Cost of Education
The cost of education is the most important factor considered by almost every student from India. Also, it�s a wide spread belief that the education in USA is not affordable. The complicated structure of financing opportunities and the dynamics of scholarships, in campus and off campus jobs etc. make the financial planning further more difficult. At the outset, one may think that the cost of tuition plus the living expenses is equal to the total cost that a student requires. But then, what about scholarships? What about campus jobs? What about summer jobs? Will they reduce my total cost? To what extent? What is the certainty? This and many more variables make the financial planning process absolutely difficult at times.
We at FACT, have been meticulously calculating the expected costs for different students. Our knowledge about the working methods of universities, local laws and quality consultation to the parents has helped many middle-income families comfortably manage the education of their children in America. While the cost factor has to be calculated separately for each student, we have given broad information about the various ingredients of costs as well as the funding opportunities in this chapter.
US Universities fall under two major categories: public (state supported), and private (independent) institutions. International students� tuition expenses at state schools are based on nonresident costs, which are still usually less expensive than those of private universities. It�s important to note that the cost of a program in a US school does not necessarily affect its quality. Similarly, it is not a rule that all public universities are good or all private universities are inferior. One has to study each university independently, regardless of whether it is a public university or a private university.
University Type |
Average Tuition Fees
(annual in U.S. Dollars) |
Private Institutions (High Cost) |
$ 25,000 |
Private Institutions (Low Cost) |
$ 15,000 |
State Institutions (High Cost) |
$ 20,000 |
State Institutions (Low Cost) |
$ 10,000 |
The tuition fee is different for different universities and varies widely with courses. It can vary from as low as $ 7,000 a year for state universities to as much as $ 30000 a year for some private universities.
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The approximate annual living expenses are about $7,000, which includes accommodation as well as other daily expenses. However, the expenses are different for different people depending on the lifestyles and this is just a rough idea. The main expenses can be split up as:
Rent |
$ 400 per month |
Groceries |
$ 100 per month |
Utilities |
$ 100 per month |
Phone |
$ 50 per month |
Sundry |
$ 50 per month |
So, about $700 per month is a good estimation. Most people can survive with $500- $600 a month. The key here is to share apartments/houses so that you save on the utilities, fixed charge portion of phone and to some extent on groceries
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The total cost of tuition and living can be funded through the following sources:
- Personal Savings: this is the traditional method of funding education in India. Most parents meet the education expenses of their children through personal earnings and savings. But when it comes to financing the education in America, one should take care that the personal savings are utilized to the minimum possible extent. In some cases, we even recommend not to use personal savings at all to fund the education.
- Educational Loans: this is the new emerging option in the last couple of years. All the nationalized banks have a structured and uniform educational loan policy wherein loans are given up to Rs.5 lakhs without any collateral security or guarantee. If the parents are willing to offer collateral security, the amount of loan can me as high as Rs.15 lakhs for students studying abroad
- Scholarships: most GOOD American universities offer substantial scholarships to deserving students. These scholarships are given based on different selection criterions. The next chapter is specifically dedicated for discussing the scholarships option.
- Campus Jobs: the universities allow students to work on campus for up to 20 hours per week. These jobs often help the students recover their living expenses while studying at the university.
- Summer Jobs:� each year, the student has two vacations totaling to three to four months. During this period, the student can work full time either on campus or off campus. Students are not allowed to work off campus for the first nine months of their study. These jobs being full time in nature, help the students make more money than what they require for their living expenses. Again, one has to be careful while selecting the university. You should apply to only those universities, which have on campus jobs available.
If one uses the above information carefully while applying to the universities, the total cost of education, which requires funding through personal savings or educational loans comes down substantially.
This is one area in which FACT has developed expertise through extensive research and experience. The students of FACT therefore have saved lakhs of rupees by applying to the right university, for the right program at the right time.
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