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