International Student Loans: Possibility Or Pipe Dream?

International students can get loans to pay for college in the US, Canada, and other countries. The process and requirements vary depending on the country and the student's citizenship status. In the US, international students typically need an F-1 student visa and a US co-signer to apply for a loan. The co-signer is legally obligated to repay the loan if the borrower defaults and must be a US citizen or permanent resident with a good credit score. However, some lenders offer no-cosigner loans for international students, and private lenders provide various loan options. International students should carefully consider their financing options, including scholarships, grants, and payment plans, to make an informed decision about their educational loans.

Can an international student get a loan?

International student loans in the US

International students in the US are eligible for student loans, but only private ones. They are not eligible for federal financial aid from the US Department of Education, which includes subsidized and unsubsidized loans. However, international students can borrow money from a private lender, such as a bank, credit union, or online lender.

International student loans are a very realistic way to finance your education in the US. Loans are flexible and can offer loan amounts high enough to pay for your entire education, but with extended repayment terms and reasonable interest rates, so you can afford the repayment after you graduate. The repayment period generally ranges from 5 to 25 years, depending on the lender and loan option chosen. The standard repayment plan options include full deferral, which allows students to defer payment until 6 months after graduation, as long as full-time status is maintained.

Since most international students are unable to work while studying in the US, repayment must be considered an extremely important feature in your loan. You will need to consider how much the monthly payments will be, when payments will begin, and how long you will be able to defer paying back the loan.

Most loans for non-US citizens will require a US cosigner, which will improve your chances of getting approved and lower your interest rate. A cosigner is a person who can legally sign loan papers or documentation to help the other person obtain a loan. The cosigner must be a US citizen or permanent resident with good credit who has lived in the US for the past two years. The cosigner is often a close friend or relative who can assist in getting credit, as most international students cannot receive credit on their own. If you are unable to find a cosigner, there are a few lenders that offer no-cosigner loans.

There are loan comparison tools available online that can help you find eligible loan options, which you can then review and choose the one that works best for your circumstances.

Finding a co-signer

International students can get loans to pay for college in the US, but it will depend on their noncitizen status and if they have a co-signer. Most international students do require a co-signer, and this person is legally obligated to repay the loan if the borrower defaults. The co-signer must be a permanent US resident with good credit who has lived in the US for the past two years.

If you are considering asking someone to co-sign your loan, it is important to be prepared. The potential co-signer is taking on a big responsibility, so it is a good idea to explain why you need the loan amount and show them a breakdown of your expenses and budget. You should also create a solid repayment plan that demonstrates how you will manage your monthly loan payments, including your job prospects and anticipated income after graduation. It is also worth letting them know if there is a co-signer release option, which will release them from any obligation towards your loan after a certain period of on-time payments.

If you are unable to find a co-signer, there are some lenders that offer no-co-signer loans, such as MPOWER Financing, Prodigy Finance, and Leap Finance. These loans are based on different criteria, such as your academic performance and career and income prospects.

Interest rates and repayment plans

Private student loans are another option for international students, but they generally require a co-signer who is a US citizen or permanent resident with good credit. The interest rates for these loans can be competitive if the co-signer has a credit score of 690 or higher. Some lenders, such as Prodigy Finance and Leap Finance, offer loans specifically designed for international students without a co-signer, but these loans may have higher interest rates.

The repayment period for international student loans typically ranges from 10 to 25 years, depending on the loan amount. There are various repayment plan options available, including full deferral, which allows students to defer payment until six months after graduation, and interest-only plans, where students pay only the interest while in school. It is important for borrowers to consider the monthly payments, the start of repayments, and the possibility of deferring payments if needed.

International students seeking loans should carefully review the interest rates and repayment terms offered by different lenders. Building a good credit history and exploring scholarships, grants, and other forms of financial aid can also help improve their overall financial situation.

Scholarships, grants and fellowships

Scholarships, grants, and fellowships are great alternatives to loans for international students. They can be found through various online platforms, databases, and organisations. Here are some suggestions on where to start your search:

Online Platforms and Databases

• InternationalStudent.com — This website provides a comprehensive and searchable database of scholarships, grants, and loan programs for international students. It also offers a scholarship search feature and includes programs such as the MPOWER/InternationalStudent.com Central America Scholarship Program, which offers up to $3,000 for international education.
• EduPASS — This website has a list of scholarships specifically for international students, including the Aga Khan Foundation International Scholarship, which provides financial support for graduate studies to students from select developing countries with no other sources of aid.
• Fastweb — This platform provides access to 1.5 million scholarships worth $3.4 billion. Students can create a profile and easily track their applications.
• Candid Learning — This website includes a Fellowship and Prizes section with information on current funding opportunities and online applications. It also has a searchable database of scholarships, fellowships, and grants for all levels of post-secondary study across various academic areas.
• NAFSA — This website promotes the exchange of students and scholars to and from the United States. It includes a searchable database of grants, scholarships, and loans for students wishing to study abroad, with filters for field and location of study, award type, and keywords.

Organisations

• The American Association of University Women — Offers fellowships for non-American women pursuing a Master's or doctorate in the USA. Priority is given to women dedicated to advancing women and girls, and the scholarship can be reapplied for annually.
• Civil Society Leadership Awards — Provides full scholarships for Master's students from specific countries who are committed to driving social change.
• Conacyt — Offers scholarships for Mexican students pursuing postgraduate studies in institutions outside Mexico.
• ColFuturo — Provides scholarships for Colombian students undertaking postgraduate studies abroad.
• Fulbright Commissions — Administers programs sponsored by the U.S. Department of State, offering grants to international students for Master's or Ph.D. study at U.S. universities or other appropriate institutions.

University Financial Aid

In addition to these external sources, it is worth visiting your college or university's financial aid office. They may have resources and information specifically targeting non-U.S. residents or international students.

Other Suggestions

• Government Agencies — Look into government agencies in your country that might offer scholarships, especially in areas such as education, arts and culture, and health.
• The Ultimate Scholarship Book 2025 — This book is available for free from the Overdrive eBook collection and can be a great resource for finding scholarships.

While scholarships, grants, and fellowships are a great option, it is important to note that international students may still need to take out loans to cover all their expenses. In such cases, having a co-signer who is a U.S. citizen or permanent resident with good credit can be beneficial for obtaining a loan with competitive interest rates.

Private student loans

International students can get private student loans to finance their education in the US. These loans are flexible and can cover the entire cost of education, but they typically require a co-signer who is a US citizen or permanent resident with good credit. However, some lenders, such as MPOWER Financing, Prodigy Finance, and Leap Finance, offer loans without a co-signer, basing their loan decisions on the student's future potential, academic performance, and career prospects.

Another option is SoFi's Private Student Loan, which offers flexible repayment options and no fees. Additionally, Earnest Private Student Loans offer a nine-month grace period, the ability to skip one payment every 12 months, and no late fees.

International students seeking private loans should research funding opportunities from their country's embassy or government educational office, as well as scholarships offered by the U.S. Department of Labor. It is important to compare loan features, interest rates, and repayment options before choosing a loan.

Frequently asked questions