Studying abroad can be expensive, and if you don’t have access to scholarships, you may need to take out loans to finance your education. International student loans are available to non-US citizens who are studying at a college or university in the United States. These loans can help cover the cost of tuition, room and board, books, supplies, health insurance, and other expenses.
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Factors to Consider When Choosing an International Student Loan
When choosing an international student loan, it is important to compare different lenders and options to find the best one for your needs. Some factors to consider include:
Interest rates: Interest rates on international student loans can vary widely, so it’s important to note rates from multiple lenders before you choose a loan.
Loan terms: The loan term is the length of time you have to repay the loan. Longer loan terms will mean lower monthly payments, but you’ll pay more interest in the long run.
APR: The APR, or annual percentage rate, is the total cost of the loan expressed as a percentage. It includes the interest rate and any fees associated with the loan.
Payment options: Some lenders offer flexible payment options, such as forbearance or deferment, which can be helpful if you experience financial hardship. This should be carefully considered when choosing a loan.
Classification of international student loans
International student loans are usually classified into two main categories: federal and private student loans.
Federal student loans are offered by the U.S. government and are typically the most affordable option for international students. However, eligibility for federal student loans is limited to certain categories of international students, such as those with valid U.S. visas and are enrolled in a degree-seeking program at a U.S. college or university.
Private student loans are offered by private lenders, such as banks, credit unions, and online lenders. Private student loans are generally more expensive than federal student loans, but they may be the only option for international students who do not qualify for federal student loans.
Top international student loans 2023
Here are some of the top international student loans:
Ascent – Best for payment reduction and postponement options
Ascent offers both co-signed and non-co-signed loans to international students. The lender provides you with the financing you need, even if you don’t have a US cosigner. Ascent loans can be used to cover up to the total cost of attendance, with loan amounts starting at $2,001.
One great thing about Ascent loans is that they offer a variety of payment reduction and postponement options. This can be helpful if you’re struggling to make payments or need to take a break from school for a few months. Ascent also has an extended grace period, so you don’t have to start making payments right after graduation.
Loan terms and eligibility
Ascent loans have terms of 5, 7, 10, 12, or 15 years. Borrowers must be enrolled in a degree-seeking program at a U.S. college or university and have a co-signer who is a U.S. citizen or permanent resident with a credit score of at least 680.
What stands it out
Ascent borrowers can take advantage of a variety of payment reduction and postponement options, including:
Graduated repayment: This plan provides a lower monthly payment that increases over time.
Forbearance: Borrowers can pause payments for up to 24 months total, but interest will continue to accrue during this time.
Co-signer release: After 12 months of consecutive on-time payments, borrowers may be eligible to have their co-signer released from the loan.
Advantages and disadvantages
Some of the advantages of Ascent loans include:
A variety of payment reduction and postponement options
Loans available to international students with a co-signer
No application fee
No origination fee
Some of the disadvantages of Ascent loans include:
Maximum fixed APR of 10.99%
Late fees charged
Co-signer required for most borrowers
SoFi – Best student loan refinance lender
SoFi is a great option for international students looking to refinance their student loans. They offer a variety of features and benefits that can help you save money on your monthly payments, including no late fees and an interest rate discount for co-signers who use another SoFi product.
Loan terms and eligibility
SoFi undergraduate student loans have terms of 5, 7, 10, and 15 years. Borrowers must be enrolled in a degree-seeking program at a U.S. college or university and have a credit score of at least 650.
What stands it out
SoFi borrowers can take advantage of a variety of payment reduction and postponement options, including:
Unemployment Protection Program: This program allows borrowers to pause payments in three-month increments for up to 12 months if laid off from work.
General forbearance: Borrowers can also take forbearance for other types of economic hardship, such as medical expenses. Borrowers can take up to 12 months total forbearance, no matter which program they use.
Co-signer release: After 24 payments, borrowers may be eligible to have their co-signer released from the loan.
Advantages and disadvantages
Some of the advantages of SoFi undergraduate student loans include:
No late fees
Interest rate estimate available without a hard credit check
Access to discounts on financial services
Some of the disadvantages of SoFi undergraduate student loans include:
Maximum APR above 12%
Co-signer required for most borrowers
College Ave – Offers Extended Grace Period
College Ave offers a variety of private student loans that are a great option for international undergraduates. With loan amounts starting at $1,000 and terms of up to 8 years, College Ave can help you cover up to 100% of your cost of attendance. One of the things that sets College Ave apart from other lenders is its extended grace period. After you graduate, you’ll have 6 months before you start making payments on your loan. This can be a lifesaver if you need some time to get settled into your new job or if you want to take a break from school.
Loan terms and eligibility
College Ave student loans have terms of 5, 8, 10, 15, and 20 years. Borrowers must be enrolled in a degree-seeking program at a U.S. college or university and have a minimum credit score of mid 660s.
What stands it out
College Ave borrowers can take advantage of a variety of payment reduction and postponement options, including:
Forbearance: Up to 12 months of forbearance is available in three- to six-month increments.
