Exchange rate hurts BC overseas

Like many of his fellow Boston College students studying abroad in Europe, Brian Taylor, A&S '09, left for Italy filled with excitement for the culture and cuisine he would experience over the next semester. He was not disappointed; within the first week, he had toured Il Duomo, shopped on the Ponte Vecchio in Florence, and tasted fresh prosciutto in Parma.

When he checked his bank account a week later, however, Taylor was shocked to find that he had spent several hundred dollars more than he anticipated. "I've never spent so much money in such a short amount of time in my life," he said in an e-mail from Parma.

Taylor is not alone in feeling the pinch of a weakening dollar. The euro, now worth $1.47, is at an all-time high, and the British pound, at $1.98, is at its strongest in a quarter-century. American students abroad, who already struggle to afford laundry and pizza at home, are hit particularly hard by the exchange rate.

The universities that facilitate student travel are forced to cope as well. Dr. Bernd Widdig, director of the Office of International Programs at Boston College, said that approximately 80 percent of his office's budget is affected by the weakness of the dollar relative to European currencies. "We try to absorb as much of [the impact] as possible, but it's difficult," Widdig said.

"The costs that we have to pass onto the students, unfortunately, are housing costs," Widdig continued. BC-sponsored housing for a semester in Madrid, for example, is now $6,200, compared to $4,000 in 2005. For this reason, Widdig said, "We are trying to steer students toward countries where the dollar is still strong, like Argentina and South Africa. We're building stronger partnerships in those countries."

BC students are getting the message. Enrollment in Argentina has already doubled to 16 students for next year, and Widdig said that as many as 25 to 30 are expected to eventually sign up.

"I definitely thought about the exchange rate before going abroad. I knew my dollar would go a lot further in Argentina," said Nick Fulco, A&S '09, who spent the fall semester in Buenos Aires. While BC materials estimate housing costs for the program at $1,500 per semester, Fulco was able to secure an apartment in the city for just over $1,000 by sharing it with other students.

Even with the growing popularity of such non-traditional study-abroad destinations, Widdig acknowledges that Western European countries, especially Italy, France, Spain, and Great Britain, will remain among the top destinations of the approximately 1,000 students who leave BC every year to broaden their academic and cultural horizons. He encourages those students to consider studying outside the capitals, in "midsize cities that are more affordable and offer a more in-depth cultural experience."

Taylor agrees. He spent the first week of his program in Florence, and said, "If I were in Florence for the entire semester, I would probably bankrupt myself completely. But here in Parma, things are more normally priced."

Taylor's aforementioned wake-up call in Italy seems to be the norm, Widdig said. "I feel students are not really prepared for the extent of how expensive it is," he said. "I try to warn them that they have to adapt their spending behaviors and live a little more frugally."

Students are finding their own ways to conserve their suddenly devalued finances abroad, and learning money management skills in the process. Katie Brown, A&S '09, kept a spreadsheet tallying every single purchase, no matter how minor, throughout her fall semester in Madrid. She said she was "constantly aware of how much I was spending. I would ask myself if I really wanted to spend $3 on a bag of chips or a bottle of water."

In restaurants, she said, she would insist on a glass of tap water, even if waiters tried to pretend that they didn't have it. Despite her conscientious spending, Brown admitted that the weak dollar was sometimes an obstacle to full cultural immersion: "I found myself eating at McDonald's more than I would have liked," Brown said.

Even in Buenos Aires, where the exchange rate results in $1 hamburgers and 25 cent subway rides, "money still gets spent pretty quickly when you are studying abroad," Fulco said. He had to avoid buying things just because they were cheap in American dollars.

Fulco and Brown both identified traveling as an integral part of their study-abroad experiences. Fulco went to Uruguay and hiked through Patagonia. Brown spent "so many hours looking for the cheapest fares" on discount airline Web sites, and flew to Germany, Paris, and Rome. "Paris was a lot of money, but I was like, 'I can't say no to Paris,'" Fulco said.

It's a sentiment that seems to be echoed by many students studying abroad: that the "once-in-a-lifetime" opportunity justifies the exorbitant costs of traveling.

Widdig understands that appeal, but encourages students to remember their "hometowns" abroad. "Give the place you're staying a chance. Find your favorite restaurants and pubs; get to know the people. It's very rewarding," he said.

And back in Chestnut Hill, Mass., Widdig sees a silver lining in the falling greenback. "I hope that we will have more students from around the world coming to BC because the exchange rate makes it more affordable now," he said.