5 Hidden Costs of Studying in the U.S. and How to Budget for Them

• International students in the U.S. must be aware of hidden costs, such as club fees and wellness charges, as they can add up along with the cost of attendance

• Preparing budgets carefully,  getting student discounts, and working part-time can help international students in the U.S. manage unexpected expenses

• Prodigy Finance offers competitive interest rates and a grace period of six months, which helps students to focus better on their studies

US international education is a wonderful experience that offers a diverse cultural experience. The desire to attend the best universities and experience personal and career growth attracts most global learners to the United States. Most students know about the essential costs, such as tuition fees, accommodation, and health insurance; however, many overlook the hidden study cost for attaining education in the United States.

Such expenses may not be significant individually, but the overall cost might come as a shock to most students. From miscellaneous living expenses to travelling costs, these expenses can lead to difficult situations if not planned well in advance. 

Students need to be proactive and budget for unforeseen costs so that they can focus on their studies while in the United States. Here are some areas that many international students are unaware of that can rack up additional expenses:

Clubs and Organisation Fees

When studying in the U.S., joining clubs and student organisations comes with membership fees and associated costs. Fees for club membership can cost as low as $20 or as high as $150 per semester, depending on the university and the intensity of the club activities. These costs are rarely covered by the tuition fee.

For example, universities like the University of Arizona and the University of Southern California often have additional costs for students who wish to join campus organisations and student unions or participate in activities like recreational sports leagues. These fees might seem small but can accumulate during the study period. It is equally important for international students to know these fees in order to develop an adequate budget for their university experience.

Health and Wellness Fee

Another indirect cost that international students end up having to pay is the health and wellness fee. This fee is different from health insurance, which usually pays for doctor visits and health education initiatives. It is generally levied by universities to eliminate per-visit charges for counselling services and other recreational amenities.

Several US universities, such as Tufts University, University of New Hampshire, and Indiana University of Pennsylvania, have included mandatory wellness fees. The cost of health and wellness ranges differently for all universities. Students are required to contribute to the fee, and they should know its role in their overall education costs.

Personal Travel Expenses

A major share of your budget would likely be absorbed by the expenditure related to personal travel. It can include occasional travel in the US or travelling back to the home country.

To travel around the city, you may have to spend extra as these costs might not be covered by the student loan. Only the daily commute cost is covered by the study loan.

Transportation costs such as airfare for a flight home or to another city within the U.S. may be expensive, especially during a holiday season or festive period. These travel expenses should, therefore, be taken into consideration when formulating your budget. 

Entertainment and Socialising

Getting to know people and embracing the college culture are important to college life. However, these activities add up, and can easily become costly. Usually, students forget to consider the costs that add up from outings, entertainment, and socialising with friends while studying. Students should be aware that these costs are inevitable, and so they need a clear understanding of how much they need to spend on their entertainment.

Bank Fees

Opening a US bank account can be a good way to manage your finances as an international student but it comes with fees. US banks charge monthly maintenance fees for checking or savings accounts, usually $4 to $15. Some banks waive these fees if you have a minimum balance, but you need to know about it beforehand.

If you make or receive international transactions like transferring funds to or from home, fees can be $10-$50 per transaction. And foreign currency conversion fees of 1-3% of the transaction amount may apply.

In case of a financial emergency, you may overdraw your account. In this case, you may be charged an overdraft fee. The amount depends upon your bank. To avoid this, you can opt out of overdraft coverage.

Emergencies and Unexpected Costs

The unforeseen events or any emergency that may arise at the time of your study program can lead to unwanted expenses. Students may face any injury, acute sickness, or any unplanned expense that can easily drain the money they have saved. 

Usually, students take medical or health insurance, which can be covered by many lenders under the cost of attendance as determined by the school. However, it is important to check the coverage. Sometimes, health insurance does not cover certain illnesses or medical conditions, which can cause students to face unfortunate situations.

How to Budget for Hidden Costs

International students can employ some strategies to deal with hidden costs effectively while studying in the United States. 

Create a Detailed Budget

First, it is necessary to create a detailed budget. Consider not only the cost of tuition and housing but also additional costs that may include the price of textbooks, commuting, recreation facilities, private travel, and other fees related to personal well-being. These should then be updated frequently to be able to monitor the expenses and know where to make cuts.

Leverage Student Discounts

Students can get discounts from transport services, bookstores, and entertainment facilities. So sign up for student discount platforms provided by your university or college, and keep an eye on companies like Apple, which offer several deals for students at the beginning of every school year.

For instance, if you are studying at the University of Pennsylvania, you may get special discounts by accessing the official YouDecide portal. Such portals offered by your college or university help you get discounts and manage any hidden costs.

Seek Financial Assistance

Several colleges and universities also offer financial aid and grants to help students cover their additional expenses. Check out with your college counsellor for all the available options. Some of the private lending institutions and government programs may also provide scholarships and financial assistance to students. These funds may be further used to balance out the expenses and help cover additional expenses during your study period.

Cut Costs on Living Expenses

Sometimes, you may need to reduce some expenses slightly. Instead of buying new clothes or food or renting or buying a new car, you may need to thrift, take a bus, share a house, or buy used books. Eliminating unnecessary dining out or other forms of entertainment also helps drastically cut down on hidden costs.

Consider Part Time Work

Working part-time if allowed as per your visa, can help international students to get extra cash to cover for additional costs. For instance, F-1 visa holders are typically allowed to work up to 20 hours per week during the academic term and full-time during breaks. Also, you can save emergency funds that can be utilised at any stage when needed.

FAQs

1.Why are hidden study costs often overlooked by international students?

Many international students ignore some underlying costs associated with their studies because they pay attention only to tuition fees and housing. So, the minor costs, such as health coverage, buying books, and parties, as a result, fall short of their budgets.

2.How much do utilities typically cost for students living off-campus in the U.S.?

Utilities for students living off-campus in the U.S. usually are between 100$ to 200$ a month and depend on the place of residence and usage. This consists of costs for electricity, water, gas, and the Internet, which all add up a lot when planning living expenses.

3.Are there student discounts available for entertainment in the U.S.?

Yes, students can save money on entertainment in the U.S. with the help of student discounts. By showing a valid ID, students can often pay less for movies, concerts, museums, and public transport. Some websites also have special deals just for students.

Prodigy Finance Ltd is authorised and regulated by the Financial Conduct Authority in the United Kingdom. Prodigy Finance loans are offered to eligible borrowers and these loans are governed by English law.