Your Tuition Fee Payment Guide for Students Going Abroad: Save Money and Avoid Penalties
It’s not just about sending money; it’s also about understanding payment options, associated charges, deadlines, and potential penalties. This guide will help you navigate this process smoothly and efficiently.
Paying Tuition Fees as an International Student: Key Considerations
As an international student paying tuition fees abroad, one of the most important factors to consider is the extra charges associated with the payment process, especially when your funds are coming from India.
Step 1: Check the University’s Accepted Payment Methods
Start by checking your university’s website to see what payment options are available. Some universities accept card payments, while others may only accept bank transfers.
- If Card Payments are Accepted:
If your university allows card payments and the amount is below ₹7,00,000, you can use a Niyo card to pay your fees without incurring any forex charges. This can save you significantly on conversion costs. - If Only Wire Transfers are Accepted:
If your university only accepts wire transfers, you’ll need to transfer the money from India either to the university’s bank account directly or to your own foreign bank account, and then make the payment.
Understanding Charges for International Money Transfers: A Student’s Guide
Let’s say you’re a student at Arizona State University in the US and need to transfer $10,000 to pay your tuition. The only available option is an international wire transfer. Here’s a breakdown of the charges you may face:
- Dollar to INR Conversion Rate: The conversion rate between USD and INR fluctuates frequently, changing every 15 minutes or so. Currently the 1 INR is equal to 83.60 USD.
- Forex Markup (Commission): On top of the conversion rate, agents or money transfer services often charge a commission, called a “forex markup.” For example, if the dollar is trading at ₹83, an agent might add ₹2 per dollar as their commission, making your effective rate ₹85 per dollar. So, instead of paying ₹830,000 for a $10,000 transfer, you’d be paying ₹850,000.
- SWIFT Charges: International transfers are processed through a system called SWIFT. Banks often charge for this service, with fees ranging from ₹2000 or more, depending on the bank. This is another cost to factor in.
Read below to learn how to save on Forex and Swift charges :
- Service Fees and GST: Some agents or platforms may also charge a service fee, often labeled as a “platform fee.” In addition, GST at 18% applies on both the forex markup and the service fee. For instance, if your agent charges ₹4 extra per dollar in total, GST will be calculated on this ₹4 and not the entire amount.
- TCS (Tax Collected at Source): When sending more than ₹7 lakh abroad, TCS is applicable. If the purpose is educational, the TCS rate would be lower depending on the source of your funds
- If the funds come from an educational loan, you will be paying TCS at 0.5%.
- If you’re using personal savings, you could pay around 5%.
Summing Up the Costs:
So, the total charges a student pays generally include:
- The exchange rate + forex markup (conversion fee)
- Service or platform fee
- SWIFT charges
- GST at 18%
- TCS (if applicable)
What are International Wire Transfer?
Transferring funds directly from your home bank to your university’s account is a simple process but can come with certain considerations. It’s important to factor in international transfer fees and processing times that may affect the total amount and timing of the transfer.
Charges and Process
- Bank Transfer Fees: Most banks charge fees for international transfers, which can add up depending on the bank and amount being sent. It’s essential to check these charges upfront.
- Processing Time (TAT): Transfers can take anywhere between 2 to 5 business days depending on the bank and country, so it’s important to plan ahead to ensure timely payment to your university.
How to save on international money transfer:
Niyo’s International Money Transfer:
Niyo offers a seamless solution for international money transfers, providing users with a host of advantages that make sending money abroad quick, secure, and cost-effective.
With zero platform fees and zero SWIFT fees (reversed in Niyo Coins), it ensures that customers save on hefty transfer costs. The service boasts high-speed transfers completed within 72 hours, giving users the peace of mind that their funds will reach the recipient quickly.
Additionally, Niyo offers unbeatable conversion rates that are significantly lower than traditional banks. This makes it an ideal choice for those looking to save money on international money transfer. The entire process is 100% digital, ensuring a smooth and user-friendly experience from start to finish.
Niyo offers:
- Flat SWIFT Charges: We offer a flat, transparent SWIFT fee.
- No Service or Platform Fees: With Niyo, there are zero platform or service fees for international money transfers.
- Low Forex Markup: We charge 50% less than most agents, guaranteeing competitive exchange rates.
- Smooth Process: The entire transfer is digital and simple to complete via the Niyo app. Just download the app, head to the homepage, and click on “Send Abroad.” It’s that easy.
Documents Required for an International Transfer
Before transferring tuition fees, gather these documents from the sender (student, parent, or guardian):
- University acceptance letter with the transfer amount.
- Student’s valid passport.
- Sender’s valid ID proof (e.g., driver’s license).
Why Niyo is Better:
Niyo stands out from other money transfer services due to its key benefits:
- Cheaper: Niyo offers lower fees and better conversion rates compared to traditional banks, making it a more cost-effective solution.
- Safer: Your money is held and managed by RBI-regulated banking partners, ensuring that your funds are secure throughout the process.
- Easier: Niyo simplifies the transaction process, reducing the number of steps required for a hassle-free experience.
- Faster: Transfers are completed within 2-3 business days, ensuring that the recipient receives the funds promptly.
Check this video to learn how to transfer with Niyo 
: How to send money abroad at lowest rates | Niyo International Money Transfer
Supported Currencies:
Niyo works with top global currencies, including:
- Australian Dollar
- British Pound Sterling
- Canadian Dollar
- Euro
- Hong Kong Dollar
- Japanese Yen
- New Zealand Dollar
- Saudi Riyal
- Singapore Dollar
- South African Rand
- Swedish Krona
- Swiss Franc
- United Arab Emirates Dirham
- United States Dollar
How It Works:
The process for sending money through Niyo is simple and straightforward:
- Enter Details: Provide the necessary information for the transfer, including the recipient’s details and the amount.
- Upload Required Documents: Ensure that all relevant documents are submitted to complete the transaction.
- Track Transfer: Monitor the status of your transfer through the app.
- Money Credited to the Receiver: The recipient will receive the funds within the specified timeframe.
How Niyo Can Help:
At Niyo, we’ve streamlined the entire process to make it transparent, student-friendly and cost-effective. Here’s how:
By choosing Niyo, users can enjoy a combination of cost savings, security, and convenience, making it one of the most efficient options for sending money abroad.
Additional Tips:
Managing tuition payments requires careful attention to deadlines, fees, and payment methods. Always mark deadlines on your calendar and avoid late fees by paying on time—penalties can add up quickly. Keep an eye on currency conversion rates and explore options like forex cards or multi-currency accounts to reduce costs. Ensure payment details are accurate to prevent delays, and communicate with your university if any issues arise. By staying proactive and informed, you can manage your fees smoothly and focus on your studies without unnecessary financial stress.
