Best Loans For International Students In The USA

Borrowing money from a private, legal lender is the greatest option to pay for school without getting involved with the mafia. Many companies lend to Americans, but those that lend to overseas students are few and far between.

Most lenders ask international students to cosign a loan with a US citizen or a permanent resident. This provides the lender with security in the event that the borrower is unable to repay the loan or depart the United States. Unfortunately, it also restricts who can acquire a loan because some potential borrowers may not have family or friends in the United States who are willing or financially able to act as a cosigner.

A tiny number of lenders, however, offer overseas student loans without requiring a cosigner.

Terms And Conditions Of The Loan

Even if you do locate a lender prepared to grant student loans to international students, you must analyze the loan rates, as they will affect you for many years. Private student loans are often credit-based, as opposed to federal student loans obtained through the FAFSA, and offer either variable or fixed interest rate loans.

Variable-interest loans, often known as floating-rate loans, have loan terms that vary based on two factors: The benchmark was previously based on the London Interbank Offered Rate (LIBOR), but it is now based on the SOFR (Secured Overnight Financing Rate), whereas the fixed spread assesses a borrower’s likelihood of repaying the loan. Variable-interest loans are dangerous because, unlike diamonds, the rate does not last forever; even if you start with a low SOFR, your interest rate will rise if the SOFR rises.

Fixed-interest rate loans, on the other hand, remain the same throughout the loan’s term, but this might be problematic because if a borrower starts with a high rate, that rate will remain high throughout the loan’s term. Many people recommend that in uncertain economic times, overseas students who want stability and predictability in their repayment plans take out a fixed-rate loan.

When you begin doing the arithmetic, you should also consider additional loan terms that may affect when and how much you pay. Is there a grace period before beginning to repay the loan? Are there any consequences for prepaying or repaying the loan early? Is there a late fee? What is the exact procedure for making monthly payments? Can the loan terms be modified? And when will you be able to afford to have fun again?

How To Refinance Your Loan

What if your interest rate is so high that you can’t afford to repay the loan? You have the option of refinancing.

Refinancing allows you to obtain a new loan with a lower interest rate and/or lower monthly payments, or to change the type of loan you currently have. To be clear, borrowers who are able to restructure their loan will end up repaying their loan for a longer amount of time than the terms of their initial loan, but they will pay less money overall, so it’s still a good idea.

Where Can I Get A Loan?

Some of our favorite private lenders are listed below. Whether you apply to one of them or another company, don’t forget to carefully read the loan terms before signing anything. If you’re going to be repaying someone for years, you might as well be at ease with the process.

1. Ascent Student Loans (

Ascent is an award-winning private student loan firm that provides students with more options for paying for education, whether they have a cosigner or not. Ascent has low interest rates, no fees, flexible repayment options, and exclusive benefits (including 1% cash back, scholarships, a Refer A Friend Program, a Rewards Program, and more).  Check your pre-qualified rates in four simple steps with no effect on your credit score.

2. Discover Student Loans (

Discover Student Loans is operated by Discover Bank and offers student loans to international students attending a qualifying school in the United States. Loan terms and conditions necessitate a cosigner but do not impose any fees or require payments while students are still enrolled. Furthermore, Discover loan amounts can cover up to 100 percent of college costs, so some lucky applicants will be able to cover their entire cost and will not need to look for alternative forms of financial aid.

3. Prodigy Finance (

Students in business, engineering, law, public policy, and medicine who attend school in a country other than their home country are eligible for variable-rate loans from Prodigy Finance. Rather of having a cosigner, Prodigy offers loan and repayment arrangements based on its predictive credit model, which evaluates more than 150 criteria to calculate how much each applicant can afford after graduation.

4. Sallie Mae (

Students pursuing an international education in the United States are eligible for a Sallie Mae loan as long as they have a cosigner. Though Sallie Mae does not give individualized interest rates until an application is finished, they do advertise discounts when borrowers choose in-school repayment and auto debit payment. There are no origination or prepayment costs, and borrowers may only have to pay interest for the first year following graduation.

5. Wells Fargo (

Wells Fargo offers international student loans to both undergraduate and graduate students attending a qualifying school. Borrowers are not expected to begin payments until six months after graduation, but they can do so while still enrolled without penalty. Wells Fargo does not impose application or origination fees, but international students who apply for a loan must have a cosigner. To be qualified, graduate students must also have a credit history in the United States.

6. MPOWER Financing (

MPOWER Financing makes loans to overseas students studying in the United States or Canada-based on their future income potential, with no cosigner or collateral required. It provides fixed interest rates to students in any field of study who are accepted or enrolled in one of the company’s supported schools and are in their last two years of study. For the qualifying students who enroll in autopay, there is an interest rate reduction. Scholarships and career support services are also available to students through MPOWER.

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