For American families living in Europe, planning for a U.S. college education has always required extra preparation. You may be juggling multiple currencies, foreign tax systems, and international school transcripts—all while trying to understand a complex U.S. financial aid system.
The recently enacted One Big Beautiful Bill (OBBB) doesn’t change how American students abroad are admitted to U.S. colleges, but it does make financial planning more important than ever.
Your child is still a domestic applicant
If your child is a U.S. citizen, they continue to apply to American colleges as a domestic applicant, even if they attend an international school in Madrid, an IB school in Brussels, a lycée in Paris, or a local school in Munich.
Admissions officers will continue to focus on:
• Academic achievement and course rigor
• Personal essays
• Teacher recommendations
• Extracurricular involvement
• Standardized test scores (where required or submitted)
Living abroad is not a disadvantage. In fact, students who can thoughtfully explain how their international experiences have shaped their perspective often bring a distinctive voice to their applications.
The biggest change is how families pay for college
The OBBB includes significant changes to federal student lending.
Among the most important:
• Parent PLUS loans are now capped at a lifetime maximum of $65,000 per student. Previously, eligible parents could generally borrow up to the full cost of attendance, minus other financial aid. For many middle-income families, that loan served as the primary way to bridge the gap between aid and the published cost of attendance.
Consider this example.
Suppose your student enrolls at a university with an annual cost of attendance of $85,000. They receive a $25,000 merit scholarship, leaving your family responsible for $60,000 per year.
Over four years, your share would total approximately $240,000.
Under the previous system, many families financed much of that gap through Parent PLUS loans (subject to credit approval). Under the new law, the lifetime borrowing limit of $65,000 means parents would need to find other ways to cover the remaining balance through savings, current income, private education loans, payment plans, or a less expensive college.
For many families, this changes the financial conversation before applications are even submitted.
What this means for American families in Europe
Many expatriate families have financial circumstances that differ from those of families living in the United States.
You may:
• Earn income in euros, pounds, or Swiss francs.
• File tax returns in more than one country.
• Receive housing or education allowances from an overseas employer.
• See the cost of college fluctuate because of exchange rates.
For example, if tuition is $80,000 and the U.S. dollar strengthens by 10% against the euro, your family’s cost in euros effectively rises—even if the university does not increase tuition.
These are factors worth discussing long before your student decides where to apply.
Build your college list with affordability in mind
Rather than focusing exclusively on prestige, look for institutions that are financially realistic.
Ask these questions:
• Which universities offer substantial merit scholarships to high-achieving students?
• Which colleges consistently meet a high percentage of demonstrated financial need?
• What will your family’s total out-of-pocket cost be over four years—not just the first year?
• If federal borrowing is limited, how will you pay the remaining balance?
Many excellent universities provide generous scholarships that make them a better financial fit than more selective institutions with limited merit aid.
Start financial aid planning early
American families abroad often need more time to prepare financial aid applications.
Before your student’s senior year, gather:
• U.S. and foreign tax documents
• Records of overseas income
• Information about foreign bank accounts and investments
• Employer benefit statements, if applicable
Having these documents organized before the FAFSA and any institutional financial aid forms open can reduce stress and help you meet priority deadlines.
The bottom line
The admissions process for American students in Europe has not changed. Colleges will continue to evaluate applicants based on their academic preparation, personal qualities, and potential to contribute to campus.
What has changed is the importance of financial planning.
The new federal borrowing limits mean families should begin discussing affordability before creating a college list—not after admission decisions arrive. A college that offers a generous scholarship or meets a larger share of demonstrated financial need may ultimately provide more opportunities—and less financial strain—than a higher-ranked institution with a much larger price tag.
For expatriate families, thoughtful financial planning has always been important. Under the new law, it has become an essential part of a successful college admissions strategy.