On Tuesday, March 15, 2022, our lending partner, MPOWER Financing, will be hosting a special live session about a limited-time 2.00% interest rate reduction. This will reward international students applying for future semesters with a better rate (because it pays to be an early planner!).
The live session is to help students understand the finer points of this program and interact with MPOWER student loan experts.
Why should you attend the event? Well, to get answers to questions like:
- What can you do to qualify for a lower interest rate?
- What can you do to get your application approved faster?
- Free Q&A session: Ask the panel anything!
The session takes place on Tuesday, March 15, 2022
9:00–10:00 a.m. EST (USA) / 9:00–10:00 p.m. BJT (China) / 6:30–7:30 p.m. IST (India)
Is it even possible to get a car loan for international students? YES! It is possible. Having a car is a necessity for many people. A car is not just an appliance that provides transportation but also becomes one’s friend.
If you’re staying away from your home, having a car can be pretty helpful. Transportation costs in certain countries like the U.S., UK, or Canada can be expensive. If you are thinking about cabs, they are not a good option. The cost is pretty high, and they are not reliable either.
But on the other hand, cars are not cheap! So what’s the solution? How do you own a vehicle as an international student? The answer would be a car loan for international students. In this article, we will discuss how to get a car loan if you are an international student. So make sure to read the entire article!
Why do you need an auto loan as an international student?
There are many reasons for this. If you live away from your hometown, owning a car can be very important. You want to have the independence of traveling whenever and wherever you want.
There are several benefits of owning a car, but transportation cost is one of the most important. You can always go where you want to because owning a car means that you’re not bound by the timetables of public transportation. Not only does it save time, but it saves money too!
Also, countries like Canada or UK are pretty expensive when it comes to transportation costs. Taxis are overpriced, and buses are crowded. So, this leaves you with the only option of owning a car.
What are the requirements for an international student car loan?
Getting approved for an international student car loan is complex compared to a local student loan. You will be driving in a different country, and you need to obey every rule and regulation. There are thee things that you need to begin with:
1. Drivers license:
Whether it’s an international license or a local one, you need to have some proof of having the ability to drive. If you don’t have a license, you can apply for one, but take driving lessons first. Driving lessons are compulsory in many countries like Canada, U.S., or UK. Suppose you’re an international student wanting to get a U.S. driver’s license. In that case, the Student Exchange Visitor Program (SEVP) has a detailed fact sheet and various resources to assist you in doing so.
2. Auto insurance:
In the U.S., it is required for every car driver to have auto insurance. Most other countries may not be as strict, but having insurance is always a good option. An international student car loan can have several benefits if covered with insurance. A typical bank loan doesn’t cover the entire cost of the vehicle, so it’s better to get some coverage just in case something happens.
3. An auto loan:
This is the most crucial part. Without a loan, you will not be able to get your hands on your car. So, the next thing you should do is apply for an international student car loan. Several companies offer loans to international students, and they have their own list of requirements and restrictions as well.
Documentation for applying for an Auto Loan as an international student
You may be wondering what sort of documentation you need for this. If you are living in the U.S., there are several things that you can use as your documentation when applying for a car loan.
1. VISA: This is the most common and accepted form for international students. If you’re a U.S. visa holder, you can use it as your primary identification document while applying for an auto loan. Make sure to bring your passport and other personal information with you.
2. Finance qualification form: This is an essential document you need to have. The finance qualification form has some basic information about your employment and financial situation.
3. Payment documents: These documents are the most important ones. These will show your monthly costs for tuition, rent, bank statements, utilities, etc. So make sure to have them ready.
4. Proof of lawful residence: This is unnecessary for you if you’re a U.S. visa holder. However, if you’re living in the country on some temporary status, you’ll need to prove your lawful residence.
5. Employment letter (if applicable): If you’re working, make sure to have a letter from your employer. The letter should state the monthly salary and the year-long employment period.
How to apply for an international auto student loan?
Once you have the required documentation ready, you can apply for a car loan. You need to follow several steps to apply for a car loan.
1. Research for car loan companies: Since you are an international student, you have to be careful while choosing the company. Once you have found a few companies, make sure to research them to see which one has better interest rates and fewer restrictions.
2. Compare rates: Compare the cost of auto loans for international students before finalizing your choice. You’ll be surprised by how much different companies offer in terms of monthly payments and interest rates.
3. Apply: Once you have chosen the company, fill out the application form as honestly as possible. The process may take some time, but once it’s done, your loan will be approved, and you can get your car. If you are not aware of some terms, get help from a professional. Don’t sign for anything until you understand the loan terms.
4. Wait for approval: Now that you have applied for a car loan, it’s time to wait for the company to process your application. This may take some while, so relax and don’t worry about anything else until they approve your application.
5. Get auto insurance: This is important for your car, and it’s mandatory as well (in some countries). Make sure to get auto insurance to drive safely on the road.
6. Start making repayment: Now that you are all done and received your desired loan amount, it’s time for you to create a plan and budget to start your monthly payment. This is also another important step, so take it seriously and don’t skip this.
Do I need a cosigner?
It depends on the lender. Most car lenders require a cosigner if you are not a U.S. citizen. However, some companies have special programs for international students to get approved without any cosigner. If you don’t like the idea of getting a cosigner, then contact these companies and ask if they have an alternative solution for your situation. Also, when it comes to a cosigner, they must be a permanent resident of the country or have been living for two years with a stable job and regular income in the country.
Which is better, an auto loan or a personal loan?
