The following blog has been shot in two videos which you can view in the links below!
Part 1 – https://youtu.be/CA5uOfaqbc4
Part 2 –https://youtu.be/V_xbLY9Fu34
I don’t think there is enough discussion and information about loan repayments and getting an admit. I can bet that if 100 students are planning to take admission in one of the universities abroad, about 30-40% of them are unaware of what their monthly payments are going to be.
Cost of Study & Living 📚🏠🥘🚴♂️
Multiple factors affect the amount that goes towards your education. To mention a few,
- Scholarship fee.
- Place of living.
- Accommodation – if you are sharing it or not.
- Internship salary and how much you can pay in the last semester.
- If it’s a 1 yr course or not – in a 1 yr course it’s impossible to work part-time.
- Part-time jobs.
If you are not accustomed to US states 🇺🇸 and how living expense varies, this may give you an idea.
There are a bunch of states in the US that are more expensive than others. For instance, I pay $800/month for my apartment, whereas my friend in SF pays $1500 for a much smaller apartment.
Every state has different gas (petrol) ⛽️ prices, taxes and the cost of eating outside. Not so drastically, but yes, it does.
If you live in a city like Boston, New York, San Francisco, you will share rooms with 2-3 people or at least one to reduce the cost.
Don’t be fooled when someone says that the state’s minimum wage is $14, whereas, in the midwest, it is only 8.5. The Purchasing power of both these minimum wages is pretty similar based on the cost. The minimum wage wouldn’t go less than 7.5 because the Federal government itself sets it.
Now that we have some facts, I asked a couple of friends to tell me how much they paid in the university. I am pulling some data from my previous youtube videos called “Can you pay for living through part-time jobs”. As usual, I am going to leave the link in the description below.
Let’s take the costs one by one. Here is the equation which I came up with:
Let’s break it down.
Here’s the average amount of money you are spending during application. This totals up-to 1,600 usd = 115,000 INR
|Initial Charges||uno||6 applications|
|Sending Scores – GRE||4 free||54||sending two scores|
|Sending Scores – TOEFL||4 free||40||–same–|
|Test prep – Reference Material||50 USD – Usually free||0|
|I-20 – Delivery Fee||60||0|
Money spent on travelling/ moving abroad – on an average 1300. It can cross + 300/400 USD. How I came up with 1300? It’s like this. 800-1000$ is going to be your flight expense. Initially, you would purchase items worth 300$ and sometimes you also have to pay a security deposit, so I added +300-400.
That brings us to the second part of our equation!
The cost of university varies from one to another. Some universities are cheaper while others aren’t.
So I asked some people from Linkedin to pitch in some numbers and estimate how much they paid for different unis. There is a reason why I selected these unis. Firstly, it is a mix of the top and the middle unis. There are other states across the US. East coast, midwest, west coast and even down South Texas. This way you’ll get a good idea about spending.
Here is the list of universities with their per sem fees.
Cost of Universities 🎓
|Cost of University/Semester||Per semester fees||Per year fees||For 3 Semester|
|Stevens Institute of Technology||18000||36000||54000|
|University of Florida||15067||30134||45201|
|University of Texas at dallas||15820||31640||47460|
I put the per semester fee here because there are courses that get over in either 1 yr or 1.5 years.
Now, I finished my course in 3 semesters. I had a friend who completed the courses in 2 yrs, but for the second year, they got an assistantship. That’s why their net fees were $30,000 instead of $60,000
Let’s look at some of the living expenses. 🏡
- For NEU, my friend has been paying $700, the total rent is $2250, and they are sharing one bedroom among five students. 3 in the bedroom- 2 in the hall
- Columbia 6 people – 3 bedroom – 800$ per person
- Stanford – 6 people – 2bedroom – 3 people in one room – 400 per person
- New Jersey – Same as Stanford
- Florida – Gainesville- 4 bedroom – 4 people 1290 for four-bedroom
- North Carolina – $1000 for two-bedroom
- Georiga tech – 2000 for a two-bedroom apartment – 500
- UTD – I asked Harsh about this, and Harsh lived alone, so he paid 720.720
- Purdue – 800 – 400 per room
Now the utilities 🚿⚡️🗑 usually cost 30-50/ person, and the Wifi is always divided among the people, so it is somewhere between 12-20$. Water and trash cost about 20$. But it can vary in different states.
Groceries 🛒🥙, eating out can lie anywhere between 200-300$, and it’s personal.
Now, for all these people, they are spending anywhere between 500-1000$. It could even be higher for someone residing in New York.
Before moving forward, let us revise what we learnt. I took eight universities and figured out how much you will pay for a three-semester course and students’ living expenses in the US.
Let’s talk about internships and job 👨💻💼. Couple of caveats here.
- You can’t do an internship in the case of a 1 yr course.
- You can do a coop and an internship in a 1.5 yr course and make the fees for the 3rd sem.
Moreover, in this part of the blog, I want to tell you how blatant I will be about things. Some of you might disagree with what I have to say, but I assure you that there is a reason behind everything, and I will indeed justify it from thereon.
When you think of ROI or return on investment, what pops up in your head? If you are making a purchase or spending a good amount of money on something, you do want to reach breakeven or make the same amount of money you paid for a better living.
Here are some of the average salaries in the US for different professions.
Between small town in Alabama 🚜 and New York 🗽, most people who are doing masters have 0-3 yrs of experience.
1K = 1000
Construction management = $50K – $90K
Architecture – $45k to $75k
Computer Science – $65-$120k
Industrial Engineering – $60-$80
Electrical Engineering – $60-$80
Business Analytics – $65k – $110k
MBA – $100k-$200k
MIS – $60-$120
Mechanical – $60k – $85k
Robotic – $80-$120k
IT – $65k – $90k
And yes, there can be outliers making over 150k after their graduate degree, but I am taking an average for students.
Let’s narrow it down to one university and explain the ROI.
Let’s say you are doing a masters degree from Columbia. I hope this example explains a lot about many things.
And we want to take the worst-case scenario for sure.
So let’s say we do a degree in construction or mechanical engineering from Columbia.
We are going to assume it’s a 3-sem course.
We are going to take into account that you did an internship and a coop as well.
Fee of 3-sem + 3-semester expenses + your initial expenses = Your total spending
Now you did an internship + a coop, i.e.7 months of work = salary
Net Expenses = Total spending – salary
Now you were able to save enough to pay off the 3rd sem fees or half of it.
Your cost went down.
You start looking for a job and get one for this amount.
Here are the numbers for Columbia University!
Example of Columbia – $84,912
Living $1200/month – $14,400 for 12 months – 3 sems ~ $15,000
7 month internship $24/hr = $960/week = $26,880/7 months – pretax
Internship = low cost of living
Living in internship = $8,400
Part time job = $12/hr * 10 hrs/week = $480/month *12 = $5,760
- $84912 – $15000- $8400+$26880+$5760=$75612
Let’s talk about how we can repay this. We know we are taking $75,612 in loan amount; we have some amount of time to pay it back. We will use an interest rate calculator to determine the amount of money you have to pay every month.