Many people embrace college as a time to try new experiences. And living and studying in another country is one way to do just that.
Fortunately, federal student loans can be used to pay for a degree earned outside the country, so long as a school is eligible to receive Title IV funding.
“There are 100s of these participating schools,” says Bethany Hubert, campus partnership marketing manager with student loan servicer Navient.
The process of applying for and receiving federal student loans is the same regardless of whether you attend college in the U.S. or at an international school. However, some international schools may have relatively little experience in accepting and processing these loans.
For that reason, “(Students) have to get on it real quick and real early,” according to Tom O’Hare, a holistic college and career advisor. He says students shouldn’t wait until the last minute to confirm that their school financing is in order.
Keep reading for more about using federal student loans to attend a foreign college or university.
Using Federal Loans at an International College
To receive any federal student aid, a person must complete the Free Application for Federal Student Aid, known as the FAFSA.
“They would just be filing the FAFSA and adding the school code,” according to Hubert.
The school code tells the federal government where to send the application and, eventually, the aid. These codes can be found while completing the application, using the search tool within the FAFSA.
“The U.S. treats them the same as any other school,” says Dan Farnesi, chief financial officer advisor with HelloCollege, which provides college admissions counseling.
Students can use loans from the direct loan program at international colleges. These include subsidized, unsubsidized and PLUS loans. The Federal Pell Grant and TEACH Grant cannot be used at international schools.
Note that you would only include an international school code on the FAFSA if you are enrolled as a regular student who is earning a degree from that institution. If you are completing a study abroad program through a U.S. college or university, you should include the school code for your home institution on your FAFSA.
[Read: Best Private Student Loans.]
Foreign Colleges Participating in Title IV
Participating international schools can fall into two categories: eligible and deferment only.
Deferment-only schools are those where students can defer making payments on existing federal student loans while enrolled. You can’t take out new loans to attend a deferment-only school. Eligible schools are those in which you can borrow money from the federal student loan program to pay for your education.
Eligible schools are concentrated in England, Canada and Australia. Examples include the following:
— Australian National University
Eligible schools can also be found in Egypt, France, Ireland, Israel, South Africa and elsewhere around the world.
Be aware that the list of participating schools can change each year. If your school stops participating in the Title IV program, you may not be able to get future loans.
“Most of the schools that are doing it have been in there long enough that it shouldn’t be a problem,” O’Hare says.
Check how long an international school has participated and have a contingency plan to reduce the possibility of a disruption to your education.
“You have to go in with your eyes wide open and look beyond the current year,” Farnesi says.
[Read: Best Student Loan Refinance Lenders.]
Other Ways to Pay for an International College
Federal subsidized and unsubsidized loans are capped at $5,500 to $12,500 per academic year, depending on your year in school and dependency status. For many students, that won’t be enough to earn a degree.
“Most international schools don’t give U.S. students scholarships and grants,” O’Hare says.
Instead, you might need to look for other sources of income. That may include personal savings, working during the summer or taking out private loans.
“Earnest does provide private student loans (for international schools), but not all do,” Hubert says. Earnest is a private lender affiliated with Navient.
Regardless of where you get the money, be sure you are prepared for contingencies. Have enough funds to pay for living expenses, health care and outings. You should also plan for a currency buffer to account for exchange rate fluctuations.
More from U.S. News
Where Do Federal Student Loans Come From?
Should You Refinance Your Student Loans in 2026?
Fixed or Variable Student Loan: Which Is Better?
How to Use Federal Loans to Attend College Internationally originally appeared on usnews.com