When international students apply for study visas, they must provide proof of sufficient funds to cover their living expenses during their stay. These financial requirements, referred to as “proof of funds,” are a crucial part of the visa process across nearly all study-abroad destinations.
Essentially, governments want to ensure that students have the financial means to sustain themselves without taking on excessive work while pursuing their studies.This proof is usually separate from tuition, health insurance, and travel costs, but it must be available in liquid assets, such as in a bank account.
What does proof-of-funds mean for international students?
For prospective international students, the proof-of-funds requirement is a measure intended to gauge whether they can comfortably afford to live and study in a destination country. The funds should be sufficient to cover basic living expenses such as accommodation, food, and other necessities. This requirement not only helps students plan their finances but also gives host countries confidence that incoming students won’t need to rely heavily on employment or government aid during their studies.
For some students, however, this financial requirement can be a barrier. It forces them to evaluate if they can meet these minimum standards before even considering applying to a foreign university.
The top four countries with the highest proof-of-funds requirements in 2024
In recent years, as the cost of living has risen globally, countries like the UK, US, Australia, and Canada have updated their proof-of-funds thresholds to reflect these changes. According to a report from ICEF Monitor, “In recent months, some major study abroad destinations have increased the amount of available, guaranteed funds that international students must have to be eligible for a study visa.”
The financial threshold international students must meet can vary significantly between countries. Below are the top four destinations with the highest proof-of-funds requirements in 2024.
United States – Over US$70,000 for highly ranked institutions
The US remains one of the most expensive countries to study abroad. International students must prove they have access to at least one year’s worth of living expenses. For those accepted into prestigious universities such as the University of California, Santa Barbara, the proof-of-funds requirement can soar above US$70,000. This is one of the highest amounts worldwide, reflecting the substantial costs associated with living and studying in the US, particularly in highly ranked institutions.
Australia – AUD$29,710 (US$19,537)
Australia requires international students to have close to AUD$30,000 (roughly US$19,500) in accessible funds. This is a sizable amount compared to other destinations, but it aligns with Australia’s high cost of living. It ensures students have the financial stability to cover essentials like rent, food, and transportation for the duration of their studies.
South Korea – US$20,000
South Korea’s proof-of-funds requirement of US$20,000 is among the highest in Asia, signaling the country’s desire for students who are financially capable of handling the living expenses in cities like Seoul. Given the rapidly growing international student population in South Korea, this figure helps ensure that incoming students can focus on their studies without the need for excessive part-time work.
Canada – CDN$20,635 (US$14,930)
Canada has become an increasingly popular destination for international students. The country’s proof-of-funds requirement, CDN$20,635 (US$14,930), is designed to cover the minimum cost of living. While this may seem lower than the US and Australia, Canada offers a relatively affordable standard of living, making this an attractive option for students who can meet this financial obligation.
The United Kingdom: Recent increases in proof-of-funds requirements
In September 2024, the UK government announced an increase in the financial savings requirements for international students—the first change since 2020. This move aims to keep pace with the rising cost of living, especially in London, and to ensure students can support themselves during their studies. Under this new regulation, effective January 2, 2025, students must provide proof of £1,483 per month if studying in London and £1,136 per month for other regions. For a nine-month course, this translates to £13,348 for London and £10,224 for other parts of the UK.
This adjustment reflects the UK government’s intent to ensure that international students are adequately prepared for the financial demands of living in the country. The increased figures will impact students’ ability to meet the visa requirements, particularly those studying in London, where living costs are notably higher. As per ICEF Monitor, “Destinations requiring lower amounts of guaranteed funds are often less expensive for students in general,” which could lead some students to seek alternative countries with more affordable living standards.
What does this mean for applicants?
These proof-of-funds requirements are a pivotal consideration for anyone planning to study abroad. Higher financial thresholds, like those seen in the US, Australia, and the UK, may deter students who lack immediate access to such large sums. However, these figures serve as a guarantee that students will be able to maintain their quality of life during their studies, without over-reliance on part-time work or facing financial hardship.
In the end, while proof-of-funds requirements alone may not dictate a student’s choice of study destination, they are an essential factor to weigh in conjunction with tuition fees, the cost of living, and other personal financial resources.
The recent increase in the UK’s proof-of-funds requirement further illustrates how the economic landscape and rising living costs are influencing policy changes that affect international students directly. By staying informed and financially prepared, prospective students can better navigate these evolving requirements and ensure their academic journeys abroad start smoothly.
