How to handle unexpected financial emergencies as an international student
For international students studying abroad on a budget, managing the financial demands of a postgraduate degree can be particularly stressful. Beyond the high cost of tuition, international students also contend with travel expenses, devalued national currencies and the inaccessibility of financial aid.
With all these pre-existing challenges, things may feel particularly dire when an unexpected financial emergency strikes. However, financial assistance for postgraduate students exists in many forms, from institutional emergency funds to economic hardship employment.
Here’s a summary of the ways you can tackle the financial challenges of studying abroad and how MPOWER’s financial support can help.
Five tips: Financial basics for postgraduate students
It’s important to make use of all the available resources for students studying abroad on a budget. Here are five tips for managing your finances before an emergency strikes:
1. Access financial aid
You may be able to access institutional aid through scholarships, grants and assistantships at your university. Contact your school’s International Student Services (ISS) center and financial aid office to learn more about your options. Additionally, consider talking to your home country’s ministry or Department of Education to inquire about financial assistance for postgraduate students.
You can also apply for international scholarships from private organizations. Check out IEFA, International Scholarships, and MPOWER’s graduate scholarships for opportunities.
2. Make a study abroad budget
Once you’ve reduced your out-of-pocket expenses by applying for financial aid, it’s time to create a thorough study abroad budget. Estimating all of your income and expenses beforehand will help you spend within your means.
3. Make an emergency fund
Be sure to set aside some money in your budget for emergencies. You should keep your emergency fund easily accessible but separate from the cash you spend everyday. If possible, place the money in a savings account with a high annual yield so your fund naturally accrues over time.
4. Find part-time work
Most colleges and universities offer financial assistance for postgraduate students in the form of on-campus part-time employment. Look over these basic guidelines for F-1 student on-campus employment to make sure you qualify.
To best prepare for financial emergencies, transfer part of each paycheck into your emergency fund.
5. Use MPOWER’s financial support
Cover any outstanding expenses with an international student loan from MPOWER. International students often struggle to access private student loans because private lenders require a U.S. cosigner or collateral. Luckily, select education lenders like MPOWER offer no-cosigner, no-collateral loans for students studying abroad on a budget.
MPOWER wants you to be financially empowered. Check out MPOWER’s online resources for more financial empowerment for postgraduate students.
How to deal with financial emergencies as an international student studying abroad on a budget
Even with all the financial planning in the world, you can’t anticipate everything. If you find yourself facing a major unexpected financial emergency, be it a medical issue or natural disaster, here’s how to access emergency funding and employment as an international student studying abroad on a budget:
What is emergency financial assistance for international students?
Emergency financial assistance provides international students with short-term financial support amidst unexpected financial hardships. You can access these funds through your university or through organizations like the Institute of International Education (IIE).
Every fund has different eligibility requirements and different amounts of funding on offer. You’ll have to prove that grave circumstances demand emergency assistance.
Contact your financial aid office to see if emergency financial assistance for postgraduate students exists at your school.
How to apply for economic hardship as an international student:
If your school does not have an emergency fund, you can still apply for economic hardship employment, which allows students studying abroad on a budget to work up to 20 hours a week off-campus while registered as a full-time student.
To secure financial assistance as a postgraduate student through economic hardship employment, you must:
- Schedule a meeting with your ISS center to discuss your circumstances and determine your eligibility.
- Provide your ISS counselor with the following documents:
- Severe hardship request form and personal statement (may vary by school)
- Transcript
- F-1 visa page
- I-20 form
- Completed I-765 form (an application for employment authorization)
- Your ISS counselor will submit your forms and provide you with a new I-20 form, including your employment recommendation.
- Send the above documents, as well as your new I-20 and two full-face passport-style photos to the U.S. Citizenship and Immigration Services (USCIS) for review. Confirm your filing location with the USCIS mailing instructions.
Final thoughts: Handling unexpected financial emergencies as an international student studying abroad on a budget
Financial hardship can be scary, but by planning ahead and knowing how to access financial assistance for postgraduate students, you can manage unexpected financial emergencies without sacrificing your education.
For help covering costs at any of MPOWER’s 500+ eligible schools, you can borrow up to US$100,000 with a no-cosigner, no-collateral student loan from MPOWER. All MPOWER customers get automatic access to a U.S. bank account and credit card, helping you develop the financial security you’ll need as a postgraduate student.
To get started with an accessible, fixed-interest rate loan from MPOWER, check your eligibility today.
