The real cost of studying in the UK – what international students need to budget for

Moving overseas to pursue a postgraduate degree is one of the most exciting investments you can make in your future.

It’s also one of the most significant financial commitments you and your family will undertake.

For many international students, studying in the UK represents a life-changing opportunity; world-class education, global networks, career opportunities and personal growth. But alongside the excitement comes a new reality – managing finances in an unfamiliar country.

We spoke to Dr Lakshmy Subramanian, Course Director for Cranfield’s Banking, Economics and Finance MSc, about what studying in the UK really costs and how international students can budget realistically before they arrive.

In this series of blogs we’ll aim to inform and advise you on best practice for planning, saving and spending. We’ll show you through the lens UK  and international students the different challenges and the outcomes. We want you to be fortunate, flexible and free to study, to enjoy your experience as a student and to benefit from the expert knowledge of academics like Lakshmy.

Why financial planning needs to start before you arrive

One of the biggest misconceptions students have is that financial planning starts after they land in the UK. In reality, it should begin several months before your course starts, and it does more than just protect your bank balance.

Lakshmy sets out four reasons why starting early matters:

1. It reduces stress and anxiety

If you have a clear idea of what your finances look like before you start your learning journey, you spend less time worrying about unforeseen costs or debt, and more time enjoying your studies.

2. It helps you make informed choices

International students are faced with a lot of choices, but not every option suits every circumstance. Early planning gives you time to compare and curate those choices around your own situation.

3. It helps you meet funding deadlines

Scholarship, bursary and funding applications often run alongside your course application and each one has its own requirements. You might need to submit a business case, a statement of purpose, or evidence of financial need. Starting early gives you the time to prepare stronger applications rather than rushing them.

4. It builds a realistic, practical timeline

A postgraduate application is never just about the degree. You also need to think about accommodation, day-to-day finances and even how you’ll get to campus, whether that’s a university bus, driving, or public transport. Planning for the whole picture, not just tuition, keeps stress levels manageable.

“Financial planning reduces uncertainty. It gives students confidence. When you know where your money is coming from and where it is going, you can focus on your studies rather than constantly worrying about finances.”

Lakshmy splits student costs into two categories:

• Direct costs, which are essentially non-negotiable, and;
• Indirect costs, which can creep up on students who haven’t planned for them.

Direct costs: the non-negotiables

Accommodation

Accommodation is usually the largest recurring expense, and it’s not just the rent. Budget for the deposit too, and, depending on the property,  additional costs such as council tax.

“My advice would always be to finalise accommodation as soon as possible once you’ve had an offer letter, because the more delay you face in this decision, the more expensive it is going to get.”

Utilities

Gas, electricity, phone and Wi-Fi bills vary hugely depending on whether you live on campus or off campus. Some accommodation packages include utilities in the rent; others don’t. Knowing which applies to you early on makes it much easier to plan your finances.

Food and groceries

A significant part of your direct costs. It’s worth researching your local area in advance; cheaper supermarkets can make a real difference over the course of a year.

Transportation

Living on or off campus each come with their own transport costs. Public transport, a driving licence and car, or a bike all carry different ongoing costs – factor in whichever applies to your situation.

English language preparation (where required)

For international applicants who need to meet an English language requirement, preparation classes, the test itself, and any retakes if you don’t get the score you need, are all genuine direct costs, and can be easy to underestimate.

Indirect costs: the ones that quietly add up

According to Lakshmy, these are the costs that students consistently underestimate, because they don’t show up on a typical budgeting checklist.

• Flights home during term breaks. Often far more expensive than students expect, especially at peak times
• Socialising and networking events. Not every event is free, and entry fees can catch students by surprise
• Health and dental care not covered by the NHS, such as routine dental treatment or private practice
• Visa and immigration costs are often overlooked. The cost of relocating if you stay in the UK to work after graduating

Visa and healthcare costs to plan for (2026 rates)

Student visa application fee: £558 (gov.uk)

Immigration Health Surcharge (IHS): £776 per year for students. Paid upfront for your full visa length.

The IHS gives NHS access on the same basis as a UK resident. This does not cover dental treatment, eye tests, or prescription charges.

“Everyone’s journey is very different, everyone’s circumstances are different, but just having a bit more clarity around this will give you a more practical take on what your expenses might look like in the next year to come.”

So, how expensive is life in the UK, really?

Lakshmy laughed when we asked this question.

“The honest answer is that the UK can feel expensive regardless of where you’re coming from.”

The cost-of-living picture has also changed significantly in recent years, with inflation affecting almost everything from groceries and transport to utilities and housing. Location matters enormously too: rents for students living in or commuting from London are typically 20–30% higher than in other UK towns and cities.

“Rent is, for most of us, more than half of our monthly expense. Please do your research before you come to the country to exactly know where you’re going to be living, what kind of property you’re going to be living in, and what you’re actually spending as rent.”

Don’t forget to explore funding

Reducing what you need to budget for starts with exploring what support is available. Lakshmy recommends looking in two directions:

Institutional funding

Universities typically offer a range of scholarships and bursaries — international, merit-based, regional, or tied to a specific subject or pathway. At Cranfield, a dedicated student funding team and a funding finder tool can help you identify what you might be eligible for.

External funding

Beyond the university, look into grants tied to your field of study, professional bodies that support students in specific disciplines, and charities or trusts that fund academic journeys.

Start this research early: every funding option has its own requirements and deadlines, so being proactive gives you the best chance of finding and qualifying for support that suits you.

Watch out for the next blog in this series as we list the top 5 financial mistakes students make when planning to study and how to avoid them!

Download our tailored budget sheet

We worked closely with Lakshmy to develop a rounded budget assistant that is available to download and use. It provides a comprehensive list of how and where to make the best financial decisions, track your expenditure and make smart saving choices.