Top 5 Mistakes Students Make When Paying University Fees Abroad

Paying overseas tuition fees from Nigeria can be frustrating; from constantly checking the exchange rate, to queuing at the bank, to reading complex form A documents, to losing hundreds of thousands of Naira in fees! 

However, most of these problems can be avoided by understanding common pitfalls.

What are the five biggest mistakes any Nigerian student can make when paying university fees abroad, and how can you avoid them?

1. Not Researching the Best Payment Methods 

Many students rely on traditional bank transfers without considering alternative payment options. Bank transfers may seem like a safe and structured way to pay, but they come with their disadvantages, such as:

• Very high fees that increase the cost of paying tuition abroad from Nigeria
• Long processing times of up to 6 months in some cases - so long that some students we know have lost their university places
• Hidden costs from unclear exchange rates

What can you do to avoid problems? Avoid old-school banks and go for a transparent, credible online platform like Vavita to enjoy faster processing, better rates and zero fees.

2. Overlooking Exchange Rate Fluctuations

Exchange rates are perhaps the most problematic topic in tuition payments abroad from Nigeria. Any fluctuation can significantly affect the amount paid in Naira and affect your entire budget. Nonetheless, tracking the latest rate can be complicated with different information by currency conversion tools. It is advisable to look out for a payment platform with transparent exchange rates & fees. 

3. Waiting Until the Last Minute

Many students wait until the last minute to process tuition payments, but forex restrictions can affect availability of foreign currency - and this can be unpredictable. Delays in processing tuition payments are risky as they can cause missed school deadlines, resulting in late fees or cancellation of admission.

4. Using Unregulated or Informal Payment Methods

Some students attempt to bypass banking restrictions by using informal forex traders or unverified agents. Ensuring secure international tuition payments is paramount as unregulated or informal methods are unsafe and potentially illegal. Using these providers carries significant risks, including:

• Scams and fraud, where payments may never reach the institution
• Lack of legal protection, leaving students helpless if funds go missing

It is always advisable to use regulated financial institutions like Vavita for payments.

5. Overlooking Transaction Fees and Additional Charges

Hidden fees are a major issue with many money transfer services. Some providers aren’t transparent about the total cost of a transaction, including bank charges and forex mark-ups. Some bank fees such as SWIFT charges can even be deducted by the receiving bank - and you wouldn’t even be informed of this! Additional intermediary fees are a major hassle when using third-party transfer services.

6. Ignoring Latest Regulations

Understanding the guidelines in your local market is crucial when you’re looking to send money abroad. You don’t have to be a payments nerd, but being aware of changes to the regulator or Central Bank’s policies in your market can help you avoid pitfalls, and help you time your payments to ensure they reach the school on time.

Whether you are a parent, education agent or student, you can stay up to date by reading the news or checking regulators’ websites. For example, in 2021, the CBN banned all hard copies of Form A. In 2023, it eliminated all exchange rate subsidies for students looking to study abroad. In 2024, the Government of Nigeria also introduced a cap on the amount of FX purchases by BDCs, and this can affect you if you plan to pay via local banks.

Conclusion: How to Avoid Mistakes When Paying Tuition Fee Abroad

Choosing a tuition payment method from Nigeria requires careful thought. It’s easy to lose hundreds of thousands of Naira from avoidable mistakes. For every payment method, spare a thought for cost, security, and speed to determine if it is the best fit for your needs.

Please refer to Vavita’s terms of use and check product availability in your region for the most accurate and current information on fees, pricing, and other details.

This content is provided solely for informational purposes and does not constitute legal, tax, financial, or any other type of professional advice from Vavita or its affiliates. It should not replace advice from qualified financial advisors or other professionals.

Vavita and its affiliates do not make any express or implied guarantees about the accuracy, completeness, or timeliness of the content in this publication.