Do you have a college student studying abroad this fall?
Before they pack a single bag, there are a few financial details that can catch families off guard.
Families sometimes underestimate the true cost of studying abroad by 20-40 percent.
Budget the program fee, then add up to 25 percent for travel, shopping, food, and a “just-in-case” fund.
Things to know:
📚 529 funds can cover tuition and housing at eligible foreign institutions, but not airfare, visa fees, or passport costs.
🏥 Most U.S. health plans provide little to no coverage abroad. Medical evacuation alone can cost $20,000 to $200,000, and most domestic plans don't cover it at all.
💳 Cards with foreign transaction fees add 3 percent to every purchase. No-fee options may be worth exploring before they leave.
Most parents remember to ask, “Do you have your passport?”
What gets asked less often is, “Are we aligned on what this semester may really cost?”
The packing list gets them to the airport.
The financial details you discuss before they leave can help everyone manage surprises and unnecessary expenses once they arrive.
📝 A 529 plan is a tax-advantaged education savings plan. Before choosing a plan, it's important to consider not only the state tax treatment but also any associated fees and expenses. Availability of a state tax deduction will depend on your state of residence, as state tax laws and treatment may vary from federal tax laws. If you make nonqualified distributions, earnings will be subject to income tax and a 10 percent federal penalty tax.