International Student loans

International Students & Loans: Here’s How You Can Make The American Dream Come True


There’s no denying that the United States offers one of the most rigorous educational experiences globally—especially at the higher education undergraduate, graduate, and post-graduate levels. This is why we see thousands of international students vying for a spot at universities across the country. From mid-tier universities to the Ivy League; we see a growing number of international students across the board. However, given than U.S. citizens can barely afford the exorbitant costs of college, it isn’t difficult to imagine the kind of financial barriers international students experience. Given that the dollar is also one of the strongest currencies in the world, the burden is often doubled. By apply for an international student loans students can complete their higher education.

Is there hope for international students?

What’s remarkable, despite all the hurdles, financial and otherwise, is that international students make for 5.5 % of the college-going popular in the U.S. Many of them relying on their families’ life savings, financial capacity, scholarships, grants, and of course, loans to finance their advanced education here. Our education systems are not, unfortunately, student-centric, which means a lot of these students are also left to pay for housing, food, class materials, and much more.

The visa restrictions also prevent them from finding part-time paid employment that could help them save and pay for other expenses. All of this, coupled with visiting their families, other systemic problems and barriers, international students continue to be among the top performers at their institutions.

One of the most effective ways for these students to sustain their education is through loans. Although international students don’t qualify for federal loans, they can seek specialized loans or get private loans.

What are the benefits of an international student loans?

Often International Student loans are designed to keep students’ needs in mind. International students pay higher tuition and end up paying more for their residential needs throughout their college.

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International Student loans offer them a lot of flexibility and convenience, allowing them to spend their time studying without worrying about its cost.

There are a few things to understand before you apply for an international student loan. These are factors that might help provide clarity and insight into the workings of the U.S. education and credit system, allowing you to decide for yourself:

You will most likely need a cosigner

There are a few reasons for this.

International students lack a credit file or history, which is typically a pre-requisite to secure the loan. This means there is limited access, if any, to check a borrower’s background, credibility, and more.

Most international students will also not be able to work and have an income during their educational period, which means chances for receiving partial payments during that time will also be slim.

Of course, there’s always the risk of defaulting and returning to their home countries upon completing their degree. A loan is granted after a close examination of the applicant, and their eligibility is determined based on that.

Given the difficult circumstances and hurdles, most private loans will require a cosigner to be on board. The consigner must be a permanent resident or citizen of the U.S., with a decent credit score and roughly two years of residence. They’ll be responsible for repayment in case the student themselves are unable to come through.

Cosigners are commonplace for U.S. citizens because most students do not have an income source or credit score to help them qualify; it’s a measure taken to protect the lender.

Breakdown and cost of tuition and other expenses

With college tuition having doubled in the past few decades, costs, especially for private colleges, are sky-high. Most students struggle to pay for college tuition, let alone the cost of textbooks and course materials, room and boarding, other supplies, lab and equipment charges, food, insurance, transport.

It’s essential to have a rough estimate of the amount you’ll need to cover all your potential costs. Don’t overestimate it by too much because you’ll be left with a higher amount to pay, more interest, and remember that for every $1 you spend, you pay $2.

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While it varies for local students, the advice remains the same for international students too. Save up while you’re in college, minimize costs and unnecessary spending, and build a repayment plan while you can.

The less you borrow, the more manageable repayment will be.

Extended repayment terms and flexible interest

However, a significant advantage that private lenders offer to international students is flexible repayment and low-interest rates.

These will allow you to find appropriate work, settle into your job, earn a substantial amount, and pay your loan for your career. You must consider how fluctuations in currency rates might impact your total amount over the years.

If you’re planning to move back home or leave the U.S. after you’re done studying, look into options for repayment that don’t cost you too much.

When you choose a repayment plan, choose one that allows you to pay off a more significant portion of your loan in the start, and gives you a sufficient time frame. The risk with excessively extended repayment terms and plans is that you will continue to accrue interest.

However, if necessary, make use of the flexible repayment terms and plans your lender offers.

Another potential advantage you get as an international student, especially with a cosigner, is a lowered interest rate that saves you thousands of dollars in the long-run. Be sure to go over the different policies, perks, and benefits your lender offers, their conditions, and how you can make the most of them.

All in all, borrowing to finance your education is a very valid option used by millions of students across the world in general and the U.S. in particular. If you’re looking for a lender to help you secure your future, you can reach out to Education Loan Finance (ELFI) for their services and more information regarding their loans.


About the Author

The writer of this article is a former international student and current educational expert working in the U.S. They are working to share their experiences with other prospective students on the fence about their educational future in the U.S.

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