Janice Lozano
International students often face challenges when it comes to securing loans to fund their education. While scholarship opportunities are limited, there are some private lenders that cater specifically to international students. These lenders offer loans to students from a wide range of countries, pursuing undergraduate or graduate studies in top universities worldwide. The availability of loans without a cosigner or collateral has made higher education more accessible to international students, who traditionally had fewer financing options.
| Characteristics | Values |
|---|---|
| Loan providers | MPOWER Financing, Ascent Funding, InternationalStudentLoan.com, NerdWallet, Citizens Bank |
| Target group | Undergraduate students, STEM students, students without a cosigner |
| Interest rates | Variable, fixed; range from 9.99% to 15.01% |
| Loan term | 10-25 years |
| Repayment options | Interest-only payments, immediate repayment, full deferment |
| Requirements | F-1 student visa, proof of funds, valid ID, credit score, cosigner |
| Application process | Online application, credit approval, loan disbursement |
| Additional services | Visa guidance, scholarships, career advice |
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What You'll Learn
Private student loans for international students
International students in the US have fewer student loan options than most US borrowers. Unless they are eligible non-citizens who can qualify for federal student loans, they may need to borrow from a private lender.
Ascent Funding
Ascent Funding offers private student loans to international students in the US. They require a creditworthy cosigner who is a US citizen or permanent resident. They also require proof of identification and individual resident status.
MPOWER Financing
MPOWER Financing offers quick, no-collateral, no-cosigner loans tailored for global students in the US and Canada. They make loan decisions based on the student's future potential and ability to work in and repay the loan in the US.
Earnest Private Student Loans
Earnest Private Student Loans are best suited for international graduate students from Canada, India, Mexico, or South Korea. They offer flexible repayment options, a nine-month grace period, and no late fees.
Brazos Private Student Loans
Brazos private student loans are best for borrowers from Texas and students attending school in Texas who are from qualifying states. They offer lower rates for graduate students and five loan terms. They require all borrowers, including international students, to have a qualified co-signer.
NYU Stern
NYU Stern provides an alphabetical list of lenders that have provided private education loans to their graduate students in the past three years. They specify that they do not endorse any of these lenders and that students are not required to borrow from them.
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$116.52 $120
$47.99 $59.99
No-cosigner loans
International students often require a cosigner who is a US citizen or permanent resident with a good credit rating. However, this can be a significant barrier for those without connections in the US. No-cosigner loans are available for international students at a growing number of universities and colleges.
Lenders for these loans will evaluate factors like the university's reputation, the student's course of study, and projected post-graduation income. They will also consider the student's academic record, their potential for future earnings, and the likelihood of successful graduation.
One provider of no-cosigner loans is MPOWER Financing, which offers loans to international students in the US and Canada. MPOWER Financing assesses a student's potential and academic merit, and provides a streamlined application process with fixed interest rates. The company also provides visa guidance support and various scholarships.
Another option is Prodigy Finance, which offers a no-collateral, no-cosigner loan option specifically designed for international postgraduate students.
Students can use loan comparison tools to find out if they are eligible for a no-cosigner loan and to compare interest rates and how much they can borrow.
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Variable interest rates
When considering a variable interest rate loan, it's important to understand that while these rates may initially be lower than fixed rates, they can become more expensive if interest rates rise. This uncertainty makes budgeting more challenging for borrowers. However, if market conditions improve and interest rates decrease, variable rates can result in cheaper borrowing.
Several lenders offer variable interest rate loans to international students. These include Earnest, which provides flexible repayment terms and a nine-month grace period with no late payment fees. Ascent is another option, offering both fixed and variable rates with competitive pricing and flexible repayment options. College Ave and SoFi are additional lenders that cater to international students and provide variable interest rate loans.
It is important for international students to carefully consider their financial situation and preferences before choosing between a fixed or variable interest rate loan. Variable rates may be suitable for those willing to take on the risk of potential interest rate increases in exchange for the possibility of lower initial payments. However, fixed rates offer more predictable and stable monthly payments.
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Repayment terms
Interest-Only Payments
Students make payments only on the interest while enrolled in school at least half-time and for a grace period of six months after leaving school. After this, full principal and interest payments begin.
Immediate Repayment
Full principal and interest payments start approximately 60 days after funds are disbursed.
Full Deferment
No payments are made while the student is enrolled in school at least half-time and for a grace period of six months after graduation. Once this period ends, full principal and interest payments commence.
Deferring Payment
Students can defer payment of interest and principal until six months after graduation, as long as they maintain full-time status. The maximum consecutive deferral period is four years, which is the standard duration of an undergraduate degree. Alternatively, students can choose to only pay the interest while still in school, for up to four years of full-time study, and defer the principal until 45 days after graduation.
It is important to note that interest will continue accruing until the loan is paid off. The longer the repayment term, the smaller the monthly payments, but the more interest paid overall. Variable interest rates may increase over time, so a fixed rate may be preferable.
Additionally, some lenders may offer discounts on interest rates if payments are made via automatic withdrawal from the borrower's bank account.
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Scholarships and grants
- The Aga Khan Foundation International Scholarship provides scholarships to students from select developing countries who have no other source of financial aid for their graduate studies. The scholarship is 50% grant and 50% loan.
- The American Association of University Women offers fellowships for non-American women pursuing a Master's or doctorate in the USA. Priority is given to women committed to the advancement of women and girls, and the scholarship may be renewed annually.
- The Joint Japan/World Bank Graduate Scholarship Program offers comprehensive financial coverage, including tuition, a monthly stipend, airfare, health insurance, and travel allowance. It is available to students from developing countries who are applying for a development-related Master's program and have contributed to their country's development.
- MPOWER Financing offers scholarships for international and DACA students through its Global Citizen Scholarship Program, which has broad eligibility criteria. MPOWER also provides scholarships specifically for international graduate students with Chinese citizenship.
- The Rotary Peace Fellowship is a scholarship for doctoral international students offered by organizations like Rotary, which support international students independently from colleges and universities.
It is important to be cautious of dishonest scholarship offers and never send money or personal financial information to any organization promising a scholarship. Always verify the authenticity of scholarship sources and consult with official university offices if in doubt.
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Frequently asked questions
Yes, there are loan options available for international students. These include private loans from third-party lenders, international student loans, and loans from the student's home country.
Most international students do not have a credit history in the US, so lenders usually require them to have a US co-signer. The co-signer must be a US citizen or permanent resident with good credit, income history, and have lived in the US for at least two years. In rare cases, an international student may qualify for a loan without a co-signer if they have high career potential or plan to graduate within the next year or two.
Scholarships and grants are available, but they are very competitive and may not cover all expenses. International students in the US can also complete a Free Application for Federal Student Aid (FAFSA), which may qualify them for state or institutional aid.
