Gearing up for overseas studies

MANAGING finances when studying abroad, even on a scholarship, isn't exactly a walk in the park.

Often people find it difficult to accommodate their dreams for further education, even if they qualify for a scholarship. They want to go to this college or that university, but they often disregard the financial aspect.

Plan ahead

All parents want to secure the best education for their kids. If you wish to send your children to an overseas university, the cost is usually a lot more than a local university. Furthermore, the cost of education is likely to escalate sharply in the years ahead.

If you are formulating a plan for your child's university education, you need to estimate how much it will cost by the time your child is ready to enter university. Once the education cost is determined, you need to start saving and invest as early as possible.

One way to build up a pool of funds for your children's university education is by investing in unit trusts, although you should diversify your portfolio to protect against downside risk.

To save and invest systematically, you may wish to consider Unit Trust's Regular Savings Plan or alternatively, an endowment plan from your local bank.

The latter is a long-term savings policy where you can choose one with a maturity period that ends when your child is ready for university education.

The checklist

Thinking of applying for an academic scholarship overseas? There are several considerations that needs to be taken even before embarking your journey to your overseas education, and often costs a lot of money as much as the amount of decision making is required.

"Preparations must be made at least a year before the overseas education starts, preferably during your final year in form six (A levels)," said Wan Nurul Naszeerah Hj Zainal Abidin Ariff, an undergraduate studying in UC Davis, California under a government-bond scholarship.

"Aside from studying really hard for the grades to qualify for a scholarship and getting recommendation letters, you will need to set aside a considerable amount of money for the application process," the 22-year-old added.

She said that colleges and universities would require a certain fee for application or to sit in their entrance exams.

While application costs for universities and colleges in the UK are cheaper through UCAS (The United Kingdom's Universities & Colleges Admissions Service), application fees for universities in other countries such as the United States or Australia might cost more.

Wan also suggests applicants to research first hand what expenses will or will not be covered by the scholarship allowances, and set aside some money for them, such as air travel expenses, books and stationeries.

Quite often, budding students will need to use their own money on some of these necessary expenses and get them reimbursed later, she said.

"Do check if your scholarship includes health insurance as part of the package. If not, you will need to choke out some cash for one from an insurance company. It is always essential to get insured for your overseas education," said Wan.

Once all that is out of the way, you will also need to figure out how much you will need to sustain yourself during the years abroad. While government scholarships do offer allowances, having that extra cash can make your life easier.

"It's best to start saving up at a very early stage instead of opening up loans and carrying all the burden after," said Wan.

She advised new students to reach fellow Bruneians studying at the university to get hands on information and recommendation on cost-efficient living based on their experience there, such as affordable places to stay or tips on minimizing cost when getting around or shopping for necessities.

Live prudently

Students studying abroad will live independently and hence will learn to manage their finances in order to survive throughout their education years.

Alif Hj Hassan, a recent graduate from the University of Queensland, Australia, said that students must take into account the rising cost of living overseas, particularly in areas where the university or college resides.

"Everything down to basic necessities will be much expensive if you live in a city. Your best bet is being in a countryside area, but even then the cost of living are higher than in Brunei," he said.

"Bear in mind that the moment you step outside for leisure time, you are bound to spend a lot. Invest more of your time in campus or at the dorm to focus on your studies, because that's always cheaper," he added.

Alif also suggested students to be prudent with their daily expenses and prioritise their budget for daily needs, such as groceries, rent, utilities, clothing and transportation costs, among other things.

He recommends bundling up some expenses with friends

"Minimise on entertainment and other unnecessary purchases because they can easily burn a hole in your wallet, leaving you with nothing in the end for the more important things," said Alif.

"Live well below your means and avoid being a hoarder. It will be difficult to bring all your goods back home at the end of your college studies. You might end up leaving them behind and hence, your money down the drain," he added.

Alif also recommends taking part time jobs whenever possible to get extra money. Most colleges offer jobs within the campuses for their students, from assistant librarian to laboratory technicians.

"Check your local scholarship provider beforehand to ensure that getting odd jobs are permissable. There are so many opportunities out there that offer good money in the city such as part time waitressing or shopkeeper, provided that they do not affect your studies," he said.

The Brunei Times