Guide to Using U.S. Financial Aid to Study Abroad

Nearly 300,000 U.S. students participated in study abroad programs in the 2023-24 academic year, according to the Institute of International Education’s (IIE) Open Doors data project. Although that figure accounts for a relatively small percentage of all U.S. college students, it reflects a sharp rebound from the COVID-19 era, when participation tumbled to just 14,549 students in 2020-21, indicating a renewed and growing desire to study abroad among students.  

While roughly 3 in 4 students express interest in studying abroad, many view the cost as a significant obstacle. In a 2025 survey by Terra Dotta, 80% of students said the cost of studying abroad could prevent them from pursuing such an experience. However, studying abroad may be more attainable than many students and families realize, thanks to a wealth of financial aid options that include grants, loans, and scholarships.  

For those considering pursuing international education, understanding how financial aid for study abroad programs works can help make the path forward clearer. In many cases, students may be able to use financial aid toward an approved program and its associated expenses, though eligibility depends on several factors. 

Key Takeaways

• The number of U.S. students who studied abroad dramatically increased in the 2023–24 school year, marking a significant rebound from COVID-19 era participation declines, according to the Institute of International Education’s (IIE) Open Doors data project. 
• Federal aid, Pell Grants, scholarships, and approved student loans can often cover tuition and various study abroad expenses. 
• Starting FAFSA applications early and exploring nonprofit, institutional, and merit-based scholarships can significantly reduce study abroad costs.

Does Financial Aid Cover Study Abroad? 

Financial aid can often cover study abroad programs. In fact, nearly 40% of students in Terra Dotta’s survey said they planned to pay to study abroad with financial aid, with 27% citing scholarships as a funding method.      

For students attending college in the United States, state and/or federal aid accessed through their home institution can often be applied to pay for costs associated with studying abroad, including costs for the following: 

• Program tuition 
• Housing 
• Transportation 
• Passport and visa 
• Health insurance 
• Meals 

Financial aid isn’t limited to one type of funding either. It can include grants, loans, scholarships, and other forms of support. The same aid that helps students pay for school in the U.S. can also help make an international academic experience more financially feasible for them.  

However, eligibility is not automatic. Whether financial aid can be used for a study abroad program depends on factors such as the type of program, the student’s enrollment status (undergraduate or graduate), and whether the experience fits within the student’s approved academic pathway. The process can also vary based on whether a student is studying abroad for a semester or a year as part of their degree program, or whether they plan to earn their entire degree outside the U.S.  

Students planning to study abroad as part of a U.S.-based degree program can determine their eligibility for different types of assistance by contacting the financial aid office at their American school. Additionally, completing the Free Application for Federal Student Aid (FAFSA) form is an essential step in finding out what types of funding may be available to them.   

What Types of Financial Aid Are Available for Studying Abroad? 

Students can explore using any of several types of financial aid for a study abroad program, including grants, loans, scholarships, and other forms of assistance.  

Grants               

Grants represent one of the most common forms of financial aid, with 64% of undergraduate students and 43% of graduate students receiving grants to help them pay for college, according to a 2023 report from the Institute of Education Sciences (IES), an arm of the U.S. Department of Education.  

Grants are a type of aid that typically doesn’t need to be repaid, which can make them especially valuable for students considering pursuing international education. In general, grants are awarded based on financial need rather than academic merit.  

Depending on the program and a student’s eligibility, certain federal grants may be used for study abroad programs. The Pell Grant, one of the most widely used federal grants — roughly a third of undergraduate students received Pell Grants in the 2023-24 school year, according to the Education Data Initiative — can often be applied toward a study abroad program. 

Besides the federal government, students may also find grant opportunities through state programs, colleges and universities, and the private sector.   

Loans                

Loans are another common form of financial assistance for college students. Unlike grants, loans have to be repaid with interest, so students need to understand how much they’re borrowing and what repayment will look like after they graduate.  

In many cases, students can use a federal loan to pay for a study abroad program, as long as the program they’re attending has been approved by their U.S. school. Private loans may also be an option in some cases, as well as certain state-based loan programs.  

Types of federal student loans include: 

Direct Subsidized Loans: Available to eligible undergraduate students who demonstrate financial need; the government pays the interest during certain periods  

Direct Unsubsidized Loans: Available to undergraduate, graduate, and professional students; financial need is not required  

Direct PLUS Loans: Available to graduate or professional students and parents of dependent undergraduate students to help cover education costs not met by other forms of aid 

Direct Consolidation Loans: Allow borrowers to combine eligible federal student loans into a single loan, which can reduce their monthly payments or provide access to federal forgiveness programs 

Additional Financial Aid Options                

Beyond grants and loans, students may have access to other forms of financial assistance that can help fund their study abroad program.  

A 529 Plan, for example, is a tax-advantaged savings plan that students can use to pay for qualified higher education expenses at eligible institutions, which may include some schools outside the U.S. A 529 Plan can be a useful part of a broader study abroad payment strategy, depending on the program and which expenses qualify. 

Students from military families may also have additional education benefits they can access. The federal government and various nonprofits offer college funding assistance to service members, veterans, and their families, including GI Bill-related benefits and other support that can help reduce students’ out-of-pocket education expenses. In some cases, this funding may be used to offset the cost of studying abroad. 

