in foreign exchange reserves. The government strictly regulated all such foreign exchange transactions, which impacted the Indian economy in many ways. But the legislation could not produce the desired results.
FERA remained of little value due to its strict regime after the Liberalization, Privatization, Globalisation (LPG) Reforms. Subsequently, FEMA was brought by the government. This introduction of this legislation shows the shift from regulating to managing foreign exchange transactions.
