The USA is often regarded as the pinnacle of higher education. The US education system is widely regarded as the best in the world. Some of the best universities in the world are located in the US. They rank among the top hundred in the world consistently. This draws millions of international applications each year.
Because of the high surge in demand, the cost of studying in the USA has spiked a lot in the last decade. But that hasn’t stopped students from moving to the US in pursuit of a globally recognized degree. So, if you are also planning to move to the USA, you need full clarity on the huge expenses that lie ahead. So, let’s begin.
In the United States of America, undergraduate courses span a four-year tenure on average. Some of the most in-demand undergraduate courses in the US right now are –
The average total cost for any standard undergraduate course can cost you about 30,000 USD. However, this cost can go up or down depending on the university or the course you choose.
There are a number of universities that consistently rank among the world's best for graduate programs. Universities like Princeton, Stanford, and Harvard are the crème de la crème of the academic world. However, meeting the eligibility criteria of any one of them is a humongous challenge. Not only do you need an astounding academic result, but you will also need to be financially sound.
To give a perspective, an average graduate program in the US can cost between 20,000 USD to 35,000 USD. This cost varies according to the university and the course you want to enroll in. The most in-demand graduate degree programs in the US are –
Because of Silicon Valley, US universities have a larger focus on STEM courses. Usually, the course duration of these 2 years. However, you can add an additional 2 years to your visa if you want to enroll for personal training after the course completion.
The American institutes also give students an option to pursue professional programs after school. Some of the leading professional courses in the USA right now are –
The average cost for professional courses is significantly higher than any undergraduate courses. Sometimes, it may even surpass the course fees of certain post-graduate courses. On average, the tuition fees may range from 28,000 USD to 55,000 USD.
Your total budget will get significantly impacted by your choice of stay. The cost of living in the USA is one of the highest in the world. Especially if you choose to live near any metropolitan city like New York, San Francisco, or Boston, the rents can go off the roof. On the contrary, the living cost in rural areas like Texas, Seattle, or New Orleans can be much cheaper. But ultimately, your decision to choose your place to stay will depend on the institution you are getting in. For example, if you enroll yourself in a college in Massachusetts, it will be logical to stay within the proximity of the college.
The accommodation cost also can differ according to your preferences. Many of you prefer privacy or a safe neighborhood. So, you may need to spend extra bucks to afford a place like that. But your budget can receive a massive boost if you choose to stay in the campus hostels. Depending on where you want to live, your accommodation expenses can range between 9800 USD to 12000 USD per year.
This is one expense many of you don’t consider while budgeting your finances. But food and dining is the second highest recurrent expense that you will have to bear. Eating out every day is never a practical option. It not only disrupts your budget but also affects your health. So, you should allocate a fixed budget for food every month.
If you are staying off campus, then you should look at 400-600 USD per month on food. For on-campus students, the cost is a little less, and it will cost them around 250 USD per month. These expenses exclude the time you will go out for dining. An average visit to a standard restaurant or café can cost you approximately 50-100 USD. So, you need to consider those expenses while planning your budget.
According to data, an average American household spends about 10,961 USD on transportation alone in a year. This is the second highest household expenditure after accommodation. So, as a student, you should consider transportation costs while making a budget. Ideally, you should limit your budget to 300-700 USD per year for transportation. Avoid private cabs at all costs. The cost of Uber is very high, and it can disrupt your budget. Instead, I prefer the bus route for traveling. The bus network in the USA is quite extensive. Greyhound buses are an inexpensive way of communicating long distances. But they can be time-consuming too. Most bus systems are now available on apps. So, you can easily track and book a bus seat whenever you want.
However, the cheapest way of communication in the US has to be the subways. Subways are available in all the major American cities. So, subways are always the fastest and most affordable option for intercity travel. Familiarise yourself with the subway system after moving to the new country. It can be your lifesaver during your stay. Many students also pool cars for getting around. Once you befriend some American students, you all can pool cars and go to college together by sharing the fuel costs. They are certainly a fun and inexpensive way of getting around. But be careful about pooling the car with people you don’t know very well.
