Preparing to Build your Program Budget

LEARNING CONTENT

Next to your course syllabus, the Program Budget is the most important component of your program proposal.  Study Abroad is seen as an investment, and for some an extravagance.  It is important that we take all the steps possible to minimize the cost of the program, while also not minimizing the value of the experience.  
  
If you are able to identify scholarship or other donor funding PRIOR to developing your program budget, you can factor that into the final program budget, potentially allowing for greater access to the program.  If you are fortunate enough to identify external funding, it is still imperative that students understand the generosity they are receiving in order to understand the true cost of international experiences. Note: Depending on the type of external funding, it is most likely that the full cost of the program will be invoiced to each students’ account, with the scholarship funding administered to the students’ accounts. (Other examples could include external expenses paying for specific budget items, i.e. faculty travel, etc.).  

Program promotional materials should clearly delineate which items are included in the program  
budget, which students must pay out of pocket, and which components are optional. As you  
begin to think about your program and program budget, it is important to consider the following  
items.  
  
Which components of the program do you want to include as part of the program fee, and which costs will students pay separately? Keep in mind that all required program activities should be included in the total program fee.   
  
Some potential inclusions to the program fee may include:  

• Housing for students and program leader(s)  
• In-country transportation (buses, trains, ferries, taxis, chartered bus, subway, in‐  
  country/regional flights, etc.)  
• Admission fees (museums, performances, historic sites, sporting events, etc.)  
• Fees for guides, translators, or guest lecturers  
• Course related supplies and gear  
• Classroom rental  
• Gratuities and tips 
• Required taxes or exit fees  
• Visa fees for program leader(s)  
• Emergency/contingency funds  
• Luggage fees for program leader(s)  
• International flight for program leader(s) 
• Group flight for program participants 
• Program leader per diem  
• Program leader cell phone  
• Group meals  

Additional Estimated Expenses  

In addition to program expenses, there additional estimated expenses that students may need to also budget for. Passport application, visa costs, books, vaccinations, exit fees, and any non-program related travel or personal spending money are typically the responsibility of the participant and are not included in the program fee.  
  
When considering your budget, there will be some key decisions that contribute to your final program fee:  

1. Do you want to include group airfare?  
   Including group airfare is convenient in that it allows for all program participants to  
   arrive and depart on the same flights. However, for programs that occur during summer  
   or winter breaks, group airfare may not be a good option as students may be traveling to  
   the program site from their hometowns. Therefore, traveling back to Portland in  
   order to fly abroad may add extra expenses for many participants. Additionally, if  
   students or program leaders wish to engage in personal travel before or after the official  
   program dates, having a group itinerary creates challenges in allowing participants to add  
   personal travel time. The other drawback of group airfare is that this option does not allow participants to use frequent flyer miles or to take advantage of free airfare available from parents who are employed by an airline.  
2. Do you want to include group meals? If so, how many meals and which meals do you want to include?  
   Including group meals can add convenience in knowing where students are and in keeping the group together. However, depending on the size of your group, group meals may take significantly longer than allowing students to dine separately. Additionally, if you have students with specific dietary needs or restrictions, finding group meal options that account for the myriad of student dietary needs and preferences can be a challenge. If some meals are not included, you are encouraged to provide students with an estimate of the amount of money they should plan to bring for meals.  
3. Will students have free time during which they can travel away from the program site? If so, how much should they budget for personal travel? You may wish to provide students with examples of the type of independent travel they may choose.  
4. Health insurance will automatically be included in the budget for all students and program leaders.  
5. A 5% UP overhead rate will be automatically assessed to the program fee to cover the administrative support of the program.  

Some additional budgetary factors to consider:  

1. When planning program housing, the male/female ratio of your program participants may affect program cost if odd numbers mean that some students have a single room. In some cases, triple rooms or other configurations can be utilized to keep costs down.  
2. Exchange rates can often fluctuate and affect program costs. If you are being charged or will pay   for items in a currency other than U.S. dollars, be sure to build in a cushion to accommodate fluctuations in exchange rates.  
3. As in the U.S., overseas destinations often have a peak tourist season during which hotels, flights, and other items may be more expensive or unavailable. Research when peak season is in your host destination, and try to plan around it if possible.  
4. Programs that visit multiple countries may incur multiple visa fees and applications, or exit taxes. Determine if the addition of a second country is worth the extra expense and potential hassle. Also, if you are planning a multi-country trip, don’t forget to budget for travel in between countries not just to and from the U.S.!  
5. Determine if vaccinations are required or recommended for any of your intended program destinations. In many countries, vaccinations are recommended for only part of the country, so moving your intended program to a different part of the same country may eliminate vaccine related expenses and processes.  
6. Students who are studying abroad in the summer and wish to use federal financial aid (if they  have any left!) must be enrolled in 6 or more credit hours (undergraduate) or 4.5 hours (graduate) in order to be eligible to utilize financial aid. If your faculty-led program does not offer 6 credits of coursework, you may want to ensure that program dates do not overlap with at least one of UP’s summer sessions in order to enable students to pursue remaining credits for   
   financial aid eligibility on campus.  

When working with a program partner, many of these items will be bundled together in a per student fee. Nevertheless, you should meet with the Study Abroad Office as soon as possible to start working through your program budget.  We will not open the application for your program until the program fee has been finalized.  

Note: Once the program fee has been published, the price can only be reduced. We cannot charge MORE for a program after the fact.  If items are inadvertently left off the budget when determining the program fee, reductions will need to come by making alternate cuts.