Financial Aid & Study Abroad: Basic Facts for Students

Federal and state governments, foundations, private and public organizations are the primary sources of financial aid. There can be a lot of variation between institutions, but you will want to be sure to confirm which, if any, pieces of your current financial aid package can apply to study abroad.  Your study abroad office is a good place to start, but they may refer you to another office on campus such as the financial aid or bursar’s office for support in understanding how your current aid package can be applied to a study abroad program.

Note the following types of financial aid that may be included as part of your current package:

Federal Aid
Federal aid can consist of loans, grants, scholarships, or work-study.

• Loans: The U.S. Department of Education's student loan program is called the William D. Ford Federal Direct Loan (Direct Loan) Program. The Direct Loan Program has three primary loans available and the U.S. Department of Education is the lender:
  • Direct Subsidized Loan: Available to students who demonstrate financial need. The Federal government pays interest on the loans as long as the student is enrolled half-time. Repayment and interest begins after you graduate, leave school, or drop below half time.
  • Direct Unsubsidized Loan: Available to students regardless of need but interest is charged to the students while in school. A student may choose to make the interest-only payments on the unsubsidized loan or allow the interest to be added to the loan principal and then pay both principal and interest after leaving school.
  • Direct PLUS Loan: Available to graduate students and parents of dependent undergraduate students. Interest accrues while students are in school.  For graduate students, repayment begins 6 months after you graduate, leave school, or drop below half time.  For undergraduates, parents must begin repayment once the loan is fully disbursed.
• Grants and scholarships
  • Federal Pell Grant is awarded to exceptionally needy undergraduate students. Part-time enrollment reduces eligibility.
  • Federal Supplemental Educational Grant (SEOG) is awarded to exceptionally needy undergraduate students. Must be enrolled at least half-time.

State Aid
This aid is funded by the state in which the institution is located and varies by State.  State aid can be need-based or it can be merit-based. Like federal aid, State aid may include grants or loans but may also include tuition waivers or other types of aid. 

Institutional Aid
This aid is funded by your home institution. These scholarships can be based either on need or on merit. Institutional aid can come from a variety of sources, which includes alumni, faculty, endowments, etc.  Some institutions may also have tuition discounts for qualifying students.

Private and Public Organizations
Other than governmental and institutional aid, private organizations, foundations, corporations, and civic groups are additional sources of aid, particularly scholarships, that students may receive to fund their university experience. 
 
Other important considerations
There is a possibility that funding for future semesters might be affected resulting from financial aid given for a semester's study abroad program as your eligibility for certain types of aid might have expired. The financial aid office will be monitoring your progress toward your degree as to whether you have exceeded your eligibility requirements. The best advice is to check with a Financial Aid advisor about your funding.
 
Students should enroll in full-time credits in order to receive their full amount of awarded aid.  However, some aid will be reduced depending on the number of credits in which a student is enrolled. The credit level required for Direct Subsidized/Unsubsidized loan eligibility for all semesters is half-time. For undergraduates, half-time for semester study is normally 6-9 credits. For graduates, half-time for semester students is normally 5-6 credits.  
 
Always double check with your home institution regarding what constitutes half-time status as each institution determines its own credit limits for half-time study.  For scholarships and grants, you need to maintain the enrollment level required for each aid program listed on your financial aid award letter.

Once you understand how much of your current aid package applies to your study abroad program, you can look for additional study abroad specific funding opportunities. As previously mentioned, there are many sources of aid available for studying abroad. This section explores funding specifically designed to support students participating in education abroad experiences. 

Many public and private organizations provide grants and scholarships for education abroad experiences. The Coca-Cola Foundation, Amoco, Chrysler Corporation, etc., have given funds for overseas study. The Rotary Foundation, Foundation for Global Scholars, and Fund for Education Abroad, all have private, sponsored international scholarship programs, which provides funds for undergraduate, graduate or international degree programs. Some private and public organizations will give overseas study funding for students in a particular major or area of study. Ethnic and service organizations such as the League of United Latin American Citizens, Alliance Francaise, Dante Alighieri, Goethe groups, etc., are other sources of funding for overseas study and research. Following is a list of some of the grants and scholarships available to students planning to participate in education abroad.  
    
