How do you calculate the cost to study in Australia?

Most families compare universities on the annual tuition fee, because that is the number on the university website. It is the wrong number to decide on. What a family commits to is the cost of getting one student from the first semester to a completed degree, and tuition fee is just one part of the equation.

The offer letter shows the annual tuition fee

An offer letter states an indicative annual fee. Most Australian universities review international fees each year, so the fee a student pays in their third year is not the fee written in the offer. Across a four year degree those reviews compound, and a family budgeting from the offer letter alone will be short. As a parent who is investing in the future of your child, transparency helps in better planning so you are not surprised by unexpected costs a few years in.

Ask the admissions team two questions in writing before you accept. What has the international fee for this course done over the last three years, and does the offer lock the rate for the length of the degree. Most universities do not lock in the fee.

Major costs that sit alongside the tuition fee

Three of these are compulsory and are usually paid before the student arrives.

• Overseas Student Health Cover. Required for the full length of the visa, and generally paid up front rather than monthly. There are many providers and the fees vary based on the provider.
• The student visa application charge. The student visa application fee for subclass 500 is AUD 2,500 for the main applicant, and it is payable again if a further visa is needed later. The amount is set by the Department of Home Affairs and reviewed each year, so confirm the visa cost for the year the student will apply.
• Establishment costs in the first month. A rental bond, usually several weeks of rent held in advance, plus furniture, a laptop and a phone plan. These are upfront costs as soon as the student lands in Australia or sometimes even before they land.

Living costs depend on the city you choose to study and live in

Rent is the largest living cost and it varies more between Australian capitals than most families expect. Over three years the difference between the most expensive capital and one of the cheaper ones is large enough to change which universities are affordable.

Choose the city and the course together rather than settling the course and then finding out what the city costs. The city pages set out what each capital costs: Sydney, Melbourne, Brisbane, Perth, Adelaide, Canberra, Hobart and Darwin.

The currency fluctuation is real and must be accounted for in the decision making

The dirham is pegged to the United States dollar. The Australian dollar is not. A family paying Australian tuition and Australian rent out of dirhams therefore carries the movement between the Australian dollar and the United States dollar for the whole length of the degree, and that movement runs in both directions.

The total range of exchange rate must be considered rather than the rate on the day you make the decision as this can vary greatly along with the bank charges.

Cost is dependent on the course duration

A three year degree and a four year degree are not one year of tuition apart. They are one year of tuition plus one year of rent, food, transport and health cover apart. An honours year, a double degree, an articulated pathway that adds a year of study, or repeating a single failed subject all move the total in the same direction.

Consider the realistic length rather than the minimum length, then look at what the longer option costs. Sometimes an extra year is the cheapest way into a course that would otherwise be closed, and sometimes it is a year of cost for very little gain.

What brings the number down

• Scholarships. Australian universities publish international scholarships with their own deadlines, and those deadlines are frequently earlier than the course application deadline. Search them before you apply, not after you have received the offer.
• City choice. The choice of the city matters more than you think and it is often considered last. Choosing the right city coupled with the right university and program can bring down the costs significantly.
• Articulated entry. A diploma with guaranteed progression into the second year of a degree can lower the fee base for the first stage.
• Work during study. Working rights on a student visa are regulated and the rules change. Check the current position with the Department of Home Affairs rather than relying on what a friend was allowed to do two years ago, and treat any income as a contribution rather than as part of the budget.

The comparison worth making

A total cost means little on its own. It means something set against what the degree does afterwards. Graduate employment rates and median starting salaries by field of study are published in the Graduate Outcomes Survey, which covers Australian institutions and is free to read.

Map the total cost of graduation against how many years it takes to recoup. That number will tell a family more about whether a course is the right decision than a ranking table ever will.

Where each figure officially comes from

Fees, charges and requirements are set by the university or the department concerned and they change between intakes. Take each figure from its source for accuracy in the year the student will actually apply, rather than from an article, including this one.

A cost model is worth building while the shortlist is still open, and I can help you narrow down your options based on your personal circumstances.

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