You will need to look into alternative financing methods to pay for your education in the United States, as international students are not eligible for government student loans. Institutional loans, cosigned private loans, and non-cosigned private loans are the three types of alternative financing options.Â
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Institutional Student Loans
You might be qualified for institutional loans even though you might not be eligible for federal student loans. Institutional loans are not related to federal aid; they are provided by the college you attend.
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The qualifying requirements, interest rates, and terms of repayment are determined by the college or university. These will be given to DACA and international students by many schools.
For example:
1. Brown University:
Brown University provides loans from institutions to graduate, undergraduate, and medical students. The loans have six-month grace periods, 10-year repayment terms, and comparatively low fixed interest rates.
2. Northwestern University:
At Northwestern University, for financial assistance with their education, international students may be eligible for an endowment loan or a Northwestern University Loan (NU Loan). These loans feature set interest rates and let you borrow up to the full cost of attendance.
3. The University of California, Berkeley:
Berkeley offers a variety of institutional loans, including choices for law, graduate, and undergraduate students. It offers low-fixed-interest loans designed especially for international students, with interest paid back while the student is enrolled in classes.
To find out if institutional aid is available and how to apply, get in touch with the financial aid office at the college you have chosen.
Cosigned Private Loans
Banks, credit unions, and internet lenders offer private loans as opposed to federal loans.
These lenders do, however, typically have stringent qualifying standards about citizenship status.
To be eligible for a loan, most lenders need borrowers to be citizens or permanent residents of the United States. If you have a cosigner who is a citizen or permanent resident and you don’t meet those requirements, some lenders will nevertheless approve your application.
As long as the cosigner has a solid credit history and a steady source of income, they are welcome to be a parent, close relative, or acquaintance. By taking on the loan repayment obligation if you default, the cosigner lowers the risk that the lender bears.Â
A cosigner might not be practical, though, as few international students have friends or family who are citizens of the United States.
Private Loans Without a Cosigner
Some lenders, like MPOWER Financing, have loan options specifically designed for international students.
MPOWER’s loans don’t need collateral of any kind, nor do you need cosigners. To help with the expense of your education, you can borrow up to $100,000 and have a fixed interest rate that will never go up.
You can make interest-only payments for the six months following graduation as well as while you’re still in school. You are required to make all of the loan’s principal and interest installments once you graduate from college and the grace period has ended. All loans have a 10-year repayment period; however, if you choose to pay off your loan earlier, there is no penalty.
Who Is Eligible for an International Student Loan from MPOWER?
International students, DACA recipients, citizens of the United States, refugees, and asylum seekers can all apply for loans from MPOWER.
You must fulfill the following requirements to be eligible for an international student loan from MPOWER:Â
- Enrollment: You have to be accepted into or enrolled in one of the more than 400 universities sponsored by MPOWER. To determine whether your school qualifies, view MPOWER’s partner list.
- Level: Within two years of your graduation date, you must be enrolled as an undergraduate or graduate student.
- Current ID: A copy of a current, valid, and unexpired government-issued photo ID will be required when you apply.
- Supporting documentation: Your passport, previous transcripts, a letter of school admission, the results of your English proficiency exam, and verification of your home country address are among the documents that will be requested.
It’s a good idea to start early because the full procedure, from loan application to disbursement, can take several weeks or even months. You can apply for MPOWER up to a full year before the start of your semester.
Ready to get started? You can apply for education loans for international students at any time.Â
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