In the case of international students, it’s better to get an auto loan rather than personal loans or student loans. Personal loans have a lot of strict repayment terms, and you’ll understand them only after reading the contract. Also, many companies don’t provide personal loans for international students, so you won’t have a lot of options to choose from. In addition, car loans are tailored to getting a car, so you’ll get a lower interest rate and better payment plans.
Do I need a credit history?
Again, it depends from company to company. Some finance companies might check your or your cosigner’s credit score, while others don’t. There isn’t any universal credit check policy, so you need to ask customer support about it before applying. But if you are signing a cosigner, there is a high chance that they will check their credit history.
If you are an international student and want to buy a car, you need to apply for a car loan. Make sure to check the terms and conditions before signing for anything, and don’t be afraid to negotiate if required. The best idea would be to talk to someone experienced in this, so make sure to ask friends or relatives for help. Good luck!
In recent years, not only the number of schools and colleges has increased, but also their standards have been on the rise. This means that it becomes more and more difficult for students to fund their education. After all, a college education is becoming increasingly expensive with each passing day, and living standards become higher and higher.
But, there are ways you can fund your education without sacrificing the quality of your education. There are a lot of programs such as education loans, financial aids, scholarships, and grants that allow students to pursue their college degrees without worrying about the expenses.
Every program has its own set of eligibility criteria, benefits, and drawbacks. This article will briefly touch upon education loans, how they can help you finance your higher education, and how you can apply for one. So if you are a student or parent looking for answers to your questions about student loans, you are in the right place.
What are student loans anyway?
A student loan is a type of financial aid offered by the Government or any private lending company to finance your education. The money you borrow can be used for paying fees, accommodation, course materials, living expenses, etc.
But unlike scholarships, student loans carry interest and repayment terms. You have to repay the amount within a certain period along with interest. Student loans can be a headache if you are not aware of the details. There is about $1.58 trillion outstanding student loan debt in the U.S.!
It can quickly turn into a lifetime debt if you do not repay the loan on time. So, before you apply for a student loan, make sure that you understand all the terms and conditions in detail.
Types of student loans:
There are two types of student loans: Federal Student Loans and Private Student Loans.
Federal student loans
Federal student loans are issued and serviced by the Government. The eligibility criteria for Federal loans are different from each other. These loans do not require a cosigner, collateral, or even certain credit scores. Federal student loans are mostly given to students who did well academically and did not get enough funds through scholarships. The interest rates are relatively low than private student loans. Also, there are four types of Federal student loans:
1. Direct Subsidized Loans: This is a need-based loan for undergraduate studies. It is given to students pursuing their first bachelor’s program or higher degree.
2. Direct Unsubsidized Loans: Direct Unsubsidized Loans are loans given to qualified undergraduate, graduate, and professional students without regard to financial need.
3. Direct PLUS Loans: Direct PLUS Loans are for graduate and professional students and parents of undergraduate students to help them pay for expenses not covered by other financial aid. Eligibility is not determined by financial need, but a credit check is required.
4. Direct Consolidation Loans: With Direct Consolidating Loans, students can save money in the long run. You may reduce your interest costs by combining your eligible federal student loans into a single loan with a single loan servicer.
Private Student Loans
Private student loans are offered by private lenders such as credit unions, banks, etc. It can be used to finance any expense related to your college education. The eligibility criteria are more or less the same as that of Federal loans. But these loans are given to students who have a cosigner and good credit scores, and some even require collateral. Private student loans usually carry higher interest rates than federal loans do. You can find out if you are eligible for a private student loan by using the comparison tool on our site.
How much can I borrow via student loans?
When it comes to federal student loans, undergraduate students can borrow up to $3,500 – $23,000. On the other hand, graduate students can borrow up to $138,000. There is also a yearly limit which depends on your education level and status.
As far as private student loans are concerned, the amounts you can borrow vary from lender to lender. But to give you an idea, you can usually borrow up to the total cost of your education.
How to apply for a student loan?
The application process for student loans depends on the type of loan, your lender, and your college. First, let’s take a look at the process of Federal student loans.
Federal student loans
Here are the steps to apply for federal student loans.
1. Gather the necessary documents: Here is the list of documents that you might need
- Date of Birth Certificate
- SSN (Social Security Number)Verification of In-State Residency
- Official Transcripts from High School or College
- GED certificate if you have a GED certificate for high school diploma
- Documentation that verifies the status as an undergraduate or graduate student
2. Fill out the FAFSA form: The next step would be to fill out the Free Application for Federal Student Aid form. Even if you don’t believe you won’t qualify for the loans, it is still a good idea to complete it.
3. Check your student aid report: After you complete the form, you will receive a Student Aid Report (SAR), which summarizes your eligibility for student loans.
4. Review your financial aid letters: Your college or university will send you a letter that tells you exactly how much money you can borrow and what criteria you must meet to receive the loan.
5. Talk to your school’s office: Different schools have different rules and formalities. You should talk to your school’s office regarding any additional paperwork you might need or how they distribute the loans.
6. Receive your loan: Upon receiving your student loan, you will get an award letter that tells you how much money you can borrow.
Private Student Loans
When applying for private student loans, make sure to read all terms and conditions carefully.
1. Find a suitable lender: Look for lenders who offer reasonable interest rates and flexible repayment options.
2. Compare different offers: It is good to compare different offers from various lenders before applying for the loan. This will help you find out which one best suits your needs.
3. Check your eligibility: Make sure you are eligible for the loan according to your lender’s requirements. You might need a cosigner, credit history, good income, etc. Most lenders post their eligibility criteria on their official websites. So you can visit their website to get a better idea or use our private student loan eligibility checker.
