One of the greatest achievements in life is to be able to win a scholarship that will enable me to study abroad. It is possible that you feel as if you have finally realized your dream – tuition is covered, your flight may be covered, and you no longer have to worry about finances too much so you can focus on your studies without worrying. Sadly, there are a lot of students who don’t realize when they are just starting out that, in many cases, scholarships aren’t going to cover everything they will need in order to complete their studies.
However, even the most generous programs may have limitations, and if you are not prepared, you may be surprised by the hidden costs in your program if you are not aware of them. Having a scholarship experience can be very beneficial, but you need to budget properly, avoid financial stress, and make sure you understand these costs in advance so that you can make the most out of your scholarship experience.
There are many costs that are associated with studying abroad that are often overlooked by students, and this guide should cover how to plan for them effectively so that they are not overlooked in the future.
What “Fully Funded” Really Means and How It Can Help You
A scholarship that advertises itself as being “fully funded” generally means that it will cover all the costs associated with a student’s education, such as the tuition, residence, health insurance, and a basic living stipend. However, “fully funded” is not necessarily a synonym for “free,” despite what many people believe.
There are different coverage policies for different scholarship programs, and each policy is different. An example of this would be:
- It is the case that the majority of universities only pay for the university tuition, and that you are expected to cover the costs of food, transportation, and materials on your own.
- In places like London or Sydney, where living costs can be very high, there are other colleges that provide a fixed stipend that may not match the actual cost of living within those places.
- It is possible for you to qualify for a travel allowance in some cases, but only for the first time you arrive in the country, not for subsequent trips.
When you take the time to read your scholarship agreement carefully, you will be able to determine exactly what is and isn’t included in your scholarship – as well as what isn’t.
1. The fees associated with immigration and visas
You still have to bear the costs associated with your student visa application even though you have received a scholarship. Depending on the type of visa and the duration of the visa, most countries charge a fee between $100 and $500 for the processing of a visa.
In addition to the visa fee, you might also need to pay for the following items in addition to the visa fee:
- Medical examinations by physicians
- Enrollment in a biometrics program
- Clearance certificates issued by the police
- As part of the translation process, it is necessary to translate and certify documents
The Tier 4 Student Visa and the Immigration Health Surcharge are both required by the government of the United Kingdom in order for you to obtain a student visa, whereas the Biometrics and Medical Reports that you are required to provide are only a few hundred dollars in Canada.
It is a good idea to budget for visa-related expenses as early in the process as possible – they are unavoidable and most scholarships cannot cover them as they are unavoidable.
2. The cost of travel and relocating a company
Most scholarships cover one-way airfare to the country of residence, but there are a number of scholarships that do not cover:
- You will be provided with local transportation upon your arrival at the hotel
- Extra baggage fees are charged for each additional piece of luggage
- Transfers to and from the airport
- It is necessary for the applicant to travel within the country to and from the embassy or visa office
- After you have completed your studies, the tickets you have been issued will need to be returned
The responsibility for paying for these expenses lies with you, unless the scholarship specifies that multiple travel allowances are provided. There is a general rule of thumb when it comes to relocation costs, namely that you should set aside an amount of at least $500 to $1,000.
3. Deposits for utility services and deposits for housing
Many times, even when the university provides housing, there are hidden costs associated with housing that are often overlooked by new students, even when the university provides housing.
The following are a few examples of how this can be achieved:
- Renting or renting a dormitory or apartment will require you to pay a security deposit at the time of renting
- Utilities provide electricity, gas, and internet services to their customers as part of their bills
- Amounts charged for cleaning and maintenance services
- Whether you rent an unfurnished apartment or a furnished apartment, you will be provided with bedding if the apartment is furnished
As a result of your scholarship, your rent may be covered, but not your utilities or deposits, so you will need cash upon arrival to cover these additional expenses, depending on the scholarship.
4. Costs associated with food and living expenses on a daily basis
In some cases, the scholarship stipend that you receive may include allowances for food and living expenses, but these cost vary from city to city and from lifestyle to lifestyle.
For instance, a $700 monthly stipend might be enough to cover groceries and transportation in Poland or Malaysia, but it will not be enough to cover those expenses in London, Paris, or Toronto. When you eat out, buy groceries, and participate in social activities, you may be able to spend quite a bit of money in a short period of time.
