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.

Advice for Advisers

Advisers are charged with the responsibility of steering students toward the study abroad programs that fit their financial, personal and academic needs. Now that the U.S. currency exchange rates have become such an issue, it is more important than ever that advisers provide students with accurate advice. Advisers can shed light on the costs of programs and living necessities, when students should choose to study abroad and which locations fit best.

Because the dollar-Euro exchange rates are now so poor, popular study abroad locations such as France, Germany, Greece, Ireland, Italy and Spain may not be financially sound destinations. The U.S. dollar stretches much further in locations such as Latin America, Africa and the Caribbean, as well as in countries including Brazil, China, Costa Rica and Mexico. It is the adviser's job to recommend such destinations to students, and to point out that students do not have to travel to the more obvious countries in order to learn a language. For example, students who wish to become fluent in French can study in Morocco as opposed to in France where the Euro makes the cost of living expensive.

Advisers can also suggest that students choose study abroad destinations that are closer to home, such as Mexico, as travel costs are less expensive. Advisers may want to attempt to interest students in studying in a location in the United States in which they have never lived. They may also encourage students to put their travel plans on hold and take an internship abroad instead of doing one at home.

The fact remains that advisers want to give students the best range of opportunities available to study abroad. Since students must pay based on program and location, advisers do not want students to feel forced to opt for a bargain instead of for what fits their needs. To help avoid this, advisers can guide students through the many financial aid options, as well as promote fund-raising campaigns for study abroad financial aid.

Advice for Study Abroad Program Administrators

Study abroad program administrators have the difficult duty of selecting and managing the study abroad opportunities provided for students. This job has not been an easy one as the dollar has continued its freefall, and administrators have struggled with how to cut costs without lowering standards of quality. In most cases, study abroad program prices are set at least one year in advance. Therefore, if the dollar begins to rebound, students still must pay the higher price that was set when the exchange rate was poor. Perhaps administrators should look into implementing more flexibility in the annual fixed-pricing of programs.

Administrators often do not want students to look outside of the study abroad programs offered by the school, and many make it difficult for students to earn credit for courses taken through an outside program. The consumerism that students have begun to engage in when it comes to study abroad programs may even lead them to consider enrollment in a foreign university in order to get a foreign education experience. American colleges and study abroad administrators don't want to lose tuition-paying students, so they must find some way to adjust program fees to compensate for the falling dollar.

Some study abroad program administrators have entered into deals with international organizations that involve discounts if the administrators can sign up a certain amount of students. However, this is risky especially in light of the recent student-loan scandals, as quality is even more of an issue because study abroad is so costly. Similar issues could be problematic should administrators partner with corporations and businesses to create housing and cost-of-living packages to make studying abroad more affordable for students. Additionally, some schools have started charging students their full semester's worth of tuition in addition to the study abroad fees.

This issue is continuing to grow, especially as the United States looks to increase the number of students who study abroad each year. Administrators may want to consider expanding their program offerings to include what are typically considered more unique study abroad destinations. Since the cost of living is cheaper in Ghana than it is in Italy, college institutions can potentially charge more for the program, and have the costs equal out. If they price it above what students are willing to pay, however, they will not achieve the numbers set out by the Lincoln Commission and other such bills.

One way administrators may be able to make study abroad more valuable to students has nothing to do with lowering prices. Many students have a limited window of time during which they can participate in a study abroad program due to course offerings. Numerous colleges offer general education courses in their study abroad programs, courses which students must complete in their first two years of college. Students would have the ability to plan and save for study abroad for a longer period of time if administrators made a wider selection of transferable credits available through study abroad programs, and if students were notified earlier in their academic careers about the opportunities to study abroad.

A Need for Action

Just when the dollar will begin to climb back to a healthy exchange rate has yet to be known. Regardless, students will continue to want to enhance their lives through a study abroad experience, and schools need to identify ways in which they can deliver those experiences to students. The United States has placed a premium on the benefits of study abroad programs and if the country is to reach its goal of increasing overseas opportunities for students, there have to be programs in place that are affordable no matter what the exchange rate may be.

For the present, students should be made aware of the virtues of study abroad experiences in less traditional destinations and developing countries. The ability to adapt to the ways of other cultures and to understand the world outside of their realm of experience is crucial for these students who will enter a diverse and multicultural global workplace. The study abroad experience prepares students for the outside world on a number of different levels and it is a vital opportunity that should be accessible to as many students as possible.

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