Savanna Hoffman
International students have various options for financing their education in the United States, including student loans, scholarships, and grants. While federal student loans are not available to international students, they are eligible for international student loans, specialized private education loans available to international students studying in the US. These loans can cover the costs of tuition, books, fees, insurance, and room and board. Most international students applying for loans must have a US cosigner, typically a permanent US resident with good credit. However, some online loan companies may not require a cosigner. Before applying for a loan, international students should carefully evaluate their financial options and consider other forms of financial aid such as scholarships and grants.
Are international students eligible for student loans?
| Characteristics | Values |
|---|---|
| International students eligible for federal student loans | U.S. nationals, including natives of American Samoa or Swains Island |
| Individuals with a “green card" as a U.S. permanent resident | |
| Individuals with an Arrival-Departure Record from U.S. Citizenship and Immigration Services showing statuses: refugee; asylum granted; Cuban-Haitian Entrant; Conditional Entrant issued before 1 April 1980; or parolee | |
| Individuals with T-nonimmigrant status or whose parents have this status | |
| “Battered immigrant-qualified aliens,” or children of someone designated as such | |
| Citizens of Federated States of Micronesia, the Republic of Marshall Islands or the Republic of Palau | |
| Non-US citizens or non-citizen permanent residents attending an eligible US college or university may apply for international student loans | |
| Interest rate determined by | Chosen benchmark (Prime Rate or SOFR) and an extra percentage depending on the creditworthiness of the borrower or their co-signer |
| Co-signer | A close friend or relative who can assist in getting credit |
| Private student loans | May be a suitable option to help cover expenses |
| Scholarships and grants | Available but very competitive and rarely cover all expenses |
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What You'll Learn
International students in the US
International Student Loans
International student loans are private education loans available to international students studying in the US. These loans can cover up to the total cost of attendance, including tuition, room and board, books, travel, health insurance, and living expenses, minus any other financial aid received. Most international student loans require a US cosigner, typically a permanent resident or citizen with a good income history, good credit rating, and who has lived in the US for at least two years. However, a growing number of universities and colleges offer no-cosigner loans to international students.
Scholarships and Grants
Scholarships and grants are another option for international students seeking financial aid. While competitive and often covering only partial expenses, they can be found through various sources, such as country embassies, the US Department of Labor's scholarship search engine, and the college or university the student plans to attend. Additionally, the US Department of Education offers resources and tips to protect students from dishonest scholarship organizations.
Federal Student Loans
Unless international students are eligible noncitizens, they generally do not qualify for federal student loans. Eligible noncitizens include US nationals, permanent residents (green card holders), refugees, asylees, and individuals with specific immigration statuses or designations. These students may have access to federal financial aid in the form of loans, grants, or work-study opportunities.
To summarize, international students in the US can primarily access funding through international student loans, scholarships, and grants. While federal student loans are typically not available to international students, certain eligible noncitizens may qualify. It is important for students to research and compare the various financial aid options to make an informed decision regarding their education funding.
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Federal student loans
International students are not eligible for federal student loans in the United States. Federal student loans are reserved for US citizens and permanent residents. However, international students have other options to help finance their education, including international student loans, scholarships, grants, and private student loans.
International Student Loans
International student loans are specifically designed for students studying outside of their home country. These loans can provide funding for tuition, room and board, transportation, books, and other expenses. International student loans are typically offered by private lenders, such as banks or credit unions, and may require a cosigner who is a US citizen or permanent resident.
Scholarships and Grants
Scholarships and grants are another important source of funding for international students. Many organizations and institutions offer scholarships specifically for international students, and these can provide significant financial support. Grants, such as institutional aid or state grants, may also be available to international students and can help reduce the overall cost of education.
Private Student Loans
Private student loans are another option for international students. These loans are offered by banks, credit unions, or other financial institutions. Private student loans often require a cosigner, especially if the borrower has limited income or credit history. It is important for borrowers to carefully research the terms and interest rates offered by different lenders to find the best option for their needs.
In summary, while international students are not eligible for federal student loans in the United States, there are a variety of other financing options available, including international student loans, scholarships, grants, and private student loans. By carefully evaluating their needs and exploring the different options, international students can find the financial support they need to pursue their educational goals in the US.
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Private student loans
International students in the United States 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.