One of the best tips I can give you is to learn how to cook your own meals and keep track of your expenses. In order to stretch your stipend as far as possible, you should do the following.
5. Health Insurance Gaps
Even though many scholarships include basic health insurance as a part of their package, they do not always cover every type of medical treatment that is available.
There is a possibility that you will still have to pay for the following:
- Care for your teeth or eyes
- Providing mental health consultations to clients
- Medications that are not listed on the list of prescriptions provided by the student insurance provider
- The provision of emergency treatment outside of the university hospital should be considered in the event of an emergency
When you arrive in some countries, your insurance coverage may not begin until you get there, which means that if you fall ill before you arrive, you may be faced with unexpected medical expenses once you get there.
6. Equipment and materials for the study
Especially if the program is related to STEM or art, textbooks, lab materials, and software licenses can be quite expensive.
Many scholarships do not provide an allowance for books, but a few do. You may also need to purchase the following items:
- When it comes to purchasing a new laptop or software,
- Wear protective clothing or a lab coat
- Stationery and printing supplies
- Access-required journals or online tools
The best way to minimize these costs is to look for student discounts, open-source software, and library resources.
7. Expenses related to living and personal expenses
As you adjust to a new culture, you may need to spend some money on social and personal needs that are not covered by your scholarship. Here are a few examples:
- Locally available SIM cards and mobile data plans
- Winter clothing is necessary if you move from a warm to a cold country
- The university offers a variety of social events, student clubs, and networking opportunities
- Birthday gifts, public transport passes, and birthday entertainment
Despite the fact that these may seem like small things, they add up quickly. To maintain a healthy mental state and to maintain your relationships, a balanced budget should include some funds to support your social life.
8. Conversion fees for bank transfers and currency conversions
Transactions involving international currencies are often subject to hidden banking charges.
When transferring or withdrawing money abroad, you may encounter the following issues:
- Bank transfer fees
- The loss incurred as a result of currency exchange
- Charges associated with international ATM withdrawals
Scholarships paid in local currency may result in a smaller payout after conversion. Consequently, some students can lose as much as 5-10% of their monthly stipends.
Open a local bank account as soon as you arrive in the country, and compare currency exchange rates before transferring funds.
9. Expenses associated with academics
Despite the fact that some schools are fully funded, they still charge extra fees. Fees may include:
- An overview of the student union’s fees
- The charges associated with submitting a graduation or thesis
- Dissertation binding or printing costs
- Participation in the field trip and laboratory
Despite their minor nature, these issues can be inconvenient if you’re unprepared.
10. Expenses associated with an emergency or contingency
Be prepared for emergencies such as lost luggage, broken laptops, sudden illnesses, or family problems that require you to travel home. To be prepared for the unexpected, even on a scholarship, you must have an emergency fund.
Make sure you save at least a month’s living allowance so you can fall back on it in case of an emergency. As a result, you will have peace of mind and flexibility in the event something unexpected occurs.
An overview of a Canadian scholarship student’s realistic budget
| Expense Category | Estimated Monthly Cost (in CAD) |
|---|---|
| Accommodation (on-campus shared) | 700 |
| Food and groceries | 350 |
| Transportation | 120 |
| Internet and utilities | 100 |
| Study materials | 80 |
| Personal and social expenses | 150 |
| Total Monthly Expenses | 1,500 |
With a scholarship stipend of CAD 1,200 per month, you’ll need to plan for a monthly gap of about CAD 300, which you can cover through savings or part-time employment.
Reducing hidden costs by identifying them
- Cook at home instead of eating out frequently.
- Take advantage of student discounts on transportation and attractions.
- Buy second-hand books or share books with classmates.
- Join online student communities to find housing and travel deals.
- Choose a mobile plan that is affordable and use internet-based apps instead of international calls.
- Don’t get into unnecessary debt with your credit cards.
In conclusion
A scholarship makes studying abroad possible, but it is only sustainable if you maintain financial responsibility. It’s not necessary to be discouraged by the “hidden costs” – they are simply a part of budgeting in real life.
By choosing the right scholarship and planning ahead, you will avoid any difficulties during your studies. Having smart financial habits, making realistic budgets, and saving for emergencies will allow you to fully enjoy your time abroad and focus on what matters most – your education.