Fully-funded US PhD - financial advice appreciated

[FisksSpareSuit]

If anyone has done a fully-funded PhD in the States recently or has a DC doing one - please do you have any advice on the actual living costs over there?

DS has been accepted onto a fully funded PhD program in US for 6 years. It sounds great on paper - $40k per year. But that's only just over £30k for the next 6 years and living costs are said to be way higher over there. I also understand this stipend is taxable. Local rent is high, as are costs of returning to UK and finding additional housing for the summer research programs at other unis which is a stipulated part of his financial award. I'm just hoping he can actually afford it.

We're also not sure if his permanent home should still be listed as UK and whether he'll have to file a tax return in UK to inform UK of his US stipend.

All very sudden and he only has a few months to sort it out but is currently doing very long hours in a gap year job to get some savings, so any red-tape-cutting advice would be really welcome.

Any other general advice about doing this is welcome too. He's only 21 and it feels like a long time to be away, so I want to make sure he's as secure as possible financially as we are not really in a position to help him out much.

Thank you

Where in theStates would he be located. Costs are very different in NYC or Des Moines

First off congrats to your son!

Where in the US?

Is the $40k inclusive of fees?

Is he expected to pay for health insurance on top or does the university also cover that?

Length and likely location of the summer programs?

Funded for six years suggests he may be expected to top up his income with teaching classes and meet certain criteria at the end of each year for continuation.

Hi, OP -

I taught in American universities for about 15 years. This sounds like the solid, typical offer. I assume DS will have teaching and/or research duties in return for his stipend, is that right? These are usually quite reasonable.

To answer PPs, I assume tuition fees are taken care of also, is that correct? I also think DS will need health insurance. However PG students are a very healthy cohort and therefore most universities offer this insurance at a very reasonable rate. It is possible that this is included but that point should have been mentioned if it were.

Usually adequate progression is a condition for annual renewal of the stipend. This is discussed in the contract and/or the programme regulations.

You do realise that £30K is very generous compared to UK PG stipends and close to the median UK salary, don’t you? The stipend is meant to be motivational, not MC. Otherwise many of us would prefer to be doctoral students forever. Unless you have a bad fit with your supervisor or group ( which still happens too often, especially to women and minorities) it is the best time of life intellectually. All the fun, little responsibility. You need a reason to move on.

I haven’t been in quite the same tax position. But every time I have wondered about whether the UK tax authorities need to know something the answer has been ‘yes’.

I think you need an accountant for this question, or perhaps the International Office at the university can help.

Best wishes to DS

Congratulations to your DS. These are usually very competitive.

Mine is just finishing a 6 year funded PhD in a reasonably expensive town on about similar money. I am sure it will be fine. A few random points:

1. DS went to an open day about this time. The University were good at introducing students, ie of the same nationality, or who had been to the same University and they even organised for him to stay with some current students. This meant he had people he could contact for advice when he had questions. The people he stayed with had a spare room but he decided not to take it. (The area was cheap but dodgy.)
2. Campus accommodation was quite expensive. DS looked on the equivalent of Rightmove and found a recently refurbished block within walking distance of the University with a caretaker etc. Others on his course were also living there, and his contacts confirmed it was a good area. He moved for his second year when he knew the area better and could find something that was better value. The lettings company were fine with him making initial contact from overseas. Utilities seem to be provided as part of the rent - indeed you seem to have to live at the temperature the building supervisor dictates.
3. He chose basic (bed, sofa desk) IKEA furniture in the UK, then ordered it from the nearest IKEA store to the campus to be delivered the day after he arrived.
4. He did not need a car, and indeed still cannot drive.
5. The visa application process is tortuous and some of the documents from the University are time limited., He will probably need to be interviewed at the Embassy in London. You want to book appointments before the rush of summer holidaymakers. DS' University were not that helpful, but Google brought up some really helpful step by step advice from another University.
6. It is well worth sorting out some sort of Monzo or similar internet account that will work in the US at an early stage. (Flat deposit, IKEA furniture etc.)
7. Health insurance came through the University and was not expensive, though do organise a thorough dental check up before you leave - US dentists seem to find more problems than perhaps exist.
8. DS has not found money an issue. Rent took up a large chunk, but his peers are all in the same boat. Though studying economics he is based in quite a famous business school, and I think the Econ PhDs survived their first year by polishing off catering provided for the high fee paying MBA students. A lot happens on campus (theatre, sport, even knitting classes) that is relatively cheap for students. DS was obliged to support a professor in research work as part of the deal, though this was not very arduous. He has also done a bit of teaching this year and last. He has earned a bit extra by taking on some marking and some stand-in teaching assistant work. It is also possible to earn more by tutoring. Rich undergraduates pay best though the university offered more formal tutoring work, coaching student athletes through Econ101, as athletes were obliged to achieve certain grades to stay on the team.
9. In later years DS was able to apply for grants and the University could sometimes be persuaded to fund conferences. He also did a fairly well paying internship one summer.
10. DS' first two years were a taught MSc, essentially a repeat of the MSc he took in the UK, but different in that there was pretty constant testing., mainly multiple choice. If you got a good enough GPA you could skip the summer exams, but marking was strange. DS once told us he had received 99% for a mid-term, which we thought was amazing. Apparently not. It was perfectly possible that the rest got 100% so he might be looking at a B.

