Comparing Costs
As you are no doubt learning, study abroad programs vary widely in cost. As part of your decision making process, it is important to evaluate these costs. This is easier said than done since every program is unique in what it includes, and how it’s costs are totaled.
Calculating the nominal cost per credit will give you a way to compare one programs’ cost to the next. Do this by totaling all of the costs associated with the program (the program fee plus the estimated expenses as listed on the budget estimate sheet). If some expenses you’ll likely incur are not listed, you’ll need to estimate them yourself.
For affiliated programs, you will want to include approximately $500 to 1500 in your budget to cover additional fees and insurance in your budget. You may also have to include in your budget the cost of additional travel to your host country's consulate to obtain a visa for certain sites. Often times, the closest consulate for Minneapolis is in Chicago.
Total the costs then divide by the number of credits you expect you’ll earn while on the program. This will give you the nominal cost per credit.
Compare Program to Program
You are a History major with a Spanish minor. You are contemplating two programs, a May term Global Seminar to Ecuador and a semester program with CIEE to Spain.
The May term Global Seminar includes all costs on the budget estimate. The total is $5,000.
The semester in Spain with CIEE includes most costs on the budget estimate, but as it’s affiliated you include an extra $1000 in your budget plus another $250 since you’ll likely have to go to Chicago to get your visa. The total is $17,000.
On the Global Seminar you’d earn 3 credits, so the nominal cost per credit is $1,666 ($5000 divided by 3).
On the semester with CIEE you’d earn 15 credits, so the nominal cost per credit is $1,063 ($17,000 divided by 16).
Turns out, going for a semester is quite a bit cheaper per credit.
Compare to On-Campus Costs
You can take this exercise a step further and compare the nominal cost per credit on a study abroad program to the nominal cost per credit on campus. The U of M annually publishes estimates for on-campus costs for incoming freshman. Use these costs for comparison.
For example let’s pretend based on the above analysis of cost, you’ve decided you’d like to consider going for the semester. How much more expensive than staying in Minneapolis will this be?
As previously determined a semester with CIEE would be $1,063 per credit.
The U of M estimates it will cost $13,000 per semester next semester. Looking at their figures you decide this does indeed cover all the costs you’d likely have on-campus. If you stayed, you’d most likely take 15 credits next semester. The nominal cost per credit then is $867 ($13,000 divided by 15).
So, going to Spain for a semester will cost you $196 dollars more per credit than staying on campus ($1,063 - $867). It is up to you to decide if that expense is worthwhile for you, but at least you are now accurately weighing the costs of your decisions... almost.
There is one thing left to consider. The true cost of a program also has a lot to do with academic fit, so fully review that section too.
You can save money by going abroad
Here’s what we mean. Let’s continue the example and say that the CIEE program offered two courses in Spanish that fulfilled some Spanish minor requirements but at the same time fulfilled a liberal education requirement and a history elective. Because you’ve filled multiple requirements with these two classes you’d be able to graduate in four years.
If you stayed on campus, you’d have to spend an extra semester finishing out your Spanish minor even though during the extra semester you’d only accrue 5 credits that actually count toward your degrees. In this scenario:
As previously determined a semester with CIEE would be $1,063 per credit.
Staying on campus for two semesters for 20 credits (toward graduation) would be $1,300 per credit ($13,000x2/20).
If this were you, you’d actually SAVE money by going to Spain for a semester!
What can you afford?
At the end of the day, though a longer term program might have a better nominal cost per credit, the total cost is important to consider as you examine your overall financial picture and what you can actually afford. A financial aid preview meeting will assist you in determining this.
