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Studying Abroad Can Cost Over $16,000 Per Semester—Here's How Students Plan to Pay for It

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After seeing enrollment decline by 91% during the 2020-21 academic year, study abroad programs have made nearly a full recovery from colleges and universities' pandemic pauses.

By summer 2021, the Institute for International Education reported a 523% increase in U.S. college students going abroad, with 83% of schools expecting an increase in the 2022-23 academic year.

Studying abroad may offer a priceless opportunity to experience a different culture and see a new part of the world, but it can come at a hefty price. In 2023, the average cost for a semester abroad is $16,368, according to a recent Study.com survey.

While federal aid can be applied to study abroad programs, institutional aid or other grants may not always apply or be enough to cover the costs. As a result, many students are turning to other options to pay for studying abroad — if they're available.

Taking on debt to study abroad

On average, survey respondents said they would be able to afford 67% of their study abroad costs. But how exactly they plan to afford them is more complicated.

Over half — 57% — of students say they'll "take out more student loans" to cover their study abroad costs, although it's unclear whether those students already have student debt and what kind of loans they would be taking out.

The students who said they would take on debt to study abroad expect to take out an average $14,609. The maximum amount students in their third year or higher can take out in federal loans for the 2022-23 school year was $12,500, meaning even students who max out their federal loans may be looking for private loans or other payment options.

The survey also found 30% of respondents believe their study abroad loans would be forgiven. 

However, it's worth remembering that President Joe Biden's student debt forgiveness plan only applies to federal loans disbursed before July 2022 — not to mention it's currently on hold, pending a Supreme Court decision.

Taking out loans isn't the only way students plan to cover study abroad costs. Of those surveyed, 59% said they would get another job to help pay for their studies.

Additionally, "How do I get scholarships to study abroad?" was the most commonly searched study abroad question with over 5,000 average searches per month, according to Study.com.

Who gets to study abroad?

The cost of studying abroad may be one of the biggest deciding factors in who gets to go. Students who come from demographics more likely to be able to afford the extra cost — such as those from wealthy families, who are disproportionately white — seem to be more likely to go abroad.

Black students made up just 4% of students who studied abroad in the 2020-21 school year. While the share of non-white students studying abroad increased by 10 percentage points between the 2010-11 and the 2020-21 academic years, white students still make up 68% of students studying abroad, according to the Institute for International Education.

While white students and Black students take out loans at similar rates — 40% of white students use loans to pay for college compared with 50% of Black students, according to Education Data Initiative — Black students often have a harder time paying back their loans.

On average, Black borrowers still owe 95% of their student loan balances 20 years after graduation, compared with 6% for white borrowers, according to a 2019 Brandeis University study

The difference in student debt outcomes is both a symptom of and a contributor to the racial wealth gap that finds white families' average net worth four times higher than that of Black or Hispanic families, per the Federal Reserve Bank of St. Louis

Additional costs may apply

Beyond tuition and fees, students going abroad have to consider additional costs including airfare, passport or visa fees and income they may lose by not being able to work while abroad — all things that may not be covered by financial aid. 

When weighing the costs of studying abroad, as with the cost of college in general, students and families may have to ask themselves if it's worth it.

There are plenty of immeasurable benefits from international study, such as the ability to immerse yourself in another culture and learn about its traditions and language. There's even some evidence that suggests studying abroad could improve your career prospects after graduation.

But while wealthier students may feel more comfortable taking on additional debt to study abroad, that decision may not come as easy for low-income and minority students. Along with a higher likelihood of having more student debt for longer, racial minorities often face discrimination and isolation in popular study abroad destinations.

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