I somewhat @Needmoresleep ‘s remark on American dentists. My first dentist in my university town was always pressuring me, similar to what she says.

However it turned out that several academics in my Department and their families used the Dental Clinic at the School of Dentistry, open to the public. We also switched over. They were fabulous and very reasonably priced, with advanced students providing the routine care under supervision and the supervisors, leading specialists in their areas, providing all complex care (with a small student audience). This arrangement is available at many universities.

I somewhat second ….

Thank you all so much. I am overwhelmed at how useful this advice has been and have just passed it all on to him.

@poetryandwine yes, he is expected to find summer research projects at other unis in his 1st and 2nd year I think, then moves on to teaching at his home uni. He already has a research project offer from another uni and has friends there so will probably be okay on that.

@TiredCatLady Luckily health insurance is included as are fees. So the $40k is for living expenses, inclusive of summer programs or research posts undertaken at other unis. I thought it seemed a very generous amount but with tax, student loan repayment, flights home and to summer programs, as well as general COL being higher there, I am now worried it won't go far.

@Needmoresleep I will chivvy him to get onto the uni for the necessary paperwork to send to visa office at the Embassy. He knows how important it is to get started on this immediately.

@SeaToSki It's New York State but not NYC. A single room in a shared house within walking distance of the uni seems to cost between $1,000 pcm and $3000 pcm so clearly he'll need to be looking at the lower end of this. He'll have to pay from June to secure it afaik, even though they don't start until mid August.

He will need to do tax returns for both US and UK. However, he won't pay tax to both. There's a reciprocal arrangement so that only 1 country will tax him and he'll get a refund if that goes wrong. It's a pita as the tax years run at different times, so it's double the work.

$40k for living expenses seems great btw. That is way above minimum wage. He might find it cheaper to live further away from the uni and drive or get a bus. University cities have better public transport than other areas of the US so he should look into that. He can also ask about a house share with other PhD students. University cities can have very high demand on housing, so he needs to start working on that asap. Make students reserve housing a year in advance.

I am pretty sure DS has not had to complete UK tax returns. American citizens are unique in that they pay US tax wherever they live and normally have to pay local, ie UK, taxes if they live in the UK. The same does not apply to UK citizens living in the US.

OP,

I am struggling to think where in NY outside of NYC a single room in a shared house even within walking distance of a university could set you back $3000/month? Stony Brook, Albany, Poughkeepsie (sp?), Ithaca, Buffalo, Syracuse? (for SUNY, SUNY, Vassar, Cornell, SUNY, U Syracuse respectively).

I travel more to the West Coast. That’s a quarter or fifth of a good house in Westwood (UCLA) or La Jolla (UCSD) or a nice area of Seattle (UW), three of America’s most expensive places to live. Not meant for PG students. The NY towns I have mentioned above all have pleasant areas and I quite like Ithaca and Stony Brook. But the real estate market does not compare. So I am puzzled.

DS found that on-campus postgraduate accommodation was seriously expensive. But off-campus was nowhere near as expensive, even in a picture perfect US University town with a real housing shortage.

He will be taxed in the USA. At that earning level, he should n’t have to fill an UK tax return unless he is already doing one for other sources of income. Presumably he will inform the SLC as his stipend income will be high enough for student loan repayments

Congratulations to him, it will be a wonderful period in his life.

