How to Send Money to a Child Studying Abroad: A First-Time Parent's Guide

Let us say your daughter just received her admission letter from a university in the United Kingdom. The relief lasts about a day, and then the practical questions arrive. How do you pay the fees, and how much can you send in a year. What is this TCS everyone keeps mentioning, and once she has landed, how do you get money to her each month without losing a chunk to charges every time.

Sending money abroad for a child's education happens in two stages. First comes the university tuition, paid by a SWIFT wire transfer against your A2 form, the admission letter and your PAN, with no Form 15CA or 15CB needed because education sits on the exempt list. Then come the ongoing living costs, which are best handled with a forex card you can top up through the year. Both draw from your annual Liberalised Remittance Scheme allowance of USD 250,000 per parent, and TCS of 2% applies only on education spending above ₹10 lakh in a financial year, an amount you claim straight back when you file your return.

That is the shape of it. The rest of this guide walks through each stage the way you will actually meet it.

 

The two stages of paying for a child abroad

Parents find this stressful because they treat it as one giant task. It is really two, with different rules and different tools.

The first stage is the tuition payment. This is a large, one-time wire to the university, usually once a semester or once a year. It goes through the banking network as a SWIFT transfer, it needs a specific set of documents, and the goal is simple: the exact fee amount must land in the university's account.

The second stage is everyday living. Rent, food, transport, books, a phone bill. These are smaller, regular amounts spread across the year, and a wire transfer for each one would be slow and costly. This is what a forex card is built for.

 

How do you pay university tuition abroad from India

University fees are paid by wire transfer, not by card. The amount is too large and universities invoice for it directly, so this is a SWIFT remittance from your bank or your authorised dealer to the university's bank abroad.

The one thing that matters most here is that the full invoiced amount reaches the university. A SWIFT transfer can pass through one or two intermediary banks on its way, and each can deduct a handling fee from the money in transit. If those fees come out of the principal, the university receives less than it billed, and a short payment can hold up enrolment or trigger correspondence you do not want during admission season. The way to avoid this is to choose the option on the remittance form where you, the sender, cover all the bank charges, so the exact fee amount arrives intact.

Speed matters in this stage too, because fee deadlines are firm. A remittance through Matrix Forex is settled within 24 hours, and the rupee-to-currency conversion happens at the live interbank rate with no markup added, so the cost of the transfer is the transfer itself, not a hidden spread on the rate.

 

What does it cost to send university fees abroad

It is worth knowing the real cost components, because the number parents fear is usually the wrong one.

Three small charges sit on a fee wire. There is the outward remittance fee your bank or dealer charges to process the transfer. There are the intermediary bank charges, which under the sender-pays option you cover, and which typically total ₹2,000 to ₹6,000 on a large transfer. And there is GST on the conversion service, charged on a small notional value and capped at ₹10,800 however large the fee.

The cost most parents never see is the exchange rate markup. Banks commonly build a 2 to 5% margin into the rate they quote, and on a ₹28 lakh fee that is ₹56,000 to ₹1.4 lakh, far larger than every visible charge combined. A remittance at the live interbank rate with no markup removes that hidden cost, which is where the real saving on a fee transfer lies.

 

What documents do you need to send tuition abroad

For an education remittance, the paperwork is lighter than most parents expect, and far lighter than the rumours suggest.

You need three things in the usual case. An A2 form, which is the declaration that states the purpose of the remittance for RBI reporting, filled in your own hand or e-signed through Aadhaar. The university's admission letter or fee invoice, which proves the purpose. And your PAN, since the transaction is recorded against it.

The question that worries people most is whether they need Form 15CA and Form 15CB, the income-tax forms that involve a chartered accountant. For a normal education remittance, you do not. Education paid under the Liberalised Remittance Scheme is on the exempt list under the income-tax rules, so the authorised dealer sends the tuition against your A2 form, the admission letter and your PAN, with no 15CA or 15CB involved. That removes a step parents often brace for and never actually meet.

One point on whose name matters. The rupee payment must come from a bank account in the remitter's own name, because third-party payments are not allowed, so the parent paying the fees pays from their own account.

 

How early should you start the fee payment

Fee deadlines are firm, and a missed one can affect enrolment, so this is the timing question worth getting right.

The wire itself is quick. A SWIFT remittance is typically credited within a day, and through Matrix Forex it is settled within 24 hours. What takes time is the first-time setup around it: the KYC check, gathering the A2 form and the admission letter, and confirming the beneficiary details the university has given you.

