US citizens generally apply for federal students loan but that is not an option for international students. However, international students loan is an option for non-US citizen. In this post, we have summarised all you need to know about these loans.
Conditions
You can only apply for an international student loan if you have a US co-signer. But why? It is quite simple. The lender (bank or financial institution) wants to ensure that the loan will be paid back after graduation. Because students may leave the United States after their studies without paying off their debts. It means that you need to find someone who has a credit history in the US and is willing to cosign for you. You might find lenders who will give you a loan without cosigners in some circumstances.
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International Students Loans without Cosigner
There are plenty of lenders which offer loans to international students without cosigners. We do not recommend any particular ones (this is not an affiliated marketing post!), but we list some of them here. Before applying to any of these lenders, read carefully the terms and conditions of their loans.
- MPOWER Financing Student loans
- Prodigy Financing Student loans
- Citizen Bank Student loans
- Discover Student loans
Interest rate of loan for international students
Students loans are not interest-free, just like any other loan! Rates depend on the bank’s current interest rate as well as the cosigner’s credit history. This is because the lenders determine the interest rate by looking at the cosigner’s affordability. In general, we can say that the rate will be determined based on the following two Bank rates: Prime Interest Rate and LIBOR.
Repayment of the loan
For repayment of your loan, you will have several options. Paying a loan after graduation is one of the most popular options. You can, however, start paying the instalment just after receiving the loan. You can choose whether to pay interest only or interest and principal, regardless of when you agree on the repayment schedule with the lender. In the former case, you repay the amount of money borrowed plus interest; however, in the latter case, you only repay the interest at the beginning, leaving you with the outstanding amount of the loan.
How to study without Loan?
Answering this question is very simple. You have one option if you do not want to deal with finding the best lender, applying for loans, and making payments. Get a scholarship to study for free at one of the top universities in America. We have compiled a list of the top scholarships for international students that you can find here.
We welcome any questions or comments you may have about financing your studies. Please leave a comment below or contact us.
Learn more about Student Loans for International Students in UK
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