Loan for international students without cosigner
January 18th, 2022 by Sagnik Santra

loan for international students without cosigner

To pursue your favorite subject in an international college can be expensive. The tuition fees and the living costs are not the only things you need to deal with. There can be other costs like transportation, study materials, accommodation and many more. That is why you may need to take out a student loan to finance your study abroad.

But getting an international student loan is not easy without a cosigner. This is a problem in most cases because it can be hard to find someone willing to act as a cosigner. But there are some international student loans that you can take out without a cosigner. This article will tell you which international student loans are available for students who don’t have a cosigner.

Who is a cosigner anyway?

A cosigner is someone who has a good credit score, and with that, they agree to take responsibility for your loan if you as a borrower are not able to pay back the debt. The cosigner needs to have an income to repay your loan in most cases. They also need to be at least 18 years old. In simple words, a cosigner is a person who guarantees that you will repay the loan.

Why are cosigners necessary?

International students need someone to cosign their loans because they might not meet the requirements for taking out a student loan. A cosigner gives lenders the security that you will repay the loan, which is essential because lenders don’t want to lend money to international students who cannot repay the loan.

Types of student loans:

loan for international students without cosigner

Whether you need a cosigner or not depends on a few factors, and your student loan type is one of them. There are basically two types of student loans:

1. Federal student loans:

These are the best possible student loans because they have a low-interest rate and specific benefits. You can apply for a federal loan without a cosigner if you meet particular criteria, generally based on your academics and your family income. So your priority should be to apply for a federal student loan, and if you don’t qualify, you should apply for a private student loan.

2. Private student loans:

These are much harder to get because there are no specific criteria that make them available to only those students who qualify for it. It depends from lender to lender and how they set their own criteria. You can apply for a private loan without a cosigner, but your chances are much lower, and the interest rates will be much higher than those of federal loans.

Federal student loans that don’t require a cosigner

The good news for international students is that there are three types of federal loans available that don’t require cosigners as well as credit checks:

1. Direct subsidized loans:

These are available to students who have not completed their first bachelor’s degree yet. You can apply for these loans until you reach your maximum study time. The benefit of direct subsidized loans is that the government covers the interest while studying.

2. Direct unsubsidized loans:

This type of student loan doesn’t require a cosigner because the government covers the interest while you are studying. It is for both graduate and undergraduate students. This loan is also called Unsubsidized Stafford Loan.

3. Direct PLUS loans:

This type of loan is available only for graduate and professional students. Parents can also borrow this amount for their kids who are studying abroad. This is the most common international student loan because it requires a cosigner.

How to get international student loans without a cosigner?

A group of friends at a coffee shop

Getting an international student loan without a cosigner is a lot harder than getting one with a cosigner. As we have explained before, you need to meet specific requirements to get a student loan without a cosigner, and the requirements may vary from lender to lender. Here are a few things that you can do to increase your chances of getting a student loan without a cosigner:

1. Opt for federal student loans:

Federal student loans are the best option when trying to get an international student loan as a U.S. student abroad. If you meet certain criteria, you will get the loan without a cosigner. These criteria are not that high, and almost anyone can meet them if they try hard enough. It is mostly about your academic scores and your income in your home country.

2. Go for scholarships before you take out a loan:

Scholarships or other financial aids are the best options for financing your education. However, try to get all the available scholarship money before taking out a loan. If there is no other option but to get a loan to finance your education, you should go for federal loans with low-interest rates and benefits before taking up any private loan.

3. Credit score:

If you have a good credit history, then the chances of getting an international student loan without a cosigner are much higher. The lenders will trust you because of your credit score, and they will not demand any additional help from someone else for them to approve your application.

4. Find the right lender:

To get a good student loan without a cosigner, you need to find the right lender. Most lenders have a reasonable credit score requirement, and they also look for other criteria before approving your application. You have to do your research and shortlist a few lenders before applying for a loan.

Top lenders who approve international student loans without cosigners

loan for international students without cosigner

Here are the top five lenders who typically approve international student loans without cosigners:

1. MPOWER Financing:

If you plan to study in the U.S or Canada, you can apply for a loan from MPOWER. They offer student loans without a cosigner, collateral, or U.S. credit history for students studying at 350+ schools in the U.S. and Canada. They only provide loans to bright and have the potential to succeed.

2. A.M. Money Private Student Loan:

If you are an international student with a good GPA, you can get a private student loan from this lender. This is one of the best lenders that offer loans without cosigners.

3. Ascent Independent Student Loan:

Ascent offers international student loans without cosigners. They provide loans to both undergrad and grad students who need them for tuition, books, and living expenses. It is ideal for Upperclassmen with no credit, income, or cosigner.

4. Prodigy Finance:

If you are a graduate student and looking for an international student loan without a cosigner, you should try Prodigy Finance. Prodigy finance only provides its services in certain states and certain colleges.

5. SoFi:

If you have been paying the loans on time and your credit score is good, then SoFi will approve your loan without a cosigner. They offer loans to graduate students and international students. If you have good academic scores, you can also get extra benefits.

Conclusion:

The process of applying for an international student loan without a cosigner can be a bit difficult. You have to prove that you are responsible enough to be worthy of the loan. You have to do your research and find lenders who offer student loans without cosigners and match your requirements. Good luck!


How to refinance student loans?
January 17th, 2022 by Sagnik Santra

how to refinance student loans

Student loans are some of the best financial tools for students to fund their education. They are great if you don’t have the money to pay for college but still want to earn a degree. Student loans are usually less expensive than other forms of loans.

However, life is not always that smooth, and some people find themselves with too much debt. They owe too much money on student loans, and they do not know what to do. The longer you will take to pay for this debt, the more money you will spend on interest.

