Tuition, the first month’s rent, a deposit, groceries: every one of those starts as a transfer from another country, and every transfer quietly loses a little on the way.
This guide shows where that money goes, how to measure it with one number, and what changes if you are sending from Korea or Australia. There is a calculator so you can test your own quote.
Table of Contents
Compare What Actually Arrives
Every international transfer has two costs: the fee you can see and the exchange-rate margin you usually can’t. Then the US bank may charge your child to receive it. The easiest way to compare is to ignore the advertising and ask one question: how many US dollars will arrive for this amount? The US Consumer Financial Protection Bureau describes exactly this: you see the exchange rate, the fees and the amount that will be received before you pay, so you can shop around.
For tuition, use the payment link on the school’s billing page first. For living money, compare the amount received across two or three providers, and send less often in larger amounts if fixed fees are eating into it.
The Two Costs in Every Transfer
1. The fee. A flat charge or a percentage, shown up front. This is the part most people compare.
2. The exchange-rate margin. The mid-market rate is the midpoint between the buying and selling price of a currency. Banks and transfer companies give you a retail rate instead, and Australia’s competition regulator, the ACCC, defines the gap as the margin or mark-up on the wholesale exchange rate. It never appears as a line item. It just means fewer dollars arrive.
3. The receiving fee. If the money arrives by wire into your child’s US account, their bank may charge for it. Chase’s current fee schedule lists $15 for an incoming wire, or $0 in some cases where the wire was originally sent through Chase. Bank of America says inbound wires may incur a $15 fee. Check your child’s own bank.
Transfer Cost Calculator
Type in what your bank or transfer service is quoting. Look up the mid-market rate on the same day so the comparison is fair.
Enter both rates the same way: how many units of your currency buy one US dollar. If your bank quotes “A$1 = US$0.65”, divide 1 by 0.65 to get 1.5385. The default numbers are an illustration, not today’s rates or any provider’s quote. Cost is measured against the mid-market rate. Estimates only. Nothing you enter leaves your browser.
What the Margin Costs Over a Year
A few percent sounds small until it repeats. Here is the same A$10,000 sent four times a year, the kind of pattern a family covering rent and living costs might follow, at different margins:
| Rate margin | Child receives (per transfer) | Cost per transfer | Cost per year (4 transfers) |
|---|---|---|---|
| 0% (mid-market) | $6,651.67 | $15.00 | $60.00 |
| 0.5% | $6,618.50 | $48.17 | $192.67 |
| 2% | $6,520.95 | $145.72 | $582.88 |
| 4% | $6,395.26 | $271.41 | $1,085.64 |
The fixed $15 barely matters. The margin is what moves the total: going from a 4% margin to 0.5% keeps nearly $900 more a year in your child’s account in this example. That is why the US dollar amount received is the only number worth comparing.
Paying Tuition: Use the School’s Link
Before you wire tuition from your own bank, open the school’s bursar or student accounts page. Many US universities route international payments through a partner. Temple University says Flywire is the only approved method for inbound payments from outside the United States, and the University of Tennessee, Knoxville accepts international payments through Flywire as well.
Flywire says it shows the total amount you need to pay before you confirm. Use that: get the total in your currency for the exact US dollar tuition amount, then ask your own bank what the same payment would cost. Pick the smaller number. Paying the school directly also keeps the payment clearly labeled as tuition, which matters for the tax question below.
Rent and Living Money
Living money usually goes to your child’s US bank account. Three habits help:
- Compare the amount received, not the rate. Two providers can both say “great rates” and deliver very different totals.
- Send less often. The margin is a percentage, so it costs the same either way, but fixed fees on both ends shrink when you send fewer, larger transfers.
- Line it up with the first big bills. The first month’s rent and deposit often come due together. Our rent guide explains what US landlords check, including options for students with no US income.
Sending From Korea: The Designated Bank Rule
Korea treats study-abroad money (유학경비) as its own category. According to the Ministry of Government Legislation’s official law guide:
- You choose one bank and register it as the designated foreign exchange bank (거래외국환은행) for the student.
- You submit proof of enrollment, and then each year you submit a certificate of enrollment from the school to keep sending study-abroad money.
