Each year, thousands of international students from all over the world head to the United States to study in high schools and live with local host families. Hosting a foreign exchange student for the school year can be very rewarding as you and your family members open your home and hearts to students from other countries and cultures.
Host parents have varying parental boundaries and house rules, but it’s expected they’ll provide foreign students with love, and care for their students as if they’re a member of the family.
- How do I become a host?
- Do hosts receive a stipend?
- Hosting agency options
- Is there a federal or state standard?
- Are there any tax benefits?
- What costs are involved in hosting international students?
- Is hosting an exchange student worth it?
Depending on the language skills of your international exchange student, you might find yourself giving your student greater attention than your own children. This is because, in addition to routine parental tasks and homework, you’ll need to help international students embrace new surroundings and the American culture.
While it’s rewarding, hosting international students means an extra mouth to feed, more clothes to wash, and greater wear and tear around your home. If you’re worried the financial impact may be too much to handle, don’t despair. Depending on the student’s sponsorship program (i.e. Visa), some financial support may be available to host families.
In this article, we’ll review what financial benefits are available to host families, if any, and walk through some of the basics of becoming host parents.
How do I become a host?
Before we delve into the financial aspect of becoming host parents, let’s review the process of becoming a host in the first place.
There’s currently a good supply of companies in the US that specialize in matching host families with foreign students. These are often referred to as hosting agencies. Each hosting agency has its own requirements, but to become a host family, you’ll need to complete an online host family application.
Hosting agencies welcome host families from all areas and ethnic, racial, religious, and economic backgrounds. There’s no typical host family. Some examples of family makeup may include:
- Families with children at home
- Empty nesters
- Families with no children
- Single adults or single parents
As part of the application process, most hosting agencies conduct a criminal background check to ensure foreign students will be arriving in a safe environment. Some states, such as Pennsylvania, also require additional screening to provide an extra layer of security for foreign students.
It’s important to remember that hosting foreign students is much more involved than renting a spare bedroom to a tenant. The boundaries and responsibilities between the host family and student may vary widely, but you should be prepared to diligently care for your international student. You’ll be responsible for them during their stay in the US and prior to them returning to their home country.
Host agencies often specialize in different areas, and some are stronger than others. The good news is, there’s a wide selection of host agencies to choose from. Do your research and find the right host agency for your family. Read contracts thoroughly, see what’s included in their services and lean heavily on customer reviews.
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Do hosts receive a stipend?
Some host parents receive a stipend for hosting students enrolled in a foreign exchange program. If a student comes to the US on a F-1 Visa, then a monthly stipend is provided to the host family. The exact amount of the stipend varies depending on location and hosting agency.
However, if a student comes to the US on a J-1 Visa, host parents don’t receive a stipend, but can claim a tax exemption which we’ll cover in more detail later.
Most hosting opportunities in the US are voluntary, meaning the majority of international students come to the US on a J-1 Visa. Host families aren’t paid when hosting J-1 Visa students because hosting agencies want to ensure families are signing up for the right reason. And not solely for financial gain.
F-1 Visa vs J-1 Visa
At this point, you may be wondering, what’s the difference between a F-1 Visa and a J-1 Visa? At its simplest, a J-1 Visa student doesn’t pay tuition and is typically housed by volunteer host families. Whereas a F-1 Visa student pays tuition to attend school and host parents receive a monthly stipend.
For those hosting students under F-1 Visa programs, the stipend amount you receive depends on several factors including:
- Length of stay
- Hosting agency
- Location
Stipends can vary from $30 to $60 per day, which equates to around $900 to $1,800 per month. On average, hosts can expect to receive around $1,000 per month.
If you live in an expensive area, you’re likely to receive a higher monthly stipend than host families living in small towns. This is due to the higher cost of living, such as increased housing, food and fuel costs, associated with urban, densely populated areas.
When looking at different hosting agencies, it’s important to not focus solely on price. Be sure to consider the other services hosting agencies may provide to foreign students and host families, such as a 24/7 helpline to assist with any issues that may arise or in case of an emergency.
Hosting agency options
Now that you understand there are voluntary and paid opportunities for hosting international exchange students, let’s take a look at some hosting agency options.
As mentioned previously, volunteer hosting opportunities are more plentiful than paid opportunities, which explains the number of options listed for each.
Voluntary hosting (J-1 Visa)
- EF Exchange Year
- International Exchange USA
- International Cultural Exchange Services
- AFS Intercultural Programs
- International Student Exchange USA
Paid hosting (F-1 Visa)
Is there a federal or state standard?
There’s no federal or state-standard amount paid to host families of F-1 Visa students. The monthly stipend varies depending on the factors listed above. If the monthly stipend is important to you, take your time and research multiple hosting agencies to find the best available option.
If earning extra income is your motivating factor, you’ll likely find other options, such as renting out a spare bedroom, more profitable. If you choose to go that route, you’ll miss out on the hosting experience, which is what host parents find most rewarding.
Additionally, you should be weary of selecting a host agency that pays the most but offers substandard service. Prior to making a selection, be sure to read online reviews and speak with other host families to learn about their experience.
Are there any tax benefits?
Yes, under certain circumstances, you can claim tax benefits for hosting international students, regardless of Visa type.
A tax deduction of up to $50 per month is available to host families who house eligible international students.
To be eligible, the student must:
- Attend a local high school full-time, and be in 12th grade or lower
- Live in the taxpayer’s home during the academic year, and have a written agreement with a hosting agency (referred to as a qualified organization, in legal speak)
- Not be related to the taxpayer or their dependent
To qualify for the tax deduction, the hosting arrangement must be made through a qualified organization that is:
- A nonprofit community chest, corporation, fund, trust, or foundation
- A war veterans’ organization; or
- A domestic fraternal society
The local coordinator of the hosting agency you select should be able to confirm if they meet these criteria.
It’s important to note that the $50 per month tax benefit is not a set fee. You’ll need to demonstrate your deductible expenses are used to facilitate international students staying in your home. Most notably, depreciation to your home, such as repairs, or the amount of rent you could charge a tenant, is not deductible.
The following expenses can be deducted from your tax bill:
- Books
- Tuition
- School supplies
- Local transportation
- Food
- Clothing
- Medical and dental care
For further information regarding tax benefits, consider speaking to a qualified tax advisor.
What costs are involved in hosting international students?
Most hosting agencies have no sign-up fee, and tuition and travel to the US are paid for by the students themselves. However, it’s important to remember that you’ll be responsible for housing an extra person or two, which comes with added household expenses.
If you’ve had children, it may be helpful to think of the cost of hosting an international student the same as the cost of raising your own children. Except in this instance, some costs, such as tuition and books, may be taken care of. If you’re feeling generous, you may even consider providing your foreign student with a bit of their own spending money.
Is hosting an exchange student worth it?
When weighing the benefits of hosting foreign students, it’s probably best to focus your thought on the heart-warming experiences and memories you’re likely to create.
While you might be hosting foreign students as a good deed or service, you’re still within your rights to claim tax benefits and any payments available to you.
If you have a spare room, renting it to a tenant is likely to earn you more money. But, by taking on a tenant, you’ll miss out on the rewarding experience of nurturing international students who come from different backgrounds, and introducing them to a new culture and the American way of life.
By sharing your home and daily experiences, you and your family will likely learn about communication, compassion, culture and new foods, all from the comfort of your own home. Most international students are extremely grateful to host parents for opening their home.
Only you and your family will know if the benefits of hosting international students outweigh the extra costs and commitment. It’s likely you’ll feel nervous and doubt yourself, but if done correctly, hosting an exchange student can be an extremely gratifying and rewarding experience for all involved.
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