Understanding student loan eligibility for international students

A closer look at student loan eligibility

Understanding student loan eligibility is crucial for planning your educational journey, especially as an international student.

Federal Loans: Not an option for international students
Federal loans are often the first choice for domestic students in the U.S., but they’re unfortunately not an option for international applicants. These loans are only available to U.S. citizens, eligible noncitizens and children from families with T nonimmigrant status. As an international student, you’ll need to explore other avenues for financial support.

Private Loans: the primary option
The primary option for international students is private loans offered by banks, credit unions and other financial institutions.

The eligibility criteria for private student loans varies between lenders and can include everything from your enrollment status to your chosen course of study. For example, the eligibility requirements for a medical student loan often differ from other undergraduate degrees.

The challenge of credit history and cosigners
One of the major private loan hurdles confronting international students is the requirement of a credit history or a cosigner. Many lenders require one or both of these to reduce their risk. However, as an international student, you may not have had the opportunity to build a credit history in the U.S., and finding a cosigner can be difficult. Thankfully, some lenders, like MPOWER Financing, do not require a cosigner and offer no collateral loans.

Navigating student loan eligibility
Despite these challenges, it’s important to remember that each lender has its own set of student loan qualifications. Some may have more flexible requirements than others. Therefore, it’s crucial to research and understand these criteria before applying for a loan. This will increase your chances of approval and help you find an international student loan that best fits your needs.