Your private student loan options
Given that U.S. federal student aid is not an option, international students, like you, are fortunately able to turn to private student loans as a viable way to fund your higher education. Private student loans are typically provided by private banks, credit unions and specialized lenders. They can often cover tuition, housing, books and other educational expenses. Private loans often come with cosigner requirements, variable interest rates and require a credit check.
Some types of private loans can present unique challenges, however. That includes higher interest rates due to the lack of U.S. credit history and often the necessity for a cosigner – typically a U.S. citizen or permanent resident who can repay the loan if you can’t.
This cosigner requirement can be a significant barrier because it relies on having a strong financial connection in the U.S. or Canada, which as an international student, you probably don’t have. Finding a cosigner willing to accept the financial responsibility of an education loan is difficult as well; it requires deep personal trust and a willingness on the part of the cosigner to risk their own credit for your educational aspirations.
In some cases, education loans may also require collateral, which can be both prohibitive and a financial risk for you and your family. There are other options, however, including no-cosigner, no-collateral loans.
What are the main options for financing your education as an international student?
How can I find scholarships suitable for my field of study and background?
What should I consider when choosing a student loan for studying abroad?
What strategies can I use to manage my loan repayment effectively?
