Besides acquiring an education, college is a time to explore and discover more of what the world has to offer. Studying abroad is an exciting experience that broadens your mind and expands horizons. The unique cultures in Europe and specialized college courses in Asia provide students with a rich and mind-opening experience.

Every year, over 300,000 students go abroad to study. A scholarship or grant to study abroad is helpful. However, depending on the program and country, you might not find one that matches your needs. In this case, you can look at acquiring financial aid to study abroad. These funds will help with covering accommodation, tuition, books, and cultural activities.

What Loans Can You Acquire to Study Abroad?

You can fund the program abroad with a federal loan or a private loan.

Federal Education Loans

The Higher Education Act of 1992 enables students to acquire federal loans to study abroad as long as the home college has approved the program. The amount you take out depends on several factors. However, federal funds generally range from $5,500 to $20,500.

These loans are common in countries like Australia, Canada, England, China and Russia. This funding option is better than private funding because of low-interest rates and the fact that they are quite easy to get for US students. Also, you will start making payments six months after graduation and not immediately.

Some of the aid you can apply for include;

* Direct Plus Loans
* Federal Supplemental Educational Grants
* Federal Pell Grants
* Direct Subsidized Loans
* Direct Unsubsidized
* Scholarship programs specifically created for abroad study

When you’ve decided on a study program abroad, work with your college financial aid office to ascertain these;

How much do you qualify for?
* How much can you apply to your program abroad?
* How much will you pay from your own finances?

Is it Possible to Use a Current Loan for Abroad Study?

If you’re currently enrolled in a US college with an education loan, the institution can help to use some of the funds to study abroad as long as the program is approved. The aid counsellor at your college should be able to inform you of any restrictions. If you’re involved in a student exchange program, there are no complications as you simply continue paying the college.

Knowing your desired program makes it easy to determine if it qualifies and what extra documentation is needed.

Private Education Loans

If you’re not able to acquire federal funds or have insufficient resources, a private loan will work. There is an unlimited number of lending institutions that can help you to get a loan with no credit. However, it’s your responsibility to make sure you aren’t scammed. It’s imperative to research and get good references so that you make the best decision.

The financial aid office at your college would be a great source to start gathering all this information. They will let you know the good and bad with each option. Narrow down your search to institutions whose specialty is funding international students. Watch out for lending agencies that charge higher-than-normal interest rates.

The last thing you want to do is wait until the last minute to start this process. Some approvals take a longer time than others. Starting early helps with planning well. It also keeps you organized and within submission deadlines.

Foreign Enrolled Loans

Rather than study abroad for one or two semesters, some students prefer to enroll for a full degree. This greatly narrows down your financing options. International Student Loan provides you with a loan comparison tool and a list of institutions eligible for this financing. If your chosen college is on the list, you will be linked with matching lenders.

You can apply for funds amounting to the entire cost of the degree including tuition, accommodation, books, and others. You should expect initial approval a few weeks after finalizing the application.

Many students would not have a credit history to be eligible, so you must have a cosigner. This increases your chances of approval and a good interest rate. They must be a citizen and resident of the US with a stellar income and credit history.

The benefits of a foreign-enrolled student loan include;

* Zero application fees with no extra costs
* The quick application process, done entirely online
* Fast approval
* Covers the entire tuition cost
* Several approved colleges abroad including business school, law, medical and others

Considerations to Make Before Getting a Private Loan

Getting approved for this loan to pursue your studies abroad is an exciting experience. However, you might want to consider some important factors.

Private loan should be your last resort

Have you considered all your other funding options? Try looking into scholarship opportunities first. You’ll be surprised at what options are online. Search the internet for scholarships that match your interests. If you’re eligible for them, start applying immediately.

Other possible sources for financing are part-time or summer jobs. If they all fail, then you can take out a private loan. However, keep these important tips in mind;

* Only take out the amount you need * Interest will start accruing immediately. This means by the time you graduate; there will be a bigger balance than the original loan. Arrange to start making payments as soon as possible. * Read the fine print before signing. Private loans may or may not include a grace period offer. This means you may be obligated to start making payments before or soon after graduation.

How to Pay Back the Loan While Living Abroad

Let’s say you’ve graduated but still living abroad. How do you go about making payments?

1. Use autopay
Students using autopay receive discounts on their federal loans

2. Link your US and International Accounts
Use a bank that has international banking systems. You can easily transfer money and convert currencies.

3. Consolidate Your Federal Loans
With consolidation, instead of several payments you only make one payment with less interest.

4. Refinancing
In the event that you can only take out a high-interest education loan, acquire another loan with a lower interest rate.

Ensure that you have researched and found the best possible lender for your needs.Also make sure to pay the interest at least each month so that you’re not overwhelmed after graduation.

The good news is that the chances of securing a job back in the US are high. The University of California found out that 97% of students who studied abroad got a job with a year of graduating. They also earned more than students who did not study abroad. Employers are drawn to factors like flexibility, effective communication and collaboration which students learn abroad.

While scholarships and personal savings are some of the best options to fund studying abroad, it might not be possible for everyone. If none of those options have worked for you, then federal or private funds are your go-to solutions.

A successful application includes meticulous planning and organization. You must start as early as a year in advance. It also involves a lot of paperwork. However, studying abroad will open you up to new opportunities and networks. Your world view will change and possibly your future too. So, don’t let a long, complicated process discourage you. It just might be one of the best experiences of your life.