This is where student loan refinancing comes into play. It helps you lower your interest rates and pay off student loans faster. This article will explain how this tool works, the pros and cons of refinancing, why it may be a good solution for you, and where to find companies offering this service.

What are student loans?

how to refinance student loans

Before getting into the student loan refinance details, you should know these financial tools. Student loans are a form of borrowing money to cover the expenses related to studying. They are usually offered through banks, private lenders, or the government to help students with their bills.

Student loans are helpful in many cases, but they may also become a problem if you do not know how to handle them. If you borrow a lot of money for college and fail to find a job after this, this can be a significant financial problem. That is why some people decide on student loan refinancing.

There are basically two types of student loans

1. Federal student loans:

The government offers federal student loans. So you can expect to find the lowest interest rates for this type of loan. There are fewer requirements for federal loans, and the borrowers don’t need to prove their creditworthiness. Students must meet certain academic points to meet the requirements.

2. Private student loans:

As their name suggests, private loans are offered by private lenders. These loans usually have higher interest rates, and you must prove your creditworthiness to get approved. The repayment terms are more strict with private loans.

What is student loan refinancing?

Now that we have a clear idea of what student loans are, it’s time to talk about refinancing. By refinancing, you basically change the terms of your current student loan. You apply for a better interest rate, and the company you borrowed money from agrees on this new deal. The companies offering a student loan refinance deal usually have lower rates than those keeping your previous loan.

Why should you consider refinancing student loans?

how to refinance student loans

Here are some of the main reasons why should you refinance your student loans:

1. Lower interest rates:

The main advantage of refinancing is getting a lower rate than your previous one. Usually, once the loan is refinanced, it will be offered at a lower interest rate, and you can save thousands of dollars. You will start saving money when the new contract is signed, and the new interest rate kicks in.

2. Lower monthly payments:

Of course, lower interest rates mean that your monthly payment will be smaller as well. You may even get a different type of loan, which provides lower monthly repayments than what you currently have. This is why it’s essential to read all the offers thoroughly before choosing one.

3. You don’t have to pay for multiple loans:

Yes, student loan refinancing can help you get rid of multiple loans and consolidate them into a new one. This means that your accounts can be closed, and you won’t have to worry about paying for multiple debts at a time.

4. You can pay off your student loan faster:

Another benefit of refinancing is that the repayment terms may change in a way that will allow you to pay back your loan faster. This can be extremely helpful if you know that you will only need the loan for a short period and then manage to pay it back.

5. You can re-arrange your repayment term:

This is one of the main advantages because it allows you to change the loan terms. You can do everything from lengthening or shortening them, changing your monthly payment amount, adding another loan to it, etc. This will depend on your particular situation and your needs.

What are the disadvantages of refinancing student loans?

how to refinance student loans

Even though there are many benefits to refinancing your student loan, you should consider that this may not be the best solution for everyone. There are certain disadvantages which you should know about before making any decisions:

1. Not everyone can qualify:

Not everyone can qualify for student loan refinancing. Before applying, you should read carefully about the requirements, and if you have a poor credit score or a low income, this option may not be available.

2. You lose federal repayment plans:

When you refinance a federal student loan, it means that all of your rights as a borrower are done for good. This means that you won’t benefit from federal repayment plans that can help a lot during a hardship, for instance. You will have to abide by the rules of your new lender, and there isn’t much flexibility here.

3. You might get locked into a fixed repayment plan:

Once you have refinanced your student loan, it’s very likely that you will get locked with a fixed repayment plan and fixed interest rate. This means that you won’t be able to switch from one type of repayment to another during the life of your loan. For example, federal student loans allow borrowers to modify their repayment terms and make them more flexible if they are in a difficult financial situation. This option might not be available when you refinance your loans with a private lender.

How do I refinance my student loans?

how to refinance student loans

Now that we know about the main benefits and disadvantages of refinancing student loans, we can take a closer look at how to refinance your loan.

1. Decide whether you should or shouldn’t refinance your student loan:

Before you apply and refinance your student loans, make sure that this is the best decision for you. You should know whether or not refinancing under a private lender will be beneficial for your situation ahead of time. Once you come up with a definite answer, it’s time to start applying. Also, you have to remember, if you refinance federal loans, your terms can get terminated.

2. Find the best lenders:

When you look for a private lender, make sure that you choose one which suits your needs and offers competitive interest rates and fees. You can get this information from online reviews or even by speaking directly with the loan specialists at different companies before deciding.

3. Choose the repayment rates and terms:

After finding a lender who is willing to refinance your loans, you will have to make a few crucial decisions. This includes the type of repayment plan and the monthly payment amount. There is a wide range of available options depending on your needs and budget.

4. Apply for student loan refinancing:

Once you compare different offers and find one that fits your situation, it’s time to apply for refinancing. When you fill out the application form, make sure that all details are correct and accurate. Otherwise, this may affect your credit score or even lower it if there are any mistakes on your file.

5. Start repaying with the new terms and plan:

Once you get approved for student loan refinancing, it’s time to start repaying your loans with the new terms and repayment plan. Ensure that you stay on top of your monthly payments and if you get any reminders about late fees, act immediately to avoid these.

Best student loan refinances companies:

Here are some of the best companies you can choose from when refinancing your federal or private student loans:

1. MPOWER Financing

2. SoFi

3. PenFed

4. Earnest

5. Discover Student Loans

6. LendKey

Conclusion:

When you refinance your student loans, it’s very important to have a clear idea about the benefits and disadvantages of this type of financing. Make sure that before making any decision, you research different lenders and see what they have to offer in terms of rates, fees, repayment plans, and so on. Good luck!


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