Getting a student loan in the United States can be difficult for international students, especially if they don’t have a cosigner. A cosigner is a US citizen or permanent resident who agrees to be legally responsible for repaying the loan if the student defaults.
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However, there are a few ways for international students to get a student loan without a cosigner.
Why International Students Are Required to Have a Cosigner for a Private Student Loan
International students may not be eligible for federal student loans, which are typically easier to get and offer more borrower protections. This means that they may have to rely on private student loans, which often require a cosigner.
Private lenders require a cosigner because the loans offered are not backed by the government, so these lenders have more risk when they lend money to international students. By requesting a consignor, they want to be sure that the student will be able to repay the loan.
Additional Information About Cosigners for International Student Loans
As mentioned earlier, having a reliable cosigner is often a requirement when you apply for a student loan. Typically, these cosigners need to be either US citizens or permanent residents who have lived in the US for at least two years and have a good credit history.
The purpose for which you are seeking the loan will not affect the likelihood of its approval. For instance, if you are requesting a loan to cover educational expenses and your cosigner does not have a solid credit history or positive bank statements, the chances of approval are very low. The interest rates for the loan are also tied to your cosigner’s credit score, and they become legally responsible for repaying the loan if you are unable to do so.
Without a cosigner who has a strong credit history, meeting the eligibility criteria for most international student loans becomes challenging. However, there is a reliable alternative for international students, that is, opting for international student loans that do not require a cosigner.
No-Cosigner Loans for International Students
Typically, international students are required to have a cosigner when applying for student loans. However, there are a limited number of lenders in the United States and Canada that do not necessitate cosigners. This alternative is particularly suitable for self-funded international students.
These lenders are able to provide such loans by placing emphasis on your academic achievements and career trajectory, rather than solely scrutinising your credit history. They will also request other important information from you, such as your country of origin, anticipated graduation date, and the institution you are attending; therefore, be prepared to provide these details.
Much like non-cosigner loans tailored for graduate students, options available for undergraduate international students are typically offered by the government. These loans are directed at students attending specific institutions. Private lenders offering such loans are few in number. However, it is important to note that identifying undergraduate loans without cosigners for international students can be challenging, and even once identified, meeting the necessary criteria can prove to be demanding.
How to Find No-Cosigner Loans for Undergraduate Students
If you are an international student who needs a student loan without a cosigner, you have a few options. The best option is to use a comparison tool to find lenders that offer no-cosigner loans for students at your school. Once you have found a few lenders, you can research the terms and conditions of their loans, such as the interest rate, repayment period, and how the funds will be disbursed.
When researching no-cosigner loans, be aware that the interest rate will typically be higher than a loan with a cosigner, the repayment period will typically be longer, and the funds will normally be disbursed directly to your school. This is because lenders are taking on more risk when they lend money to students without a cosigner. They want to be sure that the student will be able to repay the loan, so they offer a higher interest rate and a longer repayment period. Additionally, they want to make sure that the money is used for educational purposes, so they disburse the funds directly to the school.
Once you have found a lender and you are happy with the terms of the loan, you can apply for the loan. The application process for a no-cosigner loan will typically be more rigorous than the application process for a loan with a cosigner.
Top Loans for International Undergraduate Students without Cosigners
Certain lenders provide loans to international undergraduate students without needing a cosigner. In the United States, government loans for international undergraduates don’t need a cosigner. Additionally, private lenders such as Sallie Mae, College Ave, and MPOWER offer undergraduate loan options that don’t require a cosigner.
