Lana Oconnell
As an international student, you have several options for financing your education. These include private student loans, scholarships, grants, and cash payment plans. In the United States, international students can get federal loans only if they are eligible non-citizens. Most international students applying for loans in the US will require a US co-signer, usually a relative or friend with a good credit score and a steady income. However, a growing number of universities and colleges offer no-cosigner loans. Private student loans are available to international students to help cover costs such as tuition, room and board, transportation, books, and health insurance.
| Characteristics | Values |
|---|---|
| Who can apply | Students who are not US citizens or non-citizen permanent residents and who are attending an eligible US college or university may apply for international student loans. |
| What can it be used for | Education-related expenses such as tuition, books, fees, insurance, room and board, travel, health insurance, and living expenses. |
| Cosigner | Most international students require a cosigner, who is legally obligated to repay the loan if the borrower defaults. The cosigner must be a US citizen or permanent resident with good credit and a steady source of income who has lived in the US for at least two years. |
| No-cosigner loans | No-cosigner loans are available to international students at a growing number of colleges and universities. |
| Interest rate | Variable rate loans are calculated based on an "index" plus a margin that depends on the creditworthiness of the cosigner or other factors decided by the lender. The two most common indexes used for international student loans are the Prime Rate and the Secured Overnight Financing Rate (SOFR). |
| Repayment period | The repayment period generally ranges from 10-25 years, with the larger the loan, the longer the repayment period. Students can also defer payments for up to four years, which is the typical length of a degree. |
| Monthly payments | The monthly payment amount will depend on the interest rate and repayment period. For example, at an APR of 13.98%, the monthly payment amount is US$113.66 for the first 30 months and US$156.71 for the next 120 months. |
| Application process | Students can use a loan comparison tool to see if they are eligible to apply for a loan without a cosigner and to compare interest rates and fees among different lenders. The loan application can be done online, and the school must certify the amount of the loan after credit approval. |
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What You'll Learn
International student loan eligibility
International students seeking to study in the US have fewer student loan options than US borrowers. Unless you are an eligible non-citizen who can qualify for federal student loans, you will need to borrow from a private lender.
Eligibility for federal student loans
International students may be eligible for federal student loans if they meet the following criteria:
- US nationals, including natives of American Samoa or Swains Island
- Individuals who have a "green card" as a US permanent resident
- Those who have an Arrival-Departure Record from US Citizenship and Immigration Services showing the following statuses: refugee; asylum granted; Cuban-Haitian Entrant; Conditional Entrant issued before 1 April 1980; or parolee
- Those who hold a T-nonimmigrant status, or whose parents do
Eligibility for private student loans
The majority of international students will require a co-signer, who is legally obligated to repay the loan if the borrower fails to pay. The co-signer must be a US permanent resident or citizen with a good credit rating and income history, and must have lived in the US for the past two years.
There are also no-co-signer loans available to students at a growing number of universities and colleges. If you do not have a co-signer, you can check whether you are eligible for a loan without one. Some lenders will consider your program of study, academic performance, and future career prospects when evaluating your application. However, these loans may carry higher interest rates than loans with co-signers.
Loan amount
Students can usually borrow up to their school's total cost of attendance, minus any other aid received. The total cost of attendance includes tuition, room and board, books and supplies, personal expenses, and transportation.
Repayment
Repayment terms vary depending on the loan option chosen. As most international students are unable to work while studying in the US, the repayment terms should be considered carefully. The repayment period typically ranges from 10 to 25 years, with larger loans having longer repayment periods. Some common repayment plan options include:
- Immediate repayment: Payments on both interest and principal are due immediately once the loan has been dispersed
- Interest-only: International students pay only the interest while in school, up to four years, and can defer the principal until 45 days after graduation, or when the student drops their course load to part-time
- Full deferral: Students can defer payment until 6 months after graduation, for up to four years
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Finding a cosigner
As an international student, finding a creditworthy cosigner can be challenging. Most lenders require a cosigner to be a US citizen or permanent resident with good credit history, a steady income, and a stable job. They must also have lived in the US for at least the past two years.
The cosigner is taking on a huge responsibility, as they are legally obligated to repay the loan if the borrower defaults. Therefore, it is important that they can afford to cover these expenses. Lenders will evaluate the cosigner's existing and past loans to see whether they were paid on time.
Most students first look to their family members to act as their cosigner. However, in some cases, they might not meet the requirements, and you may need to find an extended family member or friend to cosign your loan. Your cosigner can be anyone who meets the general requirements and is willing to commit.
If you are unable to find a cosigner, there are still options for getting a loan. A few lenders offer international student loans without a cosigner, and you can use a loan comparison tool to see if you're eligible. When approving a loan without a cosigner, lenders will focus on factors like your graduation timeline, career potential, and the school you attend.
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Interest rates and repayment plans
For undergraduate international students in the US or Canada, the current fixed interest rate is 13.99% (15.01% APR) as of June 1, 2025. This rate can be reduced by 0.25% through automatic payments, resulting in an interest rate of 13.74% (14.75% APR). Similarly, graduate students can borrow at a fixed interest rate of 12.99% (13.98% APR), with the same 0.25% discount option, resulting in a rate of 12.74% (13.72% APR). These rates are subject to change over time and may vary depending on the lender and the borrower's circumstances.
