Studying Abroad Is Costly, But Not Impossible: Experts On Smarter Financial Planning

From Fees To Living Costs: How Students Should Plan Finances For Studying Abroad In 2026

Getting a good education is becoming costlier, especially when it comes to higher education. For those students planning to study abroad, the cost of education increases manifold times, because of the associated costs of living, accommodation and food in a foreign, developed country.

Middle class students tend to dream of studying in a foreign institute, but the cost barrier makes him/her reconsidering it. However, proper financial planning and support will catapult the young ones to achieve their dreams of studying abroad.

Experts say students aiming to study abroad in 2026 should treat education as a long-term financial decision, not a last-minute expense.

Start early, think long term

From a personal finance point of view, planning should ideally begin 18–24 months before the intended intake, says Neeraj Saxena, MD & CEO of Auxilo Finserve. This window helps families realistically map the full cost of education, including tuition fees, visa and travel expenses, living costs, health insurance and emergency buffers.

Starting early also allows room to plan for post-study costs, such as living expenses during the job-search period. Saxena notes that early planning gives families time to build savings, compare funding options and secure better loan terms instead of rushing into costly decisions.

Rajesh Narayan Kachave, Chief Business Officer – Student Lending International Business, Avanse Financial Services, also adds that students should begin financial preparation well before application deadlines. Early planning helps align course selection, funding strategy and long-term career goals, especially as tuition and living costs have risen sharply across global destinations.

Calculate the real cost, not just fees

One common mistake is focusing only on tuition. Experts advise students to calculate the total cost for the entire course duration, not year by year. This includes education fees, accommodation, food, utilities, local travel, insurance, visa costs and one-time pre-departure expenses.

Saxena recommends keeping an extra 5–10 percent buffer to manage currency fluctuations and inflation. Kachave adds that destination-specific requirements, such as insurance or mandatory deposits, should also be factored in, along with a separate emergency fund for unexpected situations.

Avoid common money mistakes

Experts warn that chasing university rankings without understanding actual costs and job prospects can lead to long-term financial strain. Families often overestimate post-study salaries and underestimate how competitive global job markets have become.

To reduce risk, Saxena suggests aligning loan amounts with realistic salary expectations, choosing destinations with strong post-study work policies and keeping at least one semester’s expenses liquid. Kachave adds that relying fully on family savings or delaying documentation can create avoidable pressure.