By Sara E. Savage

Currency exchange rates are major factors in the cost of study abroad programs, and when the dollar is falling, students feel the impact when they begin to plan for studying overseas. During the past 16 months, the U.S. dollar has declined 9.5 percent against major currencies. In September 2007 it made a sharp drop. The falling dollar has already begun to affect travelers, but the average study abroad student has a significantly smaller budget than many tourists, and they often must make that money last over the span of months. In a time when a majority of students dream of studying overseas in countries such as England, Italy and France, exchange rates have caused study abroad advisers and administrators to encourage students to consider non-traditional destinations.

Meanwhile, study abroad has become big business, and schools and organizations are scrambling to lower the cost of studying abroad without sacrificing quality. While most study abroad program costs have remained the same, exchange rates have caused prices to increase in airfare and living expenses. Considering the U.S. goal of increasing the number of students that study abroad each year, the weak dollar is an alarming development that must be addressed by students, advisers and study abroad program administrators.

Advice for Students

These days nearly every student would love to study abroad. It is an experience of a lifetime and students return from studying overseas with a broader view of the world around them and a better understanding of a different culture, not to mention more marketability in the job force. It is frustrating that the decline of the U.S. dollar is causing students to question whether they can afford to make study abroad part of their higher education. However, students can ease the financial burden of studying abroad and still manage to have an unforgettable experience.

Advisers have long been trying to get students to consider more unique study abroad destinations, and due to the current situation with the exchange rate, they may finally get their wish. If you want to go somewhere where you can speak French, but you don't think you can afford life in France, consider a French-speaking country like Senegal, in Africa, which has beautiful beaches and a fascinating culture. Or, instead of living in Paris, where tuition fees and cost-of-living are through the roof, think about a smaller city right outside Paris. You can still travel to the famous city, and you can still immerse yourself in French culture, but you will save thousands of dollars. On a similar note - take housing into consideration. You can get a local apartment and try to find roommates to subsidize your costs. You can live in a dorm of whatever institution you are attending. Or, if the program offers it, you can live with a host family, sleeping in their house and eating their food, not to mention completely absorbing yourself in the country's language and culture.

You may have always dreamed of visiting Europe, but that dream may be best served for a vacation. To study abroad, the better bet - both for your bank account and your development - may be a less-popular country. Costa Rica if you are studying biology or the environment. China if you are studying international business. Egypt or Jordan if you are interesting in foreign affairs or middle-eastern society. Even lesser-known jewels of Europe can benefit you. Prague in the Czech Republic or St. Petersburg in Russia for all those architect majors, for instance. Both of those locations also have a startling amount of art and literature, for those students who thought they had to go to the Louvre to experience European talent.

For those who still want to study in the more popular destinations, or who still worry about affording a study abroad experience at all, numerous financial aid options are available, including scholarships, grants, fellowships and loans. When planning to study abroad, students would do well to apply for multiple scholarships in order to increase their chances of landing some aid. They should be sure to check with their department and school to investigate financial possibilities. Federal aid may be available, but students should beware of private bank loans because of issues including trustworthiness and high interest rates. For detailed information on funding your study abroad experience, visit StudyAbroadFunding.org.

Study abroad is becoming quite consumer-driven, so students should compare study abroad program prices based on services and location. Some programs include more services and benefits than others. The sooner students begin planning for a study abroad experience, the better. Students should begin saving money as soon as possible, and they can also consider traveling to the study abroad destination early in order to work and earn some money in the foreign currency.

Students wrestling with the exchange rates while abroad should cut back on the extras-including side trips, entertainment and shopping. Money should be spent with extreme care and when in doubt, don't shop. Find out how the locals manage in the area and about the bargains they find. The most important thing students can do in order to stay financially afloat while studying abroad is to keep close track of expenses.

Don't order foreign currency from U.S. banks before departing, as it can involve high fees. Instead, wait to exchange money once you have reached your destination. In addition, don't exchange all of your money when you reach your study abroad location, as it is advisable to exchange your money as you go. This is an excellent way in which to limit your spending and make studying abroad more affordable.

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