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Show Me The Money - Financial Considerations when Selecting a US University

The line “show me the money” became famous in Jerry McGuire--a movie about professional athletes. Essentially, it highlighted the essence of American’s emphasis on acquiring the full value for their services. We succinctly put it in American slang as “getting paid.” 

There are three broad financial issues to pre-consider in selecting your study destination and ultimately your school. They all invariably relate to that theme, "show me the money.” 

1. How much money should I allocate for my education in the USA? 


2. Where can I find the money for my education in the USA? 


3. What kind of payoff should I expect in return for my investment? 

These three factors are general and somewhat broad, but it will encapsulate your circumstance. 

How much money do I need?

So just how much money do you need to allocate for your education? Of course this is directly related to the school you choose. Each school has a specific fee structure that applies to international students. Typically, out-of-state fees apply in state schools, and private schools either charge the standard tuition, or the tuition plus some additional surcharge, usually called an international student advising fee or similar name. 

You are expected to have the full amount of one year’s costs available to show the embassy by way of a bank statement of affidavit of support. But in reality, you should have four years of such support. 

The university will give you an estimate for a calendar year of all expenses, including room and board and tuition, and you will then prove to them that you have the means before they issue you the documents. You should at least have up front access to twice that actual figure, or two and a half years of costs, before leaving home. The actual amount of that figure would be determined by the cost of the school. Learn more about determining how much money you need here. 

Where can I find the money? 

One of the great things about the US is that there is a legal mechanism for foreign students to work while going to school. However, this is a tricky area.  Work, for the most part will be limited to on-campus jobs at close to minimum wage. But you will find that a great supplement.

There is a very high probability that you can access some form of work, scholarship, or other assistance, that can reduce your cost. It may happen immediately, but more likely it will after a year or so.

In selecting your school, certainly weigh the probability of such work, scholarship assistance, and other forms of available cost reducing methods, into your funding formula.

The most important thing to remember is that work is not guaranteed. It is an option, but it should not be factored into your financial equation—and especially not for the first two years. 

So if you cannot count on employment in the US, and if you plan to follow our advice to be  financially self-sufficient for two calendar years, then the next logical questions are: 

1. First, Where can I find money for the first two years of study before I leave for the US?
2. And second, what happens after I arrive in the US? ... How can I fund my  last two years of study?  

The answer to both questions are Loans, Grants, Scholarshipsa, and Handouts. To help secure that critical first two years of funding read: "Loans, Grants and Handouts: Pre Departure". And to prepare you for securing funding for your last two years of study in the US read: "Loans, Scholarships, and Work: After Arrival".

What's the payoff  for me?

The third financial consideration that you should undertake ahead of time is an analysis of your payoff. What can I expect to earn after I have gained a US university degree and I have either returned home, or settled in another country? 

Will my chosen discipline pay me enough to justify my loans, family obligations, sacrifice, opportunity cost? What are the employment prospects? 

Not all degrees offer the same payoff. Strategically, it might be important to gravitate to one that does. We will highlight some of these in later articles. But ultimately, a cost-benefit analysis is something that you should seriously consider before committing funds to study.  Read "What's Your Post Graduation Payoff?" to help you get a clear picture  on how you will profit from your investment in a degree from a US university.

Essentially, this is a financial decision more than anything else. So be prudent, be thrift, be cautious, and be proactive in seeking all the help you can get so that you make your decision to study, and particularly study in the US, a business decision.