4. Gather all the necessary paperwork: Just like federal student loans, you might also be required to provide some documentation. For instance, you might need a birth certificate, social security number verification, a transcript from your high school or college, and an official letter from the school regarding your enrollment status.
5. Fill out the application: After getting all the necessary documents ready, fill up their respective forms and submit them with the required documentation.
6. Wait for approval: A loan application can take anywhere from a few hours to several weeks. It all depends on your lender. Once they confirm your eligibility, you might receive the money within a few days.
Federal student loan vs. Private student loan
There is no denying that federal student loans are more beneficial than private student loans as they offer more flexibility, lower interest rates, and repayment options.
However, federal loans are also limited, and you might need to secure a private student loan as well to cover the shortfall.
The main difference between federal and private student loans is that federal loans are more flexible and manageable. Also, you might not need to pay the interest or principal during the grace period. However, private student loans lack these benefits and are more expensive than federal loans.
Things to consider before applying for a student loan
Student loans can be complicated if you don’t know much about them. So it is always better to prepare yourself before applying for a student loan. Here are some things that you should consider before deciding to apply for a federal or private student loan:
1. Opt for scholarship programs before applying for a student loan: If you are eligible, you should apply for the scholarship program because it can reduce your loan amount by 100%.
2. Compare different offers: It is good to compare different offers from various lenders before applying for the loan. This will help you find out which one best suits your needs.
3. Check your eligibility: Make sure you are eligible for the loan according to your lender’s requirements. You might need a cosigner, credit history, good income, etc. Most lenders post their eligibility criteria on their official websites. So you can visit their website to get a better idea.
4. Opt for federal student loans: Federal student loans are more beneficial than private ones. Before applying for a private loan, you should always consider federal student loans first.
5. Prepare for the repayment: If you have taken out a student loan, then there are you will have to repay it someday. Make sure you understand the terms and conditions of your loan so that you can manage whatever repayment is given to you promptly.
So there you have it! Student loans are one of the most useful financial tools for students. But they can be complicated if you don’t know much about them. In this article, we have provided a brief explanation of federal and private student loans. We have also offered several tips for students looking to apply for a student loan. If you have any questions, please ask us in the comments below!
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?
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?
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?
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?
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
5. Discover Student Loans
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!
The U.S. is undoubtedly one of the best countries where you can pursue your MBA. Many top business schools offer high-quality education and help students explore their full potential. Studying in the U.S. is like a dream come true as students get the opportunity to learn with the best brains of this nation who have set benchmarks. At present, there are some of the best business schools offering MBA courses and scholarships in the U.S.
In this article, we will be discussing everything you need to know before doing MBA in the U.S. So, let’s begin?
Why should you choose the U.S. to do your MBA?
There are many reasons you should choose to do your MBA in the U.S. The first and foremost reason is that the U.S. offers some of the best business schools in the world. These schools are known for their high-quality education and rigorous curriculum.
Additionally, studying in the U.S. exposes students to the industry’s best business practices and latest trends. American colleges are also known for their great networking opportunities, which can help students to build powerful connections in the industry.
Apart from that, studying in the U.S. is also a great way to improve your English skills. The U.S. is a melting pot of cultures, and you will get to learn a lot about the American way of life. Also, America being a developed country, you can explore various job opportunities after completing your MBA.
What are the eligibility criteria for doing an MBA in the U.S.?
The eligibility criteria for doing an MBA in the U.S. vary from school to school. However, most colleges require students to have a Bachelor’s degree from an accredited institution. Some schools may also require work experience or a GMAT score. You can check the eligibility criteria from the official websites of business schools across the U.S.
Is MBA expensive in the U.S.?
An MBA is indeed expensive in the U.S. Most MBA colleges charge students a hefty fee for their MBA programs. The average cost of an MBA program from a top business school in the U.S. can be anything between $28,000 and $35,000 (excluding living expenses).
Even the living cost can be pretty expensive as well. You need to budget around $1,000-1,500 per month for living expenses in a major city like New York or San Francisco.
But luckily, you can find tons of full and partial scholarships to study in the U.S. If you are planning to pursue MBA in American colleges, make sure to apply for scholarships well in time.
How to apply for an MBA scholarship in the U.S.?
Most universities across the U.S. offer various types of scholarships to study their business management courses. Some universities may provide merit-based scholarships, while others may give you need-based scholarships. There are university-specific as well as general scholarships that are available throughout the year.
You can search for scholarships on the university’s official website or various scholarship portals. Please read the eligibility criteria and other important information carefully before applying.
Top business schools in the U.S.
When it comes to business schools and universities, America has a lot to offer. You can find numerous world-class MBA colleges in the U.S. The top business schools in the U.S. usually feature in the global rankings of the best business schools.
Some of the most popular and renowned business schools in America are:
- Harvard Business School
- Stanford Graduate School of Business
- Columbia Business School
- MIT Sloan School of Management
- Chicago Booth School of Business
- Wharton School of the University of Pennsylvania
So these are some of the best business schools in the U.S. that you can consider for your MBA. Do your research and find the school that is best suited for you.
Top MBA programs offered in the U.S.
The top MBA programs in the U.S. are ranked on various parameters. They include value for money, network, quality of faculty members, student satisfaction, and placement statistics. Some of the most popular MBA degrees to study in American colleges are:
- Full-Time MBA
- Executive MBA
- Part-Time MBA
- Online MBA
So, these are some of the top MBA programs that you can consider if you want to study in the U.S. Now let’s take a look at some of the best MBA courses in the U.S.
