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Studying at a US University Thumbnail

Studying at a US University

Ella Bruhl-Gati

As your child approaches the end of their school years, preparing for university can feel overwhelming. If your family is considering higher education in the United States, there are many important factors to take into account¾from choosing the right college to understanding the financial commitment.

The US is home to over 4,000 higher education institutions, offering a vast range of programs, locations, and experiences. While this variety creates exciting opportunities, it also means that finding the right fit requires careful research and planning.

Choosing the Right University

One of the first things to consider is the type of institution your child may want to attend. US universities vary from large public research institutions to small liberal arts colleges and from urban campuses to rural settings. Each offers different academic focuses, campus culture, and support structure.

It’s also important to understand the difference between public and private universities. Public universities are generally funded by state governments and may offer lower tuition for in-state residents. Private universities, including prestigious institutions like those in the Ivy League, are typically more expensive but may offer more generous financial aid packages.

Encourage your child to think about what matters most to them: academic programs, class sizes, extracurricular offerings, campus lifestyle, or location. Visiting campuses (in person or virtually) can help narrow down the options.

Understanding the Costs

U.S. university tuition can be a significant financial investment. Costs vary widely depending on the institution, but it’s common for tuition, housing, meals, and other expenses to total between $200,000 to $400,000+ for a 4-year degree.

Here are a few key financial points to consider:

  1. Tuition and Fees: Private universities typically charge more than public ones. If your child is interested in studying at an Ivy League school, or a prestigious college like Stanford University or MIT, the cost of tuition will be significantly higher.
  2. Cost of Living: It is also important to consider where a university is located. Colleges in urban areas like New York or Los Angeles will often have higher living expenses than rural or suburban campuses.
  3. International Student Costs: An additional cost to consider is tuition fees for international students. If your child is not a US citizen or resident, they may be classified as an international student, which can impact tuition and financial aid eligibility depending on the college. Look into each college specifically and understand their treatment of international applicants. 

As university is a big expense, accounting for how it will work within your financial plan is crucial. Start by having open conversations with your child about your expectations and theirs:

  • Will you be contributing financially? If so, how much?
  • Are they eligible to apply for scholarships or financial aid?
  • Are student loans an option you are considering?
  • Will they need to work part-time? Or, will you assist them with maintenance expenses?

These questions can help set realistic expectations and shape your application strategy. Keep in mind that some US universities offer need-based financial aid or merit-based scholarships, even for international students.

Extra Costs for International Students

For many international students, studying in the US comes with a significant financial commitment. While tuition is the most obvious cost, there are many other expenses that your child will need to account for. Planning ahead and budgeting carefully are essential to managing the financial demands of studying abroad.

One major expense that must be considered is travel. Depending on where you live in relation to where your child wishes to study in the US, travel costs can rack up quickly. Figuring out the average cost for flights, whether your child can fly direct, and whether additional transportation will be required domestically are all things that will cause the overall cost to fluctuate. Therefore, having an idea of how many times a year this travel will be needed is necessary to ensure it fits within your financial plan. 

Another, often overlooked but critical, expense is health insurance. Many US universities require international students to carry health coverage, and many mandate enrolment in their own insurance plans. This is an additional expense to account for. Premiums can range from $700 to $3,500 annually. Students should also budget for out-of-pocket costs, such as medications, dental care, and unforeseen medical emergencies.

Moreover, international students must also factor in the cost of immigration and visas, as obtaining and maintaining a student visa (F-1 or J-1) comes with application fees, SEVIS fees, and potential travel expenses to visit a US embassy or consulate for interviews. Students should also prepare for additional costs if their visa needs to be renewed or extended during their studies.

Overall, it is crucial for those looking to study abroad to understand the full scope of expenses.

Preparing for the Application Process

Applying to US universities often involves:

  • Standardized tests like the SAT or ACT (although some schools are test-optional)
  • Academic transcripts and GPA evaluations
  • Letters of recommendation
  • Personal essays
  • Extracurricular and leadership experience

Each college has its own requirements and deadlines, so staying organized and starting early is crucial. The Common App is a widely used platform that allows students to apply to multiple universities with one application, streamlining the process.

To conclude, the US offers world-class educational opportunities, but navigating the system requires careful planning. As a parent, your role in guiding, supporting, and preparing your child can make a significant difference in their journey. With research, open dialogue, and financial planning, your child will find a college that fits their goals and helps them thrive both academically and personally. For more information, please reach out to one of our wealth planners.


Sources:

https://www.timeshighereducation.com/student/advice/everything-you-need-know-about-studying-us 

https://www.internationalstudent.com/study_usa/ 

https://educationdata.org/average-cost-of-college 

https://www.usnews.com/education/best-colleges/articles/us-college-expenses-besides-tuition-for-international-students


This material is intended for educational and informational purposes only. It is not intended to provide specific advice or recommendations for any individual. Additionally, you should consult with your Financial Advisor, Tax Advisor, or Attorney on your specific situation. The views expressed in the material are that of the author and do not necessarily reflect those of any market, regulatory body, State or Federal Agency, or Association. All efforts have been made to report or share true and accurate information. However, the information may become materially outdated or otherwise rendered incorrect due to subsequent new research or other changes, without notice. The author nor the firm are able to always verify the content from third-party sources. For additional information about the firm, please visit the MAS Website at https://www.mas.gov.sg/  and the SEC Website at www.adviserinfo.sec.gov. For a copy of the firm's ADV Part 2 Brochure, please contact us at info@avriowealth.com.