Student Loan For International Learning: Is It Possible?

International student loans are available for students who are citizens of a country but are studying in a different one. These loans can be used for education-related expenses such as tuition, books, fees, insurance, and room and board. They can also be used to cover travel, health insurance, and living expenses. The loan amount and interest rate vary depending on the creditworthiness of the borrower or their co-signer, with most loans requiring a co-signer who is a permanent resident of the country the student is studying in. The repayment period generally ranges from 10 to 25 years, with options for full deferral, interest-only payments, or immediate repayment. International students can also consider scholarships, grants, and federal student loans, although these may not be available in all countries or for all schools.

Characteristics and Values of International Student Loans

International student loans: what are the requirements?

International student loans are a flexible way to finance your education in a foreign country. These loans can be used for education-related expenses such as tuition, books, fees, insurance, room and board, travel, and living expenses.

International Student Loans in the US

Most international students applying for loans in the US must have a US cosigner. The cosigner must be a US citizen or permanent resident with good credit who has lived in the US for at least the past two years. The cosigner is legally obligated to repay the loan if the borrower defaults. If you cannot find a cosigner, you may be eligible for a no-cosigner loan.

Repayment Plans

The repayment period for international student loans generally ranges from 10 to 25 years, with larger loans having longer repayment periods. There are three standard repayment plan options:

• Full Deferral: Students can defer payment until six months after graduation or for a maximum of four years, whichever comes first.
• Interest Only: Students pay only the interest while in school and can defer the principal until 45 days after graduation or when they drop their course load to part-time.
• Immediate Repayment: Payments on both interest and principal are due immediately after the loan has been disbursed.

Interest Rates

Interest rates for international student loans are determined by the chosen benchmark (Prime Rate or SOFR) and an extra percentage based on the creditworthiness of the borrower or their co-signer. The SOFR (Secured Overnight Financing Rate) is a risk-free, overnight funding rate that reflects prevailing market conditions.

Amount

You can apply for up to the total cost of education, minus any other financial aid you receive. To determine your maximum loan amount, you will need to contact the financial aid office of your school.

How to find a cosigner for your loan

International students applying for loans in the US must usually have a US cosigner to apply. The cosigner must be a US citizen or permanent resident with good credit who has lived in the US for at least two years. They are legally obligated to repay the loan if the borrower defaults.

If you are unable to find a cosigner, you can look into no-cosigner loans. These are available for international students at select schools in the US and Canada. Alternatively, you could consider a third-party company that promises to deliver a creditworthy cosigner, although this can be expensive.

If you are able to find a cosigner, it is important to foster trust and show responsibility. When approaching a potential cosigner, be transparent, respectful, and prepared. It is also important to ensure they understand their responsibilities and that the loan will show up on their credit report, impacting their ability to secure financing. Consider asking your cosigner to prequalify with the lender to determine whether they are eligible.

When looking for a cosigner, you can consider family members such as parents, grandparents, aunts, uncles, or older siblings. The cosigner does not need to be related to you, and you do not need to verify your relationship with them, so you could also ask a family friend, former supervisor, mentor, or teacher.

Interest rates and repayment plans

Interest rates for international student loans can vary depending on the lender and the benchmark rate used, such as the Prime Rate or the Secured Overnight Financing Rate (SOFR). The lender also considers the borrower's creditworthiness or that of their co-signer, if applicable. A co-signer is often required for international students and can help secure a lower interest rate. The co-signer must be a US citizen or permanent resident with a strong credit history and meet certain residency requirements.

Repayment plans for international student loans offer some flexibility to borrowers. Standard repayment plans include full deferral, interest-only, and immediate repayment options. With full deferral, students can defer payments until six months after graduation, provided they maintain full-time status. The interest-only option allows students to pay only the interest while in school and defer the principal amount until after graduation. Immediate repayment requires both interest and principal payments to be made immediately after the loan is disbursed.

The repayment period for international student loans typically ranges from 10 to 25 years, with longer repayment terms resulting in smaller monthly payments but higher overall interest costs. Some lenders offer interest rate reductions for auto-pay enrolment or relationships with the bank. Additionally, students may be able to refinance their loans after graduation to obtain a better interest rate, but this usually requires a good credit history.