Repayment plans can vary, and it's important to understand the options available. Some common repayment plan options include deferring payments until after graduation, making interest-only payments during studies, or a combination of both. Deferment options typically allow students to postpone payments for up to six months after graduation or until they complete their studies. Additionally, international students may have the option to make interest-only payments while enrolled, which can help reduce the overall loan cost.
It is worth noting that international students often require a co-signer, preferably a US citizen or permanent resident with a strong credit history. Having a co-signer can improve the chances of loan approval and may result in more favourable interest rates and repayment terms. However, there are also no-cosigner loan options available at a growing number of educational institutions in the US and Canada. Proper education, planning, and understanding of interest rates and repayment plans are essential to make informed decisions and avoid potential financial difficulties in the future.
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Comparing lenders
International students have fewer student loan options than US borrowers. Unless you are an eligible non-citizen who can qualify for federal student loans, you will need to borrow from a private lender.
When comparing lenders, it is important to consider the interest rate and whether it is variable or fixed. Variable rates may start out lower, but they will change from year to year and not necessarily in your favour.
You should also consider the repayment requirements. Some lenders may require repayment of interest or complete payment each month while the student is still in school. Others allow borrowers to defer all payments until after graduation.
The term length is another factor to consider. Lenders may allow borrowers to choose among term lengths, so it is worth comparing the monthly costs of each option to see which is most affordable, as well as considering the total cost.
The lowest interest rates usually require full principal and interest payments, the shortest loan term, a co-signer, and are only available to the most creditworthy applicants.
Lenders
Ascent Funding offers flexible repayment options and several loan terms, but most students will need a co-signer to qualify. They also offer a 1% cash back graduation reward.
RISLA offers $2,000 loan forgiveness for borrowers who complete an eligible internship, and working nurses in Rhode Island may qualify for zero interest on their loans for up to four years.
Citizens offer undergraduate, graduate, and parent loans, as well as refinancing options. They also offer multiyear approval loans, which cover each year of college with one application.
MPower Financing offers private student loans for US and international students, with no co-signer or collateral required. They also offer rate discounts. However, borrowers must attend or plan to attend one of the schools in their network and be starting a one- or two-year programme or in their last two years of a longer programme.
College Ave is a good alternative for parents seeking a loan for their child's education, as they do not charge application or origination fees.
Cosigners
The majority of students will require a co-signer, who 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 also no-cosigner loans available to students at a growing number of universities and colleges.
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Applying for a loan
Step 1: Compare Loan Options
Before applying for a loan, it is essential to compare different lenders and their offerings. Each lender has its own eligibility requirements, interest rates, fees, and repayment terms. Compare these aspects to find the best option for your needs. Websites like NerdWallet and International Student Loan offer loan comparison tools that can help you identify potential lenders and understand their requirements.
Step 2: Understand Eligibility Requirements
Most lenders in the US will require a cosigner for international students. A cosigner is someone who agrees to repay the loan if the borrower fails to do so. Typically, the cosigner must be a US citizen or permanent resident with good credit, a steady source of income, and has lived in the US for at least two years. If you cannot find a cosigner, some lenders offer no-cosigner loans to international students at select colleges and universities.
Step 3: Complete the Application
Once you have identified a suitable lender and understood their requirements, it's time to complete the loan application. This can usually be done online. You will need to provide information such as your personal details, financial situation, and the amount you wish to borrow. Ensure that you and your cosigner, if applicable, complete the application thoroughly and accurately.
Step 4: Wait for Approval
After submitting your application, the lender will review it and determine whether to approve your loan. This process can take a few weeks to a few months, so it is essential to start the application process early. The lender will inform you of their decision, and if approved, they will specify the loan amount, interest rate, and repayment terms.
Step 5: Understand Repayment Terms
Before accepting the loan, be sure to understand the repayment terms. The repayment period typically ranges from 5 to 25 years, with most lenders offering a 10-year repayment term. A shorter term will result in higher monthly payments but less interest overall. Conversely, a longer term will lower your monthly payments but increase the total interest paid.
By following these steps and staying informed throughout the process, you can successfully apply for a loan as an international student. Remember to start early and carefully consider your options to make the best financial decision for your education.
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Frequently asked questions
International students can take out private loans from lenders such as banks, credit unions, and online lenders. These loans often require a co-signer who is a U.S. citizen or permanent resident with a good credit score and income history. If you don't have a co-signer, some lenders like MPOWER Financing offer loans without one, but you may pay higher interest rates.
International student loans can be used for education-related expenses such as tuition, books, fees, insurance, room and board, transportation, and living expenses.
It is important to compare different lenders and loan options. Consider factors such as eligibility requirements, interest rates, fees, and repayment terms. Also, look at customer reviews and eligibility requirements. Start the loan process early, ideally two to three months before your semester starts.
