Obtaining a higher education in the United States can be expensive, particularly for international students who are not eligible for many types of financial aid. As a result, many international students consider taking out student loans to help cover the costs of tuition, fees, and living expenses while studying in the U.S. Students are advised to explore various types of student loans for international students to lessen their financial burden.
The availability of student loans for international students in the US can vary depending on the lender and the student’s immigration status. There are several types of student loans available to international students in the U.S.
Here are the most common types of student loans for international students in the US:
Private Student Loans: International students can apply for private student loans from U.S. banks or financial institutions. These loans typically require a co-signer who is a U.S. citizen or permanent resident, and the interest rates and terms vary depending on the lender. International students should shop around to find the best interest rates and loan terms that meet their needs.
International Student Loans: Some private lenders offer loans specifically designed for international students. These loans may not require a co-signer, but they typically have higher interest rates than traditional student loans. International student loans may also have stricter eligibility requirements, such as a minimum credit score or a certain level of enrollment.
Institutional Loans: Some colleges and universities offer loans to international students who demonstrate financial need. These loans may have more favorable terms than private loans, but they are often limited in the amount that can be borrowed.
Government Loans: International students are generally not eligible for federal student loans in the U.S. However, some countries have loan programs specifically designed to support students studying abroad. International students should check with their home country’s government to see if such programs are available.
When considering student loans, international students should be aware of the interest rates, repayment terms, and any fees associated with the loan. They should also consider their ability to repay the loan after graduation, and how the loan will impact their credit history.
When considering taking out a student loan, international students should carefully research their options, compare interest rates and fees, and understand the terms and conditions of the loan. They should also consider other sources of funding, such as scholarships, grants, and part-time work, to help reduce their overall borrowing. Meanwhile it’s advisable to also consult with their college’s financial aid office for guidance and resources on student loans.
Also it’s important to note that international students are generally not eligible for federal student loans, which are provided by the US government and have lower interest rates and more flexible repayment terms. Federal student loans are only available to US citizens and permanent residents.
International students in the U.S. have access to various types of student loans, including private loans, international student loans, institutional loans, and government loans. It’s important to research loan options, understand the terms and conditions, and consult with financial aid experts before making a decision.
Bottom Line
To ensure they have the money to attend the college they’ve enrolled in, international students should begin the financial aid process well before the academic years begins, just as U.S. students do.
Make financial aid a priority as you start the process of applying for admission. Securing financial aid as an international student is challenging, but it’s entirely possible. It just requires careful planning in advance and careful research of all your options to help you cover as much of the total cost of your education as possible.
Explore International Student Loans With a Cosigner
When there are no other options, international students should look into private student loans when trying to get financial aid. The following are a couple of choices for private understudy loans for global understudies:
Citizens Bank
International students can apply for a Citizens Bank Student Loan if they have a cosigner who is a U.S. citizen or permanent resident with a good credit history and signs the loan application.
Undergraduates can borrow up to $150,000 with a Citizens Bank Student Loan, while graduates can borrow up to $350,000. Borrowers can pick either a variable or fixed financing cost credit.
Discover
Discover offers private student loans if an international student is going to an eligible U.S. college. The loan does require a creditworthy cosigner who is a permanent resident of the U.S. or is a citizen here. The type of loan determines eligibility, limits, rates, and terms in turn.
Explore International Student Loans Without a Cosigner
If an international student is not able to find a creditworthy cosigner who is a citizen in the United States, or simply does not want to use a cosigner, there are private student loans without a cosigner. The following options might be good for non-citizens to consider.
Prodigy Finance
Prodigy Finance offers private student loans to international students with no cosigner needed. The company was established in 2007 by three MBA students who saw a need for education loan options for overseas students studying in the U.S.
Rather than using a traditional model for determining risk with borrowers, Prodigy utilizes what it calls a “borderless model” to decide your true capacity and different elements past utilizing a credit endorsement approach. With Prodigy, students from 150 countries can get a student loan or refinance an existing loan in as little as 30 minutes.
Borrowers can get a postgrad student loan or refinance an existing loan. They can have a six-month grace period after they graduate before starting to repay.
To be eligible, students must meet requirements, including living in a country that Prodigy services. They must also have been accepted into an eligible school and program Prodigy supports, and the school they are attending must be outside their home country.
MPOWER Financing
MPOWER Financing is a new kind of private lender that gives international students who are going to college in the United States student loans. It was founded in 2016 and has its headquarters in Washington, D.C.
This option is different from others because the company doesn’t need cosigners, credit history, or collateral to give loans to students. Through MPOWER, loans are available to students of more than 190 nationalities.
It offers loans with fixed interest rates ranging from $2,001 to $50,000 with a ten-year repayment term and the option of paying only the interest for the first six months after graduation. Tuition and other education-related costs can be paid for by students.
MPOWER takes into account the school the students will attend, their anticipated graduation date, their grades and scores, and any internship or work experience they have in their field in order to safeguard its investment. MPOWER also monitors whether the student is taking on too much debt by looking at future earnings.
The process may sound lengthy, but all of this information is needed for a formula that can determine an initial approval response in just 15 minutes.
This program offers courses in financial literacy to assist its borrowers in managing their finances. Students will have a solid financial foundation that will assist them in managing their finances after graduation if they enroll in those classes. That is one of the advantages of this program, as well as landing monetary assistance for school.
Other Financial Aid Options
Different Scholarships for International Students
Here are some additional online scholarships and grant resources for international students:
- College Board: This site provides scholarship information on more than 2,200 programs
- FastWeb: This site is a great source for finding scholarships and internships
- Berkeley College International Student Scholarships: This college values its international students, with students from nearly 75 countries attending Berkeley
- Fulbright Foreign Student Program: This grant will typically fund tuition, other fees, airfare, an allowance for living expenses, and health insurance.
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