One of the ways you can finance your education in the United States as an international student is to apply for a student loan. While federal financial aid from the U.S. Department of Education is not available for most international students, there are private lenders who will give student loans to international students.
Most of these lenders require you to have a credit history in the U.S. and a reliable income. Since many international students don’t have either, lenders often require you to have a cosigner for your loan. So, how can you find an international student loan cosigner and are there any other options? Let’s take a look.
A cosigner for an international student loan is a person who signs on to your loan and agrees to take responsibility for paying back the loan if you fail to do so.
A cosigner typically must:
Having a cosigner for your international student loan is beneficial in many ways.
A cosigner with a good credit history can:
As an international student, finding a cosigner for your student loan can be challenging. You are at an advantage if you have family (including extended family) or friends living in the U.S.
However, a cosigner doesn’t have to be a family member. You can also apply with a mentor, religious leader, former professor or anyone else who meets a lender’s criteria.
An international student loan cosigner is usually someone you know and trust (and who knows and trusts you to pay back the loan in full and on time).
When you ask someone to be a cosigner on your student loan, you should understand that it’s no small favor. When someone cosigns for you, they are taking a risk.
If you fail to make payments, your cosigner will have to make them for you. Late or skipped payments will also damage their credit score, which could make it difficult for your cosigner to open a credit card, take out a mortgage or get approved for other financial products.
This situation could also put a huge strain on your relationship. Even if you make your student loan payments on time every time, cosigning on your loan will affect their debt-to-income ratio, which can affect their ability to get financing in the future.
Since it’s a big decision to be a cosigner on an international student loan, you should be prepared when you ask someone to be your cosigner.
Here are some tips for asking someone to cosign on your student loan:
If you’ve tried to find a cosigner for your international student loan and have not been successful, there are lenders out there, like MPOWER Financing, who offer no-cosigner loans. These loans are based on different criteria, such as your school and program of study, your academic performance and your career and income prospects after graduation. MPOWER Financing offers no-cosigner, no-collateral loans.
No cosigner loans may be your best option if you don’t have a cosigner. Plus, you may be able to refinance your loan terms after you’ve consistently made on-time payments for a specified period of time. (MPOWER also can refinance your student loan.)
Ultimately, the goal is to access the money you need for your education in the U.S., so you can turn your educational and professional goals into a reality.
DISCLAIMER – Subject to credit approval, loans are made by Bank of Lake Mills or MPOWER Financing, PBC. Bank of Lake Mills does not have an ownership interest in MPOWER Financing. Neither MPOWER Financing nor Bank of Lake Mills is affiliated with the school you attended or are attending. Bank of Lake Mills is Member FDIC. None of the information contained in this website constitutes a recommendation, solicitation or offer by MPOWER Financing or its affiliates to buy or sell any securities or other financial instruments or other assets or provide any investment advice or service.
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