Student Loan for International Students in the US: Your Complete Guide - LegitBio
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Embarking on a journey to study in the United States comes with challenges. Especially if you are an international student! As the phrase states, “I’m Possible,” you can fulfill your educational aspirations with student loan for international students in the US. 

Getting through international student loans in the US is quite complex. But you can say goodbye to your sorrows with this comprehensive guide to international student loans in the United States.

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This article offers comprehensive insights into the types of schooling loans for international students in the US, how it works, and more! 

What is an International Student Loan?

International student loans in the US are a type of private loan available for non-US citizens. You can apply for a loan if you want to pay for tuition, books, room and board, travel expenses, health insurance, and more when studying in the United States. 

International Student Loans are now a natural way to finance your education. These loans are very flexible and can offer amounts high enough to pay for your education. Still, with extended repayment terms and reasonable interest rates, you can afford the repayment after graduation.

Who Can Apply for International Student Loans in the US?

Lenders evaluate specific factors when offering student loans to international students in the United States. These criteria determine the eligibility of applicants for a student loan. Let’s explore these criteria in detail:

  • Strong grades and academic performance
  • A Job oriented professional course
  • Secured position in a university in the USA
  • Above 18 years of age 

Types of International Student Loans in the US

Student Loan for International Students in the US: Your Complete Guide

Federal Loans 

Federal student loans for international students can be comparatively more relaxed. The interest rates are fixed, and the payback period can be extended.

This type of international student loan in the US offers access to loan forgiveness programs. However, getting a federal loan as a student loan in the US for international students can take time and effort.

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Eligibility Criteria  for Federal Loan

The criteria for this type of loan include having: 

  • A resident cosigner 
  • A green card 

While meeting the standards may be challenging, you can still land an education loan for international students in the US. Living your dreams has become more feasible with many international student loans from top lenders like Lorien Finance.

Private Loans 

Unlike federal loans, a private international student loan does not have a loan forgiveness program. The eligibility criteria, interest rates, and other guidelines depend on the lender.

For this reason, the interest rates for international student loans in the US are comparatively high and widely available. 

Eligibility Criteria for Private Loan

If you are not eligible for a federal loan, a private loan for international students is your last resort. Every lender has a set of different criteria for international student loans, and you need to provide information for the following: 

  • Student visa 
  • Tuition bill 
  • Proof of enrollment 
  • Proof of identity   
  • Credit history 

Some students are ineligible for federal loans even after having a cosigner. If you face the same, your road to a private international student loan in the US can be stress-free.

Documents Required for International Student Loans in the US 

When applying for student loans as an international student in the US, you must gather various documents. Specific requirements vary among lenders, so we have a list of common documents you might need: 

  • Loan application form 
  • Amount estimation based on the I-20 
  • Certificates and mark sheets (original) 
  • Certificate of qualification exams like TOEFL or IELTS 
  • University offer letter 
  • Residential proof of the applicant and guarantor 
  • Identity proofs like driving licenses, national identity cards, etc.
  • Guarantor’s income proof 
  • Copy of passport 
  • Details of the guarantor’s assets and liabilities

How do Student Loans for International Students Work in the US? 

Calculate Your Loan Amount

This step starts before you get the admission letter! So, pull out your calculators and calculate all your expenses, including the college fees, examination fees, lab charges, library membership fees, travel costs, living, books, and equipment.

Make sure your calculations are as precise as possible since the amount of the education loan in the US for international students affects the interest rates you will pay. 

Compare the Lenders 

Collect information about as many lenders as you can find. Be it banks or financial services, include them on your list. You will have many loan options for international students in the US, so compare them side by side. 

You can also compare the lenders for international student loans in the US depending on their requirements, eligibility criteria, interest rates, and repayment flexibility. 

Apply for an Education Loan

After finding the perfect lender for yourself, now is the time to apply for an international student loan in the US. Find out what documents are required for the loan application.

Get all the documents and fill out the application form provided by the lender. After verifying your documents, your international student loan in the United States will be approved if everything is correct.

However, the disbursement for an international student loan will only happen after you have received your I-20 form from the university, which has all the information about your admission, course, department, and expenditure. 

Repayment

The last phase of international student loans in the United States is repayment. The repayment process begins after the suspension period or the EMI holiday for a student loan in the US for international students.

An international student loan repayment might even start when the student gets employed. However, a straightforward interest for an education loan is charged during the study period.

Tips for Applying for International Student Loans in the United States

The Amount of Student Loan 

To apply for an international student loan in the US, let your lender know how much you want to borrow. You can ask the school about the tuition fees and additional costs such as health insurance, travel expenses, and more!

The Time of Enrolment 

To apply for an international student loan in the US, you need to know where you will study and how much it will cost. Some private lenders have certain restrictions, such as student limits and how much you can borrow.

Find a Cosigner 

Before applying for a loan for international students in the United States, you can ask around and find a cosigner. Always put valid information about the individual in the lender’s application. 

  • Cosigners

Most international students who apply for loans need a US cosigner to be approved. If the borrower defaults on the loan, the cosigner must legally reimburse the lender.

The cosigner needs to be a permanent resident of the United States who has been here for the previous two years and has acceptable credit. Since most international students require assistance, the cosigner is frequently a close friend or relative who can aid with credit.

Check whether you qualify for cosigner loans if you are still looking for one.

Wrapping Up

Now that you know all about the basics of international student loans in the United States, you can ace it! Stay alert to the loan scams because they are everywhere!

You can also learn the best tips for spotting and avoiding student loans and unlocking a smooth loan process. Of course, understanding the process and knowing what to expect while applying for these loans in the US will make things easier for you.

Hopefully, this article will help you make the right decisions and take this journey like a pro. Good luck!

Frequently Asking Questions

Who can apply for international student loans? 

International student loans are available to students enrolled in qualified US colleges and universities who are neither US citizens nor permanent residents.

What applications are there for international student loans?

Tuition, books, fees, insurance, and room and board are just a few of the costs associated with education that international student loans can cover.

What is the most amount I can request for a loan?

You may apply for financial help up to your school’s actual cost of attendance, less any other grants. To find out how much you can borrow, you need to contact the financial assistance office at your institution.

After your application is approved for credit for you and your cosigner, the loan amount needs to be certified by your school.

What happens if you never pay your student loan for International students?

When you leave school, there is a six-month grace period before you start paying back your student loans or enter into a deferment or forbearance. If you don’t set up one of these or have exhausted all available deferment and forbearance periods, your loans become outstanding as soon as you miss a scheduled payment.

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After 30 days, you will start facing late fees, and after 90 days, the failure will be reported to the credit bureaus (and can be a big blow to your credit score). After 270 days, your federal student loans will enter default. Student loans cannot be discharged in bankruptcy, so you’ll still owe the money!

Check this out :  Your Packing Guide as an International Student Moving Abroad