LONDON — When Natalie Stella, a junior at George Washington University who is currently studying abroad in Paris, checked her bank statement a few weeks into her semester overseas, she thought there was some mistake.
“I nearly called the bank to find out why they were charging me almost double for my ATM withdrawals,” Stella said. “Then I realized it was because of the exchange rate.”
The power of the U.S. dollar has been weakening for many years now. It is currently the world’s worst performing major currency, according to Bloomberg News. Experts there say the dollar shows no direct signs of immediate improvement, and they predict it will likely continue to decline against foreign currencies.
This is bad news for American college students studying abroad in Europe.
In the past two years, $1 was worth an average of 0.73 European euros, according to data compiled by www.exchangerates.org.
Stella blamed the dollar’s poor exchange rate for causing her to spend more than $1,000 beyond the budget she originally set for herself with a month left in her semester in France.
But the financial picture is even worse for students studying abroad in the United Kingdom, where the exchange rate for $1 has averaged 0.63 British pounds in the past two years, also according to www.exchangerates.org.
“I have spent 80 percent of my budget in 50 percent of the time I’ve been here,” said David Rothenbucher, a senior at Boston University currently studying in London. “When I see a price in pounds, I don’t think to do the conversion in my head to dollars, and that’s where the problem comes in.”
Meghan Rodgers, a junior at Villanova University also studying in London, described a similar situation.
“When I exchanged money, my savings were nearly cut in half, and I have honestly had to skip going on trips because I really can’t afford it,” Rodgers said. “If we used monopoly money here, we’d probably get a better exchange rate.”
According to Katharine Krebs, vice provost for international affairs and director of international education at Binghamton University, enrollments in BU international programs in Europe are down by about 10 percent this year.
“It is hard to distinguish between whether the problem is the cost of programs and the experience per se, or financial challenges students are facing here at home,” Krebs said.
She said that to avoid money problems, students should start looking into study abroad programs as early as possible in their academic career and start saving money as soon as they decide they want to go.
“We urge students who use financial aid to consult with the financial aid office about sources of aid for which they might be eligible well in advance,” Krebs said. “And we suggest that if they are having a hard time finding an affordable program, they seek out a study abroad adviser to consult.”
Krebs gave other tips for students studying abroad, including learning about student discounts and cheap airline tickets, prioritizing so that there is money for favorite activities like dining out, shopping or traveling, and watching money carefully at the beginning of the semester abroad — a time when many students overspend because they are unaccustomed to the exchange rate.
While money can certainly be a deterring factor for those considering a semester in Europe, there are numerous positive aspects to the experience that still make it worth the price for many.
“The college years are a unique time when one can live and travel in another country as part of progress toward a degree,” Krebs said. “Later in life it may not be so easy to travel extensively or actually live abroad. Most people who have gone abroad have had to cut back on some experiences because they were expensive, and they would still tell you the overall experience was truly worth the sacrifice.”
Rodgers said she would still recommend taking a semester abroad despite the exchange rate’s detrimental impact.
“We got really unlucky that this recession hit while we are in college,” Rodgers said. “But at the same time, the experience is incomparable, and I can always make more money, whereas I can never do this again. It’s worth it because it’s once in a lifetime. The memories really are priceless.”