Best student loans for international students in 2024
International students have several loan options available, including private loans with or without a cosigner, university-specific loans, and financial aid from their home country.
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The number of international students attending college in the U.S. surged by 12% in 2022-23, according to The Institute of International Education (IIE). If you're planning to study in the U.S., finding the right financial support is essential.
Unfortunately, most international students don't qualify for federal student loans and benefits offered by the U.S. Department of Education. However, private lenders, universities, and even institutions in your home country may offer loans specifically for international students. In this guide, we'll explore the best loan options available for international students, who qualifies, and how to apply.
Current private student loan rates
Best student loans for international students
Ascent
Undergraduate and graduate international students can apply for a private student loan from Ascent as long as they have a U.S. based cosigner who meets the lender's credit and income requirements. Parents of international students can also qualify for an Ascent student loan. Note your cosigner must have an annual income of at least $24,000.
Best No-Cosigner Loans
Ascent
4.8
Fox Money rating
Min. Credit Score
Does not disclose
Fixed APR
3.69 - 15.28%
Variable APR
5.50 - 15.04%
Loan Amount
$2,001 to $400,000
Term
5, 7, 10, 12, 15, 20
Pros and cons
More details
Sallie Mae
International students and DACA recipients attending school in the U.S. can borrow a private student loan from Sallie Mae as long as they have a creditworthy U.S. citizen or permanent resident cosigner.
Best Specialized Loans
Sallie Mae
4.3
Fox Money rating
Min. Credit Score
Does not disclose
Fixed APR
3.49 - 15.49%
Variable APR
4.92 - 15.08%
Loan Amount
$1,000 up to 100% of school-certified cost of attendance
Term
10 - 20
Pros and cons
More details
College Ave
College Ave is an online lender offering private student loans to international students with a valid Social Security number and a U.S.-based cosigner.
Best for Extended Grace Periods
College Ave
4.9
Fox Money rating
Min. Credit Score
Does not disclose
Fixed APR
3.47 - 17.99%
Variable APR
4.99 - 17.99%
Loan Amount
$1,000 up to 100% of the school-certified cost of attendance
Term
5, 8, 10, 15 (20 for health professionals)
Pros and cons
More details
Citizens Bank
Citizens Bank offers private student loans to international students who apply with a U.S. citizen or permanent resident cosigner. Note that international students can't take advantage of the lender's multi-year approval feature, which means you'll need to submit a new loan application for each academic year you need funding.
Best for Multi-Year Approval
Citizens
4.8
Fox Money rating
Min. Credit Score
720
Fixed APR
3.99 - 15.61%
Variable APR
5.34 - 15.96%
Loan Amount
$1,000 to $350,000 (depending on degree)
Term
5, 10, 15
Pros and cons
More details
Abe
International students can apply for a private student loan with Abe if they have a U.S. citizen or permanent resident cosigner who doesn't reside in Connecticut, Maine, Nebraska, Texas or West Virginia.
Best payment relief options
Abe
4.5
Fox Money rating
Min. Credit Score
660
Fixed APR
3.49 - 15.00%
Variable APR
4.50 - 15.73%
Loan Amount
$1,000 to $99,999 annually $180,000 aggregate limit)
Term
5, 7, 10, 15, 20
Pros and cons
More details
Nelnet Bank
Nelnet Bank stands out for its competitive interest rates on private student loans. International students can borrow with Nelnet if they apply with a U.S. citizen or permanent resident cosigner.
Best for Competitive Rates
Nelnet Bank
4.43
Fox Money rating
Min. Credit Score
Mid to high 600’s FICO
Fixed APR
3.69 - 9.82%
Variable APR
5.83 - 10.16%
Loan Amount
$1,000 to $500,000
Term
5, 10, 15
Pros and cons
More details
MPOWER Financing
Credible Rating: 3.5
MPOWER Financing could be a strong option for international students and DACA recipients who need a no-cosigner loan. Unlike many other lenders, MPOWER doesn't require a U.S.-based cosigner, making it accessible to students without strong financial connections in the U.S. However, the lender only offers fixed interest rates and just one repayment term - 10 years - while many others provide terms ranging from five to 20 years. To qualify for an MPOWER loan, you must be enrolled in one of over 400 eligible schools in the U.S. or Canada.
Methodology
The lenders in this list are all Credible partners with the exception of MPOWER Financing. We evaluated all lenders based on interest rates and origination fees, loan amounts, loan terms, discounts, whether cosigners are accepted and more. Our team of experts gathered information from each lender's website, customer service department, directly from our partners and via email support. We verified all the data points to make sure they were accurate and up to date.
Types of loans for international students
Private student loans
Private lenders can be a key resource for international students looking to cover their educational expenses. These loans are typically offered by banks, credit unions, and online lenders. Most private lenders have high loan limits, allowing you to borrow up to your school's full cost of attendance, minus any other financial aid you receive.
Private student loans for international students generally require a credit check and a cosigner. In most cases, you'll need a U.S.-based cosigner with good credit to qualify. However, some lenders, like MPOWER Financing, offer loans without a cosigner. Be aware, though, that these no-cosigner options often come with higher interest rates and less flexible repayment terms.
Check out: Best student loans for bad credit
University-specific loans
Some colleges and universities offer loans directly to international students. These institutional loans are different from traditional private loans in that the funds come directly from the school, and you'll repay the loan to the institution itself.
