By Sara E. Savage

During the past year, the U.S. dollar has declined nearly twenty percent against the euro. On April 23, 2008, one euro was equal to $1.60, an all-time low for the dollar. Currency exchange rates affect the cost of study abroad, and students feel the impact when the dollar falls. While most study abroad program costs have remained the same, exchange rates have increased the cost of airfare and living expenses. As the average study abroad student has a smaller budget than many tourists, accessing the exchange rate should factor into their decision when choosing a study abroad destination.

Advice for Students

When beginning the study abroad search, 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.

Advisers have long been trying to get students to consider a wider range of study abroad destinations. The current exchange rate situation may be a positive development from this perspective. 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 in Africa, like Senegal, which has a fascinating culture and an acclaimed international music scene. Instead of living in Paris, where tuition fees and the cost-of-living are through the roof, think about a smaller city right outside Paris, like Amiens or Chartres. You can still travel to the famous city and immerse yourself in French culture (probably more than you could in Paris), but you will save a bundle. Students should also be strategic when considering housing. Try living with roommates in a local apartment to subsidize your costs. Or, if the program offers it, you can live with a host family, which also enables you to absorbing more of the country's language and culture.

You may have always dreamed of visiting Europe, but as exciting as Europe can be, less well-worn study abroad paths may be just as captivating to the imagination. Costa Rica can be a living classroom for biology or environmental studies students. China is an international business destination that requires less overhead than London. Egypt and Jordan can be fascinating for the politically minded and those with an interest in the Middle East. Even lesser-known jewels of Europe can help keep money in the bank. Prague in the Czech Republic and St. Petersburg in Russia are as steeped in the history of Europe as they come. Art and literary traditions abound far from Paris and Florence, and if you're dying to go to the Louvre, you might be surprised to find that the Hermitage in St. Petersburg is an equally rich feast for the eyes.

Being a smart traveler will also help keep expenses down. Before you leave, find out whether your credit card charges fees for purchases made overseas. Also, don't order foreign currency from U.S. banks before departing, as it can involve high fees. Instead, wait to exchange money once you reach your destination. Most importantly, keep close track of expenses and be sure you understand the exchange rate. An excellent way in which to limit your spending and make studying abroad more affordable is to exchange money as you go, instead of exchanging all your money when you first arrive.

Numerous financial aid options are available to help students afford studying abroad, including scholarships, grants, fellowships and loans. When planning to study abroad, students should apply well in advance for as many scholarships as possible in order to increase their chances of landing some aid. Be sure to discuss funding opportunities with your study abroad adviser and check with professors to find out if there is departmental money available. Federal aid may also 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.