Unlocking Your Global Journey: A Guide to Funding Study Abroad

Studying abroad is one of the most fulfilling experiences many students have in college. It is typically done during junior year and can often be funded through financial aid or scholarships, especially if the program is offered by the student’s home institution. If enrolled full-time and paying tuition and fees, students can typically use federal financial aid, state aid, and institutional gift assistance (such as grants and scholarships) to cover study abroad. Below are some key considerations for students looking to study abroad. Programs run by the student’s home institution: Many institutions offer both short-term and long-term programs for students such as a faculty-led trip, a reciprocal exchange at another institution, or a direct enrollment program at a different host university.

• Eligible for: Federal aid, state aid, and gift aid (grants/scholarships)
• Billing: Paid directly to the home institution
• 529 Plans: Can be used if the program earns college credit
• Housing: May be included in the tuition/fees

External programs: For programs not run by the college, students must pursue establishing a consortium agreement between their home institution and the host school, if one doesn’t already exist. Organizations in consortium contracts pool resources and therefore can offer more program choices for students. This agreement allows credits to transfer and enables students to use federal and state aid—but not institutional gift aid—at the host institution.

• Eligible for: Federal and state aid
• Billing: Paid directly to the external institution
• 529 Plans: Can be used if the program earns college credit
• Housing: Payments are typically made directly to the program provider or arranged independently.

Special programs: Some study abroad programs, like N.U.in, which is a first-year or first-semester abroad experience at Northeastern University, classify students as pre-matriculated, meaning they are not eligible for any financial aid—federal, state, or institutional. In these situations, students must seek alternative funding sources such as personal savings, credit cards, or private loans (though some programs may restrict access to private loans as well). It’s crucial to evaluate your financial situation and ensure the program is a good fit. Fortunately, there are many other first-year study abroad options beyond N.U.in that consider the student matriculated, including offerings at American University, Syracuse, and New York University.

• Eligible for: N/A; can use personal loans, credit cards, or savings
• Billing: Paid directly to home institution
• 529 Plans: Not usable unless the program earns credit
• Housing: Included in cost. Payments are made directly to the home institution.

Reminders and Tips

• Confirm whether the program earns college credit.
• Consider housing costs for the chosen program. Use a cost-of-living calculator, such as those at Bankrate or NerdWallet to build your study abroad budget.
• Plan for out-of-pocket costs, such as personal expenses, local transportation, and emergencies
• Keep in mind that 529 college savings plan funds can only be used for qualified educational expenses, primarily tuition for credit-earning courses. Travel and transportation costs are not covered, so it is always important to factor this into your planning.
• Understand the billing and payment process for the program. Will the bill come directly to the student or the school? What are the timelines for payment prior to the start of the program? Are installment plans allowed?
• Explore alternative funding like short-term educational loans or scholarships specific to study abroad.