Lori Meadows
International students can access private student loans to help cover the costs of studying in the US. However, they usually need a cosigner—a US citizen or permanent resident with good credit who is legally obligated to repay the loan if the borrower defaults. International students can borrow up to the total cost of school, minus any other financial aid received, and repayment terms vary by lender. It's important to consider monthly payments and deferral options, as most international students cannot work while studying in the US. Aside from loans, international students can also explore scholarships, grants, and cash payment plans to fund their education.
| Characteristics | Values |
|---|---|
| Who can get a loan? | International students in the US or Canada, US students studying abroad, and Canadian students studying in the US |
| Who needs a cosigner? | Most non-US citizens and permanent residents, US citizens and permanent residents do not need a cosigner |
| Who can be a cosigner? | A US citizen or permanent resident with a good credit rating and income history, who has lived in the US for at least 2 years |
| Interest rates | Variable, with APRs ranging from 13.72% to 15.01% |
| Loan amount | Up to the total cost of attendance, as determined by the school, minus any other aid received |
| What can the loan cover? | Tuition, room and board, books, travel, health insurance, and living expenses |
| Repayment options | Various options, from full principal and interest payments while studying to no in-school payments |
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What You'll Learn
International student loans in the US
International students in the US have fewer student loan options than US borrowers. Unless they are eligible non-citizens who can qualify for federal student loans, they may need to borrow from a private lender.
International student loans are available year-round and can cover up to the total cost of school attendance, minus any other financial aid received. The "total cost of attendance" includes tuition, room and board, books and supplies, personal expenses, and transportation. Students can borrow up to their school's total cost of attendance, as determined by the school.
The interest rate for international student loans is computed using a benchmark rate (Prime Rate or SOFR) plus a margin, with the margin being contingent on the creditworthiness of the borrower or their co-signer. The repayment period generally ranges from 10-25 years, but the larger the loan, the longer the repayment period. Students are able to defer payment until 6 months after graduation as long as full-time status is maintained.
Most international students applying for loans must have a US co-signer. A co-signer is legally obligated to repay the loan if the borrower fails to pay. The co-signer must be a permanent US resident with good credit who has lived in the US for the past two years.
There are a few lenders that specialize in student loans for international students, such as MPOWER, Citizens Bank, and Earnest.
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International student loans in Canada
As an international student in Canada, you are expected to be able to finance your studies independently. While scholarships and grants are available, they are very competitive and rarely cover all expenses. Therefore, many international students in Canada rely on private student loans to cover their tuition fees and any remaining costs. These loans are offered by specialist education loan providers and are available for international students studying at approved universities in Canada.
International student loans are provided by private lenders, and each lender will have its own eligibility requirements and rules. Some lenders will consider your academic success and career path, rather than purely basing their decision on your credit history or that of a cosigner. Other factors that may be considered include your home country, expected graduation date, and the school you attend. It is important to research your options and find a lender that meets your needs.
The application process for international student loans is quite simple and can be completed online. Once your application has been reviewed, you will receive details of your offer, including your interest rate and how much you can borrow. If your application is approved, the funds are disbursed directly to your college or university, and this process usually takes about six weeks.
There are a growing number of universities in Canada where students may apply for a loan without a cosigner. However, having a creditworthy cosigner may improve the interest rate you are offered. It is recommended that you only apply for these loans after exhausting all scholarships, personal funds, and other options.
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Loan comparison tools
As an international student, you may be eligible for a loan to help fund your studies. International student loans can cover tuition, books, transportation, living expenses, and more. Most international student loans will require a cosigner, who is legally bound to pay the outstanding debt should the applicant be unable to pay. This cosigner must be a US citizen or permanent resident with good credit and must have lived in the US for at least two years.
There are, however, a growing number of universities and colleges that offer no-cosigner loans. If you do not have a cosigner, you can check your eligibility for a loan without one. International student loan comparison tools can help you find a loan that's right for you. These tools allow you to select your citizenship and school from a drop-down menu and apply online for your loan. You will usually be notified within minutes about whether you are automatically eligible, although this can take up to 48 hours.
Some of the websites that offer loan comparison tools include NerdWallet and InternationalStudentLoan.com. NerdWallet provides reviews and recommendations for international student loans, governed by the website's strict guidelines for editorial integrity. Their content is produced by a team of writers and editors who specialize in consumer lending. InternationalStudentLoan.com's comparison tool can help international students in the US or Canada, and US students studying abroad, find a lender in 10 seconds or less. The website also provides a list of eligible lenders at your school that can help cover the cost of your education.
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Cosigner requirements
International students often need a cosigner because they may not have any US credit history, making it difficult to get approved for a loan. A cosigner guarantees that if the borrower cannot pay back the loan, they will be legally responsible for paying back the debt. Most loans for non-US citizens will require a US cosigner, which will improve the chances of getting approved and lower the interest rate.
A cosigner must be a US citizen or permanent resident with good credit who has lived in the US for at least two years. They will need to provide a social security number, current address and phone number, references, and employment information. The cosigner does not have to be a relative; they can be anyone who meets the general requirements and is willing to cosign the loan.
It is possible to find a loan without a cosigner, but they are harder to find for undergraduate students than for graduate students. When approving an international student loan without a cosigner, the lender will look at the borrower's academic success and career path, including their home country, graduation date, and school attended.
It is important to compare lenders and their criteria carefully, as each lender has different eligibility requirements.
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Private student loans
International students often have fewer student loan options than US borrowers. Unless they are eligible non-citizens who can qualify for federal student loans, they may need to borrow from a private lender.
However, some private lenders offer no-cosigner loans for international students. For example, MPOWER offers private student loans without a cosigner, with a fixed interest rate of 13.99% (15.01% APR). With an MPOWER loan, borrowers can qualify for a discount by making loan payments through automatic withdrawal from their bank account. If they qualify for this discount, their rate will be 13.74% (14.75% APR).
Other options for international student loans without a cosigner include the Ascent Credit-Based Student Loan and the Earnest International Graduate Loan.
When choosing a lender for an international student loan, it's important to do your research and compare lenders, paying attention to fixed vs. variable interest rates, borrowing limits, and repayment terms.
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Frequently asked questions
Yes, international students can get private student loans in the US. These loans can be used for education-related expenses such as tuition, books, fees, insurance, and room and board.
Most international students applying for loans in the US must have a US co-signer with a good credit score and a steady income. The co-signer must be a permanent US resident or citizen and has to be legally obligated to repay the loan if the borrower defaults. In rare cases, an international student may be able to qualify for a loan without a co-signer if they have high career potential or are close to graduating.
Repayment options vary depending on the loan and the lender. The repayment period typically ranges from 10 to 25 years, with longer repayment terms resulting in smaller monthly payments but higher overall interest. Some common repayment plan options include full deferral, interest-only, and immediate repayment. It is important to carefully consider the monthly payments and when they will begin, as most international students are unable to work while studying in the US.