A few working days before the deadline is a sensible buffer. Start the process early enough that a missing document or a detail to double-check does not push you up against the date. The exchange rate is locked at the time the transaction is processed, so initiating a little ahead does not expose the transfer to rate movement in the meantime.

 

How much can you send abroad in a year

The Liberalised Remittance Scheme is the RBI rule that lets a resident send money abroad, and it sets the ceiling for the whole exercise.

Each resident individual can remit up to USD 250,000 in a financial year, roughly ₹2.3 crore at current rates. That single limit covers everything sent abroad for the year combined, tuition, living expenses, travel, the lot. For a year of undergraduate or postgraduate study, even at an expensive university, this is comfortably more than most families will ever need.

Here is the part many parents miss, and it is useful. The limit is per resident individual, not per family. If both parents are resident individuals, each has their own separate USD 250,000 allowance. So a mother and father between them can remit up to USD 500,000 in a year if it is ever required, simply by sending from their own accounts under their own PANs. For the rare case of very high fees plus living costs, this is how families stay within the rules without strain.

 

How much TCS do you pay on education remittances

TCS, or Tax Collected at Source, is the charge that causes the most worry and deserves the least of it. It is not a fee, it is an advance tax, and it comes back to you.

For education, the rules from April 2026 are genuinely mild. No TCS at all applies on the first ₹10 lakh you remit for education in a financial year. Above ₹10 lakh, self-funded education attracts just 2% on the portion over the threshold. And if the education is funded by a loan from a recognised institution under Section 80E, the rate is zero, no matter how large the amount.

Take a worked example. You remit the equivalent of USD 30,000 for a year's tuition, about ₹28.5 lakh. The first ₹10 lakh carries no TCS. The remaining ₹18.5 lakh is charged at 2%, which is ₹37,000. Had the same fees been funded by a qualifying education loan, the TCS would be zero.

And the ₹37,000 is not lost. TCS is adjusted against your income tax when you file your annual return, and if your tax liability is already covered, it comes back to you as a refund. Your bank or dealer issues you a Form 27D certificate as proof of the TCS collected, which you use at filing time. So treat TCS as money parked with the tax department for a few months, not as a cost of sending fees.

 

How do you send a student money for living expenses

Once the fees are paid and your child has landed, the task changes completely. Now you are sending smaller amounts regularly, and the tool changes with it.

A forex card is the sensible choice for living expenses. It is a prepaid card you load with the destination currency before your child travels, and it works for daily spending and ATM withdrawals abroad. Because the rate is locked when you load it, the money does not get re-converted and marked up every time your child taps the card for groceries or a bus fare.

The real advantage for a parent is the reload. You do not need your child to come home or visit a branch to add money. A family member can top up the card by contacting the branch, and the funds reflect on the card within an hour, so a request on a Sunday evening when rent is due on Monday is not a crisis. The Matrix Forex Card runs on Visa and supports 28 currencies, so a single card covers a child who studies in one country and travels in the holidays.

One small thing to get right. Load the card in the currency of the country your child is studying in, pounds for the UK, euros for most of Europe, US or Canadian dollars for North America. If the card is loaded in one currency and spent in another, a cross-currency conversion is applied, which costs a little extra. Loading the right currency from the start avoids it.

 

Forex card or monthly wire: which is better for living costs

Some parents send a monthly wire transfer to their child's overseas bank account instead of using a card. Both work, and which is better depends on the size and frequency of what you are sending.

A wire transfer to the child's own foreign bank account suits the case where the child has a local account and the monthly amounts are large, for instance where rent is paid directly from that account. The trade-off is that every wire carries its own bank charges, so for smaller monthly sums those charges take a larger share of the transfer.

A forex card suits the more common pattern of regular, varied living costs, because topping it up does not trigger a fresh wire charge each time, and the locked-in rate steadies everyday spending against currency swings. For many families the answer is a mix: a card for day-to-day money, and an occasional wire only when a large lump sum, such as a full term's rent, has to go straight to a local account.

 

What if the transfer is delayed or the card is lost

Sending money to a child far from home is partly about knowing what happens when something does not go to plan. Two situations cover almost all of it.

If the university says the fees have not arrived, or the transfer seems delayed, the trace tools are built in. Every SWIFT payment carries an MT103 confirmation and a unique reference called the UETR, and your dealer uses these to see exactly where the payment is in the network and confirm it to the university. Ask for the MT103 after a fee transfer and keep it with the university paperwork, since it is also your proof of what was sent.

