Annually, around 400 to 500 thousand students go abroad to complete their higher education and of these students roughly 60% head for the U.S. The reasons for such high numbers opting to pursue their studies in the U.S. is none other than the fact that these degrees allow the students to seek employment in the U.S. or other countries. Schools in the U.S. are also known to have higher international acceptance rates, further explaining their popularity.
Once a student proceeds to the destination abroad, they will be expected to pay their tuition and living expenses. Some countries allow the students to work part time along with their studies to meet the cost of living the designated area.
The following are guidelines set by the Reserve Bank of India (RBI) in which all students studying abroad must abide by:
1. Fee Remittance & Limits – The fee is generally paid to the foreign university directly before the student may embark on their travels. There are however no limits for such remittance. The RBI rule states that USD $ 00,000 or the estimate received from the foreign university, (whichever is higher) may be availed, for any academic year. Having said that, the student can remit an amount below US $ 100,000, freely and there are no restrictions. For fees that are above US $ 100,000, the student has to obtain a letter from the foreign university that mentions the tuition fee in clear terms, along with other expenses such as hostel charges, etc. The application for sending the money must be sent from a bank, where an account is opened. The application for such transfers has to be accompanied with a form A2. The student can also avail an Education Loan from the same bank. Students also need to know the approved wire transfer routes required by the foreign college or university. This ensures that there are no issues in receiving the funds within the needed time frame.
2. Remittance for Living Expenditure – This is also an integral part of studying abroad. It is usually the case that the student is required to either live in a hostel (if the college or university has such facility) or at some rented accommodation, while the study is in progress, or at least for the first year. The overall limit of US $100,000 are the same for any academic year. Additionally, the student can avail to carry US $10,000 with him to cover initial expenses, if any. This US $10,000 has to be split into currency notes for which the maximum limit is US $3,000 and Travelers Cheque for the balance US $ 7,000.
3. Receiving money from your parents once you are in the foreign country – The government has given special status to the students who move out of India to study. These students are considered NRI's from the date they leave the Indian shores and do not have to wait to finish the 182 days abroad to be considered a non resident. This revised rule has been helpful for students in opening bank accounts in the foreign country that their parents can use to send them funds. Through the NRI status, students can also open NRE and NRO accounts in India should they ever need to send money.