7 Best Student Loan Opportunities for International Students and How to Apply 2024
International students facing financial constraints may explore the option of applying for student loans to defray their academic expenses. Typically, international student loans are extended by private financial entities, as governmental loan programs in various countries are reserved for citizens.
Several financial institutions and banks offer loans to students planning to pursue undergraduate, graduate, or professional education. Before obtaining the loan, students have the opportunity to select their preferred interest rate and repayment terms. Students need to strategize and set aside funds during their college years to commence loan repayment before it accumulates into a substantial debt.
For international students, many financial institutions mandate the presence of co-signers for loan approval. A co-signer is an individual who assumes responsibility for the loan in the event of the student’s failure to adhere to the repayment schedule.
Requirements For International Students to Apply for a Student Loan:
- Proof of enrollment at a university, training boot camp, college, etc. (a completed registration form, acceptance letter). The student must state his/her year of study and course of study.
- Biographical information (name, address, social security number, etc.)
- Foreign unexpired passport
- Driver’s license or official identification card
- Employment and income information.
- Recent tax documents (if applicable)
- Requested loan amount
- Personal contacts of persons to act as co-signers (number of persons depends on the financial institution)
- Statement of Bank account and asset information
- Payment obligations.
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List of Top 7 Financial Institutions That Offer Loans to International Students:
- MPOWER Private Student Loan
- Prodigy Private Student Loan
- Sallie Mae Private Student Loan
- Ascent Funding Student Loan
- Citizens Bank Private Student Loan
- Sofi Private Student Loan
- College Ave Private Student Loan
1. MPOWER Private Student Loan
MPOWER Financing is a social enterprise that provides loans to international students, U.S. citizens, and Deferred Action for Childhood Arrivals (DACA) recipients who lack collateral or a co-signer required by traditional banks or lenders.
Since its establishment, MPOWER Financing has facilitated the educational journeys of over 2 billion students from more than 190 countries through its scholarship and loan programs. The company serves students enrolled at 350 universities and colleges across the United States and Canada, offering financial assistance to cover academic expenses.
Additionally, MPOWER Financing offers a Path 2 Success Career Support program at no cost to students who have borrowed from them. This program includes resume review sessions conducted by industry professionals, interview practice, mentoring, and networking opportunities, all aimed at aiding students in their job search endeavors.
How Much Can International Students Borrow from MPOWER Financing?
Students have the option to borrow funds of up to $100,000, which can be utilized to meet various academic expenditures such as tuition fees, living expenses, and the purchase of books. The interest rates applicable to international students are determined based on the loan amount borrowed.
Repayment can commence while the student is still in school and continues for six months following graduation. Should repayment become challenging after this grace period, students are expected to adhere to a 10-year repayment term, covering both interest and principal payments in full.
How to Apply for MPOWER Private Student Loan:
- Students have the option to assess their eligibility and submit a loan application through the online application form.
- Await the application decisions, which may be subject to delay by a few days if additional documents need to be sent or uploaded.
- Examine the terms and conditions of the offer thoroughly before proceeding to accept it. Subsequently, students may need to electronically sign documents outlining the loan terms. The lender might necessitate school certification of the loan amount, a process that typically takes three to five weeks before disbursement. Certain lenders disburse the loan directly to the student’s school, following the school’s disbursement schedule, which may entail one disbursement per semester.
2. Prodigy Private Student Loan
Prodigy Finance, a financial institution, provides loans to graduate students hailing from over 150 countries. Since its establishment, it has contributed to financing the education of over 2 billion students globally.
Applications remain open year-round for students enrolled in master’s programs across various disciplines, including business, engineering, law, and public policy, spanning 850 universities worldwide.
Notably, the application process does not mandate co-signers or collateral details. Students have the flexibility to borrow amounts ranging from $15,000 to $220,000. Interest rates are determined based on credit history or anticipated future earning potential.
Application Process for the Prodigy Private Student Loan?
During the online application process, students must obtain a credit report and undergo a background check based on Know Your Customer (KYC), Anti Money Laundering (AML), and Politically Exposed Persons (PEP) criteria.
All requisite documents must be uploaded onto the online platform to complete the application. The operations team is available to address any inquiries during this process.
Upon successful application, the loan will be disbursed to the student’s university, requiring the student to re-sign a loan acceptance letter to finalize the loan. Students can request a loan letter from Prodigy Finance to initiate their visa application process.
Students have the option to gradually repay the loans while in school or upon graduation. International students can obtain loans to finance studies at multiple universities. Interest accrual begins upon loan disbursement.
Should a student choose to commence repayment six months after graduation, accrued interest will be added to the principal balance.
Eligibility for the Prodigy Private Student Loan:
- Students must not be residing in countries that are not eligible for the loan.
- Students must be enrolled at an eligible university.
3. Sallie Mae Private Student Loan
This institution, operating in the private financial sector, extends student loans to support a diverse array of educational pursuits, including part-time or full-time undergraduate, graduate, medical, career training, and certificate programs. Students are afforded the flexibility to select from various payment options, whether during enrollment or post-graduation.
Loan amounts starting from a minimum of $1000 are available to cover a broad spectrum of expenses, including tuition fees, books, accommodation, meals, travel costs, laptops, equipment, supplies, and tools. International students enrolled in educational institutions across countries such as the UK and Canada are eligible to apply for these loans.