Alternatively, get yourself a bicycle. Bicycles are a great way to go to college and move around the neighborhood. Not only is it inexpensive, but you will also get a daily dose of exercise while cycling. Almost all college campuses have separate racks for bicycles, and you can pay a small security deposit to park the bike before going to the class.
If you are staying in the US on an F1 visa, healthcare can be quite expensive. Most of you take loans to fund your education. So, with the burden of interests strangling them, they cannot spend much on medical treatments. You will also stay there alone in all probability. So, falling sick or facing an accident is not something you can afford. With no one to tend to your medical needs, worrying about the medical bills is the last thing you need. This is why you, like Americans, should invest in health insurance as soon as you move there.
Although health insurance is not mandated to get an F1 visa, you may need one to enroll in college. Many universities set rules on getting adequate health insurance coverage. So, check with the universities beforehand to know how much insurance is mandatory.
There are a number of insurance companies in the US. You should check trusted comparison sites and find the best insurance plan for you. Health insurance plans for international students start from 1500 USD. It can go up to 2500 USD and above annually, depending on your chosen plan.
Pro Tip – International students can get a better insurance deal if they buy the plan before moving to the US. You can even use this information while filling out your visa application.
This is an area that we cannot accurately estimate. Personal expenses largely vary because of personal choices. Moreover, the expenses can change depending on the city you are residing in. Yet, to give you a broad idea, the estimated living cost can range between 10,000 USD to 18,000 USD per year. This averages to approximately 1000-1500 USD per month. These expenses include your Netflix subscriptions, internet bills, an occasional movie, and traveling.
You can avail of a merit-based scholarship with a stellar academic result. These are some of the best merit-based scholarships that you can consider –
Some scholarships are granted to students who have good academic results but are in dire need of financial aid. You need to present proof of income to become eligible for these scholarship programs –
The US government grants non-payable financial grants to many deserving candidates. Some of the most popular grants and fellowships are –
These are part-time jobs that you can apply to while studying abroad. This will help you to earn money to sustain your living expenses. There are quite some options across the US, but some of the most enquired are –
The American government allows part-time work while studying. If you have an F1 visa, you can easily apply for a part-time job. However, according to Federal laws, you cannot work more than 20 hours when the school is in session. During vacations, there are no restrictions, and you can work as a full-time employee. The minimum wage rate in the USA is currently 7.25 USD per hour. So, you can easily earn enough money for your monthly groceries and other expenses from working somewhere.
These are some of the best-paid part-time work opportunities that you can find in the USA –
|
On-Campus Job Positions |
Average Salary Per Hour [In USD] |
|
Teaching Assistant |
11.85 |
|
Book Store Assistant |
15 |
|
Library Assistant |
13.24 |
|
Research and Study Assistant |
15.48 |
|
Department Assistant |
16.44 |
|
Sales Assistant |
20 |
|
Peer Mentor |
21.31 |
|
Campus Ambassador |
10.94 |
|
Food Runner/Catering Assistant |
16.81 |
|
Barista |
11.59 |
|
Receptionist |
13.31 |
|
Off-Campus Job Positions |
Average Salary Per Hour [In USD] |
|
Office Administration |
16.50 |
|
Call Centre Representative |
13.70 |
|
Driver |
17 |
|
Babysitter |
14.32 |
|
Freelance |
25 |
|
Translator |
20.25 |
|
Store Associate |
13.46 |
The average minimum wage can, however, differ according to the state you are working in. Usually, the minimum wage rate of big cities like New York (15 USD) or California (14 USD) is significantly higher than smaller, suburban areas like Florida (8.65 USD) or Pennsylvania (7.25).
As we have established, getting a healthcare plan is extremely important for all of you. Here are the steps you must follow to buy a health insurance plan in the US –
There are a few things that you should know while buying a plan –
You must always declare any pre-existing medical conditions like diabetes or blood pressure before buying the insurance plan. By being transparent, you can avoid any disputes during claims later on.
According to the US tax code, you are liable to pay a certain tax, even as a student. Many of you work as part-timers while studying. You may receive financial gifts or monetary awards while being a student too. You need to pay a 14% tax on all these earnings. Any tax you pay directly goes to the IRS, along with the state revenue department, where you earn your money.