It is important for international students to carefully consider their repayment options and understand the consequences of defaulting on their loans. Creating a financial plan and borrowing responsibly can help students manage their loan repayments effectively and avoid negative impacts on their credit scores.

Scholarships and grants

University-specific Scholarships

• The University of Michigan's College of Communication Arts and Science Program offers scholarships to qualified applicants for their Telecommunications Information Studies and Media degree. Awards include the Gene Jankowski Scholarship in Telecommunications and the Ira and Jennie Green Endowed Scholarship.
• The University of Alabama's College of Information Sciences provides financial support for worthy candidates within its undergraduate telecommunications degree programs.
• The University of Florida's College of Journalism and Communications offers scholarships ranging from $300 to over $4,000 for qualified telecommunications majors. The Randolph A. Hearst Scholarship and the Jim Kerlin Broadcasting Scholarship are among their specialized awards.
• The University of Maryland awards ENTS Academic Scholarships of up to $500 each to students demonstrating academic merit and financial need for their Masters in Telecommunications (ENTS) program.
• Ohio University's School of Media Arts and Studies offers several scholarships, including the Thomas Streich Memorial Scholarship for an upper-level student with exceptional skills in audio, and the Robert Coe Scholarship for a third or fourth-year student with outstanding academic transcripts and aptitude for broadcast management.
• The Melbourne Institute of Technology (MIT) in Australia offers a 20% fee waiver/discount for its postgraduate telecommunications program through the MIT International Excellence Scholarships.

Other Scholarships and Grants

• The Molley Daily Telecommunications Internship Award provides up to $1,000 to support students during their internships.
• The National Academy of Television Arts and Sciences offers prestigious scholarships of up to $40,000 each for undergraduate students enrolling in telecommunications degree programs.
• The Jim McKay and Mike Wallace Memorial Scholarships are reserved for candidates specializing in television.
• The Wisconsin State Telecommunications Association grants over 25 annual scholarships worth $1,500 each to students pursuing telecommunications degrees.
• The Lee Nourvelle Scholarships are awarded to students demonstrating financial need, academic merit, and creativity, with awards of up to $1,500 each.
• The Leroy Bannerman Award in Innovative Audio offers $500 to students who demonstrate a creative use of audio to enhance broadcast media.
• The Leonard Auerbach Regional Representatives Scholarship recognizes outstanding students in broadcast advertising, with an emphasis on radio.
• The Philip Schmidt Memorial Scholarship is a need-based award.
• The Cox Communications Telecommunications Scholarships are awarded to high school seniors from Oklahoma enrolling in telecommunications programs at the University of Oklahoma. The awards are worth $2,000 each and include an internship opportunity with Cox Communications.

While scholarships and grants are a great way to fund your education, they may not always cover all your expenses. In such cases, international student loans can help bridge the financial gap. These loans can be used for various education-related expenses, including tuition, books, fees, insurance, and living costs. Most international student loans will require a co-signer who is a US citizen or permanent resident with good credit. However, some lenders offer no-cosigner loans for international students enrolled in eligible schools. It is important to carefully consider the interest rates, repayment terms, and other loan conditions before committing to any loan.

Loan resources for international students

International student loans can be used to cover education-related expenses such as tuition, books, fees, insurance, and room and board. They can also be used to cover travel, health insurance, and living expenses.

International students often require a cosigner to apply for a loan. This person is legally obligated to repay the loan if the borrower defaults. The cosigner must be a permanent resident of the country in which the student wishes to study, with good credit and a history of living in the country for at least two years. This person is usually a close friend or relative of the student.

If you are unable to find a cosigner, there are some no-cosigner loans available to international students at select colleges and universities.

Lenders

There are a variety of lenders that offer international student loans. These include:

• International Student Loan
• Study Abroad Loans
• Citizens Bank
• MPOWER Financing
• International Student Loan Program
• Various country-specific lenders, such as the Canadian Student Loan

Loan Comparison Tools

There are also loan comparison tools available to help you find the right loan for your needs. These tools allow you to compare interest rates, repayment terms, and other loan features to ensure you choose the best loan for your situation.

Frequently asked questions