Weighing the costs of study abroad

College sophomore Hillary Ross, who is studying abroad in Barcelona next semester, said while she will be conscious of how much money she spends in Spain, the economy "was never going to prevent" her from studying abroad.

"I may have to take out a bigger student loan for next semester to cover spending costs," she said, adding that her parents have been supportive of her decision.

Many students say that, despite the global financial crisis, they will not change their decisions to study abroad. The number of students planning to study abroad next year has remained steady, according to director of Study Abroad Geoffrey Gee.

However, the economic climate is causing some to pay more attention to how much they will spend during their travels.

While last year marked a significant decrease in the number of students who matriculated to study-abroad programs due to initial concerns about the economy, this year's better rate of exchange with European countries makes studying there more appealing.

According to Gee, 592 students enrolled in study-abroad programs for the semester or year in 2008-2009, in comparison to the previous year's 678 enrolled students.

Gee attributed this decrease not to a lack of interest, but rather to "the general economy and the perception of poor exchange rates," he said.

Now, "applications have rebounded," he said, adding that there are already 567 students planning to study abroad in the fall or the year of 2009-2010.

But for students whose families have been affected by the recession, the exchange rate of about 1.34 U.S. dollars to 1 Euro may still seem impractical.

College sophomore Michael Tomback wanted to study in Italy during his junior year. But because his dad is currently unemployed and his sister is a college freshman, he "could not demand that on top of Penn tuition, which is already $50,000 a year," he said.

While Tomback said he knew Penn's financial aid would adjust to cover the cost of going to school in Italy, "living in another country isn't just going to school and sleeping," he said, adding that it costs significantly more to eat meals out, go out at night and travel on the weekends in Europe than in Philadelphia.

Despite the downturn in the economy this year, Gee said he did not see any identifiable shift to students studying in places with more favorable exchange rates.

"Students have dreams about the places they want to go to," Gee said. "Someone is not going to go to Argentina instead of Spain just because it's cheaper."

College sophomore Spencer Glantz said he worked for the past two summers to save money to study in Madrid.

"I overruled any qualms I had about finances by realizing that later in life I will never have an opportunity to take six months off my job to go to Europe," he said.

The most expensive thing about studying abroad is traveling, according to Gee.

Gee warns students that taking the attitude that "this is their only chance to study abroad" and that they "have to visit everything" can be dangerous.

"That attitude is not good for your study habits," he said. "We are hoping you fall in love with the place you visit and come back later in life."

Wharton sophomore Adam Brown said he still plans on traveling while he is studying in Hong Kong next semester, but that he will "probably travel less because it is so expensive right now."

Gee emphasized that students who receive financial aid should not make their abroad decisions based on exchange rates. Student Financial Services adjusts students' financial-aid packages before they study abroad to factor in the average cost of living and the exchange rate of the country they visit.

As far as budgeting expenses once students are abroad, Gee suggested that students limit doing "expensive things to moments when you can really enjoy them."

"We believe if you try to do what students in that country do, you will be okay financially," Gee said, adding that students should set a budget and try to keep it.

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