Study Abroad Loan in the USA can be otherwise called International Student Loan. It is a borrowed fund issued to post-secondary schools students towards their study expenses. The funds are meant to be paid back at an agreed time with a low-interest rate.
Study Abroad Loan in the USA
The study abroad loans are issued by private sources like banks, financial institutions, etc. The loan helps international students who usually won’t have the credit history to take a loan in the USA to get one. It also helps them to reduce financial difficulties that might arise during their study period in the USA.
In most cases, the study loan for international students in the US requires a cosigner with good credit, income history, and who has lived in the USA for the past 2 years. There are various private organizations that international student loans. Their activities are the same, but they differ with rate, repayment policy, loan amount, and others. These are the best student loan, lenders.
U.S citizens or permanent residents who want to study in another country can also take a study abroad loans either from the federal government or private organizations. For them to be able to get the loan, the school must be among the selected schools that take study loans.
Eligibility Criteria for Study Abroad Loan in the USA
The study abroad loan though helps you solve your study’s financial difficulties, you will not be able to apply for a study abroad loan in the USA if you don’t meet the following criteria.
1. Studentship: The study abroad loan in the USA is offered to active international students in any of the selected schools that accept the program. Apart from being active as a student, you must be residing in the country, which means distance learners can’t take the loan.
2. Co-signer: In the USA, international students do not build up a credit history, so most lenders require them to have a US co-signer. The co-signer must be a US citizen or permanent resident, with good credit, income history, and who has lived in the USA for the past 2 years. However, there are loans available at select schools that do not require a cosigner, depending on your situation as the borrower.
How to Find and Apply for Study Abroad Loan in the USA
Generally, applications for the study abroad loan in the USA for international students can be processed online and will be approved in weeks. Here is how to apply for a study abroad loan in the USA:
Step 1: Find Lenders
The first thing to do while preparing to apply for a study abroad loan in the USA is to find a lender. As said earlier, private organizations like banks and others offer study abroad loans for international students in the USA. So, you need to compare their rate, repayment schedule, language amount, and others.
Step 2: Select Lender
Having satisfied with the terms and conditions of a particular lender, you need to select this lender provided that your school is among the schools that the lender gives study loans to. After this has been done, proceed to fill out the application form.
Step 3: Fill Application Form
Now access the lender’s site to fill out the application form. As an international student, you are to get a cosigner with good credit history and source of income to complete the online form. Some schools don’t require a cosigner.
Step 4. Get Approval
After submitting the form, the lender will vet your information and determine if you are qualified for the funds. Once this is done, you will receive an approval notice. The waiting period can extend from a week to six weeks. After the funds have been approved, they will be disbursed to your school.
Top Study Abroad Loan Organizations in the US
There is various international student loan organization in the USA that don’t require Social Security Number (SSN) or collateral but requires co-signers in some cases. Here are the top study loan lenders in the USA:
Interest Rate: 14.98% (Fixed)
Repayment Terms: 10 years
Loan Amounts: $2,001–$100,000
MPOWER is one of the best study loans for international students in the USA. Its loan is for both undergraduate and graduate students studying across over 200 selected schools in the US. You can borrow between $2,0001 to $100,000 at an interest rate of 14.98% with 10 years repayment option. This loan doesn’t come with an application fee as well as a repayment fee making it a worthy bargain.
Interest Rate: 5.91% (Variable)
Repayment Terms: 7 years – 20 years
Loan Amounts: $15,000 and up
If you are an international student looking for a study loan in the USA without a co-signer, Prodigy Fiance is the best option. However, its loan is only available to students seeking a graduate degree in business, science, technology, engineering, math, law, public policy, or healthcare. The loan amount which can be borrowed starts from $15,000 upward with a variable interest rate of 5.91%. Borrowers have repayment options between 7 years to 20 years. It also doesn’t have an application fee for repayment fee.
Interest Rate: 4.64% – 10.95% (Fixed)
Repayment Terms: 5, 10, or 15 years
Loan Amount: $1,000 – $350,000
Citizen One International Student Loan is another top study loan in the USA. It offers some of the lowest interest rates available, especially for its graduate and professional loans – 4.64% to 10.95%. You have the option of borrowing from $1,000 to $350,000 depending on your course of study, and there are repayment options of 5, 10, or 15 years.
International students have the opportunity of taking students loans in the US. These loans are being offered by private organizations. International students aren’t eligible for federal students in the country. We have examined how to apply for a study abroad loan in the US and also look at the top lenders in the country. We hope this will help you to secure a fund to ease your study financial difficulties.