Study Abroad

Money Matters
 Goals
• Provide information about how to plan to pursue
funding options
• Give you an idea of what financial resources are
available to you
• Provide you with information to help you find those
resources
• Provide with tools to access the value of study
abroad
 Planning
Things to do:
• Plan early
• Consider priorities
• Try to be flexible
• Save money
 Financial Aid
• You should plan to apply for financial aid as early as
possible at http://www.fafsa.ed.gov/
• Financial Aid provides the best source of funding
– Loans
– Grants
– Scholarships
• It can be adjusted to cover the program cost
• Release dates of financial aid may not match up to
program start dates!
 Financial Aid: Case Example
Let’s say your program costs $16,500 including airfare in the fall

Aid at UT Aid adjusted for abroad

Financial Resource Amount Financial Resource Amount
Pell grant $2,300 Pell grant $2,300
Tuition grant $3,000 Tuition grant $3,000
TEXAS grant $2,500 Other grant $2,500
Scholarships $3,000 Scholarships $3,000
Loans $2,000 Loans $6,700
Total Total
$12,800 $16,500
 Loans
Study abroad is an investment decision
• It’s beneficial professionally
(but you may have to explain how)

• It’s beneficial academically

(Graduate school & Law school applicants)
 Loans
• The best loans for students can be applied for
through FAFSA
• They might be worth taking because study abroad
including airfare can be relatively cheaper than
vacation trips
(Going on vacation overseas for two weeks can cost
you at least $3,000 with airfare)
• The benefits of studying abroad can justify loans
 Loans: Case Example
Let’s say that you want to go on a program that is $15,000 in the fall

Study abroad debt Questions:

Loan balance $15,000 • Would you be flexible for a
Interest rate 6.8% cheaper program?
Loan term 10 years • What are your priorities?
• What sacrifices could you
Monthly Payment $172.62
make to afford taking loans?
Accrued interest $5,714.49
• How much are you paying
*Stats from FinAId.org
at UT per semester?
 Loans: Case Example
Getting the real cost of study abroad

Real cost = Study abroad cost – UT cost

Study abroad program cost = $15,000 Loan balance $3,000

Cost of studying at UT = $12,000
Interest rate 6.8%
Real cost = $15,000 - $12,000
Loan term 10 years
Real cost = $3,000
Monthly Payment $34.52

Accrued interest $1,143.11

 Scholarships

• UT scholarships
-IEFS
-Continuing Scholarships
• Affiliated programs
• College/Departments
• Federal scholarships
-Gilman grant
(Pell grant) http://utdirect.utexas.edu/student/abroad/globalassist.WBX

-NSEP award
 Scholarships
Things to consider:
• Underrepresented locations
(Middle East, Southeast Asia, Eastern Europe, etc)
• Underrepresented student groups in study abroad
(minorities, underrepresented majors, etc)
• Application timing
 Student Examples
Can’t be done without loans? It can be!

Korea (Summer 2007) Taiwan (Fall 2008)

Financial Resource Amount Financial Resource Amount
POSCO Scholarship $2,500 Pell grant $2,365

IEFS $1,200 UT Scholarship $3,500

Other grant $3,478
Other scholarship $5,000
CIEE award $1,600
Gilman grant $5,000
IEFS $1,500
Total Total
$8,700
$17,443
*Hanyang Exchange Program
*CIEE Taipei
 Student Examples

Spain (Summer 2009) Spain (Fall 2009)

Financial Resource Amount Financial Resource Amount
CIEE award $700 Pell grant $2,300
Loans $8,200 Other grants $5,500
UT Summer = approx. $8,000 Scholarships $3,000
Real Cost= $900 Loans $5,200

Total
Total $8,900 $16,000
*CIEE Sevilla *Universidad de Comillas Exchange Program
 Recap
• You can find funding to go abroad through FAFSA,
scholarships and loans
• By planning ahead you can find the best funding
options
• You should gauge the value of programs by looking at
what benefits they offer versus cost
• You should be an active participant in finding the
best funding and programs
 Recap
1. Fill out a FAFSA
2. Research Scholarships
3. Apply