Updated March 24, 2025
If you’re thinking about studying abroad, you’re in good company. Approximately 280,716 American students studied in another country during the 2022-2023 academic year.
While studying in another country can be an incredible once-in-a-lifetime experience, it can also be pricey. According to Go Overseas, the average cost ranges from $15,000 to $22,000 for a single semester. Luckily, you don’t necessarily need to cover that cost out of your savings; there may be federal or private student loans or other forms of aid for studying abroad that you can use instead.
Can I Use Student Loans for Studying Abroad?
Many people believe that financial aid can only be used within the U.S., but that’s a common misconception. In reality, you can qualify for financial aid and study abroad for a semester or a year, or even earn a degree in another country. Eligibility typically depends on your college in the U.S., as you can only get grants and federal student loans for studying abroad if your U.S. college participates in federal student aid programs. You can use student loans to cover a range of costs associated with studying abroad, including the cost of your tuition and university fees, room and board, textbooks, and transportation. [Tip: If you plan to earn a degree in another country rather than studying abroad for just a semester or academic year, make sure the university you choose is one of the international schools that participate in the federal student loan program.
How to Apply for Study Abroad Loans
The application process for study abroad student loans varies based on the loan type:
Federal Student Loans
You can use Direct Subsidized, Unsubsidized, and PLUS Loans to pay for your study abroad program. With federal student loans, you must complete the Free Application for Federal Student Aid (FAFSA) to be eligible. The type of loan and the amount you can borrow depends on several factors, including your family size and household income.
If you’ve already completed the FAFSA, you can contact your school’s financial aid office for more information about funding for study abroad programs. You may have some options besides federal student loans to cover your costs.
Private Student Loans
Whether you can use private student loans to study abroad depends on the lender. Most lenders have lists of eligible schools. If the school you plan to attend abroad isn’t on the list, you might still qualify for a loan if your U.S.-based college is, since the credits you complete will count towards your program’s degree.
Private student loan lenders don’t require you to complete the FAFSA. Instead, you can apply for a private loan entirely online. Lenders will typically ask for your personal information, including your address and Social Security number, and ask questions about your school and program.
Unlike federal loans, private student loans are credit-based, meaning you’ll likely need decent credit to qualify. As a college student, you may not have an established credit history or a reliable source of income. If that’s the case, you’ll need to ask a parent or relative with good credit to co-sign the loan application. A co-signer is someone who supports you on your loan application and agrees to make your payments if you default.
Other Ways to Pay for International Study
Besides student loans, grants and scholarships may be available for students studying in other countries. Unlike loans, which have to be repaid with interest, scholarships and grants are free money and don’t need to be repaid. For example, the U.S Department of State operates the Benjamin A. Gilman International Scholarship. It provides low-income students with scholarship funds to study or intern abroad. Eligible students can receive up to $5,000 to offset their program costs.
You can find more grant and scholarship options through these sources:
- Institute of International Education (IIE) Study Abroad Passport: The IIE Study Abroad Passport is a database of hundreds of scholarships for students who want to spend a semester or year studying in another country.
- BigFuture’s Scholarship Search: BigFuture’s scholarship search tool is a database with thousands of grants and scholarships. There are general education awards and gift aid opportunities specifically designed for studying abroad.
- U.S. Department of State: The U.S. Department of State has a list of foreign governments offering scholarships to American students that want to study abroad. Look at the countries you’d like to visit to see if scholarships or grants are available.
Applying for Student Loans
Even if you plan to study abroad, ensure you complete the FAFSA and research your financial aid options early to maximize your chances of qualifying for federal grants and loans. If you can’t get federal aid—or reach the annual maximums for federal student loans—research private student loan options. Loan options are available for undergraduate students, graduate students, and even parent borrowers.
With ELFI, you can borrow up to 100% of the school-certified cost of attendance, and you can have up to 20 years to repay the loan. If you’re considering a private student loan to help offset the cost of studying abroad, start by checking your rates online without affecting your credit.