If you are an international student, you need to get an F1 visa to study on American soil. The overall cost of an F1 student visa is USD 510. This includes the application of 160 USD. You must apply at least three months before the course start date.
The Student and Exchange Visitor Information System or SEVIS is a Federal system to maintain student information. While applying for the visa, you also need to pay the SEVIS amount, which will cost you another 350 USD.
|
Name of the Test |
Fees [In USD] |
|
SAT |
55 |
|
AP Exams |
95 |
|
GRE |
205 |
|
GMAT |
275 |
|
LSAT |
200 |
Here is a snapshot of the exam fees you need to count in while budgeting –
|
Name of the Test |
Fee [In USD] |
|
TOEFL |
176 |
|
ACT |
73-93 |
|
SAT |
73-93 |
|
IELTS |
146 |
You need to budget your stay in the US to manage your finances efficiently. Follow these steps to plan your finances properly –
Assess your sources of income before planning anything. You may earn from several sources like
Calculate the exact amount you have to cover your expenses before planning a budget.
Make a list of all your expenses in the following categories –
Calculate your tuition fees and any other mandatory fees required by your educational institution.
Consider the cost of rent and utilities (electricity, water, internet). Living on-campus or sharing an apartment with roommates can help you reduce costs.
Estimate your monthly grocery expenses and eating-out costs. Try to cook your meals at home to make it more budget-friendly.
Control your transportation fees by availing of public transport. You can also take the subways for short distances and trains for long distances. For shorter travels, you can also buy a bicycle.
Allocate a portion of your budget to textbooks, stationery, and other study materials.
Understanding the cost of health insurance premiums is also necessary. Determine the health coverage you need in your institution. You can plan and purchase your own plan also if necessary.
Always set aside some funds for personal expenses like entertainment and leisure activities.
Similarly, it's important to have a safety net for any kind of unexpected expenses or emergencies.
Once you have a clear understanding of your income and expenses, create a monthly budget plan. Allocate specific amounts to each expense category based on your earlier estimates.
Keep a close eye on your expenses regularly. This ensures you're staying within your budget. Use budgeting apps, or maintain a spreadsheet to record all transactions.
Look for ways to reduce your expenses and save money, such as –
Set aside a portion of your budget for an emergency fund. Having a safety net helps you to steer away from unexpected adverse situations and provide peace of mind.
Regularly review your budget to evaluate your spending patterns. Accordingly, you may make adjustments and stay on track.
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The higher education cost in the US is quite high. This cost may vary depending on various factors like the course selected, the university enrolled, etc. But on average, international students can expect a cost between 20,000 to 40,000 USD per year for tuition expenses.
The tuition fees in the various universities and programs differ greatly across the USA. For example, the average tuition cost in a university is 10,388 USD. In private colleges, the fees for the same course will cost you approximately 38,185 USD.
The living cost of international students in the US depends largely on your personal choices. For example, the city you are living in plays a significant role in deciding the average living cost. Counting all factors, the average living cost in the US can range between 10,000 to 18,000 USD per year.
There are several scholarship programs available for international students in the USA. These scholarships can be both need-based and merit-based. Some of the most notable scholarship plans in the US are –
Yes, you can work part-time with your F1 visa. However, there are several restrictions for working while studying. You cannot work more than 20 hours a week while the school is in session.
The USA has one of the costliest healthcare systems in the world. In 2021, the average healthcare cost per person was recorded at a staggering 12,900 USD. So, having health insurance is mandatory for all international students. On average, the insurance premiums for international students cost between 1000 and 1200 USD per year.
International students living on an F1 visa need to pay 14% tax every year. The tax amount is calculated on the various earnings like scholarships and gifts they receive. So they are not required to pay any employment tax. But they need to pay both state and federal income taxes.
You don’t need to pay anything extra for a quick identification of your level during the English proficiency test. However, you need to pay if you want access to the Core English Proficiency Level Tests and other additional options.
If you are a prospective student, you should have proper financial evidence that you have sufficient funds to live and study in the USA. The amount should be enough to cover the duration of the stay. You can also present a sponsor for the same. The documents you need to present for financial evidence are family bank statements or any relevant documents of the sponsor.
