STUDENT LOAN INFORMATION

Studying abroad is the act of a student pursuing educational opportunities in another country.

Typically, classes taken while studying abroad award credits transferable to higher education institutions in the home country. Length of study can range from one week, usually during a domestic break, to an academic year, encompassing a couple academic terms.

Some students choose to study abroad in order to learn a language from native speakers. Others may take classes in their academic major in a place that allows them to expand their hands-on experience (e.g. someone who’s studying marine biology studying abroad in Jamaica or a student of sustainable development living and studying in a remote village in Senegal). Still other students may study abroad in order to explore topics within the framework of a different educational system (e.g. a student of English who goes to the United States to study American literature).

History

In the USA, the act of studying abroad originated at the University of Delaware. In 1923, Professor Raymond W. Kirkbride sent a group of eight students to Paris, France. At the time, the concept of students studying in a different country was incredibly unconventional. Kirkbride's program was originally named the "Foreign Study Plan". For a period of time, study abroad was seen as an option primarily for foreign language students. Recently this has changed, and the scope of study abroad programs has increased greatly.

In the 2003/2004 academic year, the four countries US students chose to study abroad in most were the United Kingdom, Italy, Spain and France. 46% of US students studying abroad went to one of these four countries, and 61% of US students studying abroad went to Europe. In that same academic year, the number of students that chose to study abroad in China increased by 90%. The total number of US students studying abroad during that academic year was 191,321.

Why Study Abroad?

Some students study abroad to:

• Challenge oneself
• Help learn a new language by immersion
• Develop skills for living in a globally interdependent and culturally diverse world
• Experience another culture (and its architecture, art, history, language, music, etc.)
• Get a change of scenery from the home school
• Satisfy desire for adventure, exploration, and fun
• Improve their employment prospects
• Gain a unique and new appreciation for their home country

Types of Programs

U.S. students can choose from a wide range of study abroad programs differentiated by mission, provider type, and degree of integration.

Mission

While study abroad programs started out with the mission of educating foreign language majors, today there are study abroad programs with many different missions. In addition to language-focused programs, there are programs geared to specific academic areas (art, architecture, business, comparative religion, engineering, environmental studies, international politics, sciences, etc.).

Provider Type

Providers are the organizations that run study abroad programs. There are four basic types.

1. U.S. college or university - Probably the largest group of providers
2. U.S. non-degree-granting university - Also called third-party providers
3. Consortium - Group of colleges and universities that work together
4. Overseas university - Some programs are designed for Americans, others have a division for foreign students.

Another aspect of providers is the resident director, the primary responsible party providing support to students. Characteristics are full-time or part-time, faculty or study abroad professional, and American or host country national.

Degree of Integration

Study abroad programs have a spectrum of integration, from those that offer the greatest integration into host institutions to those offering the most assistance to students.

1. Integrated - Complete (or nearly complete) integration into the host academic programming; the director is often a citizen of the host country; students take regular university courses with locals.
2. Peninsula - Mix of selected local resources and provider-managed resources. Some courses may only be available to program participants, others may be taught by local university faculty.
3. Island - Strong support services enhance the local experience and give it context. This allows an overseas experience without diverging from the home school's degree program.

Study abroad resources

There are a number of print editions compiling study abroad programs. These are trade and special interest publications listing programs, and frequently available at college study abroad offices. Individual students can also check for the existence of a study abroad office at their own college or university.

In some countries, students wishing to study abroad seek help with study abroad consultants. Study Abroad consultants have contracts with different universities and colleges in different countries, so these consultants act as representatives of these institutions. The role of these consultants is to give details about course, fee structures, fee payments procedures, scholarships options of intended institution, help students with application procedures. They also guide about visa process of the intended country

Financial aid for U.S. students may include a combination of scholarships, government student loans, and private student loans.

Scholarships

Scholarships are offered by a number of organizations and foundations. Scholarships can be highly competitive, because students are not required to repay the money awarded. Research into available scholarships and private grants should be initiated well in advance of a student's planned travel date. In addition, government or private aid may need to be sought.

Government Student Loans

Amendments made in 1992 to the Higher Education Act of 1965, TITLE VI, SEC. 601-604^[7] in the U.S. ruled that students can receive financial aid for study abroad if they are enrolled in a program that is approved by their home institution and would be eligible to receive government funding without regard to whether the study abroad program is required as a part of the student's degree.

Financial aid can cover all "reasonable" costs for a study abroad program, including:

• Health insurance
• Living costs incurred during the program
• Passport and visa fees
• Round-trip transportation for the approved program
• Tuition and fees for the program

To get government financial aid, students must complete the Federal Application for Student Aid (FAFSA). Funds are awarded by the United States Department of Education. As long as the issuing institution pre-approves the credit to be earned abroad, federal aid can be used toward study abroad programs. Forms of government aid include the PLUS Loan, Perkins Loan, Pell Grant, and Stafford Loan programs.