- If more than US$100,000 is sent in a year, the bank notifies the National Tax Service and the Financial Supervisory Service each month. This is a reporting rule, not a cap.
Because you are tied to one bank for this channel, compare its rate before you designate it, not after.
Sending From Australia: What the ACCC Found
Australia has no designated-bank rule, but it does have good data on cost. In its 2019 inquiry, the ACCC found that individuals who used the big four banks to send US dollars and British pounds in 2017-18 could have saved about A$150 million by using a lower-priced provider. For a US$7,000 transfer, using the most expensive bank cost more than A$500 more than the cheapest supplier.
Things have improved. The ACCC’s 2024 follow-up found the average cost of sending A$250 to the US fell from 6.35% in 2019 to 3.66% in 2024. But that is still an average, and the gap between providers is the point. ASIC’s Moneysmart site suggests checking whether the advertised rate is the rate you actually get and what margin is built in.
Does the US Tax the Money You Send?
Sending money to your child is not income to them. There is a reporting rule to know about, though. The IRS requires a US person who receives more than $100,000 in a year in gifts from a nonresident alien to report it on Form 3520. It is a report, not a tax.
Two details matter for students. First, many F-1 students are treated as “exempt individuals” for their first years in the US, which generally means they are nonresident aliens for tax purposes rather than US persons. The IRS limits that to students who have not been exempt for more than five calendar years, unless they show they don’t intend to live permanently in the US. Second, the IRS says amounts paid for qualified tuition are not foreign gifts. Paying tuition straight to the school keeps it out of the count. If your child stays in the US longer, or the amounts are large, check with a tax professional.
Frequently Asked Questions
What is the cheapest way to send money to a child studying in the US?
There is no single cheapest provider for everyone. Ask each option for the exact US dollar amount your child will receive for the same transfer, after all fees, and compare that one number. Remember any incoming wire fee at the US bank, which is $15 at Chase and Bank of America on their current fee pages.
Should I pay tuition through my bank or the school’s payment link?
Start with the school’s link. Many US schools route international payments through a partner such as Flywire, and some accept no other method from abroad. Flywire shows the total you will pay before you confirm, so you can compare it with your bank’s quote for the same US dollar amount.
Is there a limit on how much I can send from Korea for study abroad?
Study-abroad money goes through one designated foreign exchange bank, with proof of enrollment each year. According to Korea’s Ministry of Government Legislation, if more than US$100,000 is sent in a year, the bank notifies the National Tax Service and the Financial Supervisory Service. That is a reporting rule, not a ban.
Does my child have to report the money I send to the IRS?
Form 3520 reporting applies to US persons who receive more than $100,000 in a year in gifts from foreign individuals. Many F-1 students are nonresident aliens for tax purposes in their first years, and tuition paid directly to the school is not counted as a foreign gift. Situations differ, so check with a tax professional.
The rate you see advertised is rarely the cost you pay. Ask every option for the US dollar amount that will arrive, pay tuition through the school’s own link, and keep the paperwork your home country asks for. For the rest of the first year, start at our guide for families abroad.
If you are still deciding
Updated October 8, 2026. Written by Jun, who is not a licensed financial advisor. Exchange rates and margins in the examples are illustrations, not quotes from any provider. Fee figures come from each bank’s own published pages at the time of writing and can change. This article is for educational purposes only and is not financial, tax or legal advice.
Sources: CFPB, Sending money internationally · ACCC, Foreign currency conversion services inquiry final report (2019) and media release, 2 September 2019 · ACCC, Transparency and competition in international money transfer services (2024) · ASIC Moneysmart, Sending money overseas · Chase, Additional Banking Services and Fees (March 2026) · Bank of America, Wire transfers · Temple University Bursar, International payments · University of Tennessee, Knoxville Bursar, Flywire international tuition payments · Flywire Help Center · Ministry of Government Legislation (Korea), 생활법령정보: 해외유학경비 송금 · IRS, Instructions for Form 3520 (12/2025) · IRS, Gifts from foreign person · IRS, Exempt individual who is a student
Leave a Reply