Student Loan For Studying Abroad - Full Time, Study Abroad, Loans & Financing

If you’re a UK citizen or resident, you might be thinking of studying abroad for a full degree, one term or one year as part of a UK higher education course. Depending on what you pick, you could be eligible for a student loan for studying abroad through the UK Government’s Student Loan Company (SLC), or you might prefer to apply for a UK government grant or even a prestigious scholarship.

This guide covers all the basics of study abroad financing. Plus, we’ll also introduce Wise as a smart way to spend and send payments in popular currencies like EUR, HUF, DKK, SEK, USD with low fees from 0.43%¹ and the mid-market exchange rate. That’s perfect for while you’re overseas, and if you later decide to pay back your study abroad year loan from a foreign country.

Spend like a local

What is studying abroad and why does it benefit students?

Studying abroad can give you a great experience unavailable in the UK, help you learn another language or culture alongside your core subjects, and make you stand out in future when it comes to getting a job.

Some UK university students regularly do a year abroad - common for example if you’re studying a foreign language. But there are also plenty of routes for people studying other subjects to get some overseas experience - either by applying for a full time university course abroad, or for a programme that lets you study for a fixed period as part of your degree.

Naturally if you’re planning on studying abroad for either a short part of your higher education course, or for the entire degree, you’ll need to consider costs. Tuition fees may be different, plus the costs of living and travel can vary widely. But whether you’re looking for a full time study abroad loan, or a grant to cover some specific aspect of your international education, there are options. Read on for all you need to know.

What types of loans are available for UK residents studying abroad?

UK government supported loans are arranged through the Student Loan Company (SLC)² - a non-profit making UK government-owned organisation under the Department of Education.

The SLC oversees processes for loans and grants for students at colleges and universities in the UK, including those who take time overseas as part of a UK degree. Eligibility criteria apply, and if you’re planning on being abroad for your whole degree, you may not be able to get a loan from the SLC.

Usually loans available can cover tuition fees and maintenance - that is, your day to day living costs. There are also some additional loans if you have dependents, disabilities or long term health conditions. We won’t go into detail about these loan types here but you can get more information from the UK Government student finance pages³.

It’s also helpful to know that some elements of student finance and university fees are devolved. That means rules, processes and fees can vary based on which country of the UK you’re from and where your university is. For example, Student Finance England (SFE) is the part of the SLC that deals specifically with loans for people in England, while Scotland, Wales and Northern Ireland have their own rules about how some aspects of the processes work.

You can find quick links to the pages for each of the individual student finance organisations, for the different countries of the UK on the SLC ‘About’ page, along with a quick introduction if you’re not sure which of the different devolved organisations you need.

SLC support - studying a full degree overseas vs studying for a term or a year

Bear in mind that SLC loans are usually only available to people who are studying courses which are arranged by a UK university.

If you’re studying a course at a UK university which also includes an overseas element - for example if you have to do a placement abroad as part of a medical or dental qualification, or if you’re studying a language - you’re likely to still be eligible to apply for SLC support. However, if you’re thinking of studying a full degree overseas, you’ll not usually be able to apply for a loan from the SLC⁴. Other scholarships and options do exist though - we’ll introduce a few to consider later.

What types of grants or government funding are available?

Student loans must be repaid once you graduate and start to earn income. However, there are also some UK government grants which can apply if⁵:

• you’re studying abroad as part of your course (which is run at a UK university or college)
• you’re on a study or work placement through the Erasmus+⁶, Turing⁷ or Taith⁸ schemes
• you’re a medical or dental student studying abroad

UK government grants do not usually need to be repaid. However, the help available is relatively limited, usually consisting of support towards some travel expenses, visas, medical insurance and essential expenses.

Government grants are not intended to cover the full cost of your study abroad, and eligibility rules apply which are based on your household income. More support may be available for people who have a lower household income, to ensure as many people as possible get the opportunity to study overseas.

Scholarships for studying abroad full time

Scholarships are another good route to explore if you’re planning on studying abroad. Scholarships may be offered by individual universities or colleges, or by organisations and governments. They may cover tuition costs in part or full, or include a contribution to living costs, for example.

If you’re planning on doing your entire course at an institution based outside the UK, a scholarship can be very helpful as you won’t be entitled to a loan from the SLC in most cases. The university you’re applying to may have ideas of where to look for local financial support, plus you may be eligible to apply for a loan from the equivalent of the SLC in the country you’ll be based in.

The process for applying for a scholarship can be competitive, and you’ll need to do early research to see if you’re likely to be eligible to apply for anything based on your preferred university and course. We’ll look at some notable UK scholarships next to start you off, but it’s also a good idea to look at individual universities which often have scholarship arrangements to attract top talent from abroad.

Notable scholarships in the UK

If you’re considering studying in the US, take a look at the Fulbright Scholarship⁹ which is arranged and awarded by US Embassies globally. Over 4,000 students get this scholarship annually, to study or pursue academic research.

Another option to consider is the Global Study Awards¹⁰ which is organised by the British Council. This again is open to applicants globally, and can offer an award of up to 10,000 GBP, towards tuition fees in the first instance. If the tuition fees are under the 10,000 GBP award, the remaining funds can be used as a support towards daily living expenses for up to a year. You can’t use your award to study domestically, it’s only offered for people looking to get international experience.

