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[ Thursday, Dec. 9, 2004 ]

Exchange rate and tuition increases may hurt PSU, Australian affiliation

For The Collegian

Despite the growing popularity of studying in Australia, Penn State may have to rethink its study abroad partnerships with some Australian universities because of projected tuition increases and the American dollar's decreasing value overseas.

Education Abroad Director John Keller said the university could possibly have to begin breaking its affiliation if the amount of tuition for Australian universities greatly exceeded that of Penn State's.

Right now, students who spend a semester in Australia pay the same amount in U.S. dollars as they would to attend Penn State.

But as the value of the U.S. dollar decreases compared to foreign currencies, students will end up paying more in U.S. dollars even though Australian tuition will remain the same.

Keller said some universities do not guarantee student housing for foreign exchange students, which might also present a problem.

"It made life so much easier," Maria Shunk (senior-kinesiology) said, referring to the student housing at the New South Wales University in Sydney.

"Some universities in Australia do not do that and the students have to stay in hostels until they find a place to live," she added.

"I think it would be difficult to find a place to live in a foreign country," Shunk added.

Dirk Mateer, economics lecturer, said the American dollar's value has decreased against the Euro and other major foreign currencies by 15 to 20 percent in the last year and 25 to 30 percent in the last three years.

"The problem is for students who try to travel abroad or buy imported goods," he said.

Mateer said that as long as the United States continues to borrow funds from other countries to compensate for the country's current budget deficit, the American dollar's value will continue to drop overseas.

He added that students might not be able to find the same discounts when they travel abroad because of the decrease in the dollar's value.

Other Big Ten schools might also limit their participation in Australian study abroad programs.

Riall Nolan, dean of International Programs at Purdue University, said he feels the decreasing value of American money overseas will cause Australian programs to be more expensive.

"In some cases, tuition stays the same but we need more U.S. dollars to get to the Australian dollar," he said.

Purdue has not broken its ties yet, but there have been informal discussions about the value of the American dollar in all foreign countries, including Europe.

"We could change the trend ... but it would take a concerted effort on the part of the president," Mateer said.

Susannah Oberdorf (senior-advertising), who studied media at the Monash University in Melbourne, Australia, last spring, said the American dollar had not yet lost its value when compared to the Aussie dollar.

But, she said, the money exchange process still confused her.

"[Raised tuition prices] would have made it a lot harder because travel and living expenses were still a lot," she said.

"I don't think I would have been able to afford it if university prices went up," Oberdorf added.




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