Ibrahim Gardner
The US is the world's top destination for higher education, with more than a million international students generating over $40 billion each year. International students pay higher fees than domestic students, with out-of-state and international students sometimes paying two to three times more than in-state students. There are various ways that international students fund their studies in the US, including personal savings, family support, scholarships, assistantships, fellowships, and loans. While some international students receive financial support from their families, others rely on scholarships, assistantships, or fellowships offered by universities. Additionally, international students can take out loans, either from their home countries or from international student loan programs. However, it is important to note that US colleges rarely offer financial support for international undergraduate students, making scholarships highly competitive.
| Characteristics | Values |
|---|---|
| Number of international students in the US | More than 1 million |
| Annual contribution to the US economy | $40 billion |
| Average cost of tuition and fees at public universities | $26,000 |
| Average cost of tuition and fees at private universities | $32,000 |
| Payment methods | Personal savings, family support, scholarships, loans, assistantships, fellowships, grants, work |
| Visa requirements | F-1 student visa, acceptance offer from SEVP-certified school, Form I-20 |
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What You'll Learn
Scholarships and grants
There are also scholarships and grants available from US institutions. The Joint Japan/World Bank Graduate Scholarship Program, for example, provides comprehensive financial coverage for students from developing countries applying for a development-related Master's program. The P.E.O. International Peace Scholarship awards scholarships to women from other countries pursuing graduate degrees in the USA. MPOWER Financing offers scholarships for international and DACA students through its Global Citizen Scholarship Program.
There are also scholarships offered by individual universities. Some students may receive scholarships directly from their US university, although their families may still have to pay a portion of the tuition.
International students can also seek out scholarships and grants from private companies. The Aga Khan Foundation International Scholarship, for instance, provides scholarships to students from select developing countries with no other source of financial aid for graduate studies.
Additionally, there are scholarships and grants specifically for undergraduate students. The Harry S. Truman Scholarship Foundation, for instance, awards merit-based scholarships of up to $30,000 to college students pursuing careers in government or public service. The Barry Goldwater Scholarship and Excellence in Education Program awards scholarships to students intending to pursue research careers in the sciences, mathematics, and engineering.
Online resources such as International Student, IEFA, Fastweb, and Buddy4Study provide searchable databases of scholarships and grants for international students looking to study in the US. These platforms offer a comprehensive overview of the financial aid opportunities available, making it easier for students to find and apply for relevant scholarships.
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Loans
International students can take out private loans from private legal lenders in the US, although there are not many lenders that offer this. The loan can be used to pay for the entire cost of education, including tuition, books, fees, insurance, and room and board. However, international students usually require a creditworthy co-signer who is a US citizen or permanent resident. This is because international students do not have a credit history in the US. The co-signer is legally responsible for repaying the loan if the borrower fails to pay.
There are some lenders that offer no-cosigner loans to students, although these are rare. The loan comparison tool can be used to see if you are eligible for a loan without a cosigner.
Interest rates for international student loans are computed using a benchmark rate plus a margin, with the margin being contingent on the creditworthiness of the borrower or their co-signer. The SOFR (Secured Overnight Financing Rate) is the new benchmark interest rate that has replaced LIBOR. Unlike LIBOR, SOFR is considered more reliable and accurate as it is based on transactions in the Treasury repurchase market. The Prime Interest Rate is another benchmark that is influenced by the federal funds rate, which is set by the US Federal Reserve.
The final amount approved depends on the borrower’s credit history, verifiable cost of attendance as certified by an eligible school, and is subject to credit approval and verification of application information. The lowest interest rates are offered to the most creditworthy applicants and cosigners with the highest average credit scores.
Repayment terms will depend on the lender and loan option chosen. As most international students cannot work while studying in the US, it is important to consider how much the monthly payments will be, when payments will begin, and how long repayment can be deferred.
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Personal and family savings
The high fees paid by international students, who often pay full fare or higher fees than domestic students, contribute substantially to US universities' finances. International students' families' savings help subsidize US students' education.
While scholarships, assistantships, fellowships, and grants are available, they are more common for graduate-level studies. Undergraduate scholarships, when available, can be very competitive. Some scholarships are only open to US citizens and permanent residents, but there are also private, corporate, non-profit, and government scholarship funds that international students can access. Free scholarship databases like IEFA.org and InternationalScholarships.com can be useful resources for international students.
International students can also take out loans, although these may require a cosigner. Some schools offer student loans without a cosigner for eligible students.
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On-campus jobs
International students on F-1 visas can work on campus without additional work authorization. They can work up to 20 hours per week during the academic year and 40 hours per week during academic breaks. They can even work multiple jobs as long as the total does not exceed 20 hours per week.
To find on-campus jobs, international students can check online job boards on the school's website, visit their college's career center, or network with peers and professors. They can also learn about job opportunities during orientation. It is important to start applying early as on-campus jobs can be competitive.
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Health insurance
International students in the US are often required to have health insurance. This is because health insurance is necessary to protect students from the high costs of healthcare in the US. While the US government does not require F visa applications to have health insurance, many universities mandate that their domestic and international students have it. Additionally, J visa applicants are required to have insurance for the full duration of their J-1 student program.
There are several options for international students to obtain health insurance. Firstly, students should check if their university offers a group health insurance plan. Some universities include health insurance as part of tuition payments, while others require students to pay an additional fee. It is important to note that certain universities, such as those in Massachusetts, may require students to enrol in their health insurance plan due to state regulations. Alternatively, students can purchase health insurance from a private insurer if their university does not offer a plan or if they are ineligible for the university's plan.
When choosing a health insurance plan, it is important to consider the benefits and coverage provided. Plans typically include benefits such as physical health, mental wellness, financial protection, crisis support, and personal property coverage. Dental and optical coverage can significantly increase the cost of insurance. It is recommended to get a dental and eye check-up before arriving in the US to avoid unexpected costs. Additionally, students should ensure their chosen plan complies with federal regulations and university requirements.
There are several reputable companies that offer health insurance plans specifically designed for international students in the US. These include IMG Global, which offers the Patriot Exchange Program, Student Health Advantage, and Student Health Advantage Platinum plans. Other options include International Student Insurance, which provides comprehensive and affordable plans for students on OPT, and ISI, which offers four levels of coverage for international students.
The cost of health insurance plans for international students can vary. Plans can start from $1,500 to $2,500 annually and increase depending on additional features and coverage. It is recommended that students compare different plans and select the one that best suits their needs and budget. Students can also seek assistance from health insurance brokers to find the most suitable and cost-effective plan.
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Frequently asked questions
International students often pay more than US students, with out-of-state students paying an average of over $26,000 per year at four-year public universities, and private schools charging an average of nearly $32,000 per year. International students may also pay additional fees for things like visas and English language exams.
International students can access various funding options, including scholarships, grants, assistantships, fellowships, and loans. While scholarships and grants do not need to be repaid, loans do, and may require a co-signer. Funding is more readily available for graduate students, and scholarships can be very competitive for undergraduates.
Most international students rely on personal savings or support from their family to pay for university in the US. However, some students may also work part-time or take out loans to cover their tuition and living expenses.