Grants and scholarships

• The Benjamin A. Gilman Scholarship Program is sponsored by the Bureau of Educational and Cultural Affairs at the U.S. Department of State and is administered by the Institute of International Education (IIE).  This scholarship program is only open to undergraduate Federal Pell Grant recipients who intend to study abroad for credit. for a semester, summer or year-long program. In the process of applying to, or accepted to, a credit-bearing study abroad or internship program, or a virtual international program. Virtual programs and internships will be eligible until April 30, 2023.
• The Gilman-McCain Scholarship provides awards of $5,000 for child dependents of active duty service members to study or intern abroad on credit-bearing programs.
• The National Security Education Program (NSEP) and the Fulbright Program funded by the Federal government have grants and fellowships for undergraduate and graduate students for study and research overseas. Students should be aware that government organizations in other countries such as the German Academic Exchange Service (DAAD) offer funding opportunities.
• Boren Awards are an initiative of the Defense and National Security Education Office (DLNSEO).  Boren Scholarships fund study abroad by U.S. undergraduate students in world regions critical to U.S. interests. Boren Fellowships fund research and language proposals by U.S graduate students in world regions critical to U.S. interests. 
• Fund for Education Abroad (FEA)  provides scholarship and support to students who are underrepresented among the U.S. study abroad population. FEA makes  international experiences accessible by supporting students of color, community college, and first-generation college students before, during, and after they participate in education abroad programs.
• Foreign Language & Area Studies (FLAS) Fellowship Program funded by the U.S. Department of Education provides study abroad funding to undergraduate and graduate students who are pursuing foreign language and area studies.  
• The Critical Language Scholarship Program, a program of the U.S. Department of State, Bureau of Educational and Cultural Affairs, funds intensive summer language institutes in thirteen critical foreign languages.

State/Institutional Grants and Scholarships
Contact your home institution’s Financial Aid or study abroad office for more information on whether there is any State or institutional Aid available.  Some aid can be specified for overseas study.

If you are planning to attend an overseas study program sponsored by another institution, the home institution, through a written agreement between the schools, might allow you to use your financial aid (this is called a Consortium Agreement). But students should realize that policies vary among institutions of higher education and therefore should check with their study abroad advisors and financial aid administrators regarding enrollments with another institution.

Program Sponsors
Many study abroad program providers and organizations offer need-based and merit scholarships for participating in their own sponsored programs. The Institute of International Education has an online directory, featuring hundreds of scholarships for study abroad programs for students participating in specific, provider programs.

Underrepresented Students
Various types of financial aid from Federal to institutional might apply to assist underrepresented students enrolling in overseas study programs. Special grants or scholarships are specified for this purpose. Since the passage of the Americans with Disabilities Act in 1990, study abroad and financial aid offices are required to meet the needs of non-disabled and disabled students. Check with your study abroad or financial aid office, as well as online resources, for a listing of available funds.
 

Upon application to a study abroad program, you should also contact your home institution’s financial aid office to see if there are special application processes or policies required in receiving financial aid for overseas study. For example, the study abroad office will provide the financial aid office with costs or a budget for your study abroad program that will facilitate the disbursement of aid when you leave the country. You may also need to check with the bursar's office on how they can contact you or to make financial aid disbursement arrangements. Be sure to check with all three offices, weeks before your plans are finalized. Keep records of all forms submitted and submission dates as well as all personal contacts made (individuals and dates of those contacts). Those records will help you avoid confusion as well as clarify issues that might arise.
 
 

The following print and online resources are very useful for students seeking further information:
 
In print
Funding Your Education Abroad
This guide helps students understand the ins and outs of funding their education abroad experiences. It covers types of financial aid and eligibility, how to apply for awards, how to make sure a program is in line with the student's budget, and more. Practical activities enable students to get a better sense of their financial situation and compare program costs, among other useful advice provided.
 
Online information

• The Financial Aid Page provides links to scholarship searches and comprehensive listing of financial aid information.
• Fast Web provides a free customized list of financial aid sources, including private sector scholarships, fellowships, grants, and loans.
• CareerOneStop provides a searchable database of scholarships and fellowships.

Of course, you should also be sure to check your school's web site for information about their financial aid and study abroad programs.