Student loans in the United States and canada are a form of financial aid intended to help students access higher education. In the US, a higher percentage of students get loans to cover some or all of their expenses.
Student loans are given out by lenders and must be paid back within the agreed period of time negotiated. In contrast to other forms of financial aid such as scholarships, which are not repaid, and grants, which rarely have to be repaid. Student loans may be discharged through bankruptcy or sometimes through forgiveness which may be difficult.
In this article, I’ll show you the requirements for applying for a student loan in U.S and Canada, how to apply and more.
How do I apply for a student loan?
You can compare lenders and start the process online. Approval can be as quick as a few weeks. You can begin the process by using this loan comparison tool or visit International Student Loan.
Requirements to apply for international student loans in the US?
Students who are not U.S. citizens or permanent residents and who are attending an eligible U.S. college or university.
In most cases borrowers are required to have a credit-worthy cosigner who is a U.S. citizen or permanent resident. However, there are loans available at select schools that do not require a cosigner, depending on your situation as the borrower.
Read also:
• Apply for student financial aid
• How to get student loan forgiveness
• How to apply for car loan today
Requirements to apply for student loans in Canada?
Students who are attending an eligible Canadian college or university may use this loan comparison tool to find an international student loan in Canada.
Requirements to apply for study abroad loans?
Students who are US citizens or permanent residents are eligible to apply for study abroad loans if they are participating in a study abroad program through an approved school in the United States. The student must receive credit at their home college or university. If you are not sure if your school is eligible, use the loan widget on this page to see if your school is on the list. Your school must be accredited by an agency recognized by the United States Secretary of Education and be eligible to participate in federal student aid programs.
Who is eligible to apply for foreign enrolled loans?
Students who are US citizens and permanent residents who are enrolled at a foreign university are eligible for a foreign enrolled loan if their university is eligible. To see the complete list of eligible schools here. There are international student loans for African students, European students, Asian students and more. There are options for both undergraduate and graduate students.
What loans are available?
This comparison tool is designed for international students to match you with lenders based on your needs. Simply complete a quick application and it will match you with all of the available lenders. With these loan options, students can borrow up to the full cost of their education, minus other aid received. The loans provided here help students save money, build good credit, and pay off their student loan faster.
What can your loans be used for?
International student loans, like all private education loans, can be used for education-related expenses including such things as tuition, books, fees, insurance, transportation, room and board and other school-related expenses.
What is the maximum loan amount that I can apply for?
You can apply for up to the total cost of attendance, minus other aid, as determined by your school. To determine your maximum loan amount, or what can be included in your loan, you will need to contact your school’s financial aid office. After you apply and receive credit approval your school must certify the amount of the loan. remember that the more you borrow the higher your student loan payments will be.
When I take out a student loan, how much do I pay back and when?
This comparison tool will show results for private student loans – not federal loans. Therefore, the interest rate and repayment will depend on the loan option and lender you select. When selecting a lender you will need to review the terms and conditions or contact the lender directly with your questions. If you go with a lender that requires a cosigner the approval and resulting interest rate will likely be influenced by your cosigner’s creditworthiness. Every lender’s range varies so it is important to do the loan comparison and review the interest rate and repayment terms. If a lender does not require a cosigner the interest and repayment rates are established in a different way – they may be determined based on the borrower’s future potential, international credit scores, chosen field of study and many more. While some may not require a U.S. credit score, they do need to review a credit report from your home country to verify payment history and good standing.
What if I do not have a cosigner? What if my cosigner is a non-US citizen? Or, how can I find a cosigner?
A cosigner is required for many international student loan programs, but not all. If a cosigner is required they must be a US citizen or US permanent resident, with good credit, who has lived in the US for the past two years. Non-US citizens or non-US permanent residents cannot act as a cosigner. Although we are not able to assist with finding a cosigner, it is common to ask close friends or family members. If you do not have a cosigner you will want to explore lenders with loans without a cosigner.
Read also:
• Apply for student financial aid
• How to get student loan forgiveness
• How to apply for car loan today
Can I apply for an international student loan before being accepted to my school?
While you can begin the loan application prior to being accepted to your school, you will need to be accepted with your student visa to finalize the loan.
What if I need to show proof of funds before I obtain a visa? Can I show this loan as satisfying this requirement?
Some students are able to use loan approval as proof of funds, but it’s not easy and it’s up to the school and consular officer if they’ll accept a loan approval as proper funds. You would need to apply for the loan now, list the school you plan to attend, get initially approved based on the credit of your cosigner (if you have one), then use that initial approval to complete your acceptance to the school.
You will also have to provide a valid student visa in order to finalize the loan. After you apply and receive credit approval for you (and your cosigner), your school must certify the amount of the loan. The proceeds are then disbursed directly to the school.
My school is not on the list, can I still get a loan?
If your school does not appear on the eligible school list, then we unfortunately do not have a loan program for you. We recommend contacting your school directly as they may know if there are any loan programs available to their international students.
Are there application deadlines?
No. You may apply for an International Student Loan at any time.
If I obtained a loan last year, can I get another loan again this year?
Yes. You can reapply each academic term for a loan.
Source: iefa.org
