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While it is a bit dramatic to call where to go to college the most important decision in a person’s life, it is certainly one of the first big ones.  Alongside a choice of career and spouse, college—and the process of paying for it—can impact a person’s financial health long after they graduate.

Therefore, it’s no surprise that people are always looking for creative ways to save money while still getting a top-notch education.  From dual enrollment options to testing out of courses, dozens of approaches exist.  One strategy that is increasingly becoming more popular is simply leaving the country and going to college abroad.

The Expected Family Contribution Problem for Middle-Class & Upper-Class Families

For many families preparing to pay for college, one of the most dreaded acronyms is EFC, or “Expected Family Contribution.”

Most families, especially those that seemingly did everything right to prepare, confront an EFC that is simply too high.

Moreover, many colleges do not come close to meeting need-based aid eligibility (and may offer limited merit aid), meaning that students and their parents are often expected to take out even more debt.  With state schools charging upwards of $30,000 as the total Cost of Attendance (or COA) per year, student loan balances are only going to get bigger.

Enter a unique alternative: attend university outside the United States.

Going to College Abroad: Potential to Save Money and Receive a Better Education

Going to university abroad (institutes of higher education overseas often prefer the term ‘university’ to ‘college,’ which often implies a high school) has a number of advantages.

For starters, many countries feature three-year bachelor’s degrees, meaning that, all other things equal, costs are often 25% lower from the drop.

But that’s not all.  The total costs of tuition and living expenses can often be much lower.  Chances are that you’ve heard of those elusive German programs where college is ‘free.’  That isn’t always the case, nor should you settle for the cheapest option.  My point is this: your money can go a lot further overseas.

For around $140,000, a student can afford an entire degree at places like the London School of Economics, University College London, or the University of Manchester.  A little more pays for Oxford or Cambridge.

That’s about what some prestigious state universities charge for in-state students, with no guarantee that they’ll get the courses they need each semester. For perspective, here are several public US colleges that cost about $140,000 on paper if you pay full freight:

  • Colorado School of Mines
  • Penn State University
  • Rutgers University
  • The College of William & Mary
  • The University of Pittsburgh
  • The University of Vermont
  • The University of Virginia

Why Attend College/University Abroad? Advantages Beyond Cost

While cost is a major reason to go to college overseas, it isn’t the only one.

Degrees overseas tend to be much more specialized.  In the US, a student often spends around 40% of their time in the field of their major.  This number can be closer to 90% in Europe; in fact, the Rhodes Scholarship Trust estimates that a UK BA has the same depth of knowledge as a US major AND master’s degree combined.

Time in the classroom isn’t everything.  Perhaps the most obvious advantage is the ability to travel and live abroad.  Europe is tightly integrated with rail and affordable air options, while East Asia and Oceania provide airlines that serve budget travelers.

It is not just the chance to study abroad, but to live abroad, that many students find invaluable.  In fact, many countries offer expedited paths to residency, and even citizenship, to those who have degrees from their universities.

More Transparency in the Admissions Process

That all said, perhaps the most compelling reason is the admissions ratesUnlike American college admissions, which are typically holistic, international admissions are based almost solely on academic merit within the given subject area.

Due to this transparency, as well as the fact that admissions rates aren’t factored into international rankings, things like ‘yield protection’ just don’t exist in the rest of the world.  If your child is qualified, chances are they will be admitted.  As a result, admissions rates are much higher.  Whereas Harvard and Stanford have admissions rates of around 4%, Oxford and Cambridge boast 17% and 22%, with some subjects (areas of study/majors) getting up to 60%.

In short, your child can likely get a better education overseas because of the different methods of admission.

Who Benefits from College Abroad? How is the Application Process Different?

Just like no one college is a perfect fit for all students, going abroad isn’t for everyone.

Students who are unsure of what they want to study are limited to a small number of overseas universities, as most degrees are incredibly specialized. In this case, I would refrain from focusing on universities abroad.

Additionally, students who plan on leveraging family background, extracurriculars, or sports performance to gain an admissions edge will be much more successful in keeping their search within the US.

Instead, test scores are ultimately what matter. AP and IB tests are particularly important, but the important thing is performing well on a handful of tests rather than taking a large number of exams.  Oxford typically wants to see three AP tests with scores of five, while Cambridge wants to see five scores of five.  Other universities have much lower requirements.

Since the emphasis is mostly on academics, the application process is quite different.

Students apply to given fields at a university rather than an entire college, and they are expected to write about why they want to study their given field in their personal statement.  Extracurriculars, family background, and even grades in irrelevant classes don’t matter.  Instead, academic ability and the drive to excel in specific programs are the crucial factors in the admissions process.

How Do 529 Plans and Other Funding Vehicles Work Abroad?

529 savings plans are one of the most popular tools for Americans to save for college, and they work at a number of universities overseas. In the UK and Ireland, specifically, families are almost always able to put their 529 plans to good use. The same is true of federal loans, be they Direct or PLUS loans.

You will have to check with each individual school to see if they accept these forms of payment. What’s more, the ability of a 529 or loan to work overseas is dependent on the university hiring an American loan specialist, not an indication of quality.  As a result, many subpar universities readily accept American financial aid, just like for-profit universities here in the US.


For more info on international schools that participate in American federal student aid programs, click here.


Finally, many are surprised to learn that veterans or their designees can use the GI Bill overseas, especially in the UK.  While advanced planning is required, this can save families thousands.

Can Families Get Financial Aid – Need or Merit — From Non-American Universities?

Financial aid is not as abundant overseas for American students unless the student has citizenship (and in some cases residency) in the relevant country.  However, that isn’t to say that all avenues are closed.

Need-based awards are available at several universities, but only after admission.  Additionally, some programs offer merit-based awards, but just like in the US, don’t expect to see these at the very best programs.

Going abroad is a choice not to be entered into lightly.  For the right family and the right student, however, it offers an opportunity to save thousands of dollars and significant amounts of time, all while having a truly unforgettable experience.

If you’d like to dive further into this fascinating strategy, watch our specialty webinar from May 2022, where we discussed applying to, attending, and paying for universities outside the US.

Author: 

Kevin Newton, An Education Abroad

 


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