U.S. citizens are eligible for U.S. federal student aid regardless of where they live. This means that expats can qualify for federal student loans. 

But there are a few complications and opportunities when borrowing and repaying federal student loans for expats. 

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

Can You Get A Federal Student Loan AS An Expat?

Yes — U.S. citizens living abroad are eligible for federal student loans as long as they:

1. Have a valid Social Security number.
2. Are enrolled or accepted into a Title IV–eligible institution, which includes some foreign universities.
3. Meet FAFSA and credit requirements for federal loans.

The Department of Education currently lists over 750 international schools eligible for federal student aid programs. You can find them by searching the Federal School Code List on StudentAid.gov.

Common examples include:

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

However:

• Foreign medical, law, or professional programs may not qualify for federal aid.
• You typically can’t receive Federal Work-Study funding while enrolled abroad.

Always check the Federal School Code List each year to confirm eligibility. The Department of Education can add or remove schools without notice.

If your school isn’t listed, you won’t be able to use U.S. federal aid, though you may still qualify for private student loans or local 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. File the FAFSA — You’ll still use the same form at StudentAid.gov. The 2026-27 FAFSA requires 2024 income information.
2. Use your permanent U.S. address — Servicers must be able to contact you through a valid U.S. mailing address, even if you live abroad.
3. Provide foreign income — Include your total earnings before exclusions (you’ll handle the Foreign Earned Income Exclusion on your tax return).
4. Check eligibility of your program — Not all degrees or institutions abroad qualify for federal aid. Double-check before committing.
5. Monitor communications — Email and mail from loan servicers can take longer to reach you overseas. Opt into digital notifications.

How Student Loan Repayment Works While Living Abroad

If you’re already in repayment and move overseas, your loans remain active. You’ll still need to:

• Make payments in U.S. dollars through your loan servicer.
• Provide income verification each 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 U.S. bank or service like Wise or Revolut that supports USD payments.

Foreign Earned Income Exclusion And Student Loan Payments

The Foreign Earned Income Exclusion (FEIE) allows Americans abroad to exclude up to $130,000 (for tax year 2025) of foreign income from federal taxes.

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

However, there are important cautions:

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

Banking, Currency, And Payment Challenges

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

Exchange Rate Risk

If your income is in euros, yen, or another currency, your repayment cost in dollars can fluctuate month-to-month. Setting up a U.S.-based account with a steady USD balance can reduce surprises.

Payment Logistics

• Keep a U.S. bank account open for direct debit or autopay.
• If using an international account, confirm it supports ACH or wire transfers in USD.
• Some fintech options like Wise, Revolut, and Payoneer let you hold USD and schedule regular transfers.

Servicer Verification

Before you move, confirm that:

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

Missing even one payment can trigger delinquency and harm your credit, even if you’re just dealing with a foreign banking delay.

FAQ: Federal Student Loans for Expats

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

Yes, but only if the school is Title IV eligible. Many European, Canadian, and Australian schools qualify.

2. Can I make loan payments from a foreign bank account?

Yes, but it’s easier to use a U.S. account or a fintech service that supports USD payments.

3. Will the foreign earned income exclusion reduce my loan payments?

It can, since it lowers your AGI but this effect disappears once you return to the U.S. or your income becomes taxable.

4. What happens if I move back to the U.S.?

Update your contact info and bank details immediately. Your IDR payment may increase as your taxable income changes.

5. Do private lenders allow payments from abroad?

Policies vary. Most require a U.S. bank account or a co-signer in the U.S.6. Can I refinance my student loans while living abroad?

Some lenders require U.S. residency or a U.S.-based co-signer. Check eligibility before applying.

7. Are federal loans discharged if I default abroad?

No. Federal student loans follow you globally. Default can still lead to tax refund garnishment or future wage withholding if you return to the U.S.

Bottom Line

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

Before leaving the country, verify 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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