If you’re looking for an international student loan in USA to fund your international education, we can help.
Whether you’re an international student in the US or a US student studying abroad, finding a student loan doesn’t have to be difficult.
We are here to help you make the right choice in accessing the loan and getting a quick approval without too much stress.
Although, seeking for an international student loan in USA will be an headache if you don’t know the required criteria’s and how to get a quick loan approval.
However, it’s not as tough as most student think it is. Oh yes it isn’t.
You only need to know the requirements and conditions for getting a quick loan cash approval.
Most students initially don’t desire to take loans to pay for their educational bills.
However, they later opt in for student loans when they need extra money to pay for school fees.
Also, getting a loan has been made easy with the rise in number of loan agencies offering loan services to customer.
Though, they have higher interest rates compared to loans given directly by the government, however they give out easily to borrowers.
Even at that, nothing compares to knowing the approval requirements needed to get a direct loan from the government.
Well, just before we proceed, let us know what an international student loan is all about.
Table of Contents
What Is An International Student Loan?
This is a popular government loan in US.
International student loan is a support in form of money given to help and relief students from financial stress thereby allowing them get classic education to pay later.
They offer funding’s backed with considerable interest rates and zero application fees.
Similarly, there is a “study abroad loan” which provides funding to US citizens who are looking to participate in a study abroad program outside of the USA.
However, you must meet some certain criteria before getting such a loan approval.
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Why Go For An International Student Loan?
Studying overseas is expensive and many students struggle to fund their international studies.
Though other schemes like scholarships and grants are available, however they are very competitive and rarely cover all a student will need for basic education.
On the other hand, a loan can cover up the total cost of attendance by your school minus any other aid received.
A brief overview of the major cost your international student loan can cover includes tuition fee, room and board, books, travel fees, health insurance and living expenses.
Most applicant might be curious to know if someone with bad grades or no credit history can also apply for the loan!!!
There is an answer to that below!!!
Will Students With Bad or No Credit Record Get An International Student Loan?
Interestingly student loans are also available for students with bad or no credit score today. Oh yes it is.
However, not everyone will qualify because of the requirements involved.
Even though an international student loan in USA requires a good credit score to get an approval, you still have a chance.
What do I mean?
If you need a student loan, but you have bad credit or no credit history then the federal student loans should be your best option.
This is because they don’t require a credit history to borrow and also offer flexible repayment options.
However, the federal student loans have lesser borrowing limits.
To fill a gap in college costs, you may need to take out a private student loan from a bank, credit union or online lender.
Most private lenders require borrowers to have a credit score of 690 or above.
Hence, if you don’t have a good credit record or your credit history is thin, you have two options for private loans.
Option 1 – A private loan from one of the few lenders that don’t have credit or co-signer requirements, though you’ll pay higher interest rates.
Option 2 – A private loan with a co-signer who has good credit.
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How To Get A Student Loan With Bad Or No Credit Record:
7 tips to getting a loan with bad or no credit record.
1. Start With A Federal Student Loan:
Fill out the Free Application for Federal Student Aid, known as FAFSA to apply for federal student loans as well as qualify for free aid such as grants, scholarships and work-study.
They offer lower interest rates and come with income-driven repayment plans and forgiveness programs.
2. Find A Co-Signer in USA With Good Credit History For Your Student Loan:
To borrow private loans with a co-signer and get the most competitive interest rates, they’ll need to have a good credit score and steady income.
If you opt for a co-signer, they’ll be responsible for your debt if you can’t repay it.
3. If You Can’t Find A Co-Signer:
Consider loans you can get independently.
Some lenders offer private student loans without factoring in credit scores.
In this situation, your future income potentials are usually considered.
Hence, the higher your earning potential, the more likely you’ll get competitive rates.
4. Compare The Features Of An International Student Loan To A Private Loan :
When shopping for a private loan, compare offers to get the lowest interest rate you qualify for.
Find out whether the lender will postpone payments in case you have difficulty affording them, and for how long will it be?
Find out if there are origination, prepayment or late fees, and how easily you can reach the lender by phone, email or live chat if you encounter a billing or customer service issue.
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5. Opt For A Loan With Fixed Interest Rate:
Always know that a fixed interest rate is a safer bet than a variable interest rate.
Why? Simply because a fixed interest rate serves as an edge of security to your loan repayment plan.
Hence, you’ll be sure interest cannot increase over time.
6. Keep An Eye On The Bottom Line Of Your Loan:
Use a student loan calculator to see what kind of payment you’ll face after borrowing for multiple years.
Stay sensitive to details as you borrow.
Also, keep a close eye on deadline repayment conditions.
7. Consider Re-financing In The Future:
Once you’re out of school and have built a credit profile, you may be able to re-finance private student loans to a lower interest rate.
You’ll generally need solid income, a credit score of 690 or higher and a history of on-time debt payments.
This is because in a case of bad grade or no credit power, a co-signer becomes very important.
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As we proceed, let us know who a co-signer is and why they are important?
Who Is A Cosigner And Why Are They Important?
A co-signer is a person who is legally-bound on a loan application to pay the outstanding debt in case the applicant is unable to pay.
A co-signer could be the parent, a close family member or friend of the borrower.
He or she will pledge to pay back the loan if the borrower fails to pay.
Having a co-signer on your loan can be beneficial to you and your lender.
Co-signing gives your lender additional assurance that the loan will be repaid.
Whether you need an international student loan in USA or any other country, in most cases, you’ll need a cosigner.
Most loans for non-US citizens will also require a US cosigner and this will improve the chances of getting approved with a lower interest rate.
Also, if a cosigner is required, they must be a US citizen or US permanent resident with good credit records with evidence of living in the US for the past 2 years.
If You Need A Student Loan Quickly, You Have Three (3) Main Options:
- Borrow up to the federal direct loan limit: Before you consider other loan sources, make sure you’re borrowing as much as you can in federal direct student loans.
- Explore emergency aid funds.
- Compare private student loan options.
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Conclusion:
International student loans should be seen as an opportunity to pay for educational fees while schooling abroad.
Also, I think our money habits and credit score history largely determines how much we can borrow.
However, if you need a student loan, try considering these three (3) main options.
Firstly, borrow up to the federal direct loan limit before considering other loan sources.
Secondly, explore emergency aid support and lastly compare private student loan options.
See you at the top.
Huge credits to Prosper Ezenwa for sharing such an amazing post to educate all on international student loans.
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