Here are a few examples of university-specific loans for international students:
- Yale University: International students at Yale may qualify for the Graduate and Professional International Loan, which has a 7.75% fixed APR and a 10-year repayment term.
- University of California, Berkeley: UC Berkeley offers the Shih Student Loan, which is interest-free while you're in school. After a six-month grace period following graduation, the interest rate increases to 5%, with a repayment term of 60 months.
- Brown University: Undergraduate international students with financial need at Brown may qualify for institutional loans with a fixed 5% interest rate and a repayment term of up to 10 years.
Loans from home country financial institutions
If you're looking for financial aid for international students, see if you qualify for loans in your home country. These may come from your government or private organizations in your country.
For example, Punjab National Bank and HDFC Bank both offer loans for Indian residents studying abroad. The Rowe Fund program of the Organization of American States (OAS) offers Latin American and Caribbean students in their last two years of school up to $15,000 in interest-free loans.
Good to know:
International students are not eligible for federal student loans from the U.S. Department of Education unless you hold a green card or meet certain criteria, such as refugee status or asylum granted.
Eligibility criteria for international student loans
The eligibility requirements to get private loans for international students will vary from lender to lender. In general, you must:
- Be an international student with an eligible resident status
- Have a U.S.-based cosigner
- Attend school at least half-time
- Enroll in an eligible institution
Cosigners are also subject to the lender's eligibility criteria, which typically include having a stable income and a good credit score, usually 670 or higher on the FICO scale. However, securing a cosigner can be challenging if you don't have close connections in the U.S.
While most lenders require one, there are exceptions. For instance, MPOWER Financing offers loans to international students without needing a cosigner, though these loans generally come with higher interest rates and less flexible terms.
Note:
For university-specific loans, your school's financial aid office usually determines eligibility. Check with your department to see if institutional loans are an option for you.
How to apply for international student loans
To apply for private international student loans, follow these steps:
- Check eligibility: Start by researching various private lenders that offer loans to international students. Review each lender's eligibility requirements to determine if you qualify and whether a cosigner is needed.
- Compare rates and terms: Once you've identified the loans you're eligible for, compare the interest rates and repayment terms. Prequalifying with multiple lenders can help you see your estimated rates with just a soft credit check, allowing you to compare offers and select the loan with the most favorable terms.
- Secure a cosigner, if needed: Most international student loans require a cosigner. If you need one, find a U.S. citizen or permanent resident with good credit who is willing to cosign your loan. If a cosigner isn't an option, consider lenders like MPOWER Financing, which offer loans without this requirement.
- Submit your application: Complete the loan application, ensuring all required documentation is provided. This may include your passport, academic transcripts, test scores, and an admission letter. Don't forget to sign the promissory note.
Receive your funds: Once your loan is approved, the funds will be sent directly to your school to cover tuition, fees, room and board, and other educational expenses.
Repayment for international student loans
Repayment options for international student loans vary depending on the lender or your university. Generally, you might have the following options while you're in school.
- Interest-only repayment: You pay only the interest while you're in school and begin making full monthly payments after graduation.
- Deferred repayment: You can defer your payments until after you graduate and complete any applicable grace period.
- Immediate repayment: Start repaying your loan immediately, which can help reduce the total interest paid over the life of the loan.
Good to know:
Immediate repayment and interest-only options can make your loans more affordable by reducing the total interest you pay. On the other hand, deferring payments can ease cash flow while you're in school but may increase the overall cost of the loan.
More financial aid for international students
Scholarships and grants
Scholarships and grants for college are some of the best forms of financial aid because they don't need to be repaid. These awards are typically based on merit, background, financial need, or other specific criteria. As an international student, you can explore various scholarships and grants tailored to your needs through resources like eduPASS and IEFA.org.
International work-study programs
International students don't qualify for the traditional federal work-study program. However, international students may be eligible to work on-campus as a non-work-study employee. You may be eligible to work off-campus after one year if you have an economic need, according to the Department of Homeland Security. Contact your school's financial aid office to understand your work-study options and any specific requirements.
Financial aid from home country institutions
International Students may also find financial aid options through programs in their home country. For example, the Saudi Arabia King Abdullah Scholarship Program (KASP) offers financial support to Saudi students pursuing higher education abroad. The program aims to prepare Saudi nationals to participate globally by supporting studies in fields like medicine, engineering, law, and business.
Your home country may offer similar programs or loans through government agencies or private institutions. Contact your Ministry of Education or foundations that may support your international education.
FAQ
What are the best private loans for international students?
The best private student loans for international students are easy to qualify for and come with competitive interest rates and terms. Keep in mind, most private lenders require international students to apply with a U.S. based cosigner in order to qualify.
Can international students get loans without a cosigner?
Many private student loan lenders require international students to have an eligible cosigner. However, some lenders like MPOWER Financing offer international student loans without a cosigner.
What interest rates do international student loans typically have?
Interest rates for international student loans vary depending on the lender. Keep in mind that loans without a U.S.-based cosigner usually come with higher rates compared to those that require a cosigner.
How can international students manage loan repayments?
International students can manage their loan repayments by making interest-only payments while in school, which helps minimize the total interest accrued. Enrolling in autopay can also simplify the repayment process and may reduce your interest rate by 0.25 percentage points.
Are there scholarships available specifically for international students?
Yes, a wide variety of scholarships are available to international students. You can start your search on eduPASS and IEFA.org.