- General Management
- Human Resource ManagementFinance
- Operations Management
- International Business
- Rural Management
- Healthcare management
- Supply Chain Management
- Energy and Utility Management
- Retail Management
Not only these but there are also many other specialized MBA courses available in American colleges. So you can choose a program based on your career interests and current academic qualification.
Top MBA scholarships in the U.S.
As we mentioned, MBA courses can be expensive in the U.S. But there are various scholarships available to help finance your education. Some of the top MBA scholarships that you can apply for are:
1. Harvard business school scholarship
It is a scholarship offered by Harvard business school. The scholarship is open to full-time MBA, DBA, and EMBA students. It is one of the most prestigious scholarships in the world. You can be offered both partial and full scholarships depending on your profile.
2. Columbia business school scholarship
Columbia business school offers a wide range of scholarships for both domestic and international students. You can avail yourself partial to full scholarship based on your profile and course requirements. If you meet the eligibility criteria, you can also apply for a Ph.D. scholarship at Columbia business school.
3. Wharton Fellowship Program
The Wharton fellowship program offers scholarships to students from different backgrounds and countries. The fellowship program provides a full tuition waiver to students and provides a stipend for living expenses. You must meet specific eligibility criteria such as required grade, leadership skills, and career goals to apply for this fellowship program.
4. Chicago Booth MBA Scholarships
The Chicago Booth MBA scholarships are offered to students who have demonstrated excellence in academics, professional achievement, and leadership. The scholarships can range from partial to full tuition waivers.
5. MIT Sloan MBA Scholarships
MIT Sloan MBA scholarships are awarded to highly talented students with excellent leadership skills and academic success. To qualify for the scholarship, you need to meet specific eligibility criteria such as minimum GMAT score and GPA.
6. Yale SOM
If you plan to study at the University of Yale, you can avail yourself of several scholarships offered by the school. The scholarships are provided to students with excellent academic credentials and leadership skills. You can get both full and partial scholarships based on your profile.
So there you have it! Everything you need to know before doing an MBA from the U.S. We hope this article has been helpful. Do your research and find the school that is best suited for you. Also, don’t forget to apply for scholarships that can help finance your education. Good luck!
In a world where the competition is increasingly fierce, it’s no wonder that scholarships are in high demand. In fact, for international students who have to pay higher tuition fees than their local counterparts, it can be a life-changing opportunity. Fortunately, there are many scholarship opportunities available to today’s international students.
This article will cover some of the best and most popular options for international students looking for international financial aid. We will also cover some important things that might help you in your scholarship hunt.
What is an International Scholarship for Students?
An international scholarship, as the name suggests, is a financial award available to students who are not citizens of the country in which they are studying. International scholarships can come from a variety of sources, including governments, universities, and private organizations that support a student for his/her financial need.
It helps students to pay for their educational expenses while they are attending a university or college in another country. Most scholarships are either full or partial. In full scholarships, the student receives all the money they need to cover their tuition and living expenses. Partial scholarships give students a percentage of the money they need.
Types of International Scholarships
There are various scholarships available to students from other countries. The most common ones include:
1. Academic Merit based scholarships
Merit scholarships are awarded to students based on their academic or other achievements. Often, the selection committee will look for students who have shown potential in their chosen field of study.
2. Need-based scholarships
These scholarships are awarded to students who can demonstrate that they need financial assistance in order to attend university. The selection committee decides how much money each student needs, and bases the scholarship on that amount.
3. Career-based scholarships
These scholarships are offered to students who wish to study in a particular field of work after graduation. For example, there may be scholarships available for students who want to become doctors, lawyers, or engineers. These types of scholarships are usually very competitive.
4. University-specific scholarships
Scholarships are also available to students at particular universities or in particular fields of study. These awards are usually given by private companies in the university’s field of business, industry, etc. Such awards can be vital for international students who may not have many other scholarship options.
5. Government-specific scholarships
These scholarships are funded by national governments and international organizations such as the United Nations. They can be instrumental in helping students study at universities around the world.
6. Location-based Scholarships
Location-based scholarships are one of the most famous scholarships among international students. They are usually restricted to students who wish to study in a particular region, such as Europe or South America. It opens up opportunities for bright students who belong from rural areas of their home country.
There are many, many more types of scholarships available to international students studying outside their home countries. It is important to research all the options carefully before applying!
Best Study Abroad Scholarships for an International Student (Undergraduate Students/Graduate Students)
There are many different scholarship programs available for international students. However, not all of them are created equal. Some scholarships are more prestigious and difficult to obtain than others. Here are some of the best scholarships available to international students:
1. The Fulbright Scholarship (USA)
The Fulbright program is one of the most famous and highly respected scholarships in the world. It is offered to students who wish to study in the United States. The scholarship covers all expenses, including tuition, room and board, and travel. The Fulbright Scholarship is awarded through a competitive selection process in which students are judged according to their academic and leadership potential. It is regularly in the top ten of all scholarships available in the world.
2. British Chevening Scholarships (UK)
The Chevening Scholarship is offered by the British government to students who wish to study in the United Kingdom. The scholarship covers all expenses, including tuition, room and board, and travel. The selection process is highly competitive, and only the top students are chosen. It is one of the most prestigious scholarships available to students from around the world.
3. University of Alberta International Country Scholarship (Canada)
The University of Alberta International Country Scholarship is provided by the University of Alberta (Edmonton, Canada) is open to international students who are not Canadian citizens or permanent residents. It offers scholarships for bright students who have shown excellence in their previous academic work. The scholarship covers the cost of tuition and living expenses.
4. Cambridge Trust Scholarship Awards (UK)
The Cambridge Trust Scholarship Awards are offered by the University of Cambridge (UK) to international students who demonstrate outstanding academic achievement and potential in their chosen field of study. The scholarship is awarded for the full duration of a student’s program at Cambridge and covers the cost of tuition and living expenses.
5. The Humphrey Fellowship Program (USA)
The Humphrey Fellowship Program is a fully funded fellowship offered by the United States government to students from developing countries who wish to study in the United States. The fellowship covers all expenses, including tuition, room and board, and travel. Since it is a government-backed program, the Humphrey Fellowship is extremely competitive.
6. Bell Fellowship for International Scholars (USA)
The Bell Fellowship offers fellowships to future leaders and young professionals in the field of population and development. The program offers a two-year research and leadership training at one of the world’s leading universities, with a focus on social and environmental determinants of population health, aging societies, workplace and wellbeing, and social and family demography. Selected fellows receive a full scholarship that covers tuition, room, and board and travel expenses.
7. Rhodes Global Scholarship to Study in (UK)
The Rhodes Global Scholarship is for exceptional students from outside the UK to study at the University of Oxford. It was one of the oldest and most prestigious scholarships in the world. The Rhodes Scholarships were founded in 1902 by Cecil Rhodes and are open to students from around the world who have the passion to make a difference in their community. The scholarship awards full tuition, room and board, and travel expenses for two or three years of study at Oxford.
8. Chevening Scholarships (UK)
Chevening Scholarships, funded by the Foreign and Commonwealth Office, are available for postgraduate study in almost any subject at master’s level at participating UK universities. The scholarship is open to students from around the world who have been invited by a UK university to study for an English language master’s degree.
9. AAUW International Fellowship (USA)
The American Association of University Women (AAUW) offers International Fellowships for women who are not United States citizens or permanent residents. The fellowship is open to graduate students in any discipline and awards up to $30,000 per year for two years of study.
10. Civil Society Leadership Awards (USA)
The Civil Society Leadership Awards (CSLA) are open to emerging leaders from civil society organizations working in the following areas: human rights, social justice, peace and reconciliation, the environment, and women’s empowerment. The CSLA program provides fellows with up to $90,000 for graduate study in the United States.
Things to consider before applying for scholarships:
There are a few things that foreign students have to keep in mind when applying for scholarships.
1. Do your research: Make sure you do your research on the different scholarships that are available to you. There are many different scholarships with different eligibility requirements, so make sure you find one that is a good fit for you.
2. Get organized: Make a list of all the scholarships for which you are eligible and start applying. Applying for scholarships can be a lot of work, so make sure you get organized before you start.
3. Show your commitment: You should always show your commitment to the scholarship or award by writing a personal statement on why you deserve the scholarship and what it will mean for you to receive it.
4. Be prepared to accept rejection: There are many reasons why some applications might not be successful, so don’t be discouraged if you don’t get the scholarship that you applied for. There are many other scholarships available, so keep looking for other sources that offer scholarships.
5. Follow the instructions: Make sure you read and follow the instructions carefully when applying for scholarships. If you don’t follow the instructions, your application might not be considered.
6. Apply for multiple scholarships: Don’t just apply for one scholarship. Apply for as many scholarships as you can, because you might not get selected for the first one that you apply for. You can also get selected for more than one scholarship, so it’s always worth applying.
7. Focus on your academic excellence: Make sure you focus on your academics because scholarships are not the only thing that matter in your life. Make good grades, get involved in extracurricular activities, and volunteer.
8. Show your passion: Show the scholarship committee how much you care about whatever scholarship or award that you are applying for. If you have a strong passion for whatever award or scholarship, then the committee members will be more likely to select you.
Studying abroad is the dream of millions of students for higher education. And what better way than getting a scholarship to support their financial needs. But getting a scholarship is not easy, but it’s definitely worth the effort. Make sure you do your research, get organized, and follow the instructions carefully. And don’t forget to have fun while you’re applying for scholarships! There are many different scholarships available, so you’re bound to find one that’s perfect for you. Best of luck!
Private student loans make up 7.80% of the total outstanding student loan in the USA. That is more than $130 billion.
Private student loans are some of the most useful financial tools that help students pay for their education, especially when traditional financial aid is not sufficient. A private student loan is a great alternative option if you don’t qualify for a federal student aid program. And because banks and lenders offer many options for repayment, private loans may also be more suitable for your own needs.
Also, there is a high chance of getting approved with private student loans because with certain lenders these loans are not even based on the credit history of the applicant. Therefore, a private student loan would be ideal if you don’t qualify for a federal student loan or if you don’t have any credit history.
In this article, we will be digging deep into private student loans! We will discuss how they work, their advantages and disadvantages, the application process, and other useful information so you don’t get confused when you apply for a private student loan. So let’s get started!
What are private student loans?
Unlike federal student loans, private loans don’t originate from the government. Private student loans are used when a student either doesn’t qualify for the federal student loan or when their amount of financial aid is not enough to pay for his/her education.
Private student loans are mostly offered by the major banks, savings & loans companies, credit unions, and some other lenders who provide personal or educational loans. A private student loan typically offers benefits that include low-interest rates, flexible repayment options, and lenient borrowing limits. However, the interest rates on private student loans are higher than federal student loan rates.
How does a private student loan work?
A private student loan is the same as any other student loan, but they are offered by private financial institutions. When you apply for a private student loan, you need to submit your credit history and income information. The bank or lender will assess your particular situation and determine if they offer you the amount of money that you require.
Once you get approved, the lender will send your school’s financial aid office the funds. They will credit the required amount of money directly to your account and you can use it for paying tuition, housing fees, or any other expense that is related to your education. If there are any funds remaining, your school will transfer those to your nominated bank account.
How to apply for a private student loan
Before you apply for a private loan, make sure you understand all the terms and conditions of the loan. Compare different lenders or banks that offer student loans before settling on one. Once you have identified the lender with whom you want to go, it’s time for applying for a private student loan! Here are some steps that you need to follow:
1. Check whether you qualify for a federal loan or not
It is advised to apply for a federal student loan before you go for any other type of student loan because these loans offer lower interest rates. Interest rates on private loans are higher than federal student loan interest rates. Therefore, it is better to opt for a federal loan if you qualify for one. In most cases international students in the U.S. do not qualify for federal student aid.
2. Get your credit history in order
If you do not have an established credit history, then it will be difficult for you to get approved by some of the major lenders or banks. Make sure your credit report is error-free and clean. You can check your credit history from the three major credit bureaus: TransUnion, Experian, and Equifax. Once you have a good credit history, apply for a private student loan. There are a small number of lenders that do not require credit history and you can find out about them here.
3. Find a cosigner
It can be hard for students to build their credit score, so the easiest way to get approved for a private student loan is by getting cosigned. If you have someone who loves and trusts you (family members), they can be your cosigner on your application form. This will make it easier for the lender to approve your application because another person has vouched for you! In addition, if your cosigner’s credit history is up to the mark, you can get better repayment terms. Your cosigner must be a U.S. citizen or permanent resident. Most international students will need a cosigner, but there are a number of lenders that do not require one.
4. Find a suitable lender or bank for your private student loan
The most important step in applying for a private student loan is to find the right lender or bank that can provide you with the amount of money that you require. Each lender has its own terms and conditions. You can find different lenders by searching online or visiting your local bank or credit union. Take time to review different loans, rates, and terms before choosing one. One of the easiest ways to find a loan as an international student is to use our loan comparison tool.
5. Fill the application form carefully
Once you have found a good bank or lender, it’s time to fill out their application form. You will need your social security number, credit history, annual income, and other details in order to apply for a private student loan.
Filling out this form should be done carefully because this information will be used to make a decision on your loan approval. If you have any doubts or do not understand something in your application form, it is better to ask the bank before filling it out. Once you are done with it, submit the form.
6. Be aware of hidden charges and fees
Once you have submitted your application, you will receive paperwork from the bank. Make sure you review all the terms and conditions carefully to avoid any hidden charges or fees that can increase your loan amount.
7. Get approved for a private student loan
After filling out an application form, waiting patiently for a response from a lender, and going through the required paperwork, it’s time for you to get approved for a private student loan! Once you have been approved for a loan, the lender will transfer money to your school.
8. Paying back your private student loan
Once you get a private student loan, it is important for you to be aware of the repayment period and other charges. The bank will send you an email or letter that tells you about the amount that must be paid back. You should also know if there are any penalties or charges for not making monthly payments on time.
Federal student loan vs Private student loan
Federal loans are the safest option when it comes to taking out a loan for college if you are eligible for them. Federal student loans typically have lower interest rates compared to private student loans, they do not require a co-signer, and you will not accumulate any additional debt if your student situation changes.
Private student loans may be used for continuing education or for students who do not qualify for federal loans. Before applying for a private student loan, make sure that you understand the terms and conditions of your lender or bank. You can get your credit report and score from all three major credit bureaus: TransUnion, Experian, and Equifax to help you find a suitable lender.
Note: Consider getting a private student loan only when you don’t get approved for a federal student loan or your federal student loan is not enough for your education expenses.
Advantages and Disadvantages of Taking Private Loans
Private students are great alternatives for students who have a bad credit history or have applied for a federal loan but did not get approved. But they do come with both pros and cons that must be considered before applying for them.
1. Private student loans give you the freedom and flexibility of choosing your own loan amount and loan duration.
2. You can get rewards for having good credit. Your interest might get lower if you have a good credit history.
3. You get more freedom to use the money that you borrow in any way you want during your college years.
4. You can apply for a private student loan anytime you want. No matter if you are in the middle of your college career or if you are graduating, you can still apply for a private student loan.
5. Private student loans can be used to repay your previous student loans.
7. Ideal for students who have a bad credit score or didn’t get approved for federal loans.
1. You will be charged with higher interest rates than if you get a federal loan.
2. You are required to have a co-signer if you have a bad or no credit history with most lenders.
3. It is essential that you review all transaction and loan terms with your lender to avoid any misunderstandings or miscommunications.
4. You may not be able to change the duration of your repayment without increasing the interest rates
A few things to consider
- Opt for private student loans only if you don’t qualify for a federal student loan
- Compare multiple lenders and banks before finalizing a lender
- Borrow only what you need to stay in school and pay for your education expenses
- Don’t miss out on any repayment term and make sure you repay your private student loan on time
- Find a co-signer if you need one
- Read the terms and conditions carefully before signing any agreement
So there you have it! A private student loan is great if you don’t qualify for a federal student loan. Make sure you consider all options before you apply for a private student loan. Always review the terms and conditions with your lender before you sign anything.
International students often struggle to pay for their education. From high tuition fees to living expenses, international students have to pay a lot of money. And not everyone qualifies for financial aid or scholarships. So, if you are an international student, having an international credit card is a must.
International student credit cards allow students to pay for books and supplies, food, housing, and other expenses. With these types of cards, there is no need to carry cash or take out money from a bank machine. And the best part is that many of these cards have relatively low interest rates. Normally, international students pay an annual percentage rate (APR) of 17%-19.9%.
An international student’s credit card offers a lot of perks to international students. In this article, we are going to talk about their advantages and disadvantages. This article will be really helpful for international students.
What is an International Student Credit Card?
International student credit cards are a type of card that is only available to students outside of their home country. They provide support to students as they look for opportunities to build their financial history. It allows students to pay for expenses such as books and food.
When you have, use and repay money on a credit card, lenders are more likely to see that you are capable of repaying your debt. International student credit cards are beneficial for students in this way because they help to build their credit score. They provide an important tool to build a successful financial profile in the country they are studying in.
What are the benefits of having an international student credit card?
As an international student, there are many benefits of having one. Here are some of the benefits:
1. Easy to apply
Many students can easily get approved for international student credit cards because it’s often quite easy to apply for them. You can apply for international student credit cards online and receive a response within minutes. If you want to be able to use your cards as soon as possible, you should definitely apply for an international credit card.
2. Rewards Program
With international student credit cards, it’s really easy to earn rewards for daily spending. All you have to do is sign up for a rewards card and then use your credit card to pay for all of your expenses. Many international student credit cards offer different types of rewards such as cashback, airline miles, and retail discounts.
3. Builds Credit Score/History
Having a student credit card allows students to build their financial profile in the country they live in. This makes it easier for them to buy a house or car once they graduate. Building credit history starts with a credit card. It is a great way to start building a good financial profile.
4. Fraud protection
International student credit cards provide fraud protection which means that you won’t be held responsible for fraudulent charges that appear on your statement as long as you report it within a certain time period. For example, if your credit card is stolen and someone uses your account to make a purchase, you won’t be held responsible as long as you report that fraudulent charge within 30 days.
What are the Disadvantages of having International Student Credit Cards?
Everything good comes with a price! Although there are many benefits to it, there are also some disadvantages. Here are some of the disadvantages:
International student credit cards tend to have high fees. It is because credit card companies do not believe that students will pay their balances in full every month. They can charge higher interest rates sometimes which end up increasing the cost of borrowing money. Some international students’ credit cards have a yearly fee that is required to be paid once you open the account.
2. Foreign Transaction Fees
International student credit cards charge a foreign transaction fee every time a purchase is made outside of the registered country or if an international ATM request is used (for example if you used the card when visiting your home country during your vacation). When you use your card outside of the country, this will translate into a 3% to 5% charge. This usually occurs because international credit card companies have the power to access the wholesale rate for currency conversion.
3. Credit Limit
International student credit cards often have a low credit limit. This means that you will not be able to use your credit card for large purchases.
Secured Credit Cards Vs Unsecured Credit Card
A secured credit card is a type of loan that requires the borrower to place collateral against the funds. Most international student credit cards are unsecured because they don’t require collateral. Some banks might require collateral if your international credit score isn’t ideal.
Eligibility Criteria for International Student Credit Cards
1. Student Status: To qualify for it, you must be a full-time international student.
2. 18 Years of Age: Most companies give credit cards to students who are at least 18 years old.
3. Annual Income: You will not be able to get approval for it if your annual income is below the limit set by the issuer.
4. Valid Address: You must have a permanent address where you can receive your credit card statement each month.
5. Social Security Number (Not every credit card issuer requires it): A SSN is required to apply for many cards. Without one, you will may be able to get approved.
6. Valid Phone Number: Most credit card companies require an international phone number as well as a home address to confirm the identity of the person applying for a student credit card.
How to apply for International Student Credit Cards?
There are many different credit cards that you can apply for. However, it is important to do your research first before applying for one. Here are some tips that will help you apply for suitable international student credit cards:
1. Open up a bank account:
Before applying, first, open up a bank account with the bank that you choose. Take some time to look at all of the different credit cards and compare their rates and fees. This is very important because it will give you a better idea of which one to choose.
2. Check your eligibility:
You should always check your eligibility. It isn’t always clear before you apply, but if you can see from the criteria that you will not qualify, it will do your credit history more damage to apply and be rejected..
3. Research various credit card companies
Look for customer reviews online and read everything about the credit card issuers who are offering you the card. Make sure that the company is reputable and has been in business for a long time.
4. Look at fees and rewards
Make sure to look at all the fees associated with the card. Compare different cards and see which one offers you the lowest interest rate. Also, consider looking for a card that offers rewards.
5. Get a cosigner
If you are unable to find a suitable card on your own, consider asking for a cosigner. Sometimes, banks will give you a higher chance of being approved if you have someone vouching for you. Just make sure that the person who is willing to cosign for you is a stable source of income and has a good credit history.
6. Apply online
Applying online is the easiest way to apply for a card because it usually requires less paperwork and also takes less time. All you have to do is fill out an application, wait for approval, and access your account.
Top International Student Credit Cards
1. Capital One Platinum Credit Card: This company offers a low-interest rate of 9%. It also charges no annual fee. It has an APR of 26.99% (variable). You can quickly and easily apply for this credit card online.
2. Discover it for Students: This card is perfect for students who often travel outside of the United States. It charges no annual fee and has a low-interest rate. The maximum APR that you can be charged is 12.99%-21.99%. You can quickly and easily apply for this credit card online.
