How to Pay Back Your Student Loans Faster as an International Student 
May 12th, 2022 by Al C

international students in black academic dress standing

Student loans can be a helpful way to pay for college in the United States. However, they can become a big financial problem after you graduate. If you want to get rid of your monthly student loan payment, there are ways to pay off your student loans more quickly. 

Although it might not be easy, accelerating your debt repayment could be worth the sacrifices in the end if you’re able to pay off your student loans ahead of schedule.

How to pay off your student loans faster

If you want to pay off your student loans quickly, here are some strategies that could help:

1. Refinance for a lower interest rate 

repay international student loans faster

If you want to pay off your student loans faster, you might want to refinance your international student loan with a lender in the United States.

If you refinance your loan, you might be able to get a lower interest rate. This means that less of your money will go towards the interest, so you might be able to afford extra payments on your refinanced loan.

Keep in mind that many lenders in the U.S. don’t have a prepayment penalty, so you won’t have to worry about any fees if you decide to make extra payments. 

Some lenders offer discounts if you make your payments on time or if you sign up for automatic payments. For example, MPOWER Financing offers a 0.50% rate cut if you put your refinanced student loan on autopay and an additional 0.50% rate discount after you’ve made six consecutive payments using autopay.

Reducing your interest rate as much as possible can help make your loan more affordable as you work to pay it off faster.

2. Pay more than the minimum payment 

When you borrow a student loan, you usually agree to pay it back with fixed monthly payments over a certain number of years. But if you pay more than the minimum amount due each month, you can reduce the number of years it will take for you to repay your loan. 

For example, let’s say you took out a $35,000 loan at a 10.00% rate. If you paid $463 per month, it would take you 10 years to pay it off. But if you could increase your monthly payment to $513 ($50 more per month), you would get rid of the debt 1 year and 6 months faster and save nearly $3,500 in interest. If you could pay $563 per month, it would take 2 years and 8 months less to pay off the debt and save nearly $6,000 in interest charges. 

You may want to increase your payments on your loan. But before doing that, make sure that the loan servicer is applying the payments correctly. The servicer should be putting your extra payments toward your principal balance instead of saving them for future bills. 

3. Find a job with student loan assistance 

getting a job that offers student loan repayment assistance

Some companies offer student loan assistance benefits to their employees. If you are looking for a new job, it might be worth looking for a company that will help you pay back your student loans. Note that not all student loans are eligible for this benefit – you might need to refinance your student loans with a U.S.-based lender to qualify for employer-sponsored student loan assistance. 

4. Make biweekly payments 

If you are making monthly student loan payments, consider switching to biweekly payments. This means splitting your monthly payment in half and paying that amount every two weeks. Instead of paying $200 once per month, for example, you would pay $100 every two weeks. 

It will feel like you are still paying the same amount each month, but you will actually make the equivalent of 13 monthly payments in the year instead of 12.

Making biweekly payments on your student loans is an easy way to pay off your debt faster without much extra effort on your part. 

5. Ask for a raise or work a side hustle 

coworkers

Making extra payments on your student loans can be difficult if you don’t have any money left over in your budget. If you want to get rid of your debt quickly, you’ll need to find ways to make more money. 

You could ask for a raise from your employer or start working a side hustle, like driving for a ride-sharing service or doing freelance work online. If you can make more money, you can use that extra cash to pay down your student loan debt faster. 

6. Reduce your living expenses 

Besides making more money, think about ways to spend less money. This will free up more of your budget to put towards your student loans. 

One way to do this is by downsizing to a cheaper apartment or moving in with a roommate or two. If you eat out at restaurants often, try cooking at home instead. And if your car payment is tough to afford, consider trading in your car for a less expensive one. 

Look over your monthly expenses and identify areas where you can cut back. For example, if you can save $50 or $100 per month, that will help you pay off your student loans sooner.

7. Put a cash windfall toward your loans 

If you receive some extra money, like a bonus at work or a gift, it might be tempting to spend it on something fun. But if you want to get rid of your student debt quickly, you should think about using that money to pay off your student loans. 

If you need some extra motivation, use a calculator to see how much extra payments would save you in interest. Seeing how much time and money you could save might give you the push you need to stay on track with your debt repayment goals.


Personal loan for international student
May 9th, 2022 by Sagnik Santra

personal loan for international student

Every year, many international students choose to study in international colleges. While most students finance their education with a combination of scholarships, grants, and student loans, some students also rely on personal loans to cover their costs. A personal loan for international student is a great financial tool for students and parents who can’t afford to pay for their education. The cost of education in international colleges is expensive and it is important to have a good financial plan.

In this article, we will discuss personal student loan for international student. We will share a few tips on how you can get a personal loan and how you can use it to finance your education. So if you are a student looking to pursue a degree in an international college, read on!

What are personal loans for international students?