Co-signer release: After 24 payments, borrowers may be eligible to have their co-signer released from the loan.
Advantages and disadvantages
Some of the advantages of College Ave student loans include:
Long time period (210 days) before unpaid loans go into default
Extended grace period of 6 months
Interest rate estimate available without a hard credit check
International students can qualify with a co-signer who has U.S. citizenship or permanent residency
Choice of loan terms up to 20 years
Some of the disadvantages of College Ave student loans include:
Maximum fixed APR above 12%
Late fees charged
Co-signer required for most borrowers
Sallie Mae – Offers Offers Payment Relief Options for Struggling Borrowers
Sallie Mae is well-known for some commendable features and benefits to borrowers, including multiple payment reduction options for borrowers experiencing financial difficulty and the ability for international students to qualify with a U.S. citizen co-signer. One of the best features of Sallie Mae is that they offer up to 12 months of forbearance, in three-month increments, throughout the loan term. This can be a lifesaver if you’re an international student who has to bear the cost of your education. If you’re experiencing financial hardship, you can take advantage of the forbearance to pause your payments for up to 12 months. This will give you some breathing room to get your finances in order.
Loan terms and eligibility
Sallie Mae private student loans have terms of 5 to 15 years. Borrowers must be enrolled in a degree-seeking program at a U.S. college or university and have a minimum credit score in the mid-600s. International students can qualify with a U.S. citizen co-signer.
What stands it out
Sallie Mae borrowers can take advantage of a variety of payment reduction and postponement options, including:
Forbearance: Up to 12 months of forbearance is allowed, in three-month increments, throughout the loan term.
Hardship forbearance: Borrowers experiencing financial hardship may be eligible for additional forbearance, such as interest-only payments for one year after the end of the grace period.
Co-signer release: After 12 months of on-time payments, borrowers may be eligible to have their co-signer released from the loan.
Advantages and disadvantages
Some of the advantages of Sallie Mae private student loans include:
Multiple payment reduction options for borrowers experiencing financial difficulty
The ability for international students to qualify with a U.S. citizen co-signer
Part-time students can be eligible for a loan
No origination fees
Some of the disadvantages of Sallie Mae private student loans include:
Late fees charged
No interest rate estimate is available without a hard inquiry
High interest rates (up to 16.22%)
Earnest – Offers option to skip one monthly payment per year
Earnest is one of the few lenders that grant excellent loan offers to international students. The lender offers features that help you save money on your student loans. For example, they have a lengthy grace period, so you don’t have to start making payments immediately after graduation. They also let you skip one monthly payment per year, which can be helpful if you struggle to make ends meet. Additionally, they don’t charge late fees, which can save you a lot of money in the long run.
In the US, late fees for student loans can be up to 6% of the amount due and unpaid. That means that if you miss a payment of $1,000, you could be charged an additional $60 in late fees. Earnest doesn’t charge any late fees, so you can be sure that you won’t have to worry about that extra expense.
Loan terms and eligibility
Earnest private student loans have terms of 5, 7, 10, 12, or 15 years. Borrowers must be enrolled in a degree-seeking program at an eligible school full-time (half-time is allowed for undergraduate seniors and graduate students). International students can qualify with a U.S. citizen co-signer.
What stands it out
Earnest borrowers can take advantage of a variety of payment reduction and postponement options, including:
Forbearance: Up to 12 months of forbearance is allowed throughout the loan term.
Skip-a-Payment: Borrowers can skip one monthly payment per year without penalty.
Advantages and disadvantages
Some of the advantages of Earnest private student loans include:
Excellent grace period: 9 months compared to the standard 6 months
Option to skip one payment per year
No late fees
Wide variety of loan terms
Some of the disadvantages of Earnest private student loans include:
Co-signer release not available
Maximum APR is above 12%
Citizens Bank – Offers Interest Rate Discount
Citizens Bank is an excellent option for international students looking for a loan with a low interest rate. The bank offers an interest rate discount of 0.50% to borrowers who have an existing account with Citizens Bank. This is a significant saving, especially considering that the average interest rate on student loans in the US is 4.99%.
Loan terms and eligibility
Citizens Bank private student loans have terms of 5, 10, 15, and 20 years. Borrowers must be enrolled in a degree-seeking program at an eligible school full-time. International students can qualify with a U.S. citizen co-signer.
What stands it out
Citizens Bank borrowers can take advantage of a variety of payment reduction and postponement options, including:
Forbearance: Up to 12 months of forbearance is allowed.
Co-signer Release: Co-signers can be released from the loan after 36 payments.
Advantages and disadvantages
Some of the advantages of Citizens Bank private student loans include:
Up to 0.50% interest rate discount available for existing Citizens Bank customers
The ability for international students to qualify with a U.S. citizen co-signer
No origination fees
0.25% loyalty discount if a student loan borrower or their co-signer has an existing account with the bank
Some of the disadvantages of Citizens Bank private student loans include:
Co-signer release after 36 months, about 12 months later than many other lenders’ policies
No interest rate estimate is available without a hard inquiry
High interest rates (up to 14.25%)