Follow these five steps to plan your finances while studying in the USA –
The average cost of MS in the US is between $28,000 and $85,000 annually, including living expenses and tuition. However, these figures will likely change depending on the university, location, and study area. You are advised to visit the university website to get details of the exact fees of your desired course.
Generally, the cost of studying psychology in the US depends on the choice of university, location, and study level. The tentative cost of a bachelor’s degree in the US ranges between $25,000 and $35,000 annually for an international student, while a Master's degree can cost from $28,000 to $82,000, depending on the program.
Typically, the tuition fees range from $13,000 for in-state candidates and $46,500 for out-of-state students. However, the cost of studying computer science in the USA varies by the university, location, and program. For instance, tuition fees for computer science at MIT are around $53,450 for undergraduate programs and $56,719 for postgraduate programs.
As an international student, you may not be eligible for US Federal Student Aid options like federal loans, but there are options to pay for your higher studies. Most American universities have special financial and scholarship programs allocated for international students. Visit the official site of your preferred university to learn about the available options for grants, scholarships, and private student loans.
Most universities provide on-campus housing facilities in the style of dormitory rooms. However, there's limited availability. The average housing cost in the US varies widely depending on the location, room type, and demand but usually ranges from $1,000 to $5,000.
Multiple transportation options are available for international students, from trains, buses, and rental services. You can sign up for the monthly pass system to use Public transport, which is about $40-50 per month. Plus, some states offer additional student discounts on a valid student ID.
Yes, textbooks and course materials in the US are expensive, and students may have to pay around $500 to $1000. Reports suggest that the average students spend around $662 per year on course materials.
Although there are limited affordable dining options on campus, you will find several places outside the campus that offer food under $15. Food joints like Taco Bell have affordable food options for $6.19 and under.
Several colleges and universities offer to pay in installments to reduce students' financial burdens. You are advised to consult your admission officer for detailed information about payment plans, installments, or short-term loans.
Yes, the cost of living, transportation, and education vary by US state. For instance, the average monthly rent in Alabama is around $1,055, while the average monthly rent in California is around $2,032.
Opening a bank account in the US can be done without any charge. Generally, banks don't charge anything for account opening. But some banks have a minimum balance where the cost comes in from $0 to hundreds of dollars.
Extracurricular activities and clubs in the US can be expensive and range from $15 to $1500 yearly. Still, the exact expense will vary from student to student based on their extracurricular activities and club participation.
Yes, there are ample free resources for textbooks and course-specific materials, such as:
If you choose wire transfer, the fees will range between $25 and $30 for outgoing transfers to a bank account within the States and between $45 and $50 for sending money to banks outside the US. Please note some banks may charge fees to the receiver. Nonetheless, consult customer service at your bank to get details of the exact costs.
International students on an F-1 visa can apply for co-op only after obtaining work authorization, known as Circular Practical Training (CPT). CPT will permit you to apply for employment in the US as long as it is relevant to your academic curriculum.
Post-graduation in the US is an expensive investment. From entrance fees to the cost of living, you must consider a few mandatory costs before applying. Here's a chart of the probable costs:
The average cost of MS in the States ranges between $21,000 and $55,000. The exact amount will depend on the university, choice of subject, and location.
Requirements to show Proof of Funds in accounts:
If you want to study in the US but do not have sufficient funds in your account, a sponsor can support you. A sponsor can be a family member based inside or outside the States. If you are sponsored by your family member who is a US citizen, s/he must complete and submit the I-134 Affidavit of Support Form to sponsor the fees you cannot afford.
On the contrary, if you are sponsored with funds by someone outside the States, then the embassy will have to verify if there are any fund transfer restrictions from the specified country. In case of restrictions, you must submit a letter of evidence that you can access these funds during your study.
NOTE: LPRs (Lawful Permanent Residents) can sponsor their spouse or unmarried children. Other relatives such as grandparents, aunts, uncles, or cousins CANNOT sponsor you for a visa under any situation, and LPR siblings or children ARE NOT ELIGIBLE to sponsor you either.
Common types of questions asked during a visa interview:
