International Student Loans to Help You Pay for College. I have done my research and have come to know that many students are having loan issues and this is really something else. So I have come to show you International Student Loans to Help You Pay for College, and if you are interested then you should read further.
Now I am going to show you things you need to know and also understand about this article. You just have to keep on reading for more updates.
International Student Loans to Help You Pay for College
Federal student loans simply offer a number of advantages when they are compared to private loans, but they are limited to U.S. citizens and even eligible non-citizens. That means, for many international students, a private student loan is the best way to pay for college.
International students can then have more options than ever to choose a loan that’s right for their unique needs. I have compiled the best international student loans to help you narrow down your choices. These loans do not require borrowers to have a Social Security number (SSN), or collateral, and two that we like do not even require a cosigner.
The Best International Student Loans of August 2022
Here are some of the best international student loans one can get, and they are listed below:
- Best for Undergraduate Students Without a Cosigner: MPOWER Financing
- For Graduate Students Without a Cosigner: Prodigy Finance
- Best for Graduate Students With a Cosigner: Citizens One
- For Interest Rates: Ascent Student Loans
- Best for DACA Recipients: Discover
Many international students do not even have the option of having a U.S.-based cosigner and borrowing in their own country might require collateral. Two major financing companies are filling this gap by simply offering private student loans that do not require a cosigner. The most widely available provider is MPOWER Financing.
MPOWER private student loans are simply available to international undergraduate and even graduate students within two years of graduating or about to begin a one or two-year program at one of 350 approved schools in the U.S. or Canada.
Students also make interest-only payments while in school for the first six months and for the six months after graduation. After this period, borrowers can then make full repayments (interest and principal) until the loan has been paid off. And while there’s no application or prepayment fee, there is a 5% origination fee on every loan.
MPOWER international student loan rates before discounts:
- Undergraduate fixed APR: 14.98%.
- Graduate fixed APR: 12.94%.
- Repayment terms: 10 years.
- Loan amounts: $2,001–$100,000.
What makes the MPOWER the best student loan for borrowers without a cosigner is the availability of loans for undergraduate students and also the access to free visa support letters, immigration resources, and even scholarship opportunities.
Borrowers can also take advantage of up to three interest rate discounts:
- 50% for enrolling in autopay.
- 50% after six on-time payments with autopay.
- Another 0.50% for reporting proof of graduation and employment.
Prodigy Finance is the other company that is offering private student loans to international students without even a cosigner, but it’s only available to students seeking a graduate degree in business, science, technology, engineering, math, law, public policy, or healthcare.
Students can then have three repayment term options and also have payments automatically deferred while in school, but you can then make payments anytime without penalties or fees. There are no application or even prepayment fees, but Prodigy does charge a 5% administration fee on every loan.
Prodigy Finance international student loan details:3
- Variable APR: Starting at 7.25%.
- Repayment terms: Seven to 20 years.
- Loan amounts: $15,000 and up at most U.S. schools.
What makes Prodigy very attractive for eligible students is the simple interest rates it offers—interest doesn’t compound throughout the life of the loan which then saves borrowers money. Prodigy also simply reports payments to credit bureau Experian, and this then helps students build credit in the U.S.
On the other hand, Prodigy uses a variable interest rate model that simply consists of a fixed margin rate plus a variable base rate. The average annual percentage rate (APR) for student loans is 12% with Prodigy.
Citizens One offers loans to international students who then have a creditworthy co-signer who is a U.S. citizen or a permanent resident. There are also no application, origination, or prepayment fees, and even the borrowers can simply choose from four in-school repayment options and three terms.
Citizen One international student loan details
- Graduate Fixed APR: 4.97%–9.91%.
- Graduate Variable APR: 2.91%-9.01%.
- Repayment terms: five, 10, or 15 years.
- Graduate loan amounts: $1,000 up to the total cost of attendance or $350,000 total aggregate, depending on the degree.
Citizens One also offers some of the lowest interest rates available, especially for its graduate and even professional loans. The lender can even offer medical residency and bar study loans, making it a more affordable choice for graduate students who have a co-signer.
Borrowers can then lower their rates with a 0.25% interest rate discount for enrolling in autopay and also another 0.25% reduction if the student or cosigner has a Citizens Bank account or loan. Unfortunately, international students cannot then take advantage of other features Citizens One offers, like multi-year approval or co-signer release.
