Study Abroad
Money Matters$Created & Presented by Bryan Turnbough, UT Austin student, Spring 2010
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!
Aid at UT
Financial Resource Amount
Pell grant $2,300
Tuition grant $3,000
$2,500
Scholarships $3,000
$2,000
Total
$12,800
Aid adjusted for abroad
Financial Resource Amount
Pell grant $2,300
Tuition grant $3,000
$2,500
Scholarships $3,000
$6,700
Total
$16,500
Let’s say your program costs $16,500 including airfare in the fall
Financial Aid: Case Example
Loans
TEXAS grant Other grant
Loans
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
Study abroad debtLoan balance $15,000
Interest rate 6.8%
Loan term 10 years
Monthly Payment $172.62
Accrued interest $5,714.49
*Stats from FinAId.org
Let’s say that you want to go on a program that is $15,000 in the fall
• Would you be flexible for a cheaper program?
• What are your priorities?• What sacrifices could you
make to afford taking loans?
• How much are you paying at UT per semester?
Questions:
Loans: Case Example
Getting the real cost of study abroad
Real cost = Study abroad cost – UT cost
Study abroad program cost = $15,000Cost of studying at UT = $12,000Real cost = $15,000 - $12,000
Real cost = $3,000
Loan balance $3,000
Interest rate 6.8%
Loan term 10 years
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) -NSEP award
http://utdirect.utexas.edu/student/abroad/globalassist.WBX
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
Korea (Summer 2007) Taiwan (Fall 2008)
Can’t be done without loans? It can be!
*Hanyang Exchange Program*CIEE Taipei
$8,700$17,443
Spain (Summer 2009) Financial Resource Amount
CIEE award $700
Total
Spain (Fall 2009) Financial Resource Amount
Pell grant $2,300
Other grants $5,500
Scholarships $3,000
Total
*CIEE Sevilla *Universidad de Comillas Exchange Program
Student Examples
Loans
$8,200
Loans
$5,200
$8,900 $16,000
UT Summer = approx. $8,000Real Cost= $900
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 FAFSA2. Research Scholarships3. Apply