The decision to study in the United States can be a difficult one. There are so many things to take into consideration to successfully make the move to the US and succeed at school.
Figuring out how to pay for university is one of the many puzzles to solve but getting an international student loan might be easier than you think.
Can I get a student loan as an international student?
Yes, you can get an international loan as an international student. You have several options to apply for an international education loan. Many of the available options are based on visa status and the desired school.
How can I get a loan to study in the US?
The process that goes into getting a student loan as an international student can look different from person to person. However, the biggest differences usually come down to whether a borrower in an eligible noncitizen.
Eligible noncitizen options
Depending on your status within the United States, you may qualify for student loans as an eligible noncitizen. Eligible noncitizens can apply for the same types of student loans that local students access.
These student loans include both private and government loans. For private loans, lenders should be contacted directly as many have unique rates and qualification requirements. Eligible noncitizens applying for federal student aid should open an account at FAFSA and follow the steps provided.
Examples of eligible noncitizens are:
- Green Card holders
- refugees and asylum seekers
Other noncitizen options
Many international students do not fall into the eligible noncitizen category. Fortunately, there are many other options for education loans for international students.
Foreign applicants not in the eligible noncitizen category should look at their private student loan options. There are many lenders who will provide a loan to cover education expenses for foreign students as they study in the US.
Each lender offers different rates and repayment terms. The various private student loan providers also lack a universal standard for how they accept applicants. Most lenders, for example, require a cosigner while others do not.
With a Cosigner
International students applying for a personal student loan with a cosigner option will have the “pick of the litter” when it comes to which lender suits their needs the best. As long as the cosigner has a credit rating above 640, the loan should have a reasonable interest rate and repayment term.
Without a Cosigner
Education loans offered without the need for a cosigner are few and far between. However, they do exist, and we have a couple of favorites to introduce you to.
An important part of applying for education loans is to make sure that the loan that you are applying to is applicable for the school that you wish to attend. Many loan programs will have a ‘covered schools’ list and it is always good to check it before committing time to the application process.
Interstride’s International Student Loan Picks
As there are many options for foreign students looking to finance their education, we have decided to provide a list of some of our favorites.
#1 – MPower Financing
MPower Financing is one of the few lenders that do not require a cosigner. In fact, the lender doesn’t require collateral, or a credit history in the United States, either. MPower supports more than 350 schools in North America and offers a full scholarship program as well. The student-focused lending approach makes this lender quite popular.
#2 – Ascent
Ascent Funding is another top choice for international students looking for student loan options. Ascent works with MPower to provide loans with and without cosigner requirements. The lender also offers loan options that are either based on credit history or ‘future potential’ which is the model used by MPower Financing. In addition to student loans for eligible schools, Ascent also offers loans for training programs and career development education.
#3 – Prodigy Finance
Prodigy Finance is another top-rated lending firm for international students. Prodigy Finance focuses on graduate studies and provides loans based on a ‘future potential’ model similar to MPower and Ascent. In Prodigy’s case, however, the predictive credit model used to determine credit worthiness is a bit more complex. Students do not need a cosigner or a credit history in the US to apply for a loan from Prodigy Finance.
#4 – Discover
Many consider Discover as one of the better choices for international student credit card providers. As a lender, Discover offers international students with many choices depending on the type of study they are planning. Discover offers student loans specific to undergraduate and graduate studies, as well as degrees in business, health, law, and much more. To take advantage of Discover’s student loans, a cosigner or Green Card is needed.
How do international student loans work?
International student loans work the same way traditional student loans do. The borrower goes through an application process that determines eligibility, credit worthiness, and many other factors. International students can apply for a student loan with or without a cosigner, and loans are available through private and government lending programs.
Can international students get student loans without a cosigner?
The short answer is, yes. Foreign students can get student loans without a cosigner. There are some private lenders who will verify a student’s eligibility based on their own set of rules. If an applicant passes the application process, a loan is granted. Getting student loans without a cosigner through both FAFSA and private lenders is also possible for international students with a Green Card.