NRIWallah team
Updated
October 2026
· 4 min read
Home or international fees can matter more than the university
Families usually research universities first and costs second. For an NRI family that order is backwards, because one administrative question moves the bill further than any choice of institution: whether your child is charged home or international fees.
In England the home fee for a standard full-time undergraduate course is capped at £9,790 for 2026/27. International undergraduate fees range from about £11,400 to £38,000, with laboratory and clinical subjects at the top. Over a three-year degree the difference is larger than the whole cost of an Indian degree, and an international student cannot borrow for tuition.
Citizenship is not the test
A British passport does not settle it. Home fee status in England requires three conditions together:
- Settled status in the UK on the first day of the first academic year.
- Ordinary residence in the UK and Islands for the full three years before that date.
- That the residence was not wholly or mainly for the purpose of receiving full-time education.
Citizenship satisfies the first condition and does nothing for the second. A British-citizen child whose family moves to India when they are fifteen will have broken the three-year test by eighteen and will pay the international rate.
The rule also applies in reverse. A family moving to the UK needs three completed years before the course begins.
The US charges by a different rule
US public universities charge in-state rates only to residents of that state, usually after twelve months of domicile established for reasons other than study. International students and out-of-state Americans pay the same higher rate, which averaged $31,880 for 2025-26 within a total budget of $50,920 once room and board are counted.
Private universities charge one rate to everyone. There is no international premium, but the average published tuition was $45,000 for 2025-26, the highest sticker price in this comparison. The US degree is also four years against three in the UK, which adds roughly a third before any difference in fees.
Fees compound while you save
A prospectus quotes today’s price, and you are funding a bill that arrives years from now. The England fee cap rose 2.71% for 2026/27, and US private tuition rose 4.0% for 2025-26. For India the calculator assumes 8% a year, which is our estimate rather than a published index.
For a child of eight, compounding can add more than half again to today’s price before the first term begins. The calculator inflates each destination at its own rate to the year each bill falls due, and that is the number to save against.
The UK loan works like a graduate tax
A home-fee student can borrow the full tuition fee and part of their living costs. Repayment is 9% of income above a threshold, collected through the tax system, and the balance is written off after 40 years. Most graduates never repay it in full, so the calculator lets you take tuition off the parent’s bill when it applies.
Indian education loans are ordinary debt, usually at 8-11% interest with a parent as co-borrower, repayable in full.
What to do with the number
Run the comparison with your child’s age and the currency you save in, then look at the monthly saving rather than the total. A total in crores is hard to act on, and a monthly figure is a decision you can make this month.
If the destination is undecided, fund the middle of the range and revisit the expensive end when your child is fifteen or sixteen. If your family may move in either direction, check the residence clock before you assume which fee applies.
For the school years before this, the education guide covers the UK system, admissions and the return question. For funding it alongside other goals, see the SIP calculator and retiring in India, which draws on the same savings. If you plan to pay from India, the TCS guide explains the tax collected on fees sent abroad.
