6 MinsJune 10, 2022
Students aiming to pursue higher education in the USA, UK, or Canada often face the challenge of efficiently managing their tuition fee payments. The months of May and June are usually when this has to be done, before
the beginning of the new semester. A delay in paying your fees could even mean your admission getting cancelled, a situation you would want to avoid at any cost.
Here are various methods to consider:
(1) Bank Transfers: Transferring funds directly from your bank is a reliable and secure method for fee payment. This process also ensures you have all necessary receipts and invoices for future reference, which your educational institution might require. Transfers can be executed through online banking or by visiting a bank branch. Necessary information includes the educational institution's bank details and its SWIFT code, which is crucial for international transactions.
Bank transfers can be done either via net banking or by visiting the nearest branch of your bank. You will need the beneficiary bank details of your college or university and the SWIFT code of that bank (SWIFT is a global messaging platform that
facilitates international money transfers electronically).
(2) Educational Payment Platforms: Many universities globally utilize specific payment platforms for fee transactions. Some platforms have partnerships with Indian banks, offering quicker processing times for fee remittance when these banks are used.
(3) Demand Drafts: A viable option is to pay through a demand draft or a cashier's cheque. This involves visiting your bank to issue a draft in the university's name for the required amount, which can then be mailed to the institution for fee payment.
(4) Credit Card Payments:Many universities accept fee payments via credit cards. Be aware that this method might incur additional charges from the issuing bank.
(5)Forex Cards: For a secure payment method, consider using a forex card. These are prepaid cards loaded with foreign currency and accepted worldwide. They're not only useful for fee payments but also for withdrawing cash at international ATMs and other financial needs abroad.
Additionally, for those looking to send money to relatives overseas, there are various options available.
For instance, Axis Bank Forex card offers a range of useful features for students:
- Locked exchange rate. This means that you can load the card with foreign currency at a favourable rate and keep using the card irrespective of exchange rate fluctuation.
- Load up to 16 different currencies on the same card
- Emergency support including cash delivery and lost passport assistance
- Enjoy exclusive shopping and travel offers from around the globe
Know more about Axis Bank Forex cards online.
(6) Set up a new bank account abroad: Often, you may be required to have a bank account in the country where your educational institution is in. If this is the case, you can pay your tuition fees
from the new bank. This is a more convenient way of clearing all your fees as the payment will have fewer chances of failure.
Tax on foreign remittance
Do keep in mind that there is a Tax Collected at Source (TCS) that is applicable when remitting foreign currency overseas. In case of education-related foreign remittances made out of education loans, a TCS of 0.5% will apply for an amount exceeding
Rs. 7 lakh compared to standard 5% TCS on remittance made from other medium.
If you take an education loan from Axis Bank, many of these hassles will be solved as the Bank will directly pay your tuition fees to your university or college. Axis Bank offers a range
of Educational Loans for finance higher studies either in India or overseas.
Disclaimer: The Source, a content creation and curation firm has authored this article. Axis Bank does not influence the views of the author in any way. Axis Bank and The Source shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information. Please consult your financial advisor before making any financial decision. Names mentioned in this article are fictitious in nature and only for explanatory purposes.