When taking out a private student loan, the borrower is responsible for paying back the amount borrowed (the principal) plus an additional amount charged by the lender (the interest). Variable-rate loans' interest rates are 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 the Secured Overnight Financing Rate (SOFR).
There are several repayment plan options for private student loans. Students can defer payment of interest and principal until six months after graduation, as long as full-time status is maintained. Payments can be deferred for a maximum of four years consecutively, which is the typical length of a degree. Students can also choose to pay only the interest while still in school and defer the principal until 45 days after graduation. However, if a student drops their course load to part-time, they may have to start repaying the principal immediately.
When considering a private student loan, it is important to research repayment options, interest rates, and eligibility factors. Comparison tools are available to help international students find eligible loan options and choose the one that best suits their circumstances. It is also worth noting that most lenders require international students to have a US cosigner, such as a close friend or relative, due to their lack of credit history in the US. However, some lenders offer no-cosigner loans.
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Scholarships and grants
International students can access scholarships and grants to fund their studies, although these can be challenging to find. Scholarships are generally awarded based on merit, financial need, or both.
Some scholarships are aimed at students from specific countries or regions, such as the Wesleyan Freeman Asian Scholarship Program, which is for 11 exceptional Asian students to study at Wesleyan University in Connecticut, US. The Japan-United States Friendship Commission is another initiative that offers grants to Japanese students wishing to study in the US, and vice versa. The Aga Khan Foundation International Scholarship provides scholarships to students from select developing countries who have no other means of financial support for their graduate studies. The scholarship is 50% grant and 50% loan.
Some scholarships are aimed at students studying a particular subject. For example, the Society of Exploration Geophysicists offers scholarships for international students of applied geophysics ranging from $500 to $10,000 per year. The Crown Prince’s International Scholarship Program is for Bahraini students in grade 11/year 12, and the David P. Shapiro Autism Scholarship is for students diagnosed with autism.
There are also scholarships aimed at certain demographics, such as the American Association of University Women, which offers fellowships for non-American women who want to earn a Master's or doctorate in the USA. Priority is given to women who demonstrate a commitment to the advancement of women and girls. Zonta International offers scholarships for international female students of any age pursuing a business-related college degree.
Some scholarships are provided by individual universities, such as the Iowa State University International Merit Scholarships, which are merit-based awards for high-achieving international students. The George Washington University Law School in Washington, DC, offers the Thomas Buergenthal Scholarship, which is based on academic merit and financial need. The University of Minnesota International Scholarships offer the #YouAreWelcomeHere Scholarship, which is a renewable scholarship offering $15,000 per year.
There are also scholarship search engines and databases that students can use to find opportunities, such as Scholarship Finder, EduPASS, Fastweb, and International Education Financial Aid.
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Co-signers
International students seeking loans to fund their education in the United States face several challenges, including eligibility criteria, high costs, and strict visa requirements. To overcome these obstacles, international students often require a co-signer to assist in securing a loan.
A co-signer is typically a trusted friend or relative with good credit who can help international students access credit, as most students cannot obtain credit on their own. The co-signer's creditworthiness and income are crucial factors in determining the loan's interest rate and approval. The process can be expedited by ensuring that both the student and co-signer complete the entire online application thoroughly.
While finding a co-signer can be challenging, it is not impossible. International students can consider approaching close friends, university alumni, or even distant relatives who meet the credit and income requirements. Additionally, some lenders may offer ""no co-signer" loans, which do not require a co-signer, although these may have different eligibility criteria and interest rates.
It is important for international students to carefully consider their financial options before committing to a loan. They should explore scholarships, grants, and other forms of financial aid provided by their country's embassy, the college they will be attending, or through specialized organizations like Education USA. Comparing loan options and understanding the associated costs, interest rates, and repayment plans is also essential to making an informed decision.
In conclusion, while co-signers play a vital role in helping international students secure loans, it is just one of the many options available. International students should thoroughly research all possibilities, including exploring financial aid, comparing loan alternatives, and considering the overall costs of studying in the United States.
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Frequently asked questions
Yes, international students are eligible for international student loans, which are specialized private education loans available to those studying in the US. These loans are different from those offered to Americans and usually require a US cosigner.
To qualify for an international student loan, you must not reside in the US but intend to attend a US institution or university. You will also need a student visa and verification of enrollment at a US college or university.
There are various other options for financing education as an international student in the US, including scholarships, grants, and the school's own aid programs. It is recommended to explore these options first before applying for a loan.
