U.S. Economy Could Suffer a $7 Billion Loss from Precipitous Drop in International Students
July 29, 2025
International College Students Could Drop By 150,000 This Fall, Report Warns
August 3, 2025
Three in four U.S. students say they hope or plan to study abroad, but a lack of financial resources may hinder those dreams, according to a 2025 Terra Dotta survey.
The survey, which included responses from 275 college students, found that 80 percent of students said insufficient funds would prevent them from studying abroad. Of respondents who have studied abroad or committed to a program abroad, two in five students said they expect to pay over $10,000 for their experiences.
Terra Dotta’s report also noted students want more clarity from their institution about financial aid opportunities to address study abroad expenses.
Methodology
Terra Dotta’s survey included 275 respondents from two- and four-year colleges and universities, both public and private. The study was fielded in February. A majority of respondents had plans to study abroad or had studied abroad previously.
Barriers to access: Study abroad is linked to personal and professional development for participants. A 2024 survey of students from Terra Dotta found that those who studied abroad said the experience helped them identify adaptability and resilience, cross-cultural communication, and problem-solving in new situations as the benefits most useful for their future careers.
However, not every student is able to participate due to financial burdens; among students who don’t plan to study abroad, 48 percent attributed their decision to financial concerns. Cost of attendance is one of the top reasons college students leave higher education, and it can also be a barrier to student participation in on-campus events. A 2024 Student Voice survey by Inside Higher Ed and Generation Lab found that 17 percent of students would get more involved in campus activities and events if attendance or participation were less expensive.
Other reasons a student might choose not to study abroad include safety concerns (40 percent), geopolitical issues (28 percent) and worried parents (25 percent). Three-quarters of respondents indicated the wars in Ukraine and Gaza impacted their interest in going abroad.
Academic requirements and a lack of alignment are other challenges for students. Eighteen percent of students said they wouldn’t study abroad due to their major program requirements, and 16 percent think greater alignment between their field of study and study abroad would make the experience more accessible.
Seventeen percent of respondents said they don’t know anything about study abroad or haven’t heard of opportunities, “indicating an opportunity for [colleges] to reach more students,” according to the report.
Footing the bill: When asked to add up tuition, housing, airfare and other expenses, 83 percent of respondents said they plan to spend or spent more than $5,000 on study abroad, and 11 percent said the experience costs roughly $15,000.
Twelve percent of respondents said study abroad experiences were included in their tuition, so they expect to pay nothing additional. Approximately one in five students said they’d pay for study abroad experiences themselves, a 20 percent change from the previous year, according to the report.
Student respondents indicated they want their institution to take on a larger role in addressing the cost of study abroad; one-third of respondents said colleges could make study abroad experiences more accessible by providing more education on financial aid for such programs. If respondents could give their campus advice on improving study abroad experiences, two-thirds said they’d like easier access to financial aid.
Other trends: In addition to the barriers to study abroad, Terra Dotta’s report explored student interests and development related to the experience.
The U.K. is the most popular study abroad destination for respondents (41 percent), mirroring an emerging trend among U.S. students indicating interest in U.K. undergraduate education. Australia (32 percent), Spain (26 percent), Italy (21 percent) and Ireland (21 percent) were other popular destinations. Only 1 percent of students said they planned to travel to China to study.
Three in five respondents said they think study abroad is at least somewhat important for their personal growth, and about a third said experiencing personal growth is one of the top reasons they plan to study abroad.
Of students who had completed a study abroad experience (n=170), a majority said it impacted their worldview by exposing them to new ideas. Students said they were most surprised by social norms and etiquette (47 percent), as well as dining and food customs (24 percent) and the local educational system and values (24 percent).