Financial Aid Requirements for Studying Abroad 

Qualifying for financial aid to study abroad often depends on more than financial need alone. A student’s eligibility can depend on the type of program they choose, the institution they attend, and whether the experience fits within an approved academic path. For example, students pursuing a semester- or year-long study abroad experience may be able to use financial aid if their home institution has approved the program for credit, while students seeking to earn a degree entirely abroad may need to attend an international school that participates in U.S. federal loan programs.  

In other words, students generally need to meet both standard financial aid requirements and any program-specific conditions if they want to pay to study abroad using financial aid.  

Students who plan to use financial aid to fund their study abroad experience may also need to meet requirements related to their timing, documentation, and academic standing. For example, students seeking federal aid for an eligible international program typically need to complete the FAFSA form and list their home institution — not the host school — on the form. 

Financial aid requirements for studying abroad may include: 

• Enrollment in an eligible program of study 
• Approval from the student’s American school  
• Meeting deadlines and documentation requirements at both the home institution and the host school 
• Maintaining good academic standing, since academic performance can affect aid eligibility and award amounts 
• Satisfying institution-specific rules for state, school-based, or private aid 

Because requirements can vary, some forms of aid may transfer more easily than others. Federal aid often follows broader rules, while state, institutional, and private-sector funding may come with additional conditions tied to the school or the award itself.  

Tips on Getting Financial Aid to Study Abroad              

Once students understand the requirements, the next step is approaching the process strategically. While eligibility for financial aid can vary by the program and the funding source, a few key strategies can help students navigate their options more effectively. 

• Starting early: Applying for financial aid to study abroad involves deadlines and a good deal of paperwork, coordinated across multiple institutions. Beginning this process early gives students more time to complete all the required forms and gather any supporting materials they need, such as letters of recommendation from teachers or employers. 
• Contacting the financial aid office: A student’s home institution can often provide the clearest guidance on which types of aid may apply to a study abroad experience. Financial aid staff can also explain school-specific rules and outline next steps. 
• Accounting for all expenses: The cost of studying abroad includes more than tuition and travel expenses. The cost of housing, meals, insurance, visas, and everyday living all factor into the total amount needed. Students exploring study abroad programs may benefit from creating a detailed budget that accounts for all these expenses so they have a clearer sense of how much support they need. 
• Exploring all funding options: Federal aid is only part of the picture. Students may also be able to secure funding through a nonprofit, service organization, church, or educational foundation, or through a private scholarship. By expanding their search, students can uncover additional opportunities that help make studying abroad more affordable.  

Resources for Planning and Paying for a Study Abroad Program

Navigating the financial aid process can be challenging for some students, with about 1 in 4 saying they found completing the FAFSA form somewhat or very difficult, according to a 2024 Gallup poll. The following resources can help students answer common questions about applying for financial aid to study abroad and help them evaluate their funding options, as well as explain the potential benefits of international study. 

• FAFSA: This site is the starting point for students seeking financial aid, including grants, loans, scholarships, and other forms of assistance. The site also provides a link to the Federal Student Aid Estimator, which can help students figure out how much federal aid they may be eligible to receive. 
• State Higher Education Contacts: This directory from the U.S. Department of Education can help students locate state-level education agency contacts.  
• Private Student Loan Options: This guide to private student loan options is for students who still have unmet education costs after applying their federal aid. 
• IES Abroad Alumni Survey Results: These survey findings from the Institute for the International Education of Students (IES) reveal how studying abroad can positively affect a student’s professional skills, career outcomes, graduate school admission, and personal growth.  

How to Get Scholarships to Study Abroad 

In addition to grants and loans, scholarships can help make studying abroad more affordable. Some scholarships are awarded by universities, while others come from government-backed programs designed specifically to expand students’ access to international education.  

Students exploring how to get scholarships to study abroad can benefit from casting a wide net. That can include looking at institution-specific awards, nationally recognized study abroad scholarships, and programs focused on leadership, language study, or public service. While many scholarships are merit-based, others are based on financial need, so completing the FAFSA form is often an important part of the process of applying.   

Schiller International University, for example, offers a range of merit-based and mission-driven scholarships for undergraduate and graduate students pursuing a study abroad program.  

The following are some scholarship options students can explore: 

• Schiller Global Citizen Scholarship: This merit-based scholarship is for undergraduate first-year and graduate students. The awards can be worth up to 50% of a student’s costs depending on their visa status and which campus they enroll at. 
• Schiller Academic Excellence Scholarship: This highly selective scholarship covers up to 90% of costs for high-performing undergraduate applicants who are graduating from accredited international schools with exceptional academic records. 
• Schiller Academic Honors Scholarship: This merit-based award is for undergraduate students entering their second year at Schiller who have demonstrated strong academic progress, with awards covering up to 50% of costs. 
• Benjamin A. Gilman International Scholarship Program: This scholarship is for undergraduate students of limited financial means who want to study or intern abroad. 
• Critical Language Scholarship (CLS) Program: This immersive summer language program is for undergraduate and graduate students studying languages considered strategically important to U.S. national security and economic prosperity.  
• Fulbright U.S. Student Program: In partnership with more than 140 countries, the Fulbright program supports recent college graduates and early-career professionals who want to live, study, or conduct research abroad.  

Funding Your Study Abroad Experience  

Students can seek out any of several types of financial aid to study abroad, including grants, loans, scholarships, and other resources. By exploring a range of funding opportunities and planning ahead, students can make an experience that supports both their personal growth and professional development more attainable.