Using Loans for University Abroad

Many US students are curious about how loans work abroad. Many universities abroad tend to be more affordable than the US, but there is a pretty big range of prices (anywhere from $0 - $25,000/annual tuition). So, it is wise to determine if you even need to take out loans at all, or simply try to save up as you go along so as to stay debt-free.

If you do decide to go the loan route, there are some things to pay attention to. To finance your education abroad, there are two types of loans for US & permanent resident students to use: Federal loans and private loans. Federal loans tend to have much better repayment and deferment plans, making these loans much more attractive. Private loans may have less favorable terms of repayment. In all cases, be sure you are aware of the interest rate and terms of repayment before taking out any loan.

FAFSA is the US federal student loan program and there are about 400+ universities abroad that are eligible for use of FAFSA loans. Check out my in-depth article to learn more and to see if FAFSA loans would be a fit for your abroad degree.