HOW TO FINANCE YOUR STUDY ABROAD EXPERIENCE

HOW TO FINANCE YOUR
STUDY ABROAD EXPERIENCE
You can’t afford NOT to go!
Studying abroad is an investment in your future. Like any other type
of investment, it requires planning, careful management, creativity,
perseverance and commitment. The personal, academic and
professional rewards will last a lifetime.
PREPARATION
CALCULATE CURRENT COSTS
Calculate all of your current on-campus costs. To determine your annual budget,
add up your rent, meals, tuition and fees, travel expenses (don’t forget any travel
you might do during winter or spring breaks), entertainment, books, supplies,
etc. The Office of Financial Aid has determined that the average in-state MSU
undergraduate student spends approximately $22,260 per year on tuition and
fees, room and board, transportation, books, and personal expenses (see www.
finaid.msu.edu/costs.asp for details). Use this as a baseline for comparison of
costs abroad, but keep in mind the cost of living at the study abroad location
could be more or less than what you’re presently spending. Don’t plan with the
idea that you will find work while abroad.
THE AVERAGE
IN-STATE MSU
UNDERGRADUATE
STUDENT SPENDS
APPROXIMATELY
$22,260 PER YEAR
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CHECK PROGRAM INFORMATION
Check the program information sheet and Office of Study Abroad Website for
program costs. A detailed list of items included in the program fee is listed on each
individual program’s Webpage. It will be helpful to plan for these primary costs:
• $100 Application Fee (applicable to the program fee)
• $200 Deposit (applicable to the program fee)
• MSU Tuition and Fees (based on the number of credits you plan to take)
[MSU Tuition Calculator - ctlr.msu.edu/COStudentAccounts/TuitionCalculator.aspx]
• Program Fee
• Airfare
• Meals, if not included in the program fee
• Passport and/or visa
• Immunizations
• Books and supplies
• Personal spending money
You can also use the Study Abroad Cost Worksheet (studyabroad.msu.edu/
finaid/costworksheet.pdf) to estimate your expenses.
DETERMINE YOUR NEEDS
Determine your needs and interests. Compare the features and costs of
various programs to find the best match. Various factors that influence the
total cost of participating in a study abroad program include:
• Location
• number of credits taken
• local cost of living
• timing (high tourist season vs. low tourist season) and length of program
• international and on-site transportation
• the type of program
Make the program work toward your long-term goals and it will be worth
the investment!
Once you know the costs, set a budget and stick to it! If you are getting
outside support, itemize your list and determine what you can pay for and
where you will need help.
SET PRIORITIES
Try to put aside 25% to 50% of your paycheck
and deposit funds into a separate study abroad
account (pay yourself for studying abroad first).
Choose to work longer hours or get a part-time
job for additional funds towards study abroad.
Postpone the purchase of that big ticket item
you were considering (new computer, bicycle,
cell phone, etc.) and use the funds for your
study abroad program instead.
Try to
put aside
25% to 50%
of your
paycheck!
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FINANCIAL AID
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Financial assistance is available when
you make appropriate arrangements
with MSU’s Office of Study Abroad
and Office of Financial Aid. If you are
not currently receiving financial aid,
you may apply for aid by completing
a Free Application for Federal
Student Aid (FAFSA) available at
the Office of Financial Aid or online
at www.finaid.msu.edu. All students
are eligible for either need-based or
non-need-based aid.
If you qualify for financial aid, you
can utilize that aid for a study abroad
program. The same scholarship,
grant, and loan amounts you receive
for on-campus study are applied to
the study abroad program. Many
students find the total amount
available to be less than what they
need. In those cases, a federal
parent loan or private student loan
can be pursued to cover the gap
between the traditional financial
aid package and the total cost of
studying abroad. We also caution
those of you who are using federal
loans to study abroad to consider
how using those loans will impact
what you have remaining in federal
loans when you return to campus.
The Office of Financial Aid can
explain these issues in detail if you
are considering studying abroad.
You don’t want to come home from
studying abroad and find out you
don’t have enough aid remaining to
pay for the next semester.
74
%
HIGH-NEED STUDENTS
MAY BE ELIGIBLE
FOR UP TO 40% OF
THE COST OF STUDY
ABROAD THROUGH
GRANTS AND
SCHOLARSHIPS.
SCHOLARSHIPS
Michigan State University offers many study abroad scholarship opportunities.
Some of MSU’s scholarships are administered by various colleges and units –
others are administered by the Office of Study Abroad. Detailed information
about these scholarship opportunities can be found on the Web (studyabroad.
msu.edu/scholarships/index.html).
The Office of Study Abroad has scholarships available to MSU students who
apply to any credit-bearing study abroad program. Some scholarships are
based exclusively on academic performance; others on a combination of
academic performance and financial need. The award groups are separate and
very competitive. On average, 30% of OSA scholarship applicants receive an
award. A generous endowment from the MSU Federal Credit Union, as well
as additional support offered by the Forest Akers Endowment, MSU Alumni
Association, Eleanor and Charles Greenleaf Sr., Brigitte and Thomas Huff, the
Georges Jules Joyaux Memorial Fund, the Kellogg Foundation, Charles and
Marjorie Gliozzo, William Haupricht and Kerry Rockquemore, Carol Welch,
Martha and Keith Peters and contributors to the Overseas Study Endowment,
provide funding for these scholarships.
