Think You Know the Cheapest Student Cities? Think Again.

Think you know which students cities are budget-friendly and which are bank-breaking? You may be surprised by a recent report from international real estate advisor Savills which offers a fresh take on where students can find the most affordable international education opportunities. Why do these figures stack up so differently from what you might have seen in the past? While the report primarily aims to understand the student housing market, it also assesses the comprehensive cost of living and studying abroad, factoring in day-to-day living expenses, accommodations and -- perhaps most significantly of all -- tuition. In doing so, the study finds some usual suspects and unexpected contenders positioned side-by-side in terms of overall affordability. Let’s take a closer look.

Making the Grade

Topping the list of affordable student cities? Berlin. Savills reveals that an international student living and studying in Berlin can expect to spend slightly more than $1,000 a month on total school-affiliated costs. How are these figures so low? The answer is simple: Many of Germany’s universities are completely free of tuition, while others have negligible fees, particularly when compared to tuitions around the globe. Munich claimed the third spot on the list of most affordable cities for international students with Shanghai sandwiched between the two German destinations.

But these three study abroad destinations don’t just have affordability in common. They’re also all up-and-comers on the global higher education scene thanks to esteemed institutions, sought-after degrees, and multicultural environments. In other words, there's no guaranteed tradeoff of quality for cost when it comes to choosing to study in one of these uber-affordable cities.

Other “top tier” countries earning top 10 status when it came to offering the least expensive educational environments for international students included Lyon, Beijing, Milan, Barcelona, Paris, Tokyo and Madrid. Singapore and Amsterdam, meanwhile, narrowly missed out on making the cut.

Notably not making the list? Representation from the world’s three most popular study abroad destinations: the US, England and Australia. There’s one glaring and not especially surprising reason for this dichotomy: tuition fees. So while cities like Paris and Tokyo may be famous for their exorbitant costs of living, these expenses are significantly offset by more affordable tuition fees.

Challenges to Affordability

Given sky-high tuition rates in the US, UK and Australia, it’s not exactly a surprise that cities in these countries claim the top nine positions when it comes to high costs. Take Boston, for example. Monthly student costs in this booming New England student mecca come in at just under $5,500 a month -- in other words, more than five times the cost of studying in Berlin. Why is the landscape so different? Consider that monthly tuition and fees alone at premier higher educational institution Harvard total $3,750 a month ($45,278 annually), and the picture comes more easily into focus. Factor in the school’s commitment to making education affordable all through an intensive scholarship scheme and it may not be as clear-cut as it appears. Not to mention that there are many who would argue that a Harvard education is worth even more than its price tag -- that it is, in fact, priceless.

Trailing closely behind Boston are the U.S. cities of New York and San Francisco, followed by Sydney, Chicago, London, Melbourne, Bristol and Manchester. Toronto edges its way into the top 10 with monthly costs approaching $4,000.

Beyond Cost

All of this may leave you wondering: why are the most expensive student cities also the most popular ones? Because money is not everything. And while cost certainly comes into play when international students are choosing destination cities -- as evidenced by rising international enrollments in countries like Germany -- it is just one of many considerations.

Other factors which draw international students when choosing between prospective cities and programs of study include everything from reputation to job prospects to teaching language. It follows that more conventional study abroad destinations throughout the “big three” are most likely to overtly meet international student requirements thanks to their high-ranking institutions, predominance of English speaking opportunities, and significant weight with employers.

However, change may be on the horizon as European nations are not only introducing more English language coursework, but also moving toward complete adoption of the bachelor’s degree system by all participating European nations within the next five years in alignment with the Bologna Reform. Says Savills Director of Student Investment and Development Marcus Roberts, “This will broaden their appeal in the international marketplace and attract a significant increase in student numbers.” In particular, Roberts predicts, cities throughout Germany and the Netherlands are “strong potential growth areas.”

The takeaway for today’s mobility-minded students? While choosing a study abroad destination on cost alone may seem like a straight-up numbers game, it’s actually a complex and multi-factored undertaking. Prospective students who look both below the surface and across the full spectrum of both quantitative and qualitative data will be best positioned for study abroad success and optimal ROI.