Generally, international students are considered non-U.S. citizens attending college in the U.S. for a short time frame. Most international students do not qualify for federal student loans due to some obvious reasons like they are not citizens. While this makes taking loans difficult, some lenders offer the best international student loans.
If you are unable to qualify or apply for federal student loans. There are a wide variety of private student loans you can apply for. Depending on some factors like educational level, age, etc., these lenders determine the interest rates of borrowers. While there are different student loans for foreign students, they all have different loan repayment terms and interest rates that students need to consider.
However, to find the best international student loans, compare rates and terms of different lenders and determine which is best for your financial needs. Before opting for an international student loan, this write-up contains insights on the best loans you can select from.
6 Best International Student Loans
As previously stated, there are a wide variety of international student loans that are best for a student’s financial needs. This section of my write-up contains six international student loans students can select from.
Ascent undergraduate international student loans
This lender offers co-signed and non-co-signed student loans for international students. It allows students who cannot qualify for loans on their own to have a better chance at approval. Because of this, it is considered one of the best lenders for undergraduate international student loans. Ascent offers a wide range of loan payment reduction and postponement options borrowers can select from.
SoFI
SoFi is identified as one of the best student loan refinance lenders. It offers loans to undergraduate, law, graduate, and business students and their parents. Its undergraduate student loan options offer standard loan features. And perks, along with no late fees and discounts of 0.125% on interest rates if the co-signer uses other SoFi products.
College Ave
This lender offers solid private loan options along with some unique features. An eight-year loan term is offered, which borrowers can select as an addition to the five–, ten–, and fifteen-year loan repayment terms most lenders offer. With this lender, international students can get an extended grace period of six months. Which is more than the initial six months before payment is offered to students after they graduate.
Citizens Bank
Citizens Bank offers low interest rates and allows borrowers to qualify for discounts of up to 0.50% on interest rates if they already have an account with them. This lender offers a loan modification program that allows borrowers to lessen their monthly loan payments for 12 months.
Sallie Mae
With Sallie Mae, international students can qualify for loans even though they intend to attend school less than half-time. Most lenders do not allow this practice. After the student graduates, they are granted access to a small hardship repayment program, which is more than forbearance.
Earnest
Earnest is well known for its fee-free private loan options; it has no origination fees and allows borrowers to default on monthly bills each year of the loan. Borrowers have the flexibility to choose from various repayment terms, and graduate students receive a nine-month grace period before starting loan repayment.
FAQs:
Who Qualifies for International Student Loans?
Eligible international students can apply for a loan tailored to their needs, as long as they meet the lender’s specified requirements. However, students with green cards are not considered international students; instead, they are called U.S. citizens. For this reason, these students do not qualify for international student loans.
How are my international student loan interest rates calculated?
Lenders require international students to have a U.S. citizen as a co-signer to give them better chances of qualifying for the loan. They consider the co-signers income, loan repayment history, and credit score. And debt-to-income ratio when calculating the interest rates of international students.
When making decisions on who to take as a co-signer for a loan, ensure you consider the person’s financial record and confirm whether their credit and income will qualify you for lower interest rates. However, it is important to inform your co-signer that they will also be responsible for the loan payments if you cannot afford them.
Should I Apply for Federal or Private Loans if I Qualify for Federal Student Loans as an International Student?
If you qualify for federal student loans as an international student, applying for that loan is better. This is because federal student loans come with income-driven repayment terms along with student loan forgiveness programs depending on what type of career and repayment plan the student chooses.
Unlike private student loans, federal student loans often have lower interest rates. But a maximum amount students can borrow up to. In cases where you need to borrow more than the maximum, this loan may not be a good option for you.