The cost of studying abroad can be intimidating, and let’s be honest — sometimes, it can cost a lot. Even if you’re not one of the lucky few getting thousands of dollars in scholarships, you should still step into your host country knowing exactly where your funding is coming from. The last thing you want to do is return from an incredible experience only to find yourself tied down to debt.
In this post, we’ll cover everything you need to know about funding your study abroad experience, including how to get the money you need, where to keep it, and the difference between grants, loans, and scholarships.
Saving money beforehand
There are many excellent reasons to save money before going abroad: it can help reduce stress, provide a buffer in case the unexpected happens (which it inevitably will), and also allow for greater opportunities to explore and enjoy your host city.
- Reduce stress. Knowing that you have money saved can give you peace of mind and allow you to study abroad without financial worry. Even if some loans are required to cover your total cost, every dollar you save can make a difference in your debt and reduce your worries about paying for study abroad.
- Unexpected costs. You’ve planned your study abroad down to the penny, but when you arrive, the transportation costs more than expected, you discover you left your charger at home, or you realize that deodorant costs twice as much as it does at home (True story! Note to those studying in South Korea). The unexpected will happen, and saving before you go abroad can greatly minimize the stress these events can cause.
- More opportunities. While not vital to a great study abroad experience, knowing that you can say “yes” to a day trip exploring a neighboring city, try a new restaurant with friends, or purchase souvenirs for loved ones without fear of breaking the bank can make your time abroad that much better.
Saving money is obviously a great idea, so let’s look at the options you have to earn it:
- Get a job. This could be a work-study position, a paid internship, or a part-time job at home before you go abroad. Consider picking up some extra hours on weekends, breaks, or during the summer.
- Gift money. Talk to friends and family about receiving money to put toward study abroad for your birthday or holidays instead of a typical gift.
- Fundraising through a website like GoFundMe or FundMyTravel is another option to consider.
Scholarships, grants, and loans
One of the great things about studying abroad is that it’s one of the only times in your life when you can receive funding to live overseas for an extended period.
- Apply for scholarships. Scholarship money doesn’t have to be paid back, and it can be used to pay for almost anything, so apply to as many as you are able. Typically, scholarships are merit-based, but there are also need-based ones. Merit-based doesn’t only mean high grades or test scores; sometimes you’re eligible simply for studying a specific degree or going to a certain country. USAC offers scholarships that you can apply for after you have been accepted to a program. Some awards have pre-departure or returnee commitments, so be sure to allow yourself sufficient time to complete them. You can also check with your university department to see if they offer any scholarships for study abroad. Don’t forget that USAC offers scholarships as well, which you can apply for easily once you have been accepted to a program.
- Some grants and scholarships to consider
- Benjamin A. Gilman International Scholarship
- Boren Awards
- Freeman-ASIA
- Fund for Education Abroad
- Global Studies Foundation Grant for Student Travel and Study Abroad
- The Honor Society of Phi Kappa Phi
- The Organization of American States
- Use your financial aid. Sometimes — not always — your financial aid package can apply to study abroad, so ask someone who works in your Financial Aid Office.
- Apply for loans. Loans are borrowed money to be used toward education costs. They must be repaid with interest, which is important to understand ahead of time. You can borrow money for tuition, fees, and books.
Where to keep your money
Whether you’re accepting scholarships, loans, or simply saving your hard-earned cash, you need to keep that money safe until it’s time to spend it abroad.
- A savings account is a great option because your bank holds your money and can even earn interest, but make sure you have a way to access it when needed. This might be as simple as making an online transfer using your banking app to move it to your debit card, or perhaps a family member at home can make the transfer for you in person.
- You should only keep the money you currently need in a checking account linked to a debit card. This way, you can withdraw cash using the debit card as needed, but the majority of your money is tucked safely away in a savings account.
- Another option to consider is a high-yield savings account, or HYSA. These accounts earn significantly more interest than regular savings accounts, so if you have a large amount of money coming in at once (such as a scholarship being deposited into your account), it could be useful to put the money in a HYSA to earn interest before you go abroad.
- Cash pre-departure. When entering the country, you can bring up $200 in cash with you. This can be either USD to exchange at the airport, or the local currency if you order it ahead of time from your bank. While not necessary, it can be helpful to get situated in the country without worrying about finding the closest ATM.
Your to do list:
Now that you know exactly how to save and store your study abroad funds, here are your next steps:
- Start saving by getting a job, setting aside gift money, or using a fundraising website.
- Research scholarships and grants applicable to you, double-check the deadlines, and make your applications.
- Apply for loans if necessary to cover the remaining budget.
Melissa Beals studied abroad in Gwangju, South Korea at Chonnam National University for the 2023-2024 academic year. Her experience abroad was one of the most life-changing, growing, and fun experiences she’s ever had, and she dream of returning to Korea one day for grad school and eating lots of bindaetteok and soondubujjigae again. She is excited to share her insights on budgeting and study abroad, not only to inspire students that they can afford to study abroad, too, but also to offer real-life examples of what spending money looks like when you’re living in another country.
More about budgeting and planning
- How much does it cost to study abroad?
- When to use cash, credit, debit, or transfer
- Common money mistakes while studying abroad
