Kids grow up so quickly, right? In the blink of an eye, theyโre talking about where to go after school and then off they go! If your plan is to support their tertiary education, there are several financial considerations beyond tuition fees to factor in โ living costs and eligibility for scholarships, are just two. The team at AAM Advisory tells us more.
#1 Study Status
Will your child be classed as a domestic or an international student in the country of the university they choose? This will impact your planning, as international and domestic tuition fees vary quite considerably and study visas usually incur fees too. Rules differ across countries and these often change, but here are some guidelines.
Domestic status:
- Australia: Your child will need to hold either of the following: Citizenship of Australia, Citizenship of New Zealand, Permanent Resident of Australia or Permanent Humanitarian Visa.
- USA: This depends on which state youโre in. If a student is a resident of that state, your tuition fees will be lower than that of an out-of-state or international student.
- Singapore: All non-Singaporean students (including Permanent Residents) can apply for subsidised fees under the Tuition Grant Scheme. In return for the grant received, the student will be contractually obliged to work for a Singapore company for three years after graduation.
- UK (not including Scotland): Domestic status will be determined by the university itself, though there are some guidelines to take note of. These include whether youโre settled in the UK on the first day of the academic year, ordinarily UK resident on the first day of the academic year, or ordinarily UK and Island resident for a full three years prior to the first day of the academic year; also, the main purpose of the student residing in the UK should not be to receive full-time education.
International status:
- If your child is categorised as an international student, there will be visa requirements to take care of. These vary from country to country.
- Most countries will also require proof that you have the funds to cover the first year of tuition and living costs, and some may even require proof of funding for consecutive years.
- Youโll also be required to get medical insurance. Even if the university offers cover, it may not include GP visits or dental benefits, so be sure to check the details. It could be capped at a certain limit that may not be sufficient in the case of an emergency.
#2 Living costs
As we all know, this will vary from city to city. Make sure you do some research on accommodation prices. Some universities make it a requirement for first-year students to live on campus; this too can vary in cost and sometimes be more expensive than living off campus.
#3 Scholarships and more
- Will your child be able to work at a job while studying?
- Is your child able to apply for student loans or are they eligible for grants or scholarships?
- Where will you be living in relation to your child? You might need to consider the costs of flights and accommodation for holidays or visits.
Who can help?
AAM Advisory is able to help you create a bespoke education fee-planning analysis. Whether youโre just starting to plan or would like to review if your current planning is on track, the companyโs team of financial planners will be able to assist you. Email audrey.mitchell@aam-advisory to arrange a complimentary consultation.
Written in collaboration with
AAM Advisory
aam-advisory.com
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