These American Students Avoid College Debt by Studying in Europe for Less

Many American students are opting out of the traditional college experience in the US, where student debt has become a major concern. Tuition fees at top US universities can reach upwards of $50,000 per year, making it difficult for students to graduate without significant debt.

In contrast, many European countries offer free or low-cost higher education, making it an attractive option for American students. For example, Germany offers free tuition to international students, including Americans, at both undergraduate and graduate levels.

This shift in thinking is reflected in the growing number of American students enrolling in European universities. According to recent statistics, the number of American students studying in Europe has increased by 20% in the past five years.

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Rising tuition rates are a major concern for many American students. Rapid increases in college tuition force many young people to wonder whether a degree is worth taking on the mounds of debt necessary to attain it.

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Even at low interest rates, repaying college loans can make it difficult for graduates to purchase homes and start families. The average college student graduating in 2015 had over $35,000 in student loan debt.

Most experts argue that college is still worth the expense, since college graduates earn nearly twice as much money as high school graduates.

Germany offers free education to international students, including those from the US, as a way to attract top talent and combat its shrinking population.

Norway provides tuition-free college to international students, but the high cost of living there offsets the savings.

Students from the US can attend college in France for about $200 per semester.

Sweden charges undergraduate tuition, but Ph.D. students can attend for free, making it a more affordable option for graduate students.

Slovenia only charges a small registration fee, making it an attractive option for students looking for a low-cost education abroad.

By studying in these countries, American students can avoid college debt and save thousands of dollars on tuition fees.

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Studying abroad can be a game-changer for American students struggling with college debt. By living and working abroad, you can take advantage of the Foreign Earned Income Tax Exclusion, which can exclude over $126,500 of income from your tax return.

This means that if you're working abroad and making less than this amount, you could pay nothing towards your student loans while staying in good standing. For example, an American-born veterinarian who moves to Australia and makes $70,000 USD could exclude those earnings from U.S. taxation, resulting in an AGI of $0 and IDR payments of $0.

Living abroad can also give you a fresh start, away from the stress of high student debt. You can start anew, build a new life, and pursue your passions without the burden of debt.

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The cost of a college education in the U.S. is staggering, with the average tuition cost at $46,950 for nonprofit private universities and $36,420 for out-of-state tuition at public universities.

In contrast, European universities are often heavily subsidized by their governments, making a university degree there cost little to nothing.

The U.S. spends more on education per student than any other country besides Luxembourg, according to a 2016 OECD study on higher education spending.

European students usually have to apply to specific programs and focus on one field throughout their college years, unlike in the U.S. where students are often exposed to multiple fields through general education programs.

If a European student wants to change their major, they often have to drop out and reapply, although some universities like Strathclyde University in Glasgow, Scotland offer more flexibility.

The cost of a university degree in Europe usually ranges from zero to a few thousand dollars, a far cry from the tens of thousands of dollars students pay in the U.S.

European universities may not have the same campus culture as American universities, but they often provide the possibility of accommodation on campus and students tend to integrate more with city life.

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The cost of a university degree in Europe is usually a fraction of what Americans pay, ranging from zero to a few thousand dollars. This is because higher education is highly subsidized by European governments.

Tuition at nonprofit private universities in the US is a staggering $46,950, while out-of-state tuition at public universities is $36,420. This is more than double what it was in 1980.

European universities force students to apply to specific programs, which they focus on for all four years. This approach can be limiting, but it also allows students to dive deeper into their chosen field.

In contrast, American universities offer a wider breadth of general education programs, exposing students to multiple fields. However, this can also lead to students feeling overwhelmed or uncertain about their major.

If a European student wants to change their major, they often have to drop out and reapply. However, some universities, like Strathclyde University in Glasgow, Scotland, offer programs that allow students to explore different subjects within a major.

The social life in Europe is also different from what Americans are used to. Many European universities offer on-campus accommodation, but students tend to integrate more with city life rather than forming a strong campus culture.

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Australia is a popular choice for Americans with student loan debt, as it offers a tax strategy that can help reduce monthly payments to $0. In fact, many Americans who have pursued the "flee the country" strategy for their student debt live in Australia.

To qualify for this strategy, you'll need to have a gross annual income abroad of less than six figures. This is because federal loan borrowers can opt for income-driven repayment, which allows them to submit a tax return electronically to their loan servicer stating their income from the previous year was $0.

Borrowers with private student loans, however, don't get to take advantage of this loophole, so if you refinance your federal debt with a private loans company, you won't have access to this repayment hack.

If you decide to make your permanent home overseas, you could keep most of your assets denominated in the foreign country where you live, which could be a big advantage in the long run.

The UK and the EU are also options, but you may need a spouse to gain permanent resident status in these countries.

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