6 MinsJune 10, 2022
One of the biggest concerns for students aspiring to study in colleges and universities in the US, the UK, and Canada is how to pay their education fees and that too, on time. The months of May and June are usually when this has to be done, before the beginning of the new semester. A delay in paying your fees could even mean your admission getting cancelled, a situation you would want to avoid at any cost.
Here is a list of methods you can use to ensure that your fees for that overseas education are paid on time:
(1) Bank Transfers: Payment of fees by transferring money through your bank is one of the surest and safest ways you can pay your education fees. By clearing your fees through your bank, you will also ensure you have the proper fee receipts and invoices that may be required at your educational institution for future reference.
Bank transfers can be done either via net banking or by visiting the nearest branch of your bank. You will need the beneficiary bank details of your college or university and the SWIFT code of that bank (SWIFT is a global messaging platform that facilitates international money transfers electronically).
(2) Payment Platforms: Universities worldwide sometimes use specific payment platforms that students can use to clear their fees. Some of these platforms, in turn, have tie-ups with a few Indian banks. If students use these platforms and transfer their tuition fees using the banks they have a tie-up with, the remittance tends to get processed faster.
(3) Demand Draft: A demand draft, or cashier’s cheque, can also be used to pay for your education fees abroad. You can visit your bank and ask them to issue a demand draft with the required amount in the name of your university. You can then mail it to your educational institution to clear your fees.
[Also Read: How to send money to your relatives abroad?]
(4) Credit Cards: Most universities accept payments by credit cards. Remember that this method may attract charges from your card issuing bank.
(5) Forex Cards: Another safe and secure way to pay for your education fees is through a forex card. A forex card is a prepaid card that you can load money in a foreign currency. These cards are accepted globally and enable you to withdraw cash at foreign ATMs. Forex cards are convenient because you can use them to clear all your pending fees at your educational institution or for any other purpose you require.
For instance, Axis Bank Forex card offers a range of useful features for students:
- Locked exchange rate. This means that you can load the card with foreign currency at a favourable rate and keep using the card irrespective of exchange rate fluctuation.
- Load up to 16 different currencies on the same card
- Emergency support including cash delivery and lost passport assistance
- Enjoy exclusive shopping and travel offers from around the globe
Know more about Axis Bank Forex cards online.
(6) Set up a new bank account abroad: Often, you may be required to have a bank account in the country where your educational institution is in. If this is the case, you can pay your tuition fees from the new bank. This is a more convenient way of clearing all your fees as the payment will have fewer chances of failure.
Tax on foreign remittance
Do keep in mind that there is a Tax Collected at Source (TCS) that is applicable when remitting foreign currency overseas. In case of education-related foreign remittances made out of education loans, a TCS of 0.5% will apply for an amount exceeding Rs. 7 lakh compared to standard 5% TCS on remittance made from other medium.
If you take an education loan from Axis Bank, many of these hassles will be solved as the Bank will directly pay your tuition fees to your university or college. Axis Bank offers a range of Educational Loans for finance higher studies either in India or overseas.
Disclaimer: The Source, a content creation and curation firm has authored this article. Axis Bank does not influence the views of the author in any way. Axis Bank and The Source shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision. Names mentioned in this article are fictitious in nature and only for explanatory purposes.