International Programs and Services

International Education and Study Abroad

A variety of funding sources are offered for study abroad and for foreign nationals studying in the United States. The Institute of International Education in New York assists students in locating such aid. It publishes Funding for U.S. Study-A Guide for Foreign Nationals and Financial Resources for International Study, a guide to organizations offering awards for overseas study. The Council on International Educational Exchange in New York publishes the Student Travel Catalogue, which lists fellowship sources and explains the Council's services both for United States students traveling abroad and for foreign students coming to the United States.

The U.S. Department of Education administers programs that support fellowships related to international education. Foreign Language and Area Studies Fellowships and Fulbright-Hays Doctoral Dissertation Awards were established to promote knowledge and understanding of other countries and cultures. They offer support to graduate students interested in foreign languages and international relations. Discuss these and other foreign study opportunities with the financial aid officer or someone in the graduate school dean's office at the school you will attend.

How to Apply

All applicants for federal aid must complete the Free Application for Federal Student Aid (FAFSA). This application must be completed after January 1 preceding enrollment in the fall. On this form you report your income and asset information for the preceding calendar year and specify which schools will receive the data. Two to four weeks later you'll receive an acknowledgment on which you can make any corrections. The schools you've designated will also receive the information and may begin asking you to send them documents, usually your U.S. income tax return, verifying what you reported.

In addition to the FAFSA, some graduate schools want additional information and will ask you to complete a new form, the CSS Financial Aid PROFILE, that initiates the financial aid process. If your school requires this form, it will be listed in the PROFILE Registration form available in college financial aid offices. The one-page PROFILE Registration form is generally completed in October or November, a year preceding enrollment. On the form you list each school you are applying to that requires the PROFILE and pay the appropriate fee ($5.00 plus $14.50 per school). A few weeks later you'll receive your customized Financial Aid PROFILE application which you then submit. If you have already filed your federal income tax for the year, it will be much easier for you to complete these forms. If not, use estimates, but be certain to notify the financial aid office if your estimated figures differ from the actual ones once you have calculated them.

Application Deadlines

Application deadlines vary. Some schools require you to apply for aid when applying for admission; others require that you be admitted before applying for aid. Aid application instructions and deadlines should be clearly stated in each school's application materials. The FAFSA must be filed after January 1 of the year you are applying for aid but the Financial Aid PROFILE should be completed earlier, in October or November.

Determining Financial Need

Eligibility for need-based financial aid is based on your income during the calendar year prior to the academic year in which you apply for aid. Prior-year income is used because it is a good predictor of current-year income and is verifiable. If you have a significant reduction in income or assets after your aid application is completed, consult a financial aid counselor. If, for example, you are returning to school after working, you should let the financial aid counselor know your projected income for the year you will be in school. Aid counselors may use their "professional judgment" to revise your financial need, based on the actual income you will earn while you are in graduate school.

Need is determined by examining the difference between the cost of attendance at a given institution and the financial resources you bring to the table. Eligibility for aid is calculated by subtracting your resources from the total cost of attendance budget. These standard student budgets are generally on the low side of the norm. So if your expenses are higher because of medical bills, higher research travel, or more costly books, for example, a financial aid counselor can make an adjustment. Of course, you'll have to document any unusual expenses. Also, keep in mind that with limited grant and scholarship aid, a higher budget will probably mean either more loans or more working hours for you.

Tax Issues

Since the passage of the Tax Reform Act of 1986, grants, scholarships, and fellowships may be considered taxable income. That portion of the grant used for payment of tuition and course-required fees, books, supplies, and equipment is excluded from taxable income. Grant support for living expenses is taxable. A good rule of thumb for determining the tax liability for grants and scholarships is to view anything that exceeds the actual cost of tuition, required fees, books, supplies related to courses, and required equipment as taxable.

  • If you are employed by an educational institution or other organization that gives tuition reimbursement, you must pay tax on the value that exceeds $5250.
  • If your tuition is waived in exchange for working at the institution, the tuition waiver is taxable. This includes waivers that come with teaching or research assistantships.
  • Other student support, such as stipends and wages paid to research assistants and teaching assistants, is also taxable income. Student loans, however, are not taxable.
  • If you are an international student you may or may not owe taxes depending upon the agreement the U.S. has negotiated with your home country. The United States has tax treaties with over forty countries. You are responsible for making sure that the school you attend follows the terms of the tax treaty. If your country does not have a tax treaty with the U.S., you may have as much as 14 percent withheld from your paycheck.

A Final Note

While amounts and eligibility criteria vary from field to field as well as from year to year, with a thorough effort you can uncover many opportunities for graduate financial assistance. If you are interested in graduate study, discuss your plans with faculty members and advisors. Explore all options. Plan ahead, complete forms on time, and be tenacious in your search for support. No matter what your financial situation, if you are academically qualified and knowledgeable about the different sources of aid, you should be able to attend the graduate school of your choice.

by Patricia McWade
Dean of Student Financial Services
Georgetown University

Peterson's Guide to Graduate and Professional Programs: An Overview 1996