If the mere thought of going to college is mind-boggling these days – considering the financial crisis that has gripped the country for months now and, which has actually crept into practically every average American household – imagine how the awesome international study could be.
Can’t even begin to imagine it? Not in the realm of commoner dreams?
Well, as they say, it doesn’t cost a cent to dream. And who knows – situations don’t always stay that way forever and if things turn positive, the one knows where he or she is going gets a move first and usually gets there ahead of the pack.
But better than that, you know what they say about human achievement – when there’s a will, there’s a way.
So if the international study is what you’re thinking about, you’ll need to back up that will to achieve it with information – resources, guideposts and tips – that will make it easier for you to make that dream come true. And who knows, it may not be that impossible after all.
Actual records show that despite the beginnings of the economic crunch in the US in 2009, American students continued to opt for foreign studies or to participate in study abroad programs, with numbers increasing by 8.5% to a then all-time high of 262,416. The school year before, there were four times as many American students in schools overseas than there were a decade in the past.
Europe remains the first choice destination of Americans studying abroad, with the UK, Spain, Italy and France being the top favorite countries. Interestingly, though, there has lately been an increase in the number of students opting for studies in China, India and other developing countries in Asia.
You do realize, of course, that any study program outside your home country is expensive. Whether you are an American wanting to pursue studies outside of the United States, or a foreign citizen wanting to study in an educational institution in the United States, the costs can be prohibitive if you don’t have wealthy parents, a huge college trust in your name, or a generous scholarship grant.
That’s where international student loans come into the picture.
This type of loan addresses the needs of students in either of the two situations mentioned earlier – an American aspiring to study abroad, or a foreign national seeking to study in the United States. There are specific qualifications and requirements for each of the situations, and the funds that are available can be used either to augment the financial support already provided by a scholarship grant or to actually cover the cost of the entire study program, plus living expenses while the student is away from home and in a school abroad.
US Citizen in a School Abroad
As for practically every American citizen wanting to get a college education, the first step is to apply for federal funding. This works for a study program abroad just as it does for say, enrolment in a community college. So get your paperwork done to access whatever federal funds is available, by accomplishing your FAFSA form. You can download this through the internet and likewise, submit it online.
This is an important step that you should not overlook or disregard because through your FAFSA form, you’ll get an assessment from the government of what financial support you are entitled to for your college studies. This may be in the form of outright scholarship grants, usually for financially and academically deserving individuals, or federal-funded loans at minimal interest and easy repayment schemes.
It goes without saying, of course, that you have already done your homework and looked into universities or colleges abroad that offer the course program you are interested in, browsed through their websites or communicated with school officials, and at least know the qualifications for foreign students and the costs involved. Remember that costs involved here refers not only to expenses for the program but transportation to and from the US to the country you will be going to, and living expenses for the duration of your study.
Important Tip: Check out possible scholarship grants for foreign students coming into your prospective university or school. You may be eligible for full or partial scholarship.
Once you have a fairly accurate picture of this, and know how much government support you have, then and only then do you start to seriously consider an international student loan.
There are still a number or private finance institution and companies that offer international student loans for US citizens or permanent residents who want to study abroad. They will primarily require that you have accomplished your FAFSA form. They normally also required that the school in which you plan to enroll is among their accredited schools. Most lenders have various programs and schemes to cover specific needs and address particular issues of foreign study, so you should discuss directly with bank or company officials the details of your course program, length of study and amount of loan.
Foreign Student in a US School
Like in the previous situation, it should go without saying that a foreign student aspiring to complete studies in an institution in the United States, should have already completed all the requirements for acceptance into the school and entry into the US under an employment visa.
Several financial institutions, such as Sallie Mae International, for example, offer loans for students
- who are not citizens of the United States; and
- who are enrolled for a short-term program or a full-course degree in a US university or college
If you are such a student and need to take out a loan to cover some of the expenses related to this undertaking, you cannot apply for a student loan by yourself. The bank or the lending institution will require a cosigner, who should be a citizen or a permanent resident of the United States, with established credit-worthiness. This can be a family member or a relative, or even an associate or co-worker who is willing to be your cosigner and guarantor for the loan. They will be required to present the necessary US citizenship and Immigration Service documentation.
Borrow Only What You Need and Can Pay
It is interesting to note that not just academic counselors but even loan provides, and loan servicers advise students who need funding for their college studies to first exhaust all available funds that can be provided by government resources. This is because such funds are either free or to be repaid at very low interest rates.
A good rule of thumb is to borrow only the amount to cover what remains of anticipated school expenses after government federal funds, and other scholarship grant funds have been deducted. For foreign studies – whether an American student studying abroad or a foreign national studying in the US – you must not forget to input travel and living expenses. This can come up to quite a tidy sum – if you’re not careful and prudent, sometimes even equal to if not more than actual school expenses.
When taking out a student loan, remember that these are funds that have to be repaid. Depending on the scheme or option you take, this repayment period can begin even while you are in school, or after you graduate. But no matter which option it will be, the payback will always be higher because of the interest rate.
Now, remember that you’re talking about foreign studies, so you have to consider the variations in currency exchange rates. If you borrow in dollars, for instance, but spend in another currency, you stand to lose or gain in the exchange rate. Same goes for repaying the loan. And it gets even more complicated when the currency values – of both the dollar and the currency of the foreign country – fluctuate erratically. This reality is not so rare these days.
So while loan companies may entice you with the availability of funds for international studies – as these are still generally available – as in any loan undertaking, it is wise to borrow only the funds that you will need for activities related to your studies. This means, no extra or add-ons for trips to the foreign countryside or even nearby countries for sight-seeing or eating binges. This can eat into your budget or bloat your loan unreasonably.
Foreign study is meant to be exactly that – being in a foreign location, outside of your home country, to pursue a course or for educational activities. Borrow only what you need for those studies.
Additionally, consider how much you can pay of the loan once you have graduated and started to work, and over what period of time. Foreign studies are supposed to be an investment for your future. This is not an occasion for travel and leisure – there’s time enough for that when you’re earning and spending your own money.
And yes, you can still dream of gaining knowledge beyond the shores and borders of home. But it’s a dream that you have to approach with your eyes wide open, and your mind clear and focused.
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