There are about 20 million students in the U.S., including international students. When figuring out how to pay for your education, you’ll come across student loans. Yet, international student loans work differently than private student loans for students from the United States. Here’s your guide to navigating the world of international student loans.
What Are International Student Loans?
An international student loan is a type of loan available for non-U.S. citizens studying in the United States. Usually, these students are already accepted into a school or program.
You’ll find that international student loans are always going to be private student loans. This is because federal student loans are usually reserved for citizens, permanent residents, and eligible non-citizens. Never fear! The international student loan business is growing. There are plenty of private lenders willing to lend, so you’ll have options.
Like most private student loans, you may need a cosigner. If you do decide to have a cosigner, they’ll need to be either a U.S. citizen or permanent resident and have lived in the United States for at least 2 years. They also must have a good credit score as well as a steady income. Having a cosigner can help you get approved for a lower interest rate on the loan. A lower interest rate will lower the interest and thus, the overall cost of the loan.
Having a good cosigner will also allow you to be able to use the money to attend a wider range of schools. However, there can still be limitations on what schools or programs you can attend. There are loans that don’t need cosigners but these may limit your options in terms of what schools they work with. So, there’s a chance your school may not be on the list. But, if the school you chose is on your lender’s list, then it’s a great option if you can’t get a cosigner. Regardless of your cosigner status, make sure that lenders allow loans for your school before applying.
Why Do International Students Pursue Student Loans?
Like all students, paying for college can be a struggle. International students may face extra stress because of international travel. So, many students turn to loans to help them cover the costs. Loans can help pay for books, room and board, health insurance, travel, living expenses, and more.
Although international student loans can be a big help, they can also cost a lot over the life of the loan. You want to make sure you exhaust all other options available to you. This includes scholarships, grants, and personal funds. If you still need more, then start looking for loans. You’ll want to look for loan amounts that can cover any of the remaining costs after factoring in other aid you have.
Is Getting An International Student Loan a Good Decision?
It really depends on the student. If you can afford to pay your tuition bill out of pocket, you shouldn’t pursue a student loan. If not, pursuing an international student loan is likely a good decision.
The best piece of advice we can give is to sit down, calculate the costs, and see what you have. Talk to your parents or guardian. If you come to the agreement that you can afford it on your own, great! If you realize you’ll need some help, also great! There are plenty of lenders willing to lend money out to you. Just focus on your personal situation and figure out what’s best for you.
Final Thoughts from the Nest
College is already hard without the added factor of being an international student. It’ll be okay, though! There are plenty of resources ready to help you accomplish your educational goals. One of them is Sparrow! With Sparrow, you can compare real international student loan offers by filling out just one application. This simplifies the whole process for you and your family.
Not ready to apply for loans just yet? It’s fine. You can also use the search and comparison feature to compare existing lenders, then save your loan offers to come back to later. Get started by clicking here.