Best Student Loans for Studying Abroad (2026): Federal & Private Options

Studying abroad can be one of the most rewarding experiences of your education — but it’s also one of the most expensive. Between tuition, housing, flights, and daily expenses, a single semester overseas in Europe averages $20,950, according to the Council on International Educational Exchange (CIEE). But you don’t have to pay for it all out of pocket. 

Many students use a mix of federal student loans, private lenders, scholarships, and grants to finance their study abroad programs. But not all loans work the same.

This guide compares the top lenders, explains how to qualify, and offers tips to help you lower your total borrowing costs. 

Compare current private student loan rates

Can you get student loans to study abroad?

Both federal and private student loans can be used for study abroad programs. However, federal loans have annual borrowing limits that may fall short of your needs.

“Federal aid may not cover the full cost of studying abroad, especially when factoring in travel, living expenses, and currency fluctuations,” says Ohan Kayikchyan, certified financial planner and doctor of economics.

That's where private student loans can help. Most private lenders let you borrow as much as the full cost of attendance, including flights, housing, and other expenses. So if you've maxed out your federal aid, a private loan can help cover the gap.

Can you use federal loans to study abroad?

Yes, you can use federal student loans for study-abroad programs if your school participates in the federal student aid program. Students must also complete the FAFSA to qualify for aid. Federal loans come with benefits like lower interest rates than you're likely to get from private lenders, flexible repayment plans, and forgiveness programs.

Here are the main types of federal student loans:

• Direct Subsidized Loans are available to undergraduate students who demonstrate financial need on the FAFSA. The interest rate is 6.39% for loans disbursed between July 1, 2025, and July 1, 2026. The government covers interest while you're in school and during a 6-month grace period after leaving school.
• Direct Unsubsidized Loans are available to all eligible undergraduate, graduate, and professional students, regardless of financial need. The interest rate is 6.39% for undergraduates and 7.94% for graduate and professional students for loans disbursed between July 1, 2025, and July 1, 2026. You're responsible for paying all interest that accrues, including while you're in school.
• Direct PLUS loans are available to parents of dependent undergraduate students and graduate and professional students. The interest rate is 8.94% for loans disbursed between July 1, 2025, and July 1, 2026.

Find out which international schools participate in federal student loan programs. 

Best private student loan lenders for studying abroad

How to compare study abroad student loans

Here are the most significant factors to consider when comparing private student loans for studying abroad:

• Annual Percentage Rate (APR): APR includes both the interest rate and any fees. Each lender sets its own range, and your rate will depend on your credit. In general, the lower the APR, the less your loan will cost overall.
• Fixed vs. variable rates: Fixed rates stay the same for the life of the loan, so your monthly payments won't change. Variable rates can start lower but may rise over time, making your payments less predictable.
• Repayment terms: Most lenders offer terms of 5 to 15 years, though some extend to 20 years. Shorter terms mean higher monthly payments but less interest paid over time. Longer terms lower your monthly payment but increase the total cost of your loan.
• Cosigner requirements: If you have a poor or limited credit history, you may need to apply with a cosigner. Most lenders allow one, and applying with a cosigner can improve your chances of approval and help you qualify for a better interest rate.

“Look for a lender that offers good rates, flexible repayment terms, and strong customer service,” says Dan Kennedy, chief information officer at College Ave, who has more than 30 years of experience in the financial services industry.

“You can also check out a student loan calculator to estimate your total and monthly loan payments,” he advises.

Cost-saving tips for reducing study abroad costs

Student loans can help you pay for studying abroad, but the less you borrow, the better. Taking on more debt than you need can lead to financial stress and limit your options after graduation.

Look for study abroad scholarships

Start by exploring scholarships and grants, since these don't have to be repaid. Many schools offer funding specifically for study abroad programs. Check with your university's study abroad office to see what's available. You can also search for private scholarships through sites like GoAbroad.com and Scholarships.com.

Choose a university-approved program

Once you've exhausted free aid, there are other ways to lower your overall costs.

“Choosing a program sponsored or approved by your home university is key, as it ensures access to federal aid and may allow you to pay your regular tuition rather than international rates,” says Kayikchyan.

Plan for living expenses and travel costs

It's also important to consider the full cost of your program, not just tuition.

“The country and school a student chooses, distance from home, program length, and local cost of living all influence total cost,” says Kennedy. He recommends shorter programs or choosing destinations with a lower cost of living to save money.

Kayikchyan adds, “Planning is essential — booking flights early and budgeting for local cost-of-living differences can lead to meaningful savings. I also suggest students explore exchange programs where room and board are included or significantly discounted.”

Why trust Credible?

The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology below.

Methodology

To determine the best student loan lenders for studying abroad, Credible collected more than 1,000 points of data on two dozen companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.

• Repayment options: 30%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 15%
• Customer support: 10%

While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.

Learn more about our methodology.