International Students: Accessing Lines Of Credit

International students can get loans from private lenders to cover their education-related expenses, such as tuition, books, fees, insurance, and room and board. However, they often need a co-signer who is a US citizen or permanent resident with a good credit score and consistent income. Some lenders offer no-cosigner loans or consider the student's program of study, academic performance, and future career prospects when evaluating loan applications. International students can also build their credit by getting a part-time job and a credit card, which can help them access private loans with lower interest rates in the future.

International student loans

Most loans for non-citizens will require a co-signer who is a citizen or permanent resident of the country in which the student is studying. This co-signer must have good credit and income history and, in some cases, must have lived in the country for a specified period. The co-signer is legally responsible for the loan if the borrower fails to make payments. However, some lenders may not require a co-signer if the student meets specific criteria, such as attending an eligible school or demonstrating high career potential.

International students can compare loan options to find the best interest rates and terms for their circumstances. It is important to consider factors such as origination, prepayment, or late fees, as well as the ease of reaching the lender if issues arise. Students should also be aware of the repayment terms, as they will be responsible for paying back the borrowed amount plus any additional interest or charges.

In the United States, options for international student loans include MPOWER Financing, Ascent Funding, and Prodigy Finance. MPOWER Financing offers fixed-rate loans with competitive interest rates and does not require a co-signer or collateral. Ascent Funding provides access to undergraduate and graduate loans, including cosigned credit-based loans. Prodigy Finance is a private lender that will refinance student loans for international working graduates in the US.

Co-signers

For international students looking to get a line of credit, a co-signer is often required. A co-signer is someone who can legally sign loan papers to help the other person obtain a loan. They are legally obligated to repay the loan if the borrower fails to pay. The co-signer must be a permanent resident of the country the loan is being taken out in, with good credit, income history, and have lived in the country for a certain number of years. For example, in the US, a co-signer must have lived in the country for at least two years.

International students commonly have a family member permanently residing in the country co-sign their loans. However, co-signers can also be people outside of your family, such as professors, mentors, or religious leaders. It is important to choose a co-signer that you know well and trust.

If you are unable to find a co-signer, there are still options available. Some lenders will not require a co-signer if you meet specific criteria, such as attending an eligible school, demonstrating high career potential, and planning to graduate within the next two years. Additionally, there are a growing number of universities and colleges that offer no-co-signer loans to students. You can use a loan comparison tool to see if you are eligible for a loan without a co-signer and to find a lender that best suits your needs.

It is important to carefully review the terms and conditions of any loan before making a decision, as interest rates and repayment options can vary. International student loans can be used to cover education-related expenses such as tuition, books, fees, insurance, and room and board.

Interest rates

International students often need a co-signer who is a US citizen or permanent resident with good credit and income history to secure a loan. The co-signer is legally responsible for repaying the loan if the borrower fails to do so. The interest rate offered will depend on the creditworthiness of the co-signer, so it is important to choose a co-signer with good credit. Some lenders may not require a co-signer if the international student meets specific criteria, such as attending an eligible school, demonstrating high career potential, or planning to graduate within the next two years. However, loans without a co-signer may carry higher interest rates.

It is recommended that borrowers opt for a fixed-rate interest rate, which will not increase over time, rather than a variable interest rate. Borrowers should also be aware of any origination, prepayment, or late fees associated with the loan and understand the repayment terms, which can vary depending on the lender and loan option chosen.

In addition to interest rates, international students should consider the repayment options offered by the lender. Some lenders may offer in-school repayment options, such as interest-only, flat-fee, or deferred repayment for undergraduate and graduate students. It is important to review the terms and conditions of the loan carefully before making a decision.

Credit cards

International students can apply for credit cards in Canada. However, there are some requirements that must be met, such as having a Social Insurance Number (SIN), proof of enrollment, and a government-issued ID (passport or Canadian driver's license). Some banks, like Scotiabank, offer international student-friendly credit cards with no annual fees and a credit limit of up to $5,000. CIBC also offers student credit cards with no annual fees and the opportunity to earn rewards on purchases.

It is important to note that approval for a credit card is not guaranteed, even for student credit cards. Common reasons for rejection include not meeting age requirements, not residing in Canada, lack of proof of income, insufficient income, and a low credit score. International students without permission to work in Canada may be rejected due to not having a SIN.

When choosing a student credit card, it is important to consider the fees, interest rates, and perks offered. Some credit cards have low fees and interest rates, while others may offer rewards programs or cash-back options. It is also important to monitor transactions and keep track of your spending to avoid interest charges and build a positive credit history.

In addition to credit cards, international students in Canada can also explore other financial options, such as student lines of credit offered by banks like Scotiabank and CIBC. These lines of credit can provide flexible repayment options and competitive interest rates, allowing students to borrow funds up to a pre-set limit to cover education and everyday expenses.

Financial aid

International students can access financial aid in the form of loans, credit cards, and lines of credit. Here are some options for financial aid:

Loans

International students can apply for private or federal loans from lenders or banks. These loans can cover up to the total cost of attendance, minus any other financial aid received. To determine the maximum loan amount, students should contact their school's financial aid office. Some lenders may require a co-signer who is a US citizen or permanent resident with good credit and income history. However, there are also no-cosigner loans available at some universities and colleges. It is important to compare loan features, interest rates, and repayment options before choosing a lender.

Credit Cards

International students can also apply for credit cards, which can help them build credit. While most credit card applications require a Social Security Number (SSN), international students can apply for an Individual Taxpayer Identification Number (ITIN) or become an authorized user on someone else's card. Additionally, part-time employment may qualify international students for an SSN, which can be used as proof of income for a credit card application.

Lines of Credit

Lines of credit are another option for international students. To access unsecured lines of credit, a credit score of 700 or higher is typically required. A Canadian co-signer with good credit history may be needed for international students to access lines of credit in Canada.

Frequently asked questions