SOURCE: NextStudent
January 02, 2008 11:30 ET
With Value of Dollar Falling, College Study-Abroad Costs Rising
Students Applying for 2008 Programs Can Still Take Advantage of Lower-Cost Destinations
PHOENIX, AZ--(Marketwire - January 2, 2008) - As the value of the dollar continues to fall
and study-abroad costs continue to rise, undergraduate and graduate
students who want to spend a semester overseas may be able to make their
international studies more affordable simply by rethinking their
destination. To help students keep study-abroad costs financially feasible
and minimize their need for student loans, NextStudent, a leading
Phoenix-based education funding company, encourages applicants to consider
lower-cost destinations for their study-abroad experience.
In the last year alone, the U.S. dollar has fallen 5 percent against the
pound, 7 percent against the yen, 10 percent against the euro and 14
percent against the Canadian dollar -- which means U.S. students studying
overseas are finding that their dollar-based budget buys a lot less than it
used to.
Even amid efforts to encourage more students to take a semester or year
abroad, the decline in the dollar's value has led some schools to cut back
on study-abroad program offerings and raise program charges to students,
reports The Chronicle of Higher Education ("Study-Abroad Officials Feel the
Pain of Dollar's Plunge," Dec. 14, 2007). Study-abroad costs are up 10 to
15 percent over the last several years, and schools are concerned that
low-income students, especially, may be financially deterred from going
overseas.
One of the sharpest declines in the dollar's value has come against the
euro in Europe, which, according to the Institute of International
Education, is the chosen destination for almost 60 percent of all U.S.
students who study abroad. According to the IIE, the top five study-abroad
destinations are Britain, Italy, Spain, France and Australia.
But students may be able to find a more affordable study-abroad program by
opting for a less mainstream location in Central or South America, Asia, or
Africa, where currency exchange rates are more favorable and the dollar
stretches further than it does at the top five destinations. Many students
are already taking advantage of these lower-cost destinations. As the
Chronicle reports, the number of students enrolling in the Cultural
Experiences Abroad program in Buenos Aires this semester is up 52 percent
over a year ago, and the number of students enrolling in the CEA program in
Prague (which hasn't yet converted over to the euro) is up 150 percent.
For parents, undergraduates, and graduate students looking for help with
financing a study abroad program, NextStudent offers a variety of parent
and student loans, as well as the
award-winning NextStudent Scholarship Search Engine, where students can
look for scholarships and grants available specifically for foreign study
programs.
Students can usually apply their federal financial aid to school-approved
study-abroad programs -- they should check with their school financial aid
office. But if students find that, even after scholarships, federal student
loans and grants, their study abroad costs still exceed their available
financial aid, NextStudent Private
Student Loans could provide the additional financial assistance they
need. Federal student loans generally offer more attractive terms than
private student loans, so study-abroad students and their parents should
always look into their federal financing options first.
About NextStudent
NextStudent, Federal Lender Code 834051, is dedicated to helping students
and their families find affordable ways to pay for college. NextStudent
offers one-on-one education finance counseling and has a portfolio of
highly competitive education finance products and services, including a
free online scholarship search engine, federally guaranteed parent and
student loans, private student
loans, both federal and private student loan consolidation programs, and college savings plans.
For more information about NextStudent and its student loan programs,
please visit our website at www.nextstudent.com.