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Can College Abroad Actually Save You Money?
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Eliza Haverstock Lead Writer | Student loan repayment, paying for college
Eliza Haverstock is NerdWallet's higher education writer, where she covers all aspects of college affordability and student loans. Previously, she reported on billionaires and investing for Forbes in New York, and she also covered private markets for PitchBook in Seattle. Eliza got started at her college newspaper at the University of Virginia and interned for Bloomberg, where she spent a summer writing a feature story about plastic straws. She is based in Washington, D.C.
Karen Gaudette Brewer Lead Assigning Editor | Core Personal Finance
Karen Gaudette Brewer leads the Core Personal Finance team at NerdWallet. Previously, she guided students and their families through the ins and outs of paying for college and managing student debt on the Higher Education team. Helping people navigate complex money decisions and feel more confident brings her great joy: as the daughter of an immigrant, from an early age she was the translator of financial documents and the person who called the credit card company to fix fraud.
She joined NerdWallet with 20 years of experience working in newsrooms and leading editorial teams, most recently as executive editor of HealthCentral. She launched her journalism career with The Associated Press and later worked for The (Riverside) Press-Enterprise, The Seattle Times, PCC Community Markets and Allrecipes.com.
She is a graduate of the 2022 Poynter Institute Leadership Academy for Women in Media. Her writing has been honored by the Society for Features Journalism and the Society of Professional Journalists. In addition, she’s the author of two books about the Pacific Northwest.
When Emma Freer was a high school senior in 2011, her impression of American campus culture — sororities, football games, broad course requirements — didn’t appeal. Her parents had saved enough money to cover her in-state tuition, but, she says, “I knew I didn't want to go to Ohio State.”
College abroad offered a solution. Freer graduated from Scotland’s University of St. Andrews in 2016, debt-free and with a master’s degree in English and social anthropology.
“I got a really excellent academic education as well as a second education in travel, living abroad and being an outsider in a new culture,” Freer says. “I never wished I had gone to school in the U.S.”
Lured largely by promises of cheaper tuition, college-bound Americans are increasingly eyeing programs abroad.
Over the past five years, U.K. universities have seen the number of U.S. undergraduate applicants spike by 49%, according to the Universities and Colleges Admissions Service, which manages the U.K. public university admissions system. The number of Americans studying in France has risen 5% over the past five years and jumped 50% from 2020 to 2021, according to Campus France, a French government agency that promotes higher education to foreign students. Meanwhile, Google searches in the U.S. for “college abroad” have more than doubled since February 2021.
But college affordability depends on more than just tuition. Understand the key costs of an international education before you book a one-way plane ticket.
“The tuition is what draws people in, what catches their attention,” says Jennifer Viemont, founder of Beyond the States, a company that helps American students find degree programs in Europe.
Tuition abroad can vary depending on which city, country and type of school you choose. Germany, for example, abandoned public university tuition fees for all students — international included — in 2014. On the other hand, at England’s prestigious Oxford University, international students pay up to about $53,900 each year.
American students can sometimes use federal aid for international schools, including loans. Additionally, undergraduate degrees from schools abroad typically take three years, rather than four, saving students a full year’s worth of tuition and expenses.
Cost of living
Cost of living varies in different cities and countries, affecting how much you pay for housing, food and other basic expenses beyond tuition.
For example, Norway has long offered free tuition to all students regardless of origin — but the average student there should budget about $1,260 per month for living expenses, according to the University of Bergen.
But in Portugal, basic expenses run half that. A student will need about $640 per month to get by, according to ISPA, Lisbon’s Institute of Applied Psychology.
NerdWallet ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Fixed APR
3.59-17.99%
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1)All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2)As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3)This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 10/08/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
Variable APR
5.59-17.99%
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1)All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2)As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3)This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 10/08/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
NerdWallet ratingNerdWallet's ratings are determined by our editorial team. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria.
Fixed APR
3.49-15.49%
Lowest rates shown include the auto debit. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Advertised APRs are valid as of 10/12/2024. Loan amounts: For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time. Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not.
Variable APR
5.54-15.70%
Lowest rates shown include the auto debit. Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Advertised APRs are valid as of 10/12/2024. Loan amounts: For applications submitted directly to Sallie Mae, loan amount cannot exceed the cost of attendance less financial aid received, as certified by the school. Applications submitted to Sallie Mae through a partner website will be subject to a lower maximum loan request amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half-time. Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years. A variable APR may increase over the life of the loan. A fixed APR will not.
Credible lets you check with multiple student loan lenders to get rates with no impact to your credit score. Visit their website to take the next steps.
Exchange rates
Fluctuating exchange rates can make it difficult to predict the full cost of your education, says Jessica Sandberg, dean of international enrollment at Duke Kunshan University, a joint venture between Duke University in North Carolina and China’s Wuhan University.
When Freer studied at St. Andrews, the exchange rate was not in her favor. “I would work all summer to save up, and when I would deposit the money into my Scottish bank account, it would sometimes be nearly half of what I put in in dollars,” she says. Tuition fees could swing by a few hundred U.S. dollars, she says, depending on the day she paid her tuition.
Build some flexibility into your budget to account for exchange rate shifts, and consider studying in a country with a favorable exchange rate.
Health care. Many countries require that students pay an annual fee to access their national health care system. While this may cost a few hundred dollars each year, coverage is generous. When Viemont’s son broke his wrist in the Netherlands, there was zero out-of-pocket expense.
Travel. Students who want to use free time to travel should budget for these expenses. Emergencies, like a family member getting sick, could lead to bigger travel bills. “It's more expensive when things go wrong,” advises David Hawkins, founder of U.K.-based college admissions consultancy The University Guys, so put money aside for a last-minute flight home. Credit cards suited for study abroad could help reduce some travel expenses.
Visas.Most countries or regions require student visas or residency permits. Though these typically aren’t huge expenses, some mandate “proof of financial means,” explains Sandra Furth, a certified educational planner and founder of World Student Support. In the U.K., for example, you must show enough savings to cover the first year of tuition, plus at least about $11,200 for living expenses.
“Overseas, the living costs are a little bit more a la carte, and that’s maybe a blessing and a curse for young folks who are going to have to budget and make choices,” Sandberg says. “It can come out to be less expensive, but that's going to come down to the individual's spending habits.”
This article was written by NerdWallet and was originally published by The Associated Press.