Over the years, we’ve explained to readers how they may be able to use federal financial aid to attend a global university.
Many U.S. colleges and universities offer programs that allow students to study overseas for a semester or two using their existing federal grants, loans and other aid. Many foreign schools also participate in the U.S. federal loan programs — excluding grants or work-study — and allow students to enroll directly and obtain their full degree from the foreign school.
While it’s an exciting idea to earn a degree overseas — and it can allow you to immerse yourself in another culture and language — doing so means accruing sometimes significant student loan debt, since you won’t be able to take advantage of grants and other aid that doesn’t require repayment.
Here are some financial pros and cons to keep in mind as you consider pursuing an international degree program.
[Learn how to calculate the cost of earning an overseas degree.]
Pros
According to the College Board, the average out-of-state tuition and fees were more than $25,000 at public, four-year institutions in the U.S. in 2017-2018. That could easily translate into a six-figure debt if you consider that many students take five years to complete their four-year degree and that the $25,000-plus figure does not include room and board. Depending on your intended career, this debt level may not be a good return on investment.
In several countries, though, the cost of college can be much cheaper — or even free — for U.S. students. In Finland, for example, U.S. students can attend school tuition-free, as long as they attend programs taught in Finnish or Swedish. Or non-Finnish speakers can pay approximately $5,000 to $24,000 for English-taught courses, which, depending on your program of study, could still be a bargain.
Most public universities in Germany, Luxembourg and Norway also offer free tuition to international students, including those from the U.S.
[See global universities where tuition is low or free.]
Keep in mind, though, that tuition-free doesn’t mean completely free. You will likely have to pay at least some fees and, of course, incur travel and visa costs to get yourself there, as well as room and board expenses.
While this doesn’t get you through college debt-free, it can significantly reduce the number of student loans you need.
As discussed in prior posts, many foreign schools, especially in the United Kingdom, Australia and New Zealand, participate in the U.S. federal student loan programs, allowing U.S. students to use these loans to attend approved foreign schools. According to the Department of Education’s most recent list, which is updated quarterly, 749 global universities participate in the U.S. federal student loan program.
Cons
Keep in mind that just because the school is cheaper does not mean that the educational outcome is better. For example, before choosing to attend a foreign medical school because of the lower tuition or less-stringent admissions criteria, ensure the institution has an acceptable medical licensing pass rate for graduates.
A lower student loan debt level will be of little comfort if you cannot practice in your field of study due to your inability to get licensed in that field.
[Consider three residency factors before choosing international medical schools.]
Another downside to enrolling in a foreign school is the lack of other types of financial aid, particularly the type you don’t need to repay.
While some schools offer scholarships for international students, those tend to be in much shorter supply than if you were attending a U.S. institution. And international schools do not participate in the Pell and other federal grant programs. Work-study, state loans and some independent scholarships also exclude foreign institutions.
Finally, depending on the country you are in and its visa requirements, you may be prohibited from working full time or at all while you are there, making it even more difficult to keep your student loan debt levels to a minimum.
In the end, good judgment and lots of research are necessary to make wise long-term decisions on where to earn your degree. While it’s tempting to worry later on about the student loan implications of studying overseas, the time to acknowledge them is while you are making the college decision.
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Consider Student Loans When Choosing a Global University originally appeared on usnews.com
