Financing Offshore Study

During the recent discussion about postgraduate education in Australia I visited a few of the websites, several of which I found quite interesting. I’m thinking about an MS in IT and the program at the University of Southern Queensland seemed especially so. From the American perspective cost is the deciding factor given the favorable rate of exchange. However, I wonder if this advantage will continue to exist over the time required to complete the degree so I inquired of the school about provisions to transfer sufficient money in US to Australian dollars to cover the cost of the tuition over the course of the degree. USQ replied that the school cannot dispense financial advice and, in any event, offshore fees are negotiated through an organization in Hong Kong called NextEd. In fact, I have yet to hear back if fees are paid in Hong Kong or Australian currency.

I wonder if anyone has had experience in doing something like this? My idea was to establish an account in an Australian banking institution to dispense funds to the University. Thinking that Peter French might be a resource I tried posting an e-mail through the website listed in his bio on this board that was, regrettably, returned. So, Peter, if you read this you might want to do a bit of troubleshooting.

Recognizing I’m much better versed in psychology (my day job) than international finance I welcome input. Does this seem like a feasible plan, y’all, or should I go fetch a cool Fosters and give it up as a bad idea?

 

Dear David,

Greetings!

Fortunately, I have some experience in offshore and Internet banking, so I can give you some advice. Right now I am working towards opening accounts in international denominations.

I have an account in British pounds at First-e which I opened as a non-resident. Unfortunately, First-e doesn't offer card services. For this reason, I am considering opening accounts at HSBC, Lloys TBS, or NatWest. All of them have presence in offshore British overseas territories like Jersey, Guernsey, the Isle of Man, Gibraltar, Cayman Islands, and Bermuda. However, since the UK will keep its British pounds and will not use euros, I prefer to open account in euros in another EU conuntry, like Spain. In this sense, aside from the possibilities in the Canary Islands, one option for euros is Patagon. On the other hand, I am still looking for a way to open an account in Canadian dollars; up to know, the most feasible service I have found is Amicus Financial.

In your case, David, you should look for offshore banks that offer checks payable through an Australian bank to avoid extra fees. Better yet, an Australian bank in an offshore jurisdiction would be optimal. I have heard that there are some Australian banks in offshore British territories, but I haven't identified them yet. I think I saw Commonwealth Bank, though. Still, another option would be Irish Permanent International where you can open an account in Australian dollars payable through ANS Melbourne.

I hope that this information is useful to you. If you would like to discuss these issues further, please feel free to E-mail me.

All the very best,


Karlos Albert Lacaye, who would love to have an opportunity to study iternational banking or international finance.
[email protected]

 

I don't think that the issue is the denomination - it is the procedure. Overseas students in some cases pay into offshore entities for a variety of reasons. Otherwise I would have suggested a multicurrency account somewher - I use Singapore with Standard and Chartered, but we can't have those accounts here.

As far as Australian bank overseas is concerned look out for

WESTPAC - represented in most areas and very aggressive in forex matters. Their web site is www.westpac.com.au

NAB (National) which owns many banking groups in US and UK - not being a shareholder I don't know the names. Used to teach International Banking & Finance and remember that they have a global tree illustrating their world 'invasion' but it is 18 km from where I sit, and i am currently writing accounting exercises for a new curriculum against a tight deadline - next trip I'll look. Their website will be www.nab.com.au

Peter French
Associate A/Asian Institute of Banking & Finance
(Not much use today is it?)

 

Dear Peter,

Thank you very much for sharing your information with us.

One option for overseas students is paying with credit cards, either in the currency of the intended university or in US dollars. An advantage of having credit cards in the currency of the intended university is to avoid the extra percentage that US credit cards charge when doing the conversion. Then again, US cards sometimes offer other incentives like cash rebates, discount with Internet stores, airflight miles, etc.

One important point is one is to open an offshore account is to know if the checks (cheques) of the bank are payable in the intended country or intended countries. For example, Canadian Imperial Bank of Commerce in Jersey offers an account in Canadian dollars, but if one wnats to cash a check of CICB Jersey in Canada, one has got to pay C$15.00, so I don't see the point of having an account in Canadian dollars there. By contrast, it appears that an account at Irish Permanent International in Canadian dollars is payable trough the Bank of Montreal, so these extra charges are not incurred.

Yes, I have seen Westpac and NAB in offshore jurisdictions, I think in Jersey and probably Gibraltar.

Still another option is one is interested in this is to open accounts in Internet banks that do business with non-residents. First-e allows non-residents to open an account in British pounds in the UK, German marks in Germany, and French francs in France. By the same token, Patagon allows non-residents to open an account in pesetas an euros in Spain. Also, NetBank allows non-residents to open accounts in Australian dollars and many other denominations.

Well, I hope this helps a little bit.

Sincerely yours,


Karlos Albert Lacaye, who congratulates Peter for his experience in teaching International Banking and Finance and who hopes that one day he can follows his steps.
[email protected]

 

Karlos and Peter,

Thank you for your informative replies. I thought that studying neuroanatomy was difficult but it pales in contrast to international finance. I'll mull this over any maybe repost some additional questions when I'm closer to taking the plunge.