I find it hard to believe shared accomodation will cost up to $3k in a university town outside NYC.

Yes Ithaca. I was googling and that was the going rate on the sites I found.

So did I. I might be misreading the ads. Perhaps that's for the whole apartment. But I haven't seen anything for less than 1k pcm.

Thanks. That's all very useful. I'll pass it on.

This was the sort of place I found. Loads of places at these prices. Uni's own post grad accommodation similar cost so I assumed it was the going rate.

My DS's partner is currently in his first year at Cornell studying for a PhD (as you mention Ithaca, I assume this is where your DS has a place). He is renting privately a 2 bed furnished apartment that overlooks Ithaca Falls and pays US$1300 a month (includes all bills). His block has lots of PhD students living there and is a short walk to the University, but a fair way out from the town/shops.

In his first year his funding comes from a 'scholarship', which is taxed at source in the US. However scholarships are tax free in the UK, so my understanding is he will do tax returns in US and UK and hope to get the tax refunded. When he spoke to SLC they advised he is still considered to be 'studying' and will not need to make Student Loan repayments.

In subsequent years, his funding is effectively 'pay' for teaching or other work, so he is assuming he will be taxed.

F1 visa wise, the form is quite arduous but once completed he was not asked to attend an interview at the US embassy (I am not sure why!) and he receive his Visa within a week. In fact, they have just got married and my DS now has an F2 visa and that was all done and dusted within 10 days (including attending an interview at the US embassy)

Be aware that your DS will need to be fully vaccinated. This includes proof that he has had chicken pox. If he has not had that or is missing any, do not worry, he can be vaccinated when he arrives there, for free or very little cost.

Cornell will only pay the stipend into a US bank account, so get one set up as soon as possible. He will actually need to be in the US to do this.

The PhD cohort are very international there, with few US students and he has yet to meet a fellow UK student. In fact at a welcome event with international foods, the UK was represented by a packet of digestives (which nobody ate!)

They have used Norse airlines when travelling to/from UK, its cheaper to book it from their US website and as they do not have luggage they have got return flights for £300. There are coaches to NYC, take 4 hours and costs c£40 one way.

The health insurance coverage is very, very good. The cost of food is very, very high in Ithaca (unless you live on a diet of pizza), fruit and meat particularly so. And finally the buses are free for students in Ithaca :-)

@Dove0709 Congratulations on your DS's marriage. Will he move to Cornell too?

That advice is all gold dust. Thank you. I might just copy and paste it all directly to DS.

$1300 inclusive of bills would be fine. Great to know about the free buses too.

He has a Revolut card but I'm not sure he realised he'll need a US account for the stipend. Will tell him to get moving on that.

Very helpful info about flights and food and vaccinations. He's veggie, so we might have to think how he can keep his diet varied. He lives on veggie stir-fries.

@FisksSpareSuit Thank you, yes my DS is planning to stay in Ithaca during term time. It is lovely there in the fall and there is ski-ing in Feb/Mar. Please message me, if you want any more info 😀

Hi, OP -

Out of curiosity I just checked the Cornell University Housing website. For 2024-25,
PG University housing offers the following 12 month contracts:

1 BR apt unfurnished, $1300/mo
furnished, $1370//mo

1 large BR in a 2BR townhouse, $845/mo
Unclear whether this is en-suite, and I forget whether it is furnished.

There are also studio apts (bedsits) that will be less expensive than the 1BR apts.

Usually University housing is well located for campus but there are no guarantees, and of course it depends on the particulars of DS’ programme. However public transport in Ithaca appears to be decent. Also, there is a lot of snow, so there will probably be times when DS will want a bus even if he generally prefers to walk (or drive).

The wait lists for PG housing can be significant. If DS is interested he should not tarry.

@poetryandwine - thank you so much. That is incredibly kind of you. But DS told me that the uni's own accommodation was already completely full for this coming year. They told him he has to look for something private. Once he's there, I'm sure he can get a better or more permanent deal. Some post-grads he chatted with at the virtual open day offered to check out places on his behalf which he was really grateful for. But he needs to get moving and choose some.

It was mainly to satisfy my own curiosity, whilst waiting for someone. I don’t ordinarily get so involved in others’ housing arrangements. But I’m hoping these rental rates are something of a benchmark. It is rare for university housing to be a bargain.