Anyone who wants to go abroad to study a foreign language may also be interested in the John Speak Trust¹¹ awards which offer a scholarship to head overseas for language learning. This scholarship exists to help people learn languages to develop better trade relations between the UK and other countries, and has sent people to a very broad range of countries since its inception close to a hundred years ago.

What loans or financing are available for studying abroad for a semester?

Assuming you’re taking a semester abroad but the main part of your degree is based in the UK, at a UK institution, you’ll usually be able to get a student loan from the SLC.

If you’re interested in studying overseas but don’t want to commit to a whole course abroad, it’s common to find ways to take just a term to experience new things. Language students often do this, but there are also programs run by individual universities and colleges, which allow you to do an exchange to study a term overseas, and some government backed options too.

We’ll look at a couple in more detail next - but if you’re from Wales it can also be helpful to know about the Taith organisation, which facilitates learning opportunities for people from Wales to travel globally.

Is Erasmus available after Brexit?

Erasmus+ is the EU programme for education, training, youth and sport. Through the Erasmus+ UK National Agency, UK residents can continue to access some Erasmus programmes, even after Brexit, provided that the individual programme was set up and approved prior to 2020.

If the programme meets these criteria, is still active and still receiving funding, UK citizens can apply. However, following Brexit, UK participation in Erasmus is being phased out, and instead a new programme called the Turing Scheme has been brought in. More on that next.

What is the Turing Scheme, how does it work and how to apply?

As we mentioned, the Turing Scheme is a new UK grant allocation programme which allows bodies like schools and universities to apply for grants to allow them to send their students abroad to work or study. These grants are given to the school, university or similar institution, which can then choose to pass on the funds in the form of support to students to study abroad.

As an individual you won’t apply directly to the Turing Scheme - you’ll apply for support for a specific programme being arranged by your university or college. In the 23-24 school year, the UK government issued grants worth over 100 million pounds to nearly 500 institutions, to send students to over 160 destinations - making it well worth checking if your university or college has any plans to use this funding in future.

Funding your university experience

Going to university isn’t cheap, whether you decide to study in the UK or abroad. You’ll usually need to pay for tuition, as well as for day to day life, including food and accommodation.

If you’re eligible for a UK student loan or grant, these can be good options to help you afford to study. Grants may not need to be paid back at all, and loans from the SLC will only be repaid once you hit a minimum earning amount. This is different to taking a private loan where you’d be required to repay on a fixed schedule, regardless of whether or not you were working yet.

Other options to fund your university experience include getting a job on a part time basis during the term, or working during holidays. Many people also take a gap year after finishing school to build up some funds before starting their university course. If you’re thinking of getting a job in the UK it’s worth talking to your university which may have handy resources - and if you’ll be studying abroad, local Facebook groups wherever you’re headed can also be a helpful option for job opportunities.

One other way to get all the experience with a lower cost is to consider applying for universities in countries where even international students can get free tuition (or pay a very low amount). This isn’t common in many places, unfortunately, but it is worth looking to see if there are courses you may qualify for in countries like Austria, Norway, Germany, Finland, and Sweden just in case - as here you may find low or no fees to get your overseas study experience.

How do student loan repayments work in the UK?

Student loans from the SLC in the UK accrue interest at a fixed rate, which can be competitive compared to private bank loans for education. Once you graduate (or if you quit the course or leave early for any reason) you’ll need to repay your loan in full, plus any interest accrued. Loan repayments only begin once you’re earning a pre-agreed minimum income amount, which varies based on when you took out your loan.

If you’re employed and hit the minimum income level, your employer will deduct the repayment amount from your salary before it’s deposited to your bank account, and make your loan repayment on your behalf. Self employed people report their income to SLC and repay at the same time as paying taxes. If you stop earning, repayments also stop - and restart when you earn income again.

How to easily transfer money using Wise for student loan repayments and more

If you’re outside the UK when you need to start repaying your student loan, you may need to make your repayments in a foreign currency. You need Wise.

If you’re sending money to the SLC in the UK, you can arrange your payment in just a few minutes online or in the Wise app. Wise lets you send super fast international payments - 50% arrive instantly¹² - and you’ll always get the mid-market exchange rate to convert your payment to pounds, with low, transparent fees.

Get started with Wise

Want to do even more with Wise? Open a Wise account online or in the app before you head off for your overseas study experience, and you’ll be able to hold and exchange 40+ currencies with the mid-market exchange rate, and spend in 150+ countries with your Wise card.

Use this guide to figure out your options for student loans for people studying abroad - and use Wise while you’re studying internationally, and if you need to repay your loan from overseas, for cheap, fast and convenient international transfers from around the globe.

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Sources:

1. Pricing/fees: Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information
2. Student Loan Company(SLC)
3. Student finance campaign (UK Government) 2023
4. UCAS overseas funding
5. UK government travel grants
6. Erasmus study or work placement
7. Turing Scheme study or work placement
8. Taith study or work placement
9. Fulbright Scholarship
10. Global Study Awards
11. John Speak Trust
12. Speed: The speed of transaction claim depends on funds availability, approval by Wise's proprietary verification system and systems availability of our partners' banking system, and may not be available for all transactions

Last check date: 28th July 2023