How to Fund Study Abroad with Federal Financial Aid

Funding Your Study Abroad Trip with Federal Financial Aid

Planning your study abroad adventure is exciting, but financing the trip can feel overwhelming. Convincing your parents to support your dream of spending a semester overseas is one thing—asking them to pay for it can be another challenge! Thankfully, there are various ways to reduce the cost. If you’re already paying for college with federal loans or grants, you can use that aid toward your study abroad program—as long as both your school and the program are eligible. Here’s how to apply federal financial assistance to your study abroad experience.

Grants, Loans, and Scholarships: What You Need to Know

Let’s break down the types of federal financial aid available, and how each can help fund your studies abroad.

Grants

Grants are essentially free money from the government to help cover your education costs. The best part is—you don’t need to repay them! Two major need-based grants are available through the federal government. If your family’s income falls below a certain threshold, you could be eligible for:

• Federal Pell Grant: One of the most widely awarded need-based grants for full-time undergraduate students. Eligibility is based on your Expected Family Contribution (EFC), determined by your Free Application for Federal Student Aid (FAFSA).
• Federal Supplemental Educational Opportunity Grant (FSEOG): Like the Pell Grant, the FSEOG is need-based but is reserved for students with the greatest financial need. The amount you receive depends on factors like your level of need, when you apply and the funds available at your school, and your school’s policies. FSEOG awards range from $100 to $4,000 annually.

Your international school may also offer grants, so keep your search open. Broaden your search and apply for as many scholarships as possible to increase your aid chances!

If you’re a student already using federal financial aid for your education, you can use this funding to cover your study abroad costs. Start by filling out your FAFSA early to determine your eligibility. Then, meet with the financial aid office at your home school. If your school participates in federal student aid programs, they can guide you through the process, which may include necessary paperwork for both your U.S. school and your international program. StudyAbroad.com advisors can also help answer questions you might have.

If you plan to earn a degree abroad, this process may vary, so check with your chosen school to confirm their participation in federal aid programs. Ask all the right questions early to ensure you meet all the requirements!

Loans

If federal loans and scholarships don’t cover additional expenses, private student loans could help bridge the gap. Private loans typically have different terms than federal aid, such as varying interest rates and repayment plans. Your credit score will be a factor in determining eligibility and rates, so having good credit might allow you to secure better terms. Make sure to understand the terms of any loan you take on, including deferment and repayment options. There are a few different loan options available depending on your financial situation:

• Federal Stafford Loan: A Stafford Loan may be a good option if you don’t qualify for grants but still need financial assistance. This fixed-rate loan is available to undergraduate and graduate students attending school at least half-time. You can borrow from the U.S. Department of Education, regardless of your credit history.
• Federal Perkins Loan: If you have exceptional financial need, the Perkins Loan offers low-interest financial aid. Unlike other federal loans, this one is issued by your school, and you repay it directly to them. With a 5% interest rate and a 10-year repayment period, this loan can provide flexibility as you plan your finances after graduation.
• Parent PLUS Loan: If your parents are willing to help cover your study abroad expenses, they can apply for a Parent PLUS Loan. This loan allows them to borrow up to the total cost of your education, including tuition, housing, and supplies. The only requirement is that your parents pass a minimal credit check, as this loan is based on credit rather than financial need.

Scholarships

Scholarships are another excellent way to fund your study abroad trip, and like grants, they don’t need to be repaid. There are many scholarships opportunities available through StudyAbroad.com, each with eligibility requirements:

• Affiliate University Scholarship: If you’re a student or alum from a StudyAbroad.com affiliate university, you may automatically qualify for this scholarship. Check with your advisor to confirm your eligibility!
• Travel Correspondent Scholarship: Capture and share your study abroad experience through videos, photos, and blogs to earn up to $250 USD! Open to students participating in a StudyAbroad.com program. The scholarship amount is deducted from the final program fee. Apply within 10 business days of submitting your study abroad application by emailing info@studyabroad.com. Submission requirements may vary by program length. Be creative—your video or photos could be from anything, like a weekend trip or a casual outing.
• Alumni Discount: If you’ve previously participated in a StudyAbroad.com program, you’re eligible for a $250 USD discount on a future program of at least 8 weeks. The discount is applied to the final program payment.
• Early Applicant Discount: Submit your study abroad application at least 6 months before your program start date and your $95 USD application fee will be waived. To qualify, ensure your application is complete and inform your StudyAbroad.com advisor about the discount.

Crowdfunding

Crowdfunding can also be a great way to raise funds for your study abroad journey. Follow these steps to launch a successful campaign!

• Choose the Right Crowdfunding Platform: Selecting the right platform is key. We recommend FundMyTravel, designed specifically for meaningful travelers. Other options include GoFundMe, Fundly, Indiegogo, Kickstarter, and ScholarshipOwl.
• Plan Your Campaign: Set a realistic goal that covers tuition, travel, and living expenses. Craft a compelling story and engaging title explaining why studying abroad is important to you. Establish a deadline to create urgency and be transparent about how the funds will be used.
• Promote Your Campaign: Maximize your reach by sharing your campaign on social media platforms like Instagram, Facebook, TikTok, and LinkedIn. Send personalized emails to family, friends, and mentors. Engage with local businesses, schools, and community groups, and pitch your story to bloggers or local media. Show appreciation by posting regular updates, thanking donors personally, and sharing photos and experiences from your study abroad journey. Keeping supporters involved will encourage further contributions.

Crowdfunding takes effort and consistency, but with a well-planned campaign, you can successfully fund your study abroad adventure. Start your campaign today and make your global education dream a reality!

We highly recommend FundMyTravel—a platform created specifically for meaningful travelers!

Start Applying for Financial Aid Today!

With these options available, how do you decide which method—or combination of methods—is best for you? Some students use a mix of federal loans, scholarships, private loans, and savings to create a personalized plan that suits their financial situation and goals. Your school’s finance office can be an excellent resource for advice, and family or friends may also have valuable insight. The sooner you start exploring your options, the more confident and prepared you’ll feel when it’s time to go abroad!