International Students in U.S : How to Show Financial Ability
From bank statements to financial aid letters, there are a number of ways international students can demonstrate financial ability.
Key Points:
- You normally have to prove that you can pay for the first year.
- There are school-specific requirements as well as legal regulations.
- Some documents often don't qualify as proof.
Applying to a U.S. college can be stressful and challenging. But with an acceptance letter in hand, prospective international students can move on to the next step in the admissions process: demonstrating financial ability to pay for tuition, books and living expenses while studying in the U.S.
“There are numerous ways international students can demonstrate financial ability. Students must show that they have the first year of support available and indicate how subsequent years of study will be funded,” says Ron Cushing, director of international services at the University of Cincinnati in Ohio.
Accepted students will work with their designated school official, or DSO, who serves as a liaison between the school and the Student and Exchange Visitor Program. SEVP is a U.S. government program that ensures U.S. schools and international students comply with laws and regulations.
DSOs "are required to receive, review and evaluate proof of financial responsibility for an international student prior to issuing the student a Form I-20," Paige Hughes, a spokeswoman for Homeland Security Investigations, wrote in an email.
A Form I-20 certifies that an international student has been admitted for full-time study once proof of financial ability is established. Hughes says prospective students must provide evidence that meets their school's specific requirements.
After a school issues an I-20, students are eligible to apply for a student visa at a U.S. embassy or consulate. A U.S. government official will review the documents, including the evidence of financial ability, and make the final decision about whether a student can pay, and if so will issue a student visa to study in the U.S.
Here are some ways prospective undergraduate and graduate international students can demonstrate financial ability.
Bank Statements or Employer Letter:
U.S. colleges and universities require proof that money is available, which can be illustrated by bank statements from a parent, friend or other relative or sponsor. For instance, on its website, American University in Washington, D.C., provides examples of acceptable documents international students can submit as evidence, including a sample bank letter.
"Students must show financial ability in the form of liquid assets to be eligible for a Form I-20," says Patrick Morrison, assistant vice president at the Gallagher International Center at the University of South Dakota.
He says most of their international students use private family funds held in savings or checking accounts to show proof of financial ability.
“However, we have seen a significant increase in graduate students using international student-specific loan companies like MPOWER and Prodigy Financing,” Morrison says.
Experts say schools typically want students to demonstrate the ability to pay one year of academic and living expenses.
“Some institutions require multiple months of bank statements while others don’t. How old a bank statement can be varies by institution as well,” Cushing says.
Proof of financial ability can be provided in any currency, Morrison says, as schools use a currency conversion tool to ensure that the amount of foreign currency equals or exceeds their minimum requirements in U.S. dollars.
Hughes notes that each school's DSO enters a student's financial ability in U.S. currency into the Student and Exchange Visitor Information System, or SEVIS, which is used by the U.S. government to maintain information on international students.
When verifying student documents, school officials should follow best practices, such as examining each document for uniqueness and originality as well as using the numbers listed on the documents to contact banks and other relevant organizations to confirm document legitimacy.
“One of the biggest concerns all institutions have is the authenticity of the financial documents provided," Cushing says. "There is a growing trend in the field to do things like call or email financial institutions to verify what has been submitted or review websites for accuracy.”
A letter from an employer on official business letterhead showing annual salary is also evidence of financial ability. However, experts say prospective international undergrad students should not consider potential on-campus employment to count toward proof of financial ability.
Scholarship and Financial Aid Letters:
Prospective international students can also demonstrate financial ability if they have scholarship money from their home country or the U.S. college.
Habiba Aly, an Egyptian national and tennis player who competes in her home country and internationally, was offered a full scholarship to atten d the University of South Dakota, where she completed bachelor’s and master’s degrees.
"I needed the admission letter and the scholarship offer for the embassy to issue the visa," Aly says.
Prospective international graduate students may use similar ways to prove financial ability.
"Many graduate students receive some or all of their funding from the university in the form of graduate assistantships," Morrison says, adding that a pre-authorization letter from a private student loan lender would be a sufficient example of a financial aid letter.
Investments or Other Assets:
Prospective international students may be able to demonstrate financial ability through mutual funds and annuities, proof of property or certain investments. However, the types of investments or assets accepted can vary widely among schools.
"Each university has its own policies in determining what documents are sufficient to prove financial ability to attend their university," Morrison says.
For example, Indiana University—Bloomington accepts investment statements, but submitted documents must show clear proof of the funds' liquidity and the cash surrender value, per the school's website. This means the listed funds must show evidence that they can be easily accessed or converted to cash when needed.
Meanwhile, the University of Washington—Tacoma's website states that tax records, pay stubs, compensation letters, stocks, bonds and proof of property ownership are not acceptable proof of financial resources.
Morrison says each school has its own policy in determining how much funding an international student must have "by calculating the average cost of attendance for one year of study at a given institution, inclusive of tuition and living costs."
Government or Other Official Agency Funding:
Financial proof can take many forms, such as government funding by the Saudi Arabian Cultural Mission for the country's eligible students pursuing degrees abroad.
"The most common sponsored student programs are in the Middle East – Oman, UAE, Saudi Arabia, Kuwait – but there are others as well," Morrison says. "We have had a Ph.D. student from Malaysia on Malaysian government sponsorship in the past, for example."
Students should note that government or other official agency funding documents should be translated into English, experts say.
For example, in its admissions guidelines for international graduate students, the University of Southern California states that “if the document is not issued in English, then a certified, professional translation will be required.”
The Department of State's EducationUSA network of global student advisers can help with navigating the U.S. college and university admissions and funding processes through the "Your Five Steps to U.S. Study" resource. EducationUSA is a State Department network of more than 430 international student advising centers around the world.
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