Sallie Mae offers reduced interest rates to borrowers who commit to monthly repayments of $25 or opt for interest-only repayments while enrolled in school. In cases where a student lacks a credit history, Sallie Mae mandates the presence of a co-signer with sufficient income before loan application.
The co-signer assumes liability for the loan in the event of the student’s failure to repay, with the sole exception being the death of the student, which results in loan discharge.
How to Apply for Sallie Mae Private Student Loan:
- Both international students and co-signers are required to complete the online application form and submit the requisite documents online for verification purposes.
- Upon submission, the application undergoes a review process. Upon approval, the student has the opportunity to select their preferred interest rate and repayment options. Subsequently, both the co-signer and the student accept the terms and conditions of the loan and electronically sign the agreement.
- Sallie Mae initiates a verification request with the student’s school, and upon completion, the loan is disbursed to the institution in 15 days. Any excess funds from the student loan, known as a refund, will be issued to the student by the university.
4. Ascent Funding Student Loan
This digital financial institution provides loans to international undergraduate and postgraduate students enrolled in a US university, contingent upon the availability of co-signers. The loans range from a minimum of $2,001 to a maximum of $400,000 and can be utilized for covering expenses such as tuition fees, accommodation, books, and other academic costs.
Eligibility for Ascent Funding Student Loan:
- The applicant’s co-signer must be a U.S. citizen or U.S. permanent resident.
- The applicant’s co-signer must meet a minimum gross annual income of $24,000 for the current and previous year.
- The applicant’s co-signer must show proof of income.
- The applicant’s co-signer must have a credit score.
How to Apply for Ascent Funding Student Loan:
International students and their co-signers must complete the online application form and provide the required documents, which typically takes a few minutes. Upon submission, Ascent reviews the application and renders a decision, usually within approximately 2 business days.
Once approved, the loan is disbursed to the student’s school. Any surplus funds are then distributed to the student by the school after covering tuition fees.
5. Citizens Bank Private Student Loan
Citizens Bank extends loans to international undergraduate and postgraduate students who possess a creditworthy cosigner who is either a U.S. citizen or a permanent resident.
Eligibility for Citizens Bank Private Student Loan:
- Loan borrowing requires international students to be enrolled on a full-time or part-time basis at an accredited US university.
- The loan amounts range from a minimum of $1,000 to a maximum of $150,000.
How to Apply for a Citizens Bank Private Student Loan:
To accommodate students’ needs, flexible repayment options are provided. Both international students and cosigners are obliged to complete the online application process at no charge and submit the necessary documentation.
Upon completion of the application review, successful applicants will receive notification. They must then electronically accept the loan’s terms and conditions and sign the agreement before the loan is disbursed to the student’s university. International students will receive their funds from the university once they are disbursed.
6. Sofi Private Student Loan
This financial institution is recognized for providing low-interest loans tailored for international students pursuing undergraduate or graduate degrees in various countries such as the US, UK, Canada, Ireland, Australia, and many others.
The institution offers loans starting from a minimum of $1000 to cover expenses including tuition fees, accommodation, books, and other academic costs. International students are presented with both in-school and post-study repayment options to choose from for repaying their loans.
Similar to other lenders that require co-signers, Sofi extends loans to international students, contingent upon the availability of creditworthy co-signers who are either US citizens or permanent residents. This practice is implemented to assess creditworthiness and enhance the application process.
How to Apply for Sofi Private Student Loan:
International students and their co-signers must complete the online application form and submit the requisite documents, a process typically taking around 15 minutes. Following submission, Sofi evaluates the application and renders a decision.
The disbursement of the loan to the student’s school usually occurs within approximately 2 business days. Subsequently, any surplus funds are distributed to the student by the school once tuition fees have been settled.
7. College Ave Private Student Loan
College Ave provides low-interest loans tailored for international students pursuing undergraduate or graduate degrees in various countries, including the US, UK, Canada, Ireland, Australia, and many others.
Their loan offerings start from a minimum of $1000 and are designed to cover expenses such as tuition fees, accommodation, books, and other academic costs. College Ave presents international students with a selection of both in-school and post-study repayment plans to choose from for repaying their borrowed loans.
Similar to other lenders that require co-signers, College Ave extends loans to international students, contingent upon the availability of creditworthy co-signers who are either US citizens or permanent residents. This practice is in place to verify creditworthiness and support the loan application process.
How to Apply for College Ave Private Student Loan:
International students and their co-signers must complete the online application form and provide the required documents, which typically takes only a few minutes. Following submission, Ascent reviews the application and renders a decision within approximately 2 business days. Upon approval, the loan is disbursed directly to the school. Any surplus funds are then distributed to the student by the school once tuition fees have been settled.
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Conclusion
In conclusion, navigating the complexities of financing international education can be daunting, but the availability of student loan opportunities tailored for international students offers a promising avenue for pursuing academic aspirations abroad. The seven highlighted options – Prodigy Finance, MPOWER Financing, Sallie Mae, Ascent, Citizens Bank, SoFi, and College Ave – each present unique features and eligibility criteria to cater to diverse student needs.
By providing access to loans without the need for collateral or co-signers, Prodigy Finance and MPOWER Financing stand out as inclusive options for international students from various backgrounds. Meanwhile, Sallie Mae, Ascent, Citizens Bank, SoFi, and College Ave offer avenues for financing with co-signers, expanding opportunities for students with established creditworthy individuals in the United States.
