Federal Student Loans for Expats: What to Know

US citizens are eligible for US Federal Student Aid no matter where they live. This means that expatriates can qualify for federal student loans.

But there are some complexities and opportunities when borrowing and repaying federal student loans for expats.

Here’s what you need to know if you’re a US citizen living abroad and hoping to get federal student loans for yourself or your children.

Can you get a federal student loan as an expat?

Yes – US citizens living abroad are eligible for federal student loans as long as they:

1. You have valid Social security number.
2. Be enrolled or accepted into an institution eligible under Title IV, which includes some foreign universities.
3. Meet FAFSA and credit requirements for federal loans.

The Ministry of Education currently lists more than 750 international schools Eligible for federal student aid programs. You can find it by searching List of federal school codes on StudentAid.gov.

Common examples include:

• University of Oxford (UK)
• McGill University (Canada)
• University of Melbourne (Australia)

but:

• Foreign medical, legal, or vocational programs may not be eligible for federal assistance.
• You usually cannot get federal funding to work and study while you are enrolled abroad.

Always check List of federal school codes Every year to confirm eligibility. The Department of Education can add or remove schools without notice.

If your school is not listed, you will not be able to use U.S. federal aid, although you may still qualify for private student loans or domestic financing options abroad.

How to Apply for Federal Student Loans While Living Abroad

Here’s what you need to do to get a student loan:

1. FAFSA file – You will still use the same form in StudentAid.gov. The 2026-27 FAFSA requires 2024 income information.
2. Use your permanent address in the United States — Providers must be able to contact you through a valid U.S. mailing address, even if you live abroad.
3. Providing foreign income – Include your gross earnings before exclusions (you’ll handle the foreign earned income exclusion on your tax return).
4. Check your program eligibility — Not all degrees or institutions abroad are eligible for federal aid. Double check before committing.
5. Communications monitoring — Email and mail from loan providers may take longer to reach you abroad. Subscribe to digital notifications.

How to pay off a student loan while living abroad

If you are already making payments and move abroad, your loans will remain active. You will still need:

• Make payments in US dollars Through your loan service.
• He extends Income verification every year for IDR plans, even if your income is earned abroad.
• Update your Contact information on StudentAid.gov.

International transfers may take several business days. If your foreign bank can’t issue ACH transfers, use a US bank or service like Wise or Revolut that supports payments in US dollars.

Exclude foreign earned income and student loan payments

the Foreign Earned Income Exclusion (FEIE) Americans abroad are allowed to exclude up to $130,000 (for tax year 2025) Foreign income from federal taxes.

For borrowers in an income-driven repayment (IDR) plan, this exception can temporarily lower your “adjusted gross income” — which could result in… $0 or very low monthly payments.

However, there are important caveats:

• The Department of Education may update the rules or definitions of AGI at any time.
• If you return to the United States, your IDR payments will increase once your income becomes taxable again.

Banking, currency and payment challenges

Making student loan payments from abroad can be difficult. Here’s what to consider:

Exchange rate risk

If your income is in euros, yen, or another currency, the cost of repayment in dollars can fluctuate from month to month. Setting up an account in the United States with a fixed balance in US dollars can reduce surprises.

Payment logistics

• keep b US bank account Open for direct debit or automatic payment.
• If you’re using an international account, make sure it supports ACH or USD wire transfers.
• Some fintech options e.g wise, revolutionand Pioneer Allows you to hold US dollars and schedule regular transfers.

Service verification

Before you move, make sure:

• Your service provider has your international contact information.
• Autopay settings remain active after you change addresses.
• You can access your online account securely from abroad.

Missing a single payment can delay a payment and hurt your credit, even if you’re just dealing with a foreign bank delay.

Frequently Asked Questions: Federal Student Loans for Expats

1. Can I get federal loans for a foreign university?

Yes, but only if the school qualifies for Title IV. Many European, Canadian and Australian schools are eligible.

2. Can I pay loan installments from a foreign bank account?

Yes, but it is easier to use a American account Or a fintech service that supports payments in US dollars.

3. Will excluding foreign earned income reduce my loan payments?

It can, because it lowers your AGI but that effect goes away once you return to the US or your income becomes taxable.

4. What happens if I return to the United States?

Update your contact information and banking details instantly. Your IDR payment may increase as your taxable income changes.

5. Do private lenders allow payments from abroad?

Policies vary. Most require a US bank account or a participating US location6. Can I refinance my student loans while I live abroad?

Some lenders require US residency or a US resident co-signer. Check eligibility before applying.

7. Are federal loans forgiven if you default abroad?

No, federal student loans track you globally. Default can still result in your tax refund being garnished or future pay withheld if you return to the United States

Bottom line

Federal student loans are available to US citizens abroad but managing them requires extra care.

Before leaving the country, check your school’s eligibility, set up reliable payment methods, and understand how foreign income affects your repayment plan.

With the right preparation, you can live and work abroad without losing track of your student loans — or facing unexpected repayment challenges.

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