Savanna Hoffman
International students in the US face a unique set of challenges when it comes to financing their education. While federal student loans are a popular option for US citizens, they are not available to international students. Instead, international students can apply for international student loans, which are private education loans specifically designed for those studying in the US. These loans can cover a range of expenses, including tuition, books, fees, insurance, and room and board, and offer flexible repayment terms with reasonable interest rates. However, taking on private loans can lead to significant debt, and international students may struggle to find a US co-signer, which is typically required by lenders.
| Characteristics | Values |
|---|---|
| Can international students apply for federal loans? | International students cannot apply for federal loans. |
| What are the other options for international students? | International students can apply for private loans, although financial aid experts advise against taking on too much debt. They can also research funding opportunities from their country's embassy or governmental educational office to see if there are applicable scholarships. |
| What are the requirements for private loans? | The co-signer must be a permanent US resident with good credit who has lived in the US for the past two years. The co-signer is often a close friend or relative. |
| What is the interest rate for international student loans? | The interest rate 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. |
| How much loan can an international student apply for? | International students can apply for up to the total cost of education, minus any other financial aid received or offered by the school. |
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What You'll Learn
International students can't apply for federal student aid
International students studying in the United States cannot apply for federal student aid. However, there are other options available to help fund their education. These include private loans, scholarships, fellowships, grants, and financial aid awards. International students can research funding opportunities from their country's embassy or governmental educational office, or use the U.S. Department of Labor's scholarship search engine to identify scholarships, fellowships, grants, and financial aid awards. Additionally, some colleges offer financial aid specifically for international students, so it is worth checking with the college directly.
When taking out a loan, international students will typically need a co-signer who is a permanent US resident with good credit and has lived in the US for at least the past two years. The co-signer is often a close friend or relative who can assist in getting credit, as international students usually cannot receive credit on their own. The loan amount can cover up to the total cost of education, minus any other financial aid received.
It is important to note that international students face additional costs compared to their domestic peers when studying in the US, such as visa application fees and international airfare. As a result, many international students have to dip into their savings or take out loans to finance their education. While there are loan options available specifically for international students, financial aid experts advise against taking on too much debt. Instead, they recommend considering studying in a country with lower tuition rates, such as the UK.
Overall, while international students cannot apply for federal student aid in the US, there are alternative funding options available, including private loans, scholarships, and financial aid directly from colleges. However, it is essential to carefully consider the costs and potential debt associated with studying in the US before committing to this path.
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International students can apply for private loans
International students who are planning to study in the US 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 private lenders.
Before borrowing money, international students should research funding opportunities from their country's embassy or government educational office to see if there are applicable scholarships. They can also use the US Department of Labor's scholarship search engine to identify scholarships, fellowships, grants, and financial aid awards. Additionally, they should check with the college they will be attending to see if they offer international students financial aid. Organizations such as Education USA advise international students on topics like how to finance college in the US, the student visa process, and standardized testing requirements.
International student loans are available year-round and can cover up to the total cost of school minus any other financial aid received. Students can use a loan comparison tool to help find the best option for their circumstances. After selecting their citizenship and school, the tool will return a list of lenders that will work for them. Students can then compare the different terms and conditions and choose the lender that works best for them.
When taking out a loan through a lender, international students will be responsible for paying back the amount borrowed (the principal) plus an additional amount charged by the lender (the interest). The interest rate is calculated based on an "index" plus a margin that will add an additional percentage depending on the cosigner's creditworthiness or other factors decided by the lender. The two most common indexes used for international student loans are the Prime Rate and Secured Overnight Financing Rate (SOFR).
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International students can apply for merit or need-based aid
International students are not eligible for federal student loans or federal financial aid in the US. However, they can apply for merit or need-based aid, which can help cover the costs of attendance. These costs include tuition, room and board, transportation, books, supplies, health insurance, and other expenses.
International students can research funding opportunities from their country's embassy or governmental educational office. They can also use the U.S. Department of Labor's scholarship search engine to identify scholarships, fellowships, grants, and financial aid awards. Additionally, they can check with their college to see if financial aid is offered to international students and seek advice from centers that help international students navigate the financial aid process, such as Education USA.
Some public and private universities offer financial incentives for students to attend their institution. Most institutional aid for international students is reserved for graduate study in the form of assistantships and fellowships. However, some universities may offer merit-based scholarships for undergraduate international students based on special skills, talents, or abilities. These scholarships are often very competitive, and students should consult with their university to take advantage of any available opportunities.
International students may also take out private loans, although financial aid experts advise against taking on too much debt. These loans typically require a qualified co-signer who is a U.S. citizen.
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International students can apply for scholarships
The #YouAreWelcomeHere scholarship, for example, is hosted by colleges and universities and offers two yearly renewable scholarships for international undergraduate students. Each institution has different eligibility criteria, so it's important to check what requirements you need to meet. Graduate and postdoctoral students can also apply for different scholarships and fellowships to fund research and study. A fellowship is a short-term funded research and study opportunity that can last from a few weeks to several months or even years. Many international graduate students receive a full or partial teaching or research assistantship through the university.
International students can also find scholarships offered by their country's embassy or governmental educational office, as well as through the U.S. Department of Labor’s scholarship search engine. The U.S. Department of Education also offers tips and resources to protect students from dishonest organizations offering scholarships.
When applying for scholarships, international students should give themselves plenty of time to prepare a strong application and communicate their goals for university study, career aspirations, and reasons for applying to a specific university. They should also be honest about their achievements and extracurricular activities and ask their school counselor, English teacher, or EducationUSA adviser to review their application.
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International students can apply for financial aid at their college
Firstly, international students can research funding opportunities from their country's embassy or governmental educational office, as well as scholarships, fellowships, grants and financial aid awards. The U.S. Department of Labor’s scholarship search engine can be used to identify these. It is also worth checking with the college you will be attending to see if they offer international students financial aid, and to see if they have their own financial aid forms.
Additionally, international students can take out private loans, although many financial aid experts advise against taking on too much debt. International student loans can be used to cover the total cost of education, minus any other financial aid received. However, it is important to note that most international students cannot receive credit on their own and will need a co-signer who is a permanent US resident with good credit.
International students may also qualify for certain types of merit or need-based aid. They can use a student loan comparison tool to review eligible loan options and choose the one that works best for their circumstances.
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Frequently asked questions
No, international students cannot apply for federal loans or federal financial aid in the US.
International students can apply for international student loans, which are specialised private education loans. These loans can cover up to the total cost of school minus any other financial aid received.
The interest rates for international student loans are usually based on the Prime Rate or the Secured Overnight Financing Rate (SOFR). The SOFR is the new benchmark interest rate that has replaced LIBOR and is considered more reliable and accurate.
Most private student loan lenders require a cosigner who is a US citizen with good credit. The cosigner is often a close friend or relative of the student.
