Revealed: poor money transfer rates cost international students in Singapore $31 million each year

Studying abroad is a big financial investment for students. Research carried out by Wise, the global technology company building the best way to move money around the world, has shown just how costly it can be. This revealed that international students studying in Singapore overpay more than 31 million SGD annually in money transfer fees — averaging $476 per student.

With the number of international students showing no signs of slowing down, Wise has put together a ranking of the most expensive destinations to study abroad, both in terms of tuition costs and money stand to lose to money transfer fees. Shockingly, international students across these 10 destinations overpay approximately $1,5 billion annually in fees.

We’ve taken into account the cost of tuition, average spending on other educational costs and the average amount of savings on cross-currency payments if students used alternative money transfer providers instead of more old school (read: more expensive, less transparent) options like banks.

The most expensive places to study in:

1. United States

💰 Total Education Cost: $37,716.27 per school year
🛑 Loss on transfer fees: $614.78 per student; overall $583,130,511

The USA is a top destination for studying abroad, hosting thousands of students from overseas each year. The country is home to some of the world's most prestigious universities, including Ivy League schools such as Harvard, Yale, and Princeton.

However, studying here does come with a much higher price tag — the US is a whopping 35% higher than the next most expensive country on the list. On average, students paid $614 each in money transfer fees. With around 948k international students in the United States, students here stand to lose $583 million to inflated transfer fees.

2. New Zealand

💰 Total Education Cost: $26,346.01 per school year
🛑 Loss on transfer fees: $545.36 per student; overall $18,381,358

New Zealand is a popular destination for international students, with over 30,000 students from all over the world choosing to study there each year. The country's eight universities, including those in Auckland, Wellington, and Christchurch, are all highly ranked in the QS World University Rankings 2023.

Despite its appeal, studying in New Zealand can be expensive for international students due to the cost of tuition and additional educational expenses. Wise’s data shows that the total cost of education (excluding accommodation) in New Zealand is $26,346. This cost can be a significant barrier for some students only made worse by totally unnecessary transfer fees.

3. Australia

💰 Total Education Cost: $23,565.51 per school year
🛑 Loss on transfer fees: $461.88 per student; overall $252,499,635

Australia is a popular destination to study abroad for international students, and welcomes over 500,000 students from overseas each year. The country boasts 37 universities, and many of them are highly ranked in the QS World University Rankings, making it a top choice for higher education.

Studying in Australia can be expensive for international students, with the cost of tuition and additional educational expenses adding up quickly. According to recent figures, the average annual educational costs are around $23,565 depending on the course and institution.

4. Canada

💰 Total Education Cost: $20,763.72 per school year
🛑 Loss on transfer fees: $444.34 per student; overall $358,915,635

Canada is becoming an increasingly popular destination for international students. With over 800,000 international students in 2022, it is ranked as the third most popular study destination in the world.

However, the cost of studying in Canada can be daunting for many international students. The average tuition fees for undergraduate programs in Canada are on average around $17,366 per year, and this does not include additional expenses such as accommodation, textbooks, and transportation. The cost of living in major cities like Toronto and Vancouver is also high, which can further add to the financial burden. This makes it even more important to save money where possible — and removing the $444 paid (on average) in unnecessary transfer fees is a good place to start.

5. Hong Kong

💰 Total Education Cost: $18,801.21 per school year
🛑 Loss on transfer fees: $417.39 per student; overall $18,253,299

Hong Kong is an attractive destination for international students, with its world-renowned universities and unique cultural experiences. However, the cost of studying in Hong Kong can be a challenge for many international students. Recent data shows that the educational costs for international students are an average of $18,801 per academic year, depending on the program and university. This high cost can deter some students from pursuing their studies in Hong Kong, but for those who can afford it, the investment can be worthwhile.

Hong Kong's high cost of living can pose challenges for international students facing financial constraints, with accommodation, food, and transportation costs adding up quickly.

Where do Singaporean students spend the most on education?

According to internal Wise’s data, Singaporean students studying abroad spend the most money on education in the United States, with an average of $46,042.13 spent per year.

However, looking at the top 10 countries, each Singaporean studying abroad pays an average of $276.69 annually on money transfer fees and inflated exchange rates. Canada, the UK, Australia and New Zealand are also popular (if expensive) destinations for Singaporean students, with average annual education costs ranging from $25,246.69 to $34,075.71.

In 2022, there were 21,666 Singaporean people studying abroad (trade.gov) which adds up to $5,994,765.54 that have been paid in fees by Singaporeans abroad.

💰 Save those fees

Nilan Peiris, Chief Product Officer at Wise, said:

“As we get closer to summer, many students are making decisions about where they want to study abroad next year. There are a number of factors to take into account, from the quality of the programmes on offer, as well as the cost of living and tuition. Researching financial providers that will help you transfer tuition money overseas cheaply, easily and flexibly, can make a big difference to your finances over the course of your degree. Providers like Wise allow students to transfer money at the real exchange rate - the one you see on Google - with all fees clearly stated before the transfer is made. Over the course of a degree, this can account for hundreds, if not thousands, of pounds in savings.”