Best Student Loans for International Students

Federal student loans are only available to United States citizens and eligible noncitizens. Thus, many international students have fewer student loan options when studying in the United States. 

For many international students, a private student loan is the best way to pay for college. Many lenders offer loans to international students, but most require a U.S. citizen cosigner in order to be eligible. Luckily, there are a few exceptions.

Let’s break down what makes an international student loan good and the top lenders you can choose from.

What Makes an International Student Loan Good?

When looking for an international student loan, there are several factors to consider. The most important factors are the cosigner policy, the interest rate, and the repayment options.

Cosigner vs No Cosigner

A cosigner is an individual who signs onto a loan alongside the borrower. By signing onto the loan, the cosigner takes full responsibility for the loan should you fail to pay it back. Having a creditworthy cosigner can help you secure a lower interest rate and better terms.

Many international student lenders require borrowers to have a U.S. citizen or permanent resident as their cosigner. However, most international students don’t have access to a U.S. citizen willing to cosign, so they opt for a non-cosigned student loan instead.

Before selecting any loan, you should look for a creditworthy cosigner. Cosigned international student loans tend to have lower interest rates than non-cosigned loans. Thus, you should pursue cosigned private student loan options before non-cosigned options. 

Regardless of which loan you select, you should always read lenders’ cosigner policies carefully. 

Interest Rate

Each international student loan will have its own unique interest rate and terms. If borrowing a loan with a cosigner, your interest rate will likely be lower. If borrowing a loan without a cosigner, your interest rate will likely be higher. 

Because international student borrowers tend to not have a cosigner, the interest rates can be higher. As of March 2022, the interest rates for international student loans from Sparrow’s lending partners ranged from 1.13 percent to 14.98 percent. This range is fairly wide due to various factors such as the type of APR (variable or fixed), whether the loan was cosigned, the country the borrower is from, the borrower’s credit history, and more.

Compare interest rates carefully to select the one that is best for you. 

Repayment Options

Similarly to interest rates, each international student loan will have its own selection of repayment terms. While some international student loans don’t require you to make payments while in school, others require immediate repayment.

It’s important to consider whether you will be able to afford to make payments immediately after the loan is taken out. Many students are unable to make payments while in school and prefer a repayment option that doesn’t start until after graduation.

Before selecting an international student loan, read up on the lender’s repayment options. Make sure that the lender’s options align with your desired timeline for repayment.

Our Picks for International Student Loans

The best international student loan is ultimately the one that works best for you. However, the following are our top picks for international student loans.

International Student Lenders That Require a Cosigner

Ascent

Ascent offers traditional cosigned credit-based loans for international students. With a qualifying U.S. cosigner, international students can be eligible for Ascent private student loans.

College Ave

College Ave offers traditional cosigned credit-based loans for international students. In order to be eligible to borrow with College Ave, you must have a Social Security Number and a U.S. citizen or permanent resident cosigner. 

Earnest

Earnest offers traditional cosigned credit-based loans for international students. In order to be eligible to borrow with Earnest, you must apply with a creditworthy U.S. citizen or permanent resident cosigner. You must also have a physical address in the United States and a Social Security Number.

Sallie Mae

Sallie Mae offers traditional cosigned credit-based loans for international students. In order to be eligible to borrow with Sallie Mae, you must apply with a creditworthy U.S. citizen cosigner. 

International Student Lenders That Don’t Require a Cosigner

MPOWER

MPOWER offers non-cosigned student loans to international students. MPOWER does not require borrowers to have a credit history or a cosigner. Instead of using your credit history to determine your eligibility, MPOWER uses information such as your future income potential.

Prodigy Finance

Prodigy Finance offers non-cosigned student loans to international students. Prodigy Finance does not require borrowers to have a high credit score or a cosigner. Prodigy Finance uses information such as your credit history and future income potential to determine your eligibility.

How to Apply for an International Student Loan

To apply for an international student loan:

1. Check your eligibility. In order to qualify for any student loan, you will need:
   1. Proof of identity
   2. Proof of citizenship status
   3. Certification of enrollment at your school
   4. Proof of the cost of attendance
2. Compare loan options. When selecting an international student loan, it’s important to compare your options side-by-side. Comparing loans allows you to be confident that you’re selecting the one that’s best for you. To see which international student loans you qualify for and compare them side-by-side, complete the free Sparrow application.
3. Wait to hear back. Verifying an international student borrower can take longer than a U.S. citizen borrower. Most lenders take anywhere from a few days to a few weeks, depending on the time of year and your school’s response time.
4. Ensure the funds were disbursed. After your school certifies the loan, the lender will let you know. Then, the money will be sent to your school. Be sure to follow up with your school to confirm that the funds were disbursed.

Final Thoughts from the Nest

Private student loans are a great option for international students unable to access federal student loans. By comparing your options, you can select a loan that supports your educational journey.

To find the best international student loan, start here.

Sparrow’s goal is to give you the tools and confidence you need to improve your finances. Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. While we make an effort to include the best deals available to the general public, we make no warranty that such information represents all available products.