Similar to personal loans, personal loans for international students are unsecured loans that can be used for a variety of purposes. One popular use of personal loans is to finance the costs of education. International students often rely on personal loans to cover the cost of tuition, fees, and other educational expenses.

Personal loans are available from a variety of student loan lenders, including banks, credit unions, and online lenders. The interest rate on a personal loan for international students will vary depending on the lender and the borrower’s credit history.

What are international student loans?

Now when it comes to international student loans, these are student loans that are specifically designed for international students who are attending college in the United States. International student loans generally have lower interest rates and more flexible repayment terms than traditional loans.

Different types of loans for international students

There are mainly two types of international student loans

1. Federal student loans:

personal loan for international student

A federal student loan or federal student aid is a type of loan that is offered by the US government to eligible students attending an eligible school or university in the United States. Federal student loans are available to both US citizens and international students. Federal loans are cheaper in terms of interest rates and they offer more repayment options as compared to private loans.

There are mainly 4 types of federal student loans

1. Direct subsidized loans: These loans are offered to eligible undergraduate students with financial needs. The US government pays the interest on these loans while the student is in school, during their grace period, and during deferment periods.

2. Direct unsubsidized loans: These loans are available to both undergraduate and graduate students; however, the student is responsible for paying the interest on these loans.

3. Direct PLUS Loans: These loans are available to graduate or professional students as well as parents of dependent undergraduate students. The borrower is responsible for paying the interest on these loans.

4. Direct consolidation loans: These loans allow the borrower to combine all their eligible federal student loans into a single loan with a single monthly payment.

2. Private student loans:

As the name suggests, a private student loan is provided by private organizations, such as banks and credit unions. These loans usually have a variable interest rate that is higher than the federal rate. Private student loans can be used to cover any educational expenses, including tuition, room and board, books and supplies, and transportation.

Federal loans are often the better option for students, but private student loans can be a good choice if you have exhausted your federal loan options and need additional funds to cover your educational expenses.

If you are an international student, you may not be eligible for federal student loans. In this case, private student loans may be your only option.

How to apply for a personal student loan?

Here are some of the things you need to keep in mind when applying for a personal student loan:

1. Shop around

personal loan for international student

To find the best international student loans, it’s important to shop around and compare the interest rates and terms of different lenders. You can easily compare the rates by going online and checking the websites of different lenders. There are hundreds of companies that offer international student loans and have their rates, monthly payments, terms, and conditions. So make sure to compare the offers before you decide on a loan.

2. Find a cosigner

If you are an international student looking for a personal loan, you will likely need a cosigner. A cosigner is someone who agrees to sign the loan with you and is responsible for making the payments if you cannot. Usually, a cosigner is a parent or other relative. Your cosigner has to be a permanent resident of the US and have a good credit score.

3. Check your credit score

When it comes to personal loans, your credit score is very important. You have to meet the minimum credit score requirements of the lender. If you don’t have a good credit score, you may have to get a cosigner. So it’s important to check your credit score before you apply for a loan.

4. Read the terms and conditions

Before you sign the loan agreement, it’s important to read the terms and conditions carefully. You should understand the interest rate, repayment schedule, grace period, late fees, and other charges. If you have any questions, make sure to ask the lender.

5. Fill up the application form

Once you meet all the requirements, you can fill up the application form and submit it to the lender. Make sure to provide all the necessary information accurately. You will be asked to provide certain information such as your name, address, date of birth, Social Security number, and the amount you need to borrow.

Things to consider before applying for an international student loan

Here are a few things you should consider before you apply for an international student loan:

1. Your eligibility

personal loan for international student

Before you apply for a loan, make sure you are eligible. Most lenders have certain requirements that you need to meet, such as being enrolled in an accredited school, having a good credit score, and being a US citizen or permanent resident. Different lenders have different requirements, so make sure to check the requirements of the lender you are considering.

2. The interest rate

The interest rate is one of the most important factors to consider when comparing loans. Make sure to compare the interest rates of different lenders before you decide on a loan. Keep in mind that the interest rate will affect your monthly payments and the total amount you will have to repay.

3. The repayment schedule

Another important factor to consider is the repayment schedule. You should know when you have to start making the payments and how much you need to pay each month. Make sure you can afford the monthly payments before you apply for the loan.

4. Apply for federal loans first

Applying for federal financial aid should be your first option. Federal loans usually have lower interest rates and more flexible repayment options. If you are not eligible for federal aid, then you can consider private student loans.

5. Make your payments on time

Once you have taken out a loan, it’s important to make your payments on time. Don’t miss a payment or you will be charged late fees. If you are having trouble making the payments, contact your lender and try to work out a repayment plan.

Conclusion

So there you have it! These are a few things you need to know about personal loan for international student. Make sure to do your research and compare the offers before you decide on a loan. And remember to make your payments on time!


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