Can You Get Student Loans to Study Abroad? Best Federal and Private Options in 2025

Studying abroad can be life-changing—you’ll gain language skills, cultural experience, and a competitive edge in your career. But with funding freezes in February 2025 around key exchange programs, securing financial support is more important than ever.

The good news? You can use federal and private student loans to cover study abroad costs.

Whether you’re eyeing a semester in Paris or research in Tokyo, we’ll walk you through your loan options, eligibility, and smarter ways to finance your adventure. 

Federal student loans for study abroad

To use federal education loans for study abroad, the school you’re attending—whether in the U.S. or abroad—must be eligible to participate in the Direct Loan program. The Office of Federal Student Aid maintains a database of eligible international schools, so check if your chosen institution qualifies before making plans.

Federal study abroad student loans for U.S. students can be used to pay for tuition and fees, room and board, and other qualifying costs. Any leftover funds are disbursed to you, which you can use for travel expenses, daily living costs, and study-related needs abroad.

The amount you can borrow depends on the type of federal loan you qualify for:

• Direct Subsidized and Unsubsidized Loans: Undergraduates can borrow $5,500 to $12,500 per year, depending on their dependency status and academic year.
• Direct PLUS Loans: Graduate students and parents of undergraduates can borrow up to the total cost of attendance, minus other financial aid received.

However, federal loans may not cover all study-abroad costs, especially in high-cost destinations. Federal Pell Grants can’t be used for studying abroad unless your home institution’s program meets specific criteria.

If federal loans don’t fully cover your expenses, you may need to explore private student loans, scholarships, or additional financial aid to bridge the gap.

Private study abroad student loans

If you’ve exhausted your federal loan options, consider private student loans to cover the gaps. The lenders below offer private student loans for study abroad.

College Ave

Sallie Mae

Ascent

Alternatives to education loans for study abroad

Study abroad student loans can be convenient, but they aren’t the only way to pay for your education. Here are other ways to cover study abroad costs without creating a debt obligation.

529 college savings plan distributions

A 529 college savings plan is a tax-advantaged plan you can use to pay for higher education expenses, including costs associated with studying abroad. Contributions to a 529 savings account grow tax-deferred, and withdrawals are always tax-free as long as they are used to pay for qualified higher education expenses.

Parents can set up a 529 plan for their children, but you can also create a 529 plan for yourself if you’re 18 or older. You’d name yourself as the beneficiary and contribute money on your behalf. That money is invested in mutual funds or other investments inside the plan, growing until you need it to pay for study abroad.

If you have time to save, a 529 savings account could be wise. Depending on how you invest it, you could earn a much better return rate than a high-yield savings account or certificate of deposit (CD) account.

Scholarships for study abroad

Note

In mid-February, the U.S. State Department, under the Trump administration, imposed a temporary halt on funding for international exchange and study-abroad grants, disrupting programs like Fulbright-Hays and the Benjamin A. Gilman International Scholarship. Advocacy groups for international education have raised concerns about the impact of these cuts on global academic engagement.

Scholarships are a terrific option to consider for study abroad because, in most cases, this is money you don’t need to repay. Scholarships can be need-based or merit-based. Others are based on your area of study, while still more are diversity-based.

If you’re interested in finding study abroad scholarships, start with your school’s financial aid office. You can also research scholarship options online or contact your college’s study abroad coordinator. 

Here are some of the most noteworthy scholarships for students looking to go abroad:

• U.S. Department of State Benjamin A. Gilman International Scholarship Program: The State Department offers this scholarship for students with limited financial means who are interested in studying abroad or completing an internship overseas.
• Fund for Education Abroad Award:  The Fund for Education Abroad Award provides up to $5,000 in funding for students who are underrepresented in the U.S. study-abroad population, including students of color and first-generation college enrollees.
• Boren Language Scholarship: The Boren Language Scholarship is designed for U.S. undergraduate and graduate students who plan to study abroad in countries outside of Western Europe, Canada, Australia, or New Zealand.
• Rotary International Scholarship: The Rotary Club funds scholarships of $30,000 for students serving as cultural ambassadors while studying abroad.
• Fulbright Awards: The U.S. Department of State’s Fulbright Program provides grants for students, scholars, and professionals to study, research, or teach abroad. The Fulbright U.S. Student Program supports recent graduates and students pursuing research or teaching English overseas, while the Fulbright U.S. Scholar Program funds faculty and professionals for international research and lectureships.
• Fulbright-Hays Program: Funded by the U.S. Department of Education, the Fulbright-Hays Program provides grants for graduate students and faculty conducting research abroad in foreign languages and area studies. Unlike traditional Fulbright awards, Fulbright-Hays focuses on advanced academic research rather than undergraduate study.

Your existing financial aid

If you currently receive non-loan financial aid, you may not need to look for additional study-abroad funding. 

You’re still technically enrolled at your home university when you study abroad for a semester or two. As a result, you can often use the scholarships you’ve already been awarded for your overseas studies. The same is true for any grant money you receive.

Eligibility varies based on your scholarship or grant requirements, as well as your school’s policies. Your financial aid office can help you figure out if using your existing aid is a viable option. 

Tip

Some countries—Australia, for example—let international students work part-time. If your financial aid or study abroad loans don’t leave much financial breathing room, a part-time job can help you earn spending money while overseas.

If an outside organization (like a nonprofit or local business) sponsors your scholarship or grant, reach out to its award committee, too. Not only will the committee want to stay abreast of your educational development, it can let you know if any rules or regulations preclude you from using your funds abroad.

Can I use student loans to earn a degree from an international school?

The Department of Education allows the use of federal loans to obtain a degree from an international school. The same stipulations apply if you only study for a semester or a year abroad: The school must be eligible to participate in federal student aid programs.

Aside from eligibility, the major consideration is whether your federal loans will be enough to pay the full cost of earning an international degree.

If not, consider private study abroad loans. Comparing private student loan terms and requirements can help you find a lender that matches your needs. 

Read More

Learn about the different uses for student loans.

FAQ

Who offers study abroad student loans?

Various entities—including private financial institutions, lenders, nonprofit organizations, foundations, and government-sponsored programs—extend study abroad loans to help students finance their education in foreign countries. 

Well-known lenders include College Ave, Ascent, and Sallie Mae. Most educational institutions also have financial aid offices that provide eligible students with scholarships, grants, and loans to support their study abroad plans.

Do study abroad student loans cost more?

The cost of study abroad student loans can vary based on several factors, including your lender, study abroad program, and loan terms. Here are considerations to bear in mind:

• Interest rates: Private student loans can have higher interest rates than federal student loans.
• Additional costs: Study abroad student loans might involve origination fees and other upfront expenses, which can add to the overall loan cost.
• Repayment terms: Longer repayment periods result in higher interest accruing over time, affecting the total amount you repay.
• Exchange rate fluctuations: Currency exchange rate fluctuations can affect tuition, fees, and other expenses while studying abroad, resulting in the original loan amount you requested being insufficient. 
• Comprehensive program cost: The overall cost of your study abroad program, including tuition, travel, accommodation, and living expenses, is significant in determining the total borrowed amount and eventual repayment.

Do I repay education loans to study abroad the same way as traditional student loans?

In most cases, you repay study abroad student loans like traditional student loans. The repayment process and terms often follow the same guidelines as other student loans, regardless of whether you use them to attend a domestic or overseas institution. For instance, grace periods are typical for both loans, offering students time after graduation or leaving school before beginning loan repayments.

However, the payment terms and options can vary based on factors such as the type of loan, the lender, and your personal circumstances.

Recap of student loans for study abroad