Private Student Loans

Private student loans are not guaranteed by a government agency, but generally offer higher loan limits, grace period with no payments due until after graduation, and base availability on credit history vs. financial need.

Private loans are a good option:

• If a student is not currently enrolled in a U.S. college or university
• If a student is not eligible for federal financial aid
• If federal financial aid doesn't cover all study abroad tuition, living arrangements, and/or transportation costs

Student loans in the United Kingdom

British undergraduate and PGCE students can apply for a student loan through Student Finance England or Student Finance Wales in England and Wales, the Student Awards Agency for Scotland (SAAS), or their local education and library board in Northern Ireland. SFE, SFW, SAAS, or education and library board then assesses the application and determines the amount that the student is eligible to borrow, as well as how much tuition fees, if any, the student must pay. The family's income; whether the student will be living at home, away from home, or in London; disabilities; and other factors are taken into account. From academic year 2009/10, 72% of the full loan (£2763 - £4988 dependant upon living situation) is available to all students in England and Wales, with only the final 28% being means-tested (taking the total available up to just over £4,950 for those studying outside London and £6,928 for those living away from the family home and studying in London). Scotland has a slightly different assessment method where more of the loan is means-tested with a minimum loan of only £840. However much you get, it is paid in three instalments during each year of the student's course (one per term). Special rules apply for some courses and for part-time courses.

Interest and repayment

Loans are provided by the Student Loans Company and do not have to be repaid until the April of the year after students have completed their course and are earning £15,000 a year. However, the monthly threshold is £1250 so if you earn over that one month (say due to working overtime) you will make a payment towards your loan that month even if your gross yearly pay is less than £15,000. You will have to claim back this payment at the end of the tax year when you have received your P60 from your employer.

The interest rate is updated annually and is tied to inflation. It is applied only to maintain a constant value of the outstanding loan, as the "buying power" of the pound changes and not to provide "earned interest". The loan is normally repaid using the PAYE system, with 9% of the graduate's gross salary over £15,000 automatically being deducted to pay back the loan. There is no particular schedule for clearing the debt, but, if it has not been cleared 25 years after repayment began, or the student turns 65 years old the remaining debt will be cancelled, in circumstances where the borrower has fully met their repayment obligations and not defaulted at any time when they should have been repaying. For students beginning courses before 1998, the arrangements for repaying and deferring are different. Although Scottish students have their tuition fees covered by the SAAS during their time of study, much of this is actually repaid in a Graduate Endowment. The Graduate Endowment has now been abolished and new students will not be required to pay it.

Higher Education Act 2004

The Higher Education Act 2004 made significant changes to the loans system in England, Wales and Northern Ireland from 2006. Those with sufficient private funding can still pay tuition fees 'upfront' but everyone who satisfies residence criteria - regardless of their income - is now entitled to take out a loan to pay their fees. For those who take out a tuition fee loan, the Student Loans Company pays their fees direct to the place of study and the student, once they have graduated or left their course, Universities are now required to sign a special agreement with the Office for fair Access and, in return for an undertaking to provide a minimum bursary of £300 for all students who qualify, they may now charge tuition fees of up to £3,225. Students who began their courses prior to academic year 2006/07 are entitled to borrow additional loans to cover their tuition fees (which remain at the old rate). Critics claim these top-up fees will create tiers of "expensive" and "cheap" universities and make university financially inaccessible to many students. As a result, there have been national demonstrations and protests by students' unions.

Student Finance England

For all students whose 'domicile' (family or full-time home base) is in England, radical changes are underway to enhance and improve the student finance system. Now known as Student Finance England, this is a comprehensive new service which is being phased in between now (2008) and 2012 and is being based on widespread consultation with students, prospective students, parents and other 'sponsors' helping a student through university. It seeks to reduce significantly the amount of time and effort required to apply for finance and the system is being constructed in a way which joins up the main agencies in higher education in a way that has not existed hitherto. The time scale of application is being changed, so that a student will be able to apply for finance at the same time as they apply for a university place and information is being shared in such a way that repeated requests for the same student details will be got rid of.

First year students applying this year for a place in 2009 will have to deal with just two agencies - UCAS (to apply for a place) and the Student Loans Company, which will share much of the information supplied to UCAS and will then assess the applicant's eligibility for finance and make the appropriate payments. This service will be increased and extended to second and third year students in the subsequent two years until all applicants are assessed in the same way by SLC.

Already, student finance has been radically changed to make it much easier for people from less well-off backgrounds to attend university. Now, anyone from a home background earning less than £25,000 but not more than £60,000 after normal deductions is entitled to a maintenance grant, the size of which(up to £2,835) will depend on income. Also, those entitled to the full maintenance grant are automatically entitled to the full bursary at their place of study (which can be up to £3,000 but is typically £1,000 per academic year). This year, the maximum loan amount for studying in London is £6,928 and (away from the family home) elsewhere £4,950.

Reliable source: Learning and Development Trainer within The Student Loans Company/Student Support Regulations as publised by DIUS (now known as BIS - Department for Business, Innovation and Skills)