How to Apply for Student Loans as an International Student

Applying for a student loan is often an essential step you’ll take as an international student planning to study overseas. The process for securing private student loans or, more specifically, private international student loans can vary significantly from securing domestic loans. This article aims to simplify the student loan application process and focus on what you need to know to navigate this phase successfully.

Preparing for the student loan application process

Here’s how you can prepare for the student loan application process:

Check your eligibility: Ensure you meet the lender’s criteria, which may vary if you’re looking for no-cosigner student loans or loans for certain study destinations.
Gather the appropriate documents: Collate all necessary documentation, including identification, admission letters and financial records.
Submit your student loan application: It’s important to fill out the application accurately, providing all required details to avoid any delays or potential rejections.

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Different types of student loans for international students

International students have a couple of different loan options outside of their home country:

Private international student loans: Private loans from non-government lenders offer flexibility, catering to the diverse needs of international students. These student loans may or may not require a cosigner and often offer larger borrowing limits, adjustable repayment terms and competitive interest rates. International students in particular may appreciate no-cosigner student loans.
Institutional loans: Some universities provide their own loan programs specifically tailored for international students enrolled in their courses. These loans can offer unique advantages like competitive rates, convenient disbursement schedules and potential integration with tuition payments. However, these options may be limited to specific institutions and programs, so thorough research is key.

Unfortunately, U.S. federal loans are not generally available for international students as these loans are only for U.S. residents. You can also look to grants and international scholarships to help finance education.

Common obstacles when applying for a student loan as an international student

Applying for a student loan as an international student can be stressful. Here’s how to handle some common challenges:

Currency fluctuations: Understand the risks and plan your budget accordingly. Some lenders offer fixed-rate student loans or even repayment options in various currencies.
Visa requirements: Research visa requirements beforehand and ensure your loan aligns with your visa status. Some international scholarships and loans may require specific visa types.
Understanding loan terms: Don’t be afraid to ask questions! Carefully review the loan agreement, paying close attention to interest rates, repayment schedules and potential fees. Choose a student loan provider with transparent terms and dedicated support to guide you through every step.

Building credit as an international student

For international students in the U.S. or Canada, building a solid credit history is important. Here are some of the steps in the process.

Understanding the importance of credit: A strong credit score is key to renting an apartment, obtaining loans or securing cell phone plans. It signifies your financial trustworthiness to banks, landlords and service providers.
Starting your credit journey: Opening a bank account is often the first step to building a credit history. Consider a secured credit card or a student credit card designed for individuals without a credit history.
Using credit wisely: Responsible credit use involves making manageable purchases and paying off the balance each month. Timely bill payments are essential for a positive credit history.
Monitoring your credit score: Keep an eye on your credit report to track your progress and spot any inaccuracies. You’re entitled to one free credit report annually from each major credit bureau in the U.S.
Seeking financial education: Many universities offer programs on financial literacy to help students understand credit systems and effective money management. Use these resources for better financial decision-making.

Work with MPOWER Financing

MPOWER Financing is all about making international education more affordable and helping students gain financial independence. MPOWER does that by offering no-cosigner, no-collateral student loans to international students studying abroad in the U.S. and Canada. Instead of just looking at your past or present financial situation, the focus is on your future potential.

Started by former international students, MPOWER understands the financial roadblocks international students face and helps students, like you, beat these roadblocks and hit their academic and career targets.

But there’s more to MPOWER than just student loans. MPOWER Financing believes funding your education is only the first step to success – not the last. That’s why every MPOWER student gains access to exclusive career, immigration and financial resources through its Path2Success program. By teaming up with other partners, MPOWER also brings scholarships to international students.

Applying for a loan with MPOWER Financing is tailored to the unique circumstances of international students:

Broad eligibility: Eligibility extends to students from over 200 nationalities in 400+ universities across the U.S. and Canada.
Customized amounts: Student loan offerings range from US$2,001 to US$100,000 total to match your specific educational costs.
Assessment of potential: MPOWER considers future career potential and intended degree rather than financial history.

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FAQs

What should international students know before applying for a student loan?

It’s essential to research the requirements and offerings of different lenders, particularly if you’re seeking no-cosigner student loans.

How do private student loans work for students studying abroad?

Private student loans for studying abroad in the U.S. are designed to cover the full cost of education, including tuition and living expenses and other costs associated with studying in another country.

What factors should international students consider when choosing a student loan provider?

You should evaluate several key factors, including loan interest rates, repayment terms, loan limits, eligibility criteria and whether the lender requires a cosigner. It’s also important to see if the lender has experience with your home country and if they offer support services tailored to international students’ needs.

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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How to apply for a student loan as an international student