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While you\u2019ll spend a lot of your pre-study time preparing your applications, it\u2019s never too early to cast an eye on your finances. They\u2019re a big part of international study<\/a> and it\u2019s easy to become confused or \u2013 even or worse \u2013 backed into a corner you don\u2019t want to be in.<\/p>\n A little time spent now will help you avoid these top four mistakes.<\/p>\n Obviously, you want the best loan for your unique situation. This might mean pursuing the one with the lowest total cost or perhaps one that disburses the funds directly to your university. The choice is yours, of course, but you\u2019ll need to know what your metrics are before comparing loans with one another.<\/p>\n But, one thing you don\u2019t want to do is compare offers based on interest rates alone; these figures don\u2019t account for the full cost of your loan \u2013 interest rates totally ignore the associated fees. The offer with the better interest rate may end up more expensive when you factor in fees.<\/p>\n It\u2019s best to use the Annual Percentage Rate (APR) of a loan as this figure includes the fees as well as the interest rate. Understanding the APR may be second nature for students from some countries as it\u2019s legally mandated as a means of protecting borrowers, but if you\u2019re unsure of what APR is or how to calculate it, take a moment to educate yourself before making a costly mistake<\/a>.<\/p>\n Universities are keen to attract international talent, and they\u2019ll certainly do what they can to assist you in developing a budget and finding the financing to get a visa and attend their programme. In fact, it\u2019s a legal requirement for universities in the United States to provide a Cost of Attendance (CoA). And, these figures are a great start when creating your budget.<\/p>\n But, you shouldn\u2019t adopt the university\u2019s CoA without doing some research on your own. Often, their figures are the bare minimum, and it\u2019s tough to find the lowest rates on everything, all the time, without sacrificing your international and education experiences.<\/p>\n Spend time thinking about how you would like to live and find accurate figures to reflect your lifestyle. That might include the type of accommodation, the transportation available, and how many times you can afford to eat out during a week, month, or year.<\/p>\n It\u2019s a mistake only to find the minimum funds needed to secure your visa as you\u2019ll end up paying for it later when you need to borrow extra money or forego the experiences you were most looking forward to.<\/p>\n There is nothing worse than missing a payment date and being charged extra for it \u2013 especially when the delay wasn\u2019t your fault; but it\u2019s still your responsibility.<\/p>\n If you accept a student loan, whether it\u2019s from a bank in your home country, one in your host country, or from an international student loan provider like Prodigy Finance, you need to know precisely where the money is going to and when it will be there. If you receive a range rather than a date, you\u2019ll need to account for this and finalise your loan early enough to avoid late fees.<\/p>\n Keep in mind that receiving money from your home country (whether it\u2019s from the bank, your employer, or your parents) will also have transfer times. Often, the easiest is a local deposit in your home country that you can withdraw through your credit\/debit card in your host country.<\/p>\n No matter where it\u2019s coming from and where it\u2019s going to, you should expect some fees, and you\u2019ll need to understand them and budget for them. It\u2019s one of the simplest ways to stay on budget during your studies.<\/p>\n Visas take time \u2013 sometimes much longer than you think.<\/p>\n To get a student visa to the UK, for example, you\u2019ll need to have the funds you need in your account for 28 consecutive days in the 31 days before you apply for your visa. That\u2019s time you\u2019ll spend waiting.<\/p>\n In the US, you need to prove to your school that you have the financing you need before<\/em> they issue you with the paperwork you need before<\/em> you can apply for your student visa. And, of course, visa processing itself requires time.<\/p>\n One of the reasons students wait to apply for loans is that they\u2019re waiting to hear about scholarships and other sources of funding. And, this is a mistake as it can throw off timings.<\/p>\n It\u2019s often better to secure the financing needed first; if scholarships come in later, you can use the extra money to make a repayment towards your loan. Or, if you choose a Prodigy Finance loan, you can reduce your loan amount before its disbursement to your school (which occurs according to its deadlines).<\/p>\n Either way, you don\u2019t want to wait to get your finances in order \u2013 and while GMAT or GRE prep may be taking up a lot of time now, you don\u2019t want to put the money off for too long.<\/p>\n Want to know more about Prodigy Finance? Learn more on their website here<\/a>.<\/strong><\/p>\n Not sure how you'll gather the funds to pay for your international education? Attend our upcoming webinar,\u00a0How Will You Fund Your International Graduate Degree<\/i><\/a>, presented by the experts over at Prodigy Finance, to learn the steps you need to take to make your graduate dreams financially feasible. Reserve your spot and mark your calendars for Wednesday, October 24 at 10AM PT \/ 1PM ET.\u00a0 Register now!\u00a0<\/strong><\/p>\n Related Resources:<\/strong><\/p>\n \u2022\u00a0What are Interest Rates and APR? (And Why are They Important?)<\/a> * This blog post is sponsored by our friends at Prodigy Finance<\/em><\/p>\n This article<\/a> originally appeared on blog.accepted.com<\/a>.<\/em>Mistake #1: Confusing APR and the interest rate on international student loans<\/h3>\n
Mistake #2: Under-budgeting or only using the school\u2019s CoA to develop your budget<\/h3>\n
Mistake #3: Forgetting about the hassle of transfer times and fees<\/h3>\n
Mistake #4: Waiting too long to apply for international student loans<\/h3>\n
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Katie studied human rights and graduated with a Bachelor\u2019s degree from Kent State University while working with NGOs in Geneva, Switzerland. Although she has since settled in South Africa, with work towards a Masters in Forced Migration through the University of the Witswatersrand, nothing stops her from being a proud American. Although writing is often solitary work, Katie has been part of the\u00a0Prodigy\u00a0Finance Team<\/a>\u00a0as the Content Specialist since 2013. She also loves rugby, sloppy Mexican food and Tudor history which means you could find her in any section of a bookstore.<\/em><\/p>\n
\n\u2022 Grad School Applicants: Think About Funding NOW<\/a>
\n\u2022\u00a0Having Trouble Securing a Loan for Your International MBA?<\/a><\/p>\n
\nApplying to a top b-school? The talented folks at Accepted have helped hundreds of applicants get accepted to their dream programs. Whether you are figuring out where to apply, writing your application essays, or prepping for your interviews, we are just a call (or click) away.<\/em><\/p>\n