How The Increase In Dollar Rate Is Affecting International Students And What You Can Do About It
Back in June, when I was preparing to fly to the United States for my Master’s program, there were many hurdles. One of the main hurdles, which was quite unexpected, was how the inflation of dollar rates was preventing my bank from giving me dollars for my daily expenses and even to pay the tuition fees despite having all the necessary documents.
The dollar crisis prevails in many countries, particularly those where dollars cost more than the local currency. Bangladesh is such a country. Just a couple of years ago, 1 USD was equivalent to approximately 90 Bangladeshi Taka. To put into perspective, 90 Taka can buy you 1 kilogram of rice in Bangladesh and you’d get some change back. In recent times, the dollar rate now fluctuates between 110 Taka to 118 Taka. This increase stands as an obstacle for many international students to receive money in the United States from their homes, be that for paying rent, buying groceries or paying the tuition fees.
It’s difficult to say how many countries are struggling with the dollar rates. However, it has become an issue in the past few years in the Global South and other developing countries. In my experience, one of the reasons why banks struggle to authorize dollars that weren’t meant for my personal expenses was that the national reserve was running low on dollars. Eventually, I had to pull out family connections and go from bank to bank, seeking dollars — an advantage not everyone has.
For international students whose primary source of income isn’t in dollars, it becomes challenging to make ends meet. To think what I’m paying for a room in a farmhouse shared by two others could buy me a one-bedroom apartment in a decent neighborhood, support my monthly grocery bill and maybe even invest in some land is quite unnerving. Suffice to say, dollars are expensive and the conversion rate makes it nearly impossible for international students to even begin entertaining an education in America.
This isn’t to say that there aren’t steps you can take to navigate around this. Here are some tips for international students in this regard:
Research your university and the surrounding area
Before you accept an offer, look into the currency rates. Make an estimate and estimate on the higher end. Talk to your university about scholarship and job opportunities, as such rate fluctuations can impact the financial aid you get. As for your area, anything free of cost is a saving grace. I came to know about the community center in my area which gives away winter coats and clothes, sometimes fresh produce and other necessary goods to those in need. I also found that one of the community churches provides food like bread and eggs, vegetables and meat, canned goods, and household cleaning supplies free of cost. These services are usually open to the entire community. My only regret is that I didn’t find these resources sooner, as it would have saved me a lot of money and I wouldn’t have to struggle to have one meal a day. So, look into what the university offers, be that financial aid or open pantries, and what your community has to offer to support those in financial distress.
Budgeting
Budgeting is also a must for any student. When you’re in a new country, of course, you want to explore the local food, travel around and buy things you couldn’t in your home country. Unfortunately, all that requires money. The only way to make sure you don’t go bankrupt is to make a budget. Try dividing your money into four categories — necessities like groceries and rent, traveling (students usually have the option to avail some kind of discount in public transportation), self-care and hygiene goods like soap, laundry detergent etc. and lastly, recreation. There are many resources online that you can find to best suit your budgeting goals that take into consideration essential and non-essential expenses.
Communicate with Accounts
When you find yourself in a rut and are struggling to pay your tuition fees, the last thing you want is to go past the deadline and have additional charges to pay off. Keep an open channel with the Accounts office at your university and make them aware of your situation. In certain situations, they might be able to help avail waivers that’ll relieve you of that extra charge and sometimes, give you extra time to pay your fees.
Keep all documents
Remember, documents are evidence. When it comes to financial transactions, you want to keep every bill and every statement securely stored digitally and physically. Even if you provide your bank a copy of the estimated cost during your study in America, it might not always be enough. You might have to provide extra documentation that’s been directly signed off by the university to receive authorization. It’s also wise to have screenshots of any emails you might’ve exchanged with your university and bank regarding financial transactions.
Being an international student isn’t easy. The differences in currencies make education in the West expensive and it’s important to think ahead before you take any final decisions. After all, the last thing you want is to drop out in the middle of the year due to financial distress. While there’s only so much you can prepare for and look into with online research, remember that once you get to the United States (or wherever else), you’re likely to find more resources that’ll help you reduce costs and prevent you from romanticizing your life as a struggling international student.
Written by Puja Sarkar, Press & Written Media team
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