Financial Aid for Study Abroad FAQ
Compiled by Knowledge Community for Education Abroad Subcommittee on Financial Aid and Resources for Study Abroad
Financial aid is one of the most common reasons students give for not studying outside their home country. Below you will find answers to the most commonly asked questions about financial aid and study abroad.
| Can I use my financial aid to study abroad? |
The answer depends on the type of aid. All federal financial aid should be usable for study abroad, as long as you are eligible and your home institution has approved the courses you are going to take for credit. Many state financial aid awards follow the same patterns as federal guidelines; others do not. Institutional and private awards may or may not travel.
A good first step is to check with the study abroad office or financial aid office at your home school, as staff there will be able to give you an idea of how much of your aid can be applied to a study abroad program.
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| If my study abroad program costs more than being at my home institution, can I get additional aid? |
Aid packages are based on the "cost of attendance," which includes tuition, room and board, books and supplies, personal expenses, and a transportation allowance. If your study abroad program costs more than being at your home institution, your cost of attendance will be higher, and you will therefore be able to apply for additional aid.
Financial need is defined as the cost of attendance minus your expected family contribution—a number that is determined by a federal formula that calculates need based on a number of pieces of information you and your family provided on the Free Application for Federal Student Aid (FAFSA).
More definitions are available in the Glossary of Key Financial Aid Terms (52kb  ).
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| If my home school doesn't allow students to use institutional aid for study abroad, how can I find additional aid? |
The key to answering this question is to start early in thinking about finances for your study abroad program. Talk with your study abroad office or financial aid office about other scholarships, grants, or loans for which you might be eligible. These other sources may have application processes that will take some time. You should also investigate whether there are lower cost programs which might be suitable for you (based on your major and approval from your home school). Some programs offer their own "program" aid for eligible students.
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| If I need additional aid, do I apply through my home school or through the school or program I will be attending? |
The answer depends on the policies at your home school. Many institutions file for aid for their students throughout their undergraduate careers, even if the students are studying abroad. Other institutions require students to take a leave of absence, or prefer that students file for their aid through the program or institution whose program they will be attending. Each home school sets these policies and most apply them uniformly and consistently. Your study abroad office or financial aid office can tell you what the policy is at your institution.
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| Can payment for my program be deferred until after aid disburses? |
Each home institution or program will have policies about deferring payments. There are also many variable factors for aid disbursement depending on the type of funds involved. Federal laws, for example, will not allow loan monies to be released until 10 days before the program begins. You will need to talk with your study abroad and financial aid offices to find out the dates that your aid will be available, and whether or not you can defer payment. You will also need to ask what sort of documentation will be required (for example, a copy of your award letter from your home school or a letter from the scholarship agency on its letterhead with the disbursement date).
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| After my tuition and program fees have been paid, how can I access any remaining financial aid funds to help with my other expenses? |
When you are applying for your funds for study abroad, be sure to ask your financial aid officer this question. You may need to fill out forms with the financial aid office or with your bursar's office to designate how and where excess funds are sent. You may need to give a designated person (for example, a family member or a person you trust) the power to act on your behalf to deposit a check for you in an account from which you can draw funds. It's important to find this out well before you go abroad. The last thing you want is to find that you arrive at your program site and don't have a way to access the funds you were planning to use for your living expenses on the program.
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| What happens if I have to take a leave of absence from my home school in order to study abroad? |
This is a complex question, and the answer will depend in part on your home school's process for granting the leave of absence and approving the academic credit you are taking abroad. Federal regulations provide for students to be able to take a leave of absence without being considered withdrawn from their home institution. Federal regulations also allow program institutions to file for certain types of aid for students as long as written agreements are in place. You should ask this question both of your home financial aid office and of the appropriate individual at any program to which you are applying.
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| Where can I find information about aid for study abroad? |
Start first at your home institution's study abroad office or financial aid office, which may make available a database or library of resources. They may also point you toward a number of useful Web resources. The key things to remember are that you may have to look to a variety of sources, and all of this research will take time. Many students receive aid from a number of sources and have to be mindful of the application details for each one.
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| Are there any aid programs for summer study? |
Locating money for summer study can be challenging. Students often use all of the federal aid for which they are entitled during the regular academic year. Many private or institutional scholarships also have restrictions on use in the summer. Ask your financial aid office and study abroad office what options are available.
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| Is all of the paperwork and planning required to use financial aid for study abroad worth it? |
By the time you've read through all of these questions, you are probably wondering whether study abroad is worth all of the time and effort described in the answers above. We believe the answer is yes! A number of people, including all of the legislators and home school officials who have worked to make sure that federal financial aid can transfer to programs abroad, believe that an international experience is integral to your education. If you start the financial aid process early, and make sure you work with the appropriate individuals on your home campus, you should be able to pull together the resources you need to make study abroad affordable for you.
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NAFSA gratefully acknowledges the American Institute for Foreign Study (AIFS) and Cultural Insurance Services International (CISI), NAFSA Global Partners, for underwriting this resource.
December 2006
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