Planning for College From Abroad: What U.S. Expats Need to Know
Let’s just start here: college in the U.S. is expensive. Like, could-have-bought-a-condo-in-Cash-in-Portugal expensive.
Now imagine trying to plan for that while living overseas.
If you’re a U.S. citizen raising kids abroad, the topic of college comes with more complexity than your average tuition calculator will admit. Between exchange rates, residency status, and navigating financial aid as a U.S. expat—this is not something to “figure out later.” Education planning needs to be a front-burner conversation, especially if a U.S. university is in your child’s future.
The Myth of In-State Tuition
First things first: living abroad often disqualifies your child from in-state tuition rates, even if you’re still paying taxes or voting in your last U.S. state of residence. And that matters—a lot. The difference between in-state and out-of-state tuition can be tens of thousands of dollars per year.
Some states are friendlier than others. If you’re planning to return before your child enrolls, or if you have property or legal ties to a state, there may be workarounds—but these require time and planning.
Georgetown University
Inflation adjusted cost of tuition in 18 years
$143,551 USD Per Year
Saving While Abroad: The 529 Question
If you’re a U.S. citizen, a 529 college savings plan is still a great option—even while living overseas. Earnings grow tax-free and withdrawals for qualified education expenses aren’t taxed. The key is choosing a plan from a state that allows non-residents to enroll (hint: many do).
But here’s where it gets tricky:
Some foreign schools aren’t eligible for 529 distributions.
You’ll need to stay on top of contribution limits and U.S. tax reporting if you’re using foreign income.
The plan’s performance is USD-based, so you may be exposed to currency risk if your income is in another currency.
Still, 529s are one of the few tools that give expats a leg up when it comes to long-term education planning.
FAFSA and Financial Aid From Abroad
Yes, your child can still apply for federal student aid using the FAFSA, even if they’ve never set foot in a U.S. high school. But your overseas income may confuse the process. Many expats find their income appears inflated in USD, while local cost of living isn’t factored in.
Plus, U.S. schools may ask for additional verification when they see a foreign address on applications—so make sure you’re organized and ready to respond to requests.
Timing Is Everything
Planning for U.S. college from abroad means thinking ahead in a few key ways:
Residency Planning: If you’re considering a return to the U.S., do it early enough to establish in-state eligibility. Some states require 1–2 years.
Savings Strategy: Know your target. Private universities can run $70,000/year and up. Public schools are more affordable, but only if you unlock in-state status.
Application Support: U.S. college admissions processes differ from many global systems. Essays, extracurriculars, AP/IB credit—it’s a game, and your child needs to know the rules.
Final Thoughts
If you’re living abroad, education planning is more than just saving—it’s strategic navigation. And unfortunately, there’s no single roadmap that fits every family. Where you live, how long you plan to stay, your income structure, and your child’s academic goals all influence the path forward.
But here’s what doesn’t change: the need to start early. If you’re already thinking about it, you’re ahead of most people. And that’s where the advantage begins.
