For most students, studying abroad is a trade-off.
On the one hand, it’s an opportunity to fully immerse yourself in a new culture without the responsibilities and restrictions that come with adult life. On the other hand, it’s really, really expensive. That can be a deal breaker for some students – especially if they’re not receiving financial assistance from parents or another outside source.
If you’re considering a semester abroad but not sure how to pay for it, we’ve got you covered with these practical tips.
How to Pay for Studying Abroad
There are multiple ways to pay for a study abroad trip. Here are the most common options:
Apply for scholarships
The first step to financing your study abroad trip is to apply for scholarships. Start by applying through your university, including your specific department and the office of overseas study. If you’re going to be studying a specific language abroad, then you should also look for scholarships within that language department.
Ask about these scholarships as soon as possible, because they may have early deadlines. You may also have to provide recommendation letters from professors or mentors which can take a few weeks to obtain.
You should also search for external scholarships through sites like the State Department and GoAbroad.com.
Take out student loans
Many students use student loans to pay for studying abroad. You can use federal loans to pay for tuition, fees and other necessary expenses. However, taking out loans for studying abroad is not as simple as taking out loans for a regular semester.
For undergraduate students, there is an annual limit for federal student loans ranging from $5,500 to $12,500. Once you hit the limit, you won’t be given any more loans until the next school year starts.
For some schools, the summer is the end of the previous academic year, while for other schools, the summer is the beginning of the next academic year. If the summer counts as the end, then you may have already reached the student loan limit for the year. In this case, you won’t be eligible for any federal loans for the summer semester.
If the summer counts as the beginning of the next academic year, then you may be able to take out student loans to cover your summer costs. However, in this case, you should verify that the amount you’re borrowing won’t affect your ability to pay for the fall and spring semesters.
If you’re confused about any of this, schedule a meeting with your financial aid counselor and ask them if you can use student loans to pay for studying abroad. They will be able to show you how much exactly how you qualify for in loans and what your total costs will be.
If you run out of federal student loans, you can turn to a private student loan provider to bridge the gap. A private student loan can be used to pay for the same study abroad expenses that a federal student loan can, but you’ll have fewer repayment and forgiveness options.
Use grants
If you receive a federal Pell Grant, you may be able to use those funds to cover summer study abroad expenses. Contact your financial aid department and ask them if this is possible. There may be limits on what you can use the Pell Grant for, so you may need to supplement with loans.
Find a part-time job
Even if you acquire enough scholarships and loans to pay for tuition and fees, there may be some expenses you can’t use scholarships or loans for, like inter-country travel, going out and souvenirs. Having your own spending money can help you maximize the study abroad experience.
In the months leading up to your trip, see if you can get a part-time job to cover any extra expenses that you incur.
Make sure your classes will count
Before you go abroad, you should ensure that any classes you take will count toward your degree. If you have multiple courses to choose from, talk to your academic advisor and pick the ones that fit your major’s requirements.
How to Manage Your Finances Abroad
Going abroad can be an exciting experience, but it can also be incredibly expensive. Read below to see how you can save money:
Start a budget
When you’re studying abroad, you’re likely on a tight budget. To avoid running out of money, figure out how much cash you’ll have and how much you can spend on groceries, transportation, attractions and more per month.
Find a budgeting system, like Mint, and use it to track your expenses. Check in once a week to make sure that you’re on track. Also, try to have at least $100 set aside for any emergencies that may arise.
Find the right card
Before going to a different country, figure out if your debit or credit card charges foreign transaction fees. These fees, which range from 1% to 3% of the transaction, are assessed on every purchase made while you’re abroad. And if you’re there for the whole summer, these fees can add up quickly.
Call your debit or credit card provider and ask them if there are any foreign transaction fees. If there are, you might want to consider opening a new card without these fees.
Use your student ID
Students are eligible for tons of different discounts, especially in a foreign country. You can use your student ID to get cheaper train fares, museum admission and even plane tickets. Don’t be afraid to ask about a potential discount even if you don’t see one listed.
Disclaimers
