Can International Students Get Loans?
International students often cannot get loans for their education because they lack credit histories. More options than ever before are available to international students to select a loan that best suits their individual requirements. To assist you in reducing the number of options available to you, we have selected the top international student loans. Borrowers are not required to provide collateral or their Social Security number (SSN) for these loans; in fact, a few that we prefer don’t even need co-signers.
3 Steps To Find Your Student Loan as an International Student.
1. Find Student Loans:Utilizing internet comparison tools to evaluate various possibilities is the first step. Decide which college you want to attend and how much loan money you need. The loans that fit your criteria will subsequently be visible to you.
2. Select Your Student Loan:Examine the options offered by your school, evaluate the terms and circumstances, and then go ahead to begin the online application process.
3. Fill Out Your Application:Fill out the lender’s loan application. If you are not a citizen or permanent resident of the United States, you will often require a cosigner to submit the online application on your behalf. However, some colleges and universities do not offer cosigner loans to international students. It is also advised for US students to have a cosigner.
The majority of lenders mandate that foreign students obtain loans with a cosigner who is a citizen or permanent resident of the United States. This protects the lender in the event that the borrower defaults on the loan or decides to leave the country. Sadly, it also restricts who can apply for loans, since some prospective borrowers might not have American friends or relatives who would be willing or able to cosign.
Still, a few lenders allow you to apply for an overseas student loan without a cosigner.
The majority of overseas students are only eligible for private student loans, which differ greatly in terms and rates depending on the lender.
While it’s not often the case for domestic students, loans for overseas students frequently need a co-signer who is a citizen or permanent resident of the United States, but some lenders do not.
Here are some characteristics to look out for when you compare and shop around for an international student loan:
APRs and the possibility of pre-qualification
Administrative, origination, and other fees
Conditions for co-signers
Terms and choices for repayment
School Acceptance
Minimum and maximum loan amounts
Rebates
Credit standards and other conditions for qualifying
How to Be Eligible for Loans for Study Abroad
The requirements for qualifying for an overseas student loan vary depending on the lender. As you probably don’t have a credit history in the United States if you’re not a citizen or permanent resident, you’ll usually need to rely on a co-signer to get approved.
When you apply, lenders may take into account the following factors:
Nationality status Credit rating
Credit background
Annual earnings
Ratio of debt to income
Before applying for a private student loan, non-U.S. citizens should check to see if they are eligible for certain types of federal financial aid. Certain groups of people are considered “eligible noncitizens” and may qualify for federal student loans:
U.S. nationals (including natives of American Samoa or Swains Island).
U.S. permanent residents with a permanent resident card, resident alien card, or alien registration receipt card, also known as a green card.
Anyone with an Arrival-Departure Record (I-94) from U.S. Citizen and Immigration Services (USCIS) showing that you’re a refugee, asylum seeker, Cuban-Haitian entrant, conditional entrant (before April 1, 1980), or parolee.
Anyone with a T nonimmigrant status (T-visa) or who has a parent with a T-visa.
Anyone considered a “battered immigrant-qualified alien.”23
If you don’t fall into one of these categories you can check with your country’s embassy or consulate in the U.S., or with the appropriate government office in your country, to see if they offer any scholarship or aid opportunities.
You may also be eligible for financial aid from the state or college in which you’re studying. Only when you’ve exhausted those options should you look into private student loans.
Where Can You Get an International Student Loan?
Private student loans for international students are available from two types of lenders: banks and non-bank lending companies.
Student loans from banks offer international students the convenience of doing their banking and student loans all in one place. Additionally, banks like Citizens give 0.25% interest rate discounts to borrowers who bank with them.24 The downside is that you’ll need a cosigner to be eligible.
Non-bank lenders offer international students more flexibility. MPOWER and Prodigy Finance look at your career path and income potential to qualify you for a student loan without a cosigner or collateral. And because these companies operate completely online, they tend to have very user-friendly websites.
Who Qualifies for an International Student Loan?
International students must meet the eligibility requirements required by the lender. In most cases, this includes being enrolled at least half time at an eligible school and having a creditworthy cosigner.
DACA recipients with a Social Security number have more options than students without. Student loan companies like College Ave and Earnest offer competitive rates and terms, but they require international borrowers to have a cosigner and SSN.
To assess your eligibility, certain lenders could additionally consider your program and earning prospects. If a lender has a pre-qualification tool, using it is a great method to determine your eligibility without putting in a formal application.
Funding for Ascent’s undergraduate and graduate student loans comes from DR Bank or Bank of Lake Mills, both FDIC-accredited institutions. Certain jurisdictions may not offer loan products. There can be certain limitations, restrictions, and terms and conditions. Go to www.AscentFunding.com/Ts&Cs to view the Ascent Terms and Conditions. Rates are subject to an automatic payment discount of 1.00% (for undergraduate outcomes-based loans) or 0.25% (for credit-based loans) as of October 1, 2023. If the borrower successfully withdraws the agreed-upon amount from the permitted bank account each month and is enrolled in automatic payments from their personal checking account, they will be eligible for an automatic payment discount. Visit AscentFunding.com/Rates for Ascent rates and payback examples. 1% Cash Back Graduation Bonus is contingent upon meeting certain requirements. Based on Cosigned Credit A loan recipient must fulfill specific minimum credit requirements. The minimal score needed could fluctuate and be influenced by your cosigner’s credit score. Only our most creditworthy applicants and cosigners with the highest average credit scores are eligible for the lowest APRs, which come with interest-only payments, the shortest loan duration, and a cosigner.