If the forex card is lost or stolen abroad, it can be blocked immediately and a replacement arranged, and the loaded balance is protected, which is not true of cash. Make sure your child saves the card helpline number separately from the card itself, so a lost card can be reported without delay.

 

What first-time parents get wrong

A few mistakes show up again and again, and knowing them in advance is most of the protection.

Leaving the SWIFT charge option on the bank's default is the costliest. The default usually lets intermediary banks deduct from the principal, so the university receives less than its invoice. On a fee payment, always choose the option where you cover the charges, so the exact amount lands.

Loading the wrong currency on the forex card is the next. A card loaded in US dollars but spent in British pounds gets a cross-currency markup on every transaction. Match the card currency to the country.

Forgetting that both parents have separate LRS limits causes needless anxiety about the ceiling. Two parents have two allowances, and very few families come anywhere near even one.

And panicking about TCS as though it were a 2% loss is the most common emotional mistake. It is recoverable. Keep the Form 27D certificate, claim it at filing time, and it comes back.

 

What the year actually looks like

Put together, the process settles into a rhythm you repeat once a year for the length of the course.

At the start of the term, two things go out close together: the tuition wire to the university, sent so the full amount lands, and the first load on the forex card in the destination currency. Through the term, you top up the card as your child needs money, with no fresh wire charge each time. There is no monthly scramble, just the occasional top-up.

At the end of the financial year, one small task closes the loop. The fee receipts and the Form 27D certificate go to whoever files your return, and the TCS you paid is claimed back there. That is the whole cycle, and by the second year it is familiar enough to run without a second thought.

 

Frequently asked questions

 

Do I have to pay TCS when sending money for my child's education abroad

TCS on education applies only above a threshold and at a low rate. No TCS applies on the first ₹10 lakh you remit for education in a financial year. Above that, self-funded education is charged 2% on the excess, and education funded by a qualifying loan is charged nothing. TCS is an advance tax and is fully refundable through your income tax return.

 

Is Form 15CA or 15CB required to send university fees abroad

No. A standard education remittance under the Liberalised Remittance Scheme is on the exempt list, so the authorised dealer processes the tuition against your A2 form, the admission letter and your PAN, with no Form 15CA or 15CB required.

 

How much money can I send to my child studying abroad in one year

Each resident parent can send up to USD 250,000 in a financial year under the Liberalised Remittance Scheme, which covers tuition and living expenses together. If both parents remit, each has a separate USD 250,000 limit.

 

How much does it cost to send money abroad for education

The visible charges on a fee wire are the outward remittance fee, intermediary bank charges of roughly ₹2,000 to ₹6,000 under the sender-pays option, and GST on the conversion capped at ₹10,800. The larger, less visible cost is the exchange rate markup, commonly 2 to 5%, which a remittance at the live interbank rate avoids.

 

What is the best way to send monthly living expenses to a student abroad

A forex card is usually best for regular living costs, because it can be topped up through the year without a fresh wire charge each time and locks in the exchange rate at load. A bank wire to the child's local account suits occasional large sums, such as a full term's rent.

 

Can both parents send money under separate LRS limits

Yes. The USD 250,000 limit is per resident individual, not per family, so two parents have two separate allowances and can remit up to USD 500,000 between them in a financial year if needed.

 

What if my child's university says the fees have not arrived

Every SWIFT transfer carries an MT103 confirmation and a UETR reference, which your dealer uses to trace exactly where the payment is and confirm it to the university. Ask for the MT103 after a fee transfer and keep it, since it is also proof of what was sent.

 

Do I get the TCS back

Yes. TCS is not a final tax. It is collected in advance, recorded against your PAN on Form 27D, and adjusted against your income tax when you file your return. If your liability is already met, it is refunded.

Sending a child abroad to study is a long, expensive commitment, and the money side of it should be the part you worry about least. Once you know the two stages, pay the fees so the full amount lands and fund the living costs with a card you can top up through the year, the rest follows a simple yearly rhythm. Matrix Forex is an RBI-authorised AD Category-II dealer with 15 years in foreign exchange, 2.5 lakh+ customers and a 4.9/5 rating, and it handles both the tuition wire and the forex card at the live interbank rate with the cost shown to you upfront. Visit matrixforex.in to get started.