Scholarships and Foreign Exchange: Studying abroad opens doors to world-class education, global networks, and personal growth. However, arranging finance for overseas studies is not easy for everyone. Some students opt for education loans to study abroad and some students rely on scholarships.
Scholarships play an important role but another important factor is managing forex (foreign exchange). To know all about managing forex and scholarships properly for paying tuition fees, accommodation expenses etc, continue reading further.
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Scholarships and Foreign Exchange
For students planning to pursue higher studies abroad with a scholarship, managing foreign exchange efficiently is necessary. Scholarships usually cover tuition fees, accommodation costs and other living expenses. Understanding foreign exchange rates and finding the best ways to transfer money can impact your budget. You can utilise currency exchange services that offer the best exchange rates and lower transfer fees. In this way, you can save a lot of money that is being offered through the scholarships. Check more details below:
- The scholarship amount is sometimes transferred directly to the university by the organisation on behalf of the student at an exchange rate offered by service providers
- If you are paying through your account, you can transfer money through Fly Finance international money transfer services to get the best rates.
- Managing scholarships and foreign exchange together is necessary so that you can grab the best deal and make timely transfers.
Transfer of Scholarship Amount
In most cases, the amount of scholarships is transferred directly to the university for paying tuition fees and other expenses in foreign currency. For example, if you are getting admission to a university situated in the USA, the scholarship amount will be transferred through online mode in USD. The currency will be exchanged from INR to USD by the bank or the intermediary through which the money is being transferred.
Scholarships are a lifeline for many students aspiring to study abroad. They can cover tuition fees, living expenses, and travel costs. In most types of scholarships such as government-sponsored scholarships, university-specific scholarships and private scholarships, the amount is transferred in multiple instalments. Some organisations also provide stipends that are transferred every month.
Also Read: Check here some major facts about the hidden costs in Currency Exchange
Managing Foreign Exchange
Foreign exchange means converting your Indian Rupees (INR) into the currency of your destination country. The exchange rate plays a major role in determining how much you will get when you convert your scholarship funds and other financial aid. The applicable exchange rate on the international money transfer also depends on the mode and the service provider. Check the major factors affecting the exchange rate while transferring the scholarship amount to the university.
Timing Your Forex Transactions
Exchange rates fluctuate daily due to various economic factors. Monitoring the forex rate fluctuations can help you convert your funds and transfer the money when the rate is most favourable. For example, converting INR to USD or EUR at a time when the Rupee is stronger can give you more foreign currency for the same amount of Indian Rupees.
Choosing the Right Forex Service
Banks, forex dealers, and online platforms offer currency exchange services. The exchange rates and the commissions vary between the banks and other service providers. Comparing these options can help you find the best deal. Online forex platforms often provide competitive rates and lower fees compared to traditional banks.
Also Read: Check here some of the major differences between forex cards and international debit cards
Transaction through Forex Cards
Multicurrency Forex cards are one of the best modes of managing expenses in a foreign country. These cards are preloaded with foreign currency and can be used like debit cards abroad. They offer several advantages, such as locking in the exchange rate at the time of loading. Forex cards also offer to have lower transaction fees compared to credit or debit cards.
Currency Hedging
Currency hedging for students studying abroad involves using financial strategies to protect against fluctuations in exchange rates. It is a process of locking in exchange rates through instruments like forward contracts or options. With currency hedging, students can manage the risk of currency volatility. This approach is particularly beneficial for international students if the INR weaken against the currency of their study destination.
Case Study on Managing Scholarships with Forex
Let’s consider the example of Ayesha, an Indian student who received a scholarship to study in the UK. Her scholarship covers tuition fees and provides a monthly stipend. Check the below-mentioned steps taken by Ayesha to manage the exchange rate after receiving the scholarship.
- Ayesha monitored exchange rates and converted large sums when the INR was relatively strong against the GBP.
- She used a Forex card to pay for her expenses, which helped her avoid high transaction fees.
- Ayesha regularly checked rates offered by different forex platforms and chose the most favourable ones for her conversions.
- Ayesha planned well for currency hedging. By locking in rates for future transactions, she protected herself from unfavourable currency fluctuations.
- In this way, Ayesha saved a lot of money that helped her to cover other living expenses in the UK.
Scholarships are an important part of financing higher studies abroad. However, the value of these scholarships can be impacted by how well you manage your forex. Proper forex management, combined with your scholarships, can help you save money and utilise it properly. Check some FAQs based on Forex and Scholarships below.
FAQs
The students can manage foreign exchange or currency exchange and scholarship by continuously monitoring the exchange rate so that the fund transfer can be made when the best rate is available.
Various scholarships are available like government-sponsored scholarships, university-specific scholarships, and private scholarships.
The scholarship amount is generally transferred directly to the university in the foreign currency of the destination country. For example, if studying in the USA, the funds are converted from INR to USD and then transferred online through a bank or intermediary service.
Foreign exchange involves converting Indian Rupees (INR) into the destination country’s currency. The exchange rate impacts how much foreign currency a student receives when converting scholarship funds and other financial aid.
Students can manage currency fluctuations by monitoring exchange rates and converting funds when the rate is most favourable. Using financial strategies like currency hedging can also protect against unfavourable fluctuations in exchange rates.
Forex cards are preloaded with foreign currency and function like debit cards abroad. They offer advantages like locking in the exchange rate, lower transaction fees, etc.
To know more about education loans, the best bank accounts for students, forex and banking experience for global students or international money transfers, reach out to our experts at 1800572126 to help ease your study abroad experience.
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