Weak dollar squeezes students

By Robb Murray

It wouldn’t be fair to say the weak dollar is preventing people from studying abroad. But it’s sure having an impact on their budgets.

“The impact comes when you’re looking to purchase a streetcar ticket for one euro, and all of a sudden instead of being $1 it’s a $1.50,” said Caryn Lindsay, director international programs at Minnesota State University. “It’s toothpaste, shampoo, the basic things where students are feeling the impact.”

The dollar in recent years, and especially in recent months, has performed horribly. Its troubles have been most noticeable in Europe, where the dollar had dropped 20 percent in value in the last two years against the euro.

Lindsay spent three weeks on business in Europe and saw the difficulties firsthand. So did student Mary Nelson. She spent time in France where she hoped to truly experience various subcultures within the country.

“It was frustrating for me. I wanted to immerse myself, to find out what it is to be Parisian, what it is to be Rouen (a region in France),” Nelson said. “I really couldn’t afford it. I’d used up all of my loan. I had to call my mom ... It was much more like a semester in Mankato.”

Immobility had its positives, too. Nelson said she was able to spend more time with her host family and get to know them on a level she wouldn’t have had she done what she’d originally planned.

“I just got a Christmas card from them,” Nelson said. “I want to go back.”

“I think it was completely worth the money. Just because it’s more expensive, I don’t think that would be a valid reason to say ‘I’m not going,’” Nelson said.

Gustavus Adolphus College each year sends between 500 and 600 students abroad.The college ranks eighth nationally among liberal arts colleges in the number of students who study abroad.

Patrick Quade, director of international education at Gustavus, said prices for European locations are up.

“We have a program in Germany that gives us prices in euros,” Quade said. “Programs have gone up 800 euros per student ... We’re warning students that when they get to their site, their discretionary spending will be more expensive than they thought.”

Quade said one way they’re able to at least know ahead of time what the costs will be is by booking trips nearly a year in advance.

Students at Gustavus must commit to their study abroad plans 10 months prior to the J-term during which they’d like to study abroad.

“Right now, in terms of our J-term trips, we had to do cost estimates nine months ago,” Quade said. “It means really working ahead ... I’m working now on August and September programs for next year and trying to lock into costs for airline tickets.”

Even though the dollar has continued to weaken since they booked those trips, Quade said they haven’t had to make any adjustments to costs.

But they haven’t escaped rising costs entirely.

“We were hit more with fuel surcharges,” he said. “We have to do the best we can with currency exchange rates and hopefully get the best price from airlines.”

Quade said the surcharges were manageable this year because they built in a contingency. But if costs go up more than 6 percent between the time they book the trips and the time they leave, students may have to pay more. Conversely, if prices were to go down more than 6 percent, students would get a refund.

Rising costs haven’t turned students away. More students are signing up for study abroad this year than last year.