Does FAFSA Pay for Study Abroad Programs?

The Free Application for Federal Student Aid (FAFSA) helps students seek financial assistance for higher education. It determines eligibility for federal student aid programs like grants, loans, and work-study. Many students wonder how FAFSA can support study abroad programs. Understanding the conditions and processes is important for planning an international academic experience.

FAFSA Eligibility and Application for Study Abroad

Federal student aid can be applied to study abroad programs if certain conditions are met. The program must be approved by and linked to the student’s U.S. home institution. This means the study abroad experience needs to be credit-bearing and count towards the student’s degree requirements at their accredited U.S. college or university. The U.S. institution acts as the intermediary for federal funds.

Students should communicate with their home institution’s financial aid and study abroad offices early. Confirm the specific program is recognized for federal aid and how aid will be processed. This clarifies institutional policies, forms, and deadlines. When completing the FAFSA, students should list their home institution, not the foreign host school, for proper aid processing.

Understanding Eligible Study Abroad Expenses

FAFSA funds are applied to a student’s Cost of Attendance (COA), as determined by their home institution. For study abroad, the institution adjusts the COA to include program expenses. This comprehensive COA includes tuition and fees, which may be paid to the home institution or directly to the program abroad.

Beyond tuition, the COA includes living costs like room and board, and academic materials such as books and supplies. Transportation expenses, covering travel to and from the host country, are also factored into the cost. While FAFSA can help cover some personal expenses, students should budget carefully, as not all discretionary spending is included in the COA.

Receiving and Managing Your FAFSA Funds for Study Abroad

Once a student’s financial aid package for a study abroad program is determined, FAFSA funds are disbursed to the student’s home institution first. The institution then applies these funds to the study abroad program costs, such as tuition and fees. Any remaining balance after program charges are covered is disbursed to the student.

Disbursement timing varies by school and may differ from on-campus aid schedules. Funds might be disbursed shortly before or on the program’s start date. Students should be prepared to cover initial upfront costs, like airfare, from their own resources, as financial aid may not be available before departure. Upon receiving funds, students can manage them through banking options, including opening a local student bank account or obtaining a local debit card to avoid foreign transaction fees.

Additional Funding Sources for Study Abroad

Many students find FAFSA aid alone does not cover the entire cost of study abroad, prompting a search for supplementary funding. Scholarships designed for study abroad can reduce costs. These include institutional scholarships, national scholarships like the Benjamin A. Gilman International Scholarship for Pell Grant recipients, or program-specific awards. Scholarships are often awarded based on academic merit, financial need, or specific criteria like field of study or destination.

Private student loans are another option for covering remaining costs, though they carry higher interest rates and may require a cosigner. These loans are available from private financial institutions and can cover up to the total cost of attendance, minus other aid received. Students should research terms and conditions for private loans, as they may not offer the same protections as federal loans. Alternative strategies like crowdfunding, personal savings, or part-time work while abroad can also help bridge funding gaps.