Study Abroad Cost Checklist
Every cost to budget for when studying abroad, what the loan covers, TCS and currency risk.
Updated 27 September 2026 · 8 lenders trackedWhat you need to know
Build your budget from the university’s official cost-of-attendance estimate, then add travel, insurance, deposits and a currency buffer. Lenders finance most of these costs, but you pay 15% margin above ₹4 lakh under the IBA scheme unless your lender offers 100% finance.
Cost checklist
| Cost | How it is estimated | Usually financed? |
|---|---|---|
| Tuition and university fees | Per the I-20 / CAS / CoE or offer letter | Yes — paid directly to the university |
| Living costs (rent, food, transport) | University’s cost-of-attendance estimate or visa proof-of-funds amount | Yes — released in tranches to the student’s account |
| Travel (one-way/return airfare) | Economy fare | Yes (passage money) |
| Health insurance | Often compulsory (e.g. OSHC in Australia, IHS in the UK, university plans in the US) | Yes — insurance premium for the student is an eligible cost |
| Laptop and study equipment | At a reasonable cost, if required for the course | Yes |
| Caution / housing deposits | Refundable deposits supported by bills | Yes, within limits (typically up to 10% of tuition for the course) |
| Visa fees, SEVIS, application fees, tests | Pre-admission costs | Often not — some lenders reimburse; check |
| Books, study tours, thesis/project work | Per estimate | Yes |
| Currency buffer | 5% – 10% for exchange-rate moves | Plan for it — loans are sanctioned in rupees |
Money transfer and tax
- Tuition is remitted directly to the university by the lender.
- Living expenses are released in tranches to the student’s account or forex card.
- TCS: nil on education remittances financed by a loan from a financial institution (from 1 April 2025); self-funded education remittances attract TCS above the annual threshold.
- Keep a buffer of 5%–10% for rupee depreciation, since the loan is in rupees.
Margin at 15%
| Total course cost | Study in | Margin | You contribute | Loan |
|---|---|---|---|---|
| ₹3,00,000 | India | 0% | ₹0 | ₹3,00,000 |
| ₹10,00,000 | India | 5% | ₹50,000 | ₹9,50,000 |
| ₹25,00,000 | India | 5% | ₹1,25,000 | ₹23,75,000 |
| ₹10,00,000 | Abroad | 15% | ₹1,50,000 | ₹8,50,000 |
| ₹40,00,000 | Abroad | 15% | ₹6,00,000 | ₹34,00,000 |
IBA model scheme; nil margin when the requirement is up to ₹4 lakh. Scholarships and assistantships count towards your margin, and the margin can be brought in year by year in proportion to disbursements. Some schemes (SBI Scholar, Canara Vidya Turant, Credila) finance 100%.
Frequently asked questions
Is the visa fee covered?
Often not; some lenders reimburse pre-admission costs. Budget for them from savings.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.