Student Profile

Ashanti O steen School: University of Rochester Abroad Location: Argentina

Studying abroad has exposed me to new ideas and new approaches.

The best part about studying abroad was being able to exchange ideas, customs and language with Argentines that I met. ...

Read more of Ashanti O steen's Interview

Study Abroad and International Student Loans

Like most parents you most likely do not want your child to have to borrow money for school. We agree, it’s always better if your child is able to find study abroad scholarships or grants, it’s free money! However, if it comes down to your student going abroad or not, you and your student may want to consider a study abroad loan. Remember, study abroad is an investment that provides personal, academic and career benefits for your student.

Loans can be federal or private. Some federal loans, but not all, are need-based. Federal loans are either subsidized or unsubsidized. Subsidized loans are loans for which the borrower does not pay interest. An Unsubsidized Stafford Loan is a federally guaranteed loan that is not based on financial need. Interest will accrue from the time the loan is disbursed to the school. You do not have to make interest or principal payments until six months after graduation, or six months after you drop below a half time status.

As a parent of a student who is enrolled at least half-time in school, you many be eligible for the Federal Parent PLUS Loan for parents. The Federal Parent PLUS Loan is a loan borrowed by a parent on behalf of a child to help pay for tuition and school related expenses, including study abroad.

In addition to federal loans your family may decide to take out a private education loan. Private education loans are funded through banks and other organizations. Benefits of private loans include:

• Funds can pay for things like airfare, the cost of living, and cultural excursions abroad.

• Interest from student loans is tax deductible.

• Interest and payment is usually deferred until your student graduates
  

With low interest rates and often no loan fees, private loans can be a good alternative to using high interest rate credit cards to pay for the cost of study abroad. Help your child shop around for the best student loan deals.

Must Ask Questions

• Is the loan private or federal? If it is federal, is it subsidized or unsubsidized?

• What is the interest rate?

• What are the eligibility requirements?

• Does my child need a cosigner?

• Are there any restrictions on the funds? Can my child use them for things like airfare?

• When does my child need to start repaying their loans?

• Is there anything my child needs to do to defer payment of past loans while they are abroad?
  

Tips for searching for loans

• Start your search early, at least six months in advance if possible.

• Shop around to get the best rates.

• While not all loans require a cosigner, it is a good idea for your child to have one ready.

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