Once you receive an admit from your dream UK university acceptance, the next step for you to begin your student visa application. As an essential part of this, you need to create a comprehensive financial plan through which you can demonstrate that you can cover all expenses for your entire degree program abroad.
Before we look into the details of how to plan your finances for the UK student Visa, if you wish to understand how to go about with your visa application, you can refer to our blog on navigating the UK Student Visa process.
With that being said, let us look at what you need to know regarding financial planning for the UK Student Visa application.
When Should I Start My Financial Planning for a UK-based program
On a general note, initiate financial planning early (up to 1 year in advance) to gather necessary documents and funds for your UK student visa application. This prevents last-minute stress. Research expenses and create a budget in advance. Open a dedicated savings account and seek financial advice to make informed decisions.
When starting your financial planning for a UK visa application, the first step is determining the suitable category for your visa application.
The student visa (study visa) enables individuals to study in the UK for a specified course, while the Graduate visa permits graduates to stay in the UK for at least two years after completing their studies. Student visas typically last for the course, while graduate visas provide a post-graduation stay of at least two years.
Financial Planning for UK Student Visa Applications
Before you apply for a UK student Visa, make sure that you understand the various financial requirements that you will be expected to fulfill as an international study visa applicant.
Financial Requirements: Required Funds for Visa Application:
- Tuition Fee for One Year:
- Amount specified on your Confirmation of Acceptance for Studies (CAS).
- Cost of Living for Nine Months:
- £1,334 per month for courses in London.
- £1,023 per month for courses outside London.
- Additional INR 5 Lakhs:
- Extra funds to cover unforeseen expenses and emergencies.
Proving Sufficient Funds:
Here is a comprehensive list of ‘Acceptable Sources of Funds’ for Visa Application:
- Savings Accounts, Fixed Deposits, Term Deposits, and Recurring Deposits.
- Loan sanctions letters from recognized entities.
- Official financial sponsorship from governments or universities.
- Personal savings or funds from parents, with a confirmation letter. In the case of a joint account, you will be required to submit a consent letter signed jointly by the account holders.
- Partner’s funds (if applicable) and currently residing in the UK or applying concurrently.
P.S Note: If your funds are in a foreign currency (not in British pounds), they will be converted to GBP (£) using the spot exchange rate on the day of your visa application.
Unacceptable Methods / Funding Sources
Some sources of funds are currently not accepted as valid for visa purposes
- Overdrafts
- Crypto-currency
- Stocks and shares
- Pensions Unregulated bank accounts or those lacking electronic record keeping. (Co-operative banks, Scheduled banks, Post office savings)
- Bank statements from any relative other than your Sponsors (parent/s)
Financial Documents required to be submitted along with Visa applications
- Income Verification Document (Self or Sponsors) – Submission of Income Tax Returns (ITR) to demonstrate consistent income. This document becomes compulsory in case you are availing yourself of a student loan.
In case you are showing a student loan as a source of funds, the following conditions must be met:
- A student loan letter, dated within 6 months of application, is required.
- It must specify that the loan is a government-sponsored or academic educational loan.
- No conditions other than successful study application should be attached to the loan.
- The letter must state the loan amount, recipient, and availability before the course starts.
Additional Expenses as part of Visa Application Process
- For those applying for a student visa from outside the UK, the fee is £490.
- Additionally, all applicants must include the healthcare surcharge, which covers access to the UK’s National Health Service (NHS). The fee is £1035, though it may vary based on the visa duration.
Disclaimer: Please be aware that the UK government’s requirements and policies concerning student visas are subject to change. Therefore, it’s crucial to review the most recent guidelines before submitting your application.
For a detailed assessment of your financial planning preparations, education loans for UK, or any other specific assistance or query please contact Collegepond Financial Team at _______[Email]_________.