Local professional and social societies, as well as service organizations may
also provide scholarship opportunities.
Make note of, and be careful not to miss, scholarship deadlines!
OF MSU STUDENTS WHO STUDY ABROAD
RECEIVE SOME FORM OF FINANCIAL AID.
As with academic and program arrangements, students must plan ahead to
make the most of financial aid opportunities. While scholarships are available,
most are primarily for students with high financial need. OSA recommends
that students be prepared to pay the majority of program costs out-of-pocket
or with federal or private loans. A recent study by the Office of Study Abroad
and the Office of Financial Aid found that:
• 74% of MSU students who studied abroad received some form of financial aid
• $4.5 million in gift aid was awarded in 2010 – helping students to meet an
average of 25% of total program cost
• High-need students may be eligible for up to 40% of their total cost
through gift aid.
• 22% of students who study abroad are Pell Grant eligible, demonstrating
that study abroad is not just for affluent students.
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FUNDRAISING
WHO TO ASK
Fundraising will help to make your program more affordable and serves as a way
to educate the public. If you select a program that helps achieve your long-term
goals, it will be easier to solicit funds from external sources. Keep in mind that local,
regional and national groups, as well as individuals, are all possible contributors.
• Heritage groups that have interests in specific
countries (e.g. Japan America Society)
• Civic groups (Rotary, Kiwanis, and Lions Clubs)
• Agencies and foundations
• Travel agencies
• High school alumni associations
• Professional and business clubs
• Media (newspapers, radio and TV)
• Sororities and fraternities (local and national chapters)
• Residence hall councils or floor governments
• Vocational rehabilitation agencies (for students with disabilities)
• Charitable, ethnic, religious and campus organizations
HOW TO ASK
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Direct, informal appeals often work best. Be specific on how you intend to spend
the funds (airfare, program fee, tuition, personal travel, special projects, etc.).
Include a photo of yourself with your request so that the receiver will establish
a personal connection with you. Make donating as easy as possible (cash or
check), so that you’re more likely to get an actual donation rather than a promise
to donate, and don’t be afraid to follow up if you haven’t received a response.
Enthusiasm, creativity, and perseverance on your part – and not fearing rejection in
some instances - will likely take you a long way. Remember every little bit helps!
In exchange for your financial support, you should pledge to “give something
back,” such as regular updates while you are abroad. Alternatively, upon your
return you could:
• Write an article
• Show a video from your experience
Your
• Create a Web site or share your blog
energy and
• Sponsor a regional dinner or presentation
enthusiasm for
• Lead a discussion or seminar
an international
• Organize a topical campus or community forum
experience
• Promote educational and business exchanges
will be
• Participate in radio/televised interviews or broadcasts
contagious!
• Contribute community service and outreach
• Help others to have a similar international experience
The keys to successful fundraising are confidence and perseverance! Keep
careful records of who supported you and the amount. Be sure to express your
appreciation for their support.
CREATIVE IDEAS THAT WORK
• Waive holiday and birthday gifts and request financial gifts or loans instead.
• Write a creative letter to all your relatives, asking for financial support in
exchange for regular letters, postcards, emails or blogs while abroad and a
presentation and dinner upon return.
• Ask friends to join you in raising money by painting, cleaning or washing cars.
• Organize an event where you and/or some friends solicit donations by providing
instruction for a couple of hours (cooking, quilting, yoga, karate, computer skills,
dancing, sign language, etc.).
• Collect used books, CD’s, computer software, etc. and have a sale.
• Ask your church, synagogue or temple to sponsor a special offering, dinner, or raffle.
• Organize a radio talk show and solicit contributions.
• Approach stores for donated supplies such as clothing, camping gear, etc.
• Find out if your parents’ employers have
a scholarship program for their children.
• Find out if your employer will sponsor
you or might be willing to make a cash
advance to be paid back through payrolll
deduction.
• Combine fundraising opportunities: sell
T-shirts at a fundraising dance marathon..
• In exchange for the use of your car
while you’re gone, have a friend or
sibling make all or part of your car
payments.
• Organize a can drive in the residence halls.
• Collect cans during football tailgating (be sure
to identify yourself and your purpose so fans will
readily pass on their cans and bottles).
• Join friends and get paid to clean up the
Breslin Center after an event (you’ll need to
sign up in advance).
• Work for the Department of Police and Public
Safety (DPPS) for special event parking.
• Sell coffee and baked goods with a sign stating your purpose.
• Contact foreign exchange students you might know about staying with them,
thus reducing your housing costs.
• Ask family members to donate frequent flyer miles.
• Save all your spare change in a jar – small amounts can really add up!
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HELPFUL WEBSITES
studyabroad.isp.msu.edu/shared/funding_menu.html
www.studyabroad.com/forum/financial_aid.html
www.iefa.org
www.finaid.org/otheraid/exchange.phtml
www.worldteach.org/program_information/fundraising.html
www.fastweb.com
foundationcenter.org
109 International Center | East Lansing, MI 48824-1035
517-353-8920 | Fax: 517-432-2082 | studyabroad.msu.edu