Ascent Student Loans
Ascent student loans are also available to international students with a cosigner who is a U.S. citizen or permanent resident. There are also no application, origination, or prepayment fees, and you can simply choose from three in-school repayment options and even six repayment terms, up to 15 years for fixed-rate loans or 20 years for variable-rate loans.
Ascent co-signed loan rates with all possible discounts: 5.
- Variable APR: 1.75%–10.54%.
- Fixed APR: 3.22%–13.09%.
- Repayment terms: five, seven, 10, 12, or 15 years.
- Loan amounts: $2,000 up to the total cost of attendance or $400,000 total aggregate, whichever is lower.
Co-signed loans are then eligible for a 0.25% interest rate reduction for simply enrolling in autopay, and borrowers can also get a 1% cashback reward once they graduate from the degree program for which the loan was used to fund. Ascent also provides a free interactive financial literacy course that students are required to take before their loan is funded.
There are even some features that Ascent offers that international students are not eligible for, including co-signer release, monthly scholarship drawings, and its referral program.
Discover offers private student loans to international students who are simply attending an eligible U.S. college or university and who have a creditworthy cosigner who is a U.S. citizen or permanent resident. Loans are simply fee-free and also students have the option of four in-school repayment options but only one term.
Discover international student loan details.
- Undergraduate Variable APR: 2.99%–12.59%.
- Undergraduate Fixed APR: 4.99%–13.99%.
- Repayment terms: 15 years.
- Loan amounts: $1,000 up to the total cost of attendance.
Students who are Deferred Action for Childhood Arrivals (DACA) recipients are simply unique in that they live in the U.S. and can even apply for a Social Security number, but they are simply not eligible for federal financial aid. This simply means many are already building credit but still have to turn to private student loans to fund their education.
Discover is also one of the only lenders offering multi-year approval to students with or without an SSN. This then helps students avoid multiple hard credit inquiries so that they can continue to build credit. Discover also offers a 1% cash reward for good grades and a 0.25% interest rate discount for enrolling in autopay.
Can international Students get Loans?
Before applying for a private student loan, non-U.S. citizens should then check to see if they are eligible for certain types of federal financial aid. Certain groups of people are certainly considered “eligible noncitizens” and might even qualify for federal student loans:
- U.S. nationals (including natives of American Samoa or Swain’s 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.”
If you do not fall into one of these categories, you can simply 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 might even be eligible for financial aid from the state or college in which you are simply studying. Only when you have 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 simply available from two types of lenders: banks and also non-bank lending companies.
Student loans from banks offer international students the convenience of simply doing their banking and student loans all in one place. Additionally, banks like Citizens give 0.25% interest rate discounts to borrowers who then bank with them. The downside is that you will simply need a co-signer to be eligible.
Non-bank lenders offer international students more flexibility. MPOWER and also Prodigy Finance look at your career path and even income potential to then qualify you for a student loan without a cosigner or collateral. And because these companies simply operate completely online, they tend to have very user-friendly websites.
Who Qualifies As An International Student?
International college students are generally those who simply take classes in the U.S. for a limited period of time and also those who arrive on specific visas, such as the F-1 student visa.
You are not considered an international student if you have a green card, or if you are simply a U.S. citizen but your parents have a different citizenship status than you. When you then apply for federal student aid, in fact, the FAFSA does not even require you to enter information about your parents’ citizenship status.
How Is My International Student Loan Interest Rate Determined?
Lenders that make simple loans to international students and also require them to have a U.S. citizen co-signer generally look at the same information that any private student lender would: the Co-signer’s credit score, income, debt-to-income ratio, and even the history of making on-time debt payments.
When deciding who would then best serve as a co-signer on your loan, consider that person’s financial history and also whether his or her income and even credit would qualify you for the lowest possible interest rate. Also, ensure that the co-signer knows that he or she will take on payment responsibility if the student cannot.
If I Am Eligible For Federal Student Loans As A Non-Citizen, Should I Apply For Federal Or Private Loans?
For most eligible borrowers, federal student loans are the better option. That’s because they can then come up with income-driven repayment plans and also student loan forgiveness programs based on the type of career and even the repayment plan you choose. Their interest rates are also often lower than private loan rates.
But federal loans have maximum amounts you might borrow up to, so you might find that you need more money than the federal government will provide. In that case, it is even possible to compare private student loan options to then make up a shortfall. But you should ensure you have maxed out all possible grants and also scholarships before considering student loans.