7 Best Student Loans for International Students and How to Apply
Student loans are financial aids that assist international students in financing their education without worries. Most federal loans are for citizens of the country, hence, it is often difficult for international students to access these loans. This is why many international students opt for loans provided by private lenders. In this article, we will be showing you the 7 best student loans for international students and how to apply.
General Requirements for Student Loans for International Students
Every loan lender has specific requirements which prospective borrowers must meet before they can get a loan. However, the following are general requirements:
1. Proof that you’re enrolled in a university, training program, college, etc. This could be a completed registration form or an acceptance letter. Make sure to mention your year of study and your course.
2. Personal details like your name, address, and social security number.
3. If you’re not a citizen, provide a valid, unexpired foreign passport.
4. A driver’s license or an official ID card.
5. Info about your job and income.
6. If you’ve paid taxes recently, include those documents.
7. Tell us how much money you’re asking for.
8. Provide contact details for people who can co-sign for you. The number of people depends on the bank.
9. Share your bank account details and information about your assets.
10. List any other financial commitments you have.
7 Best Student Loans for International Students and How to Apply
1. Sallie Mae
This is a private company that lends money to students for various types of degrees, whether they’re studying part-time or full-time. This includes undergraduate, graduate, medical, career training, and certificate programs. Students can decide on flexible payment plans, either while they’re still in school or after they graduate. You can borrow at least $1000 to cover things like tuition, books, housing, food, travel, laptops, equipment, supplies, and tools. Even international students studying in countries like the UK and Canada can apply for a loan.
If you repay at least $25 every month or choose interest-only payments while you’re still in school, Sallie Mae gives you lower interest rates. If you don’t have a credit history, you’ll need someone with a good income to co-sign the loan with you before you can apply. The co-signer becomes responsible for the loan if you don’t pay it back. The only exception is if the student passes away, in which case the loan doesn’t have to be repaid.
Application Process
International students and their co-signers need to fill out an online application form. They must submit the necessary documents online for verification. After submitting, the application goes through a review process. If approved, the student can pick their interest rate and repayment options. Both the co-signer and the student then agree to the loan terms and electronically sign. Sallie Mae contacts the student’s school for verification. Once confirmed, the loan is sent directly to the school. If there’s any extra money (like a refund), the university gives it to the student. The whole process of Sallie Mae reviewing, verifying, and sending payments to the student’s university usually takes around 15 days.
2. MPOWER Finance
MPOWER Financing is a company that helps international students, U.S. citizens, and DACA students get loans, even if they don’t have collateral or a co-signer from a bank. They’ve supported over 2 billion students from 190+ countries, offering scholarships and loans to help them graduate from 350 universities and colleges in the USA and Canada. International students can use MPOWER’s loan program to cover tuition, living expenses, books, and other academic costs.
Students can borrow up to $100,000. The interest rates for international students are based on the borrowed amount, and they can start repaying while in school or six months after graduating. If they can’t pay by then, they have a 10-year term to repay the full loan amount with interest. MPOWER also provides a free career support program, Path 2 Success, offering services like resume reviews, interview practice, mentoring, and networking to help students with their job search.
Application Process
1. Check if you qualify and apply for a loan using the online form.
2. Wait for a decision, but keep in mind it might take a bit longer if you have to send in documents.
3. Once approved, review the terms and conditions of the loan offer. If it looks good, accept it.
4. You might need to sign documents that outline the loan terms electronically.
5. The lender might ask the school to confirm the loan amount, and this can take three to five weeks.
6. The loan could be sent directly to your school, usually following the school’s disbursement schedule, which might be once per semester.
3. Prodigy Finance
Prodigy Finance is a financial institution that provides loans to graduate students from over 150 countries. They’ve assisted over 2 billion students since they started. They accept applications all year round from students in master’s programs like business, engineering, law, and public policy across 850 universities globally. Unlike some other lenders, Prodigy Finance doesn’t ask for a co-signer or collateral. Students can borrow between $15,000 and $220,000, and the interest rates are based on either credit history or potential future earnings. To qualify for a Prodigy private student loan, students need to meet two main criteria:
They must not live in countries that are not eligible for the loan.
