The cost of studying overseas – and how to pay for it

Get insights on managing the costs, from tuition to living expenses, and explore loans and scholarships for international students.

When you’re thinking about studying overseas, figuring out how to pay for your education can be a challenge. The cost to study abroad in Canada or the U.S. can be quite high, and international students typically have fewer options for financial aid than students who are citizens of either country.

The good news is there are now more than 2 million international students who are studying in the U.S. or Canada – which means there are lots of options for students interested in studying overseas. Let’s take a look at the cost of studying abroad and how you may be able to pay for it.

Paying for education when you’re studying overseas

The cost of studying overseas in the U.S. or Canada varies greatly depending on the college or university you choose. For example, it’s not unusual for one year at a private college in the U.S. to cost as much as US$70,000. At the same time, the tuition at public universities and community colleges may be much lower. Also, when you attend a school in the middle of a major urban area like New York, Chicago, Toronto or Québec, the cost of your room and board will likely be much higher than if you attend a school in the suburbs or smaller towns.

The cost of studying overseas includes tuition as well as the cost of room and board, student fees, books and supplies, insurance and transportation.

Financing options for studying overseas

Options for paying for your education in the U.S. or Canada include:

Financial aid from the school. Many educational institutions offer financial aid or discounts on tuition to international students. Be sure to check with the admissions office at the school you’re interested in and with the department of the field of study you’re pursuing.
Financial aid from your home country. Many countries have programs that cover the cost of studying overseas for promising college students.
Financial aid from the U.S. government. While most international students are not eligible for U.S. federal student aid, some students in programs like Fulbright or EducationUSA may be eligible for assistance.
International scholarships. Many organizations around the world offer international scholarships and grants that help promising young individuals interested in studying overseas. IEFA.org and InternationalScholarships.com are both free online scholarship search services providing information to help you identify options.
International student loans. Many international students use student loans for overseas study to fund a portion of the cost of their education. Student loans allow you to borrow money that will be paid back after you graduate.

Loans for study abroad

Thinking about studying abroad? Learn how International Student Loans can help you finance your studies overseas.

Understand Your Options

What to look for in a student loan

When the total of your financial aid, scholarships and savings isn’t enough to cover the cost of studying overseas, international student loans can be a great option. These loans are offered by private lenders – banks and financial institutions that specialize in lending to students.

Keep these things in mind as you consider an international student loan.

Interest rates. The interest rate on a student loan determines the amount of money you’ll need to pay back on top of the amount of the original loan. Student loan interest rates may be fixed or variable. With variable rates, the amount of interest you pay each year will go up or down depending on economic conditions. With fixed interest rates, you pay the same amount every month for the duration of the loan. Finding the lowest interest rate helps to reduce the overall cost of studying overseas.
Repayment terms. Your student loan will include terms that specify the number of years you have to pay off the loan and how much time you have after graduation before you must start making payments (called a grace period). Spreading your repayment out over 30 years will lower your monthly payment, but you’ll end up paying much more in interest than if you pay your loan off faster.
Cosigner vs. no cosigner. A cosigner is someone who signs the loan documents with you and guarantees they will pay back the loan if you cannot. In the U.S., for example, a cosigner must be a U.S. citizen with a good credit history and stable employment. Because loaning money to an international student generally carries more risk, lenders are more likely to approve a loan and offer a lower interest rate when there’s a cosigner involved. However, there are loans available for international students who cannot find a cosigner. These education loans without a cosigner provide opportunities to a wider audience of students who may not otherwise have the opportunity to study abroad.

Finding your best options for student loans

There’s a lot of variety in the kinds of lenders available to students interested in studying overseas - including the types of loans and interest rates they offer and how easy they are to work with. That’s why it’s important to do your research and compare loan offers before making a decision.

The good news is that the internet makes researching easy. While a simple search on “international graduate student loans,” for example, will return thousands of results, there are simple resources available like the International Student Loan Comparison Tool that can help you quickly find the best options for you.

When you use the comparison tool, you simply need to enter a little information about yourself, where you’re from, where you want to study and whether you have a cosigner. The comparison tool will show you all the lenders that match your situation and let you research each lender online.

International Student Loan: Free resources for studying overseas

At International Student Loan, we’ve been helping students find the best financing options for studying overseas for more than 25 years. We understand how daunting it can be to figure out how to pay for study abroad, so we’ve dedicated ourselves to simplifying the process to help you pursue your dreams more easily. Whether you’re looking for loans or need resources around student budgeting, you’ll find lots of helpful answers, articles, information and blogs on our website.

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Our loan comparison tool can help you find an international student loan that’s right for you.

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FAQs

How do I apply for a student loan to study abroad?

When you need a loan for studying overseas, identifying potential lenders is the first step. You can do this by searching the internet and researching individual companies yourself, or you can make the process easier by using the International Student Loan Comparison Tool. This free resource will help you find available lenders in just a few seconds.

When should I apply?

You may apply for an international student loan at any time. The process usually takes a minimum of six weeks, so it’s best to apply as soon as you know where you want to study.

How much money can I borrow?

With a private student loan for studying overseas, you can typically apply to borrow enough money to cover the total cost of your education minus any other financial aid or scholarships, as determined by your school.

How do I find a cosigner?

For most international students, a cosigner is usually a family member or family friend who lives in the U.S. or Canada. For students who don’t have a cosigner, it’s possible to secure an education loan without a cosigner.