They should be currently enrolled at a university that is considered eligible
Application Process
During the online application, students need to obtain a credit report and go through a background check based on Know Your Customer (KYC), Anti Money Laundering (AML), and Politically Exposed Persons (PEP) criteria.
All required documents must be uploaded online for the application to be considered complete. The operations team is available to answer any questions during the application process. If the application is approved, the loan will be sent directly to the student’s university. To finalise the loan, the student must re-sign an acceptance letter. Prodigy Finance can provide a loan letter to assist with the visa application process.
Students have the option to start repaying the loan while in school or after graduation. International students can use the loan to study at more than one university. Interest begins accruing once the loan is disbursed. If a student chooses to start repaying the loan six months after graduating, the interest will be added to the principal balance.
4. Ascent Funding
This online financial institution provides loans to international students pursuing undergraduate and postgraduate studies in a US university, as long as they have a co-signer. The loans range from $2,001 to $400,000, covering expenses like tuition, room and board, books, and other academic costs. The institution offers international students flexible repayment options to choose from.
For international students to qualify, their co-signer must:
Be a U.S. citizen or permanent resident.
Have a minimum gross annual income of $24,000 for the current and previous year.
Provide proof of income.
Have a credit score.
Application Process
International students and their co-signers need to complete an online application and submit the required documents, which only takes a few minutes. After submission, Ascent reviews the application and provides a decision within approximately 2 business days.
Once approved, the loan is sent directly to the school. Any remaining funds, after covering tuition fees, are then distributed to the student by the school.
5. Citizens Bank
Citizens Bank provides loans for international students pursuing undergraduate or postgraduate studies in the U.S., as long as they have a creditworthy cosigner who is a U.S. citizen or permanent resident. To qualify, international students must be enrolled at least part-time in an accredited U.S. university, and they can borrow anywhere from $1,000 to $150,000. The repayment options are flexible to accommodate students. To apply, both international students and their cosigners can fill out the online application for free and submit the necessary documents.
Once the application is reviewed, students will be notified of the outcome. If approved, they need to accept the loan terms and sign electronically, and the loan will be sent to the student’s university. International students receive their funds from the university.
6. College Ave
College Ave provides affordable loans to international students pursuing undergraduate or graduate degrees in various countries, including the US, UK, Canada, Ireland, and Australia. They offer a minimum loan of $1,000 to cover expenses like tuition, room and board, books, and academic needs. International students can choose from repayment plans that allow them to start repaying during their studies or after graduation. Similar to other lenders, College Ave requires international students to have creditworthy co-signers, who must be US citizens or permanent residents.
Application Process
International students and their co-signers need to complete the online application and submit the required documents, a quick process taking only a few minutes. After submission, Ascent reviews the application and provides a decision within approximately 2 business days. Upon approval, the loan is sent directly to the school. Any remaining funds, after covering tuition fees, are then distributed to the student by the school.
7. Sofi
This financial institution provides affordable loans to international students pursuing undergraduate or graduate degrees in various countries, including the US, UK, Canada, Ireland, and Australia. They offer a minimum loan of $1,000 to cover expenses like tuition, room and board, books, and other academic needs. International students can select from repayment plans allowing them to start repaying during their studies or after graduation.
Similar to other lenders, Sofi requires international students to have creditworthy co-signers, who must be US citizens or permanent residents. This is to verify creditworthiness and enhance the application.
Application Process
International students and their co-signers need to complete the online application and submit the necessary documents, a process that often takes about 15 minutes. After submission, Sofi reviews the application and provides a decision.
Once approved, it usually takes around 2 business days for the loan to be sent directly to the student’s school. Any remaining funds, after covering tuition fees, are then distributed to the student by the school.
Conclusion
Studying abroad provides an excellent educational experience for international students, featuring some of the world’s top-ranking universities and colleges. Studying abroad offers various benefits such as a globally recognized certificate, international exposure, and opportunities to build a global network. However, pursuing an education abroad can be expensive. One of the ways international students seek ways to fund their education is by applying for student loans.