3. Chase Student Visa Credit Card: With no annual fees, you can easily apply online for this card. You will be given a credit limit that is equal to half of your annual income or less. The APR is very low at 14.99% (variable).
4. Deserve EDU: There is no annual fee as well as foreign transaction fee. The APR is 18.74% (variable). It doesn’t require any SSN to apply. You can also apply online for this card.
5. Capital One SavorOne Student Cash Rewards Credit Card: It’s easy to apply for a cashback credit card. It has a $0 annual fee and a variable APR of 26.99% (Variable). There is no foreign transaction fee and it is accepted worldwide.
1. Make sure to do your research before applying for an international student credit card so you can compare different offers and find the best one for your needs.
2. Always check your eligibility before applying for a credit card because some credit cards will not approve certain applicants based on their circumstances.
3. Keep good credit so you can increase your chances of being approved for an international student credit card in the future.
4. When filling out an application, answer all questions truthfully and pay close attention to detail because if there are any errors, your application might be rejected which will take more time to reapply for the credit card.
5. Monitor your credit card activity so you can avoid being charged with over-limit fees or late payment fees.
6. Always read the fine print of any credit card offer before signing up for any credit card because it will help you know exactly what to expect once the account is opened.
Applying for an international student credit card is easy as long as you know what to do. By following these top tips, you can easily apply for a great card that will suit your needs and help you build good credit history.
Are you an international student in the U.S. or Canada?
You can now borrow up to $100,000 for your studies from MPOWER Financing! That’s a lot of money that will help you pay for tuition, housing and other expenses while studying here in North America. It’s also flexible enough to cover unexpected costs like books and transportation fees. And with MPOWER’s flexible repayment plan options, it’ll be easier than ever to repay your loan after graduation so you can get on with life without worrying about debt hanging over your head.
We know how hard it is to manage finances when you are studying abroad so we’ve made this process as easy as possible for you to find out if you are eligible for a loan with one of our partner lenders. If you’re ready to apply right away just use our loan comparison tool.
You can also find out more at MPOWERfinancing.com
As time goes by, the average student loan debt continues to rise. While students should only have to focus on their education and future, student loans are becoming a major concern for both students and their parents.
From tuition fees to books, many students are spending thousands of dollars before even they become graduates. It doesn’t end here, student loans have a significant impact on the average 21-year-old college graduate’s income. In fact, it also affects their average yearly earnings for the rest of their lives.
It’s almost impossible for an average student to get admission to good colleges in the USA or Canada without scholarships, federal student aid, or financial support of some kind. Therefore, average students can’t afford to spend thousands of dollars on tuition fees and other course materials each year. Thus, private student loans are the only solution to their problem for many.
The only problem with that is most students don’t know how much exactly they will earn after their bachelor’s degree. If students had enough knowledge about the average student loan debt, average tuition fees, and average salary after graduation, they would be able to solve this problem more easily. That’s why we are here to help.
We have gathered a bunch of information that you as a student must know. So keep on reading and get familiar with the average student loan debt!
Average student loan debt: $27,975
For average students in the USA and Canada, the average student loan debt at the time of graduation is $27,975. This average student loan debt varies from school to school and course of study.
For example, the average graduate with a law degree owes more than the average student with an engineering degree. That’s just how it goes, students in the USA and Canada owe over $27,000 at the time of graduation.
Average student loan debt per year: $9,410
It’s a well-known fact that average tuition fees for colleges and universities are more than ever before. The average student loan debt per year is $9,410. It’s not just average students in the USA and Canada who are facing this problem. Students in the UK also seem to be under a lot of pressure with average student loan debt per year that reaches up to £10,000!
Average monthly student loan payments: $775
Students who live on their own and those who live with family members have to pay $775 as monthly payments. This number seems to be normal, but what’s not normal is the average amount of interest students have to pay back after their graduation.
The average interest rate on student loans: 6.5%
The national average interest rate on student loans is 6.5%-8.50%. This percentage will depend on the public market rates and the rate the school sets.
However, even if this percentage is a lot lower than credit card interest rates and bank loan rates, it can still affect your average income after graduation. Since it takes a few years to pay off student loans, most students rely on their parents for support and financial aid.
Average college tuition fee: $30,000-$45,000
In the last 10 years, average college tuition fees have increased by 2 times. In fact, the average college tuition fee is now $30,000-$45,000 per year.
In some universities and colleges in Canada and the USA, you might even need to spend up to $50,000 a year if your study program is more demanding.
Let’s take a look at some of the most popular colleges in Canada and the USA with their average tuition fees. Most of these average college tuition fees don’t include the cost of living and other expenses that students need to pay. So these fees are only for your college education.
$52,000 – Columbia University (New York)
$51,000 – Sarah Lawrence College (NY)
$50,000 – George Washington University (Washington DC)
$49,560- New York University
$47,950 – Eugene Lang College of Liberal Arts (New York)
$44,000 – William Paterson University of New Jersey
$43,000 – Northwestern University (Illinois)
$40,520 – Georgia State University
$39,970 – Northeastern University
Other costs that students usually forget about:
Books and course materials. For example, if you’re planning to study medicine, we’re talking about hundreds of dollars per semester for books and course materials. Transportation fees and living costs. You will also need to pay for your transportation since you can’t always rely on public transportation or your parents drive you to school and college. Let’s see how much do they cost on average:
1. Living costs:
Living cost varies from one city to another. It depends on the average rent price in your city, plus other expenses that you have every month. Let’s just say it costs around $800-$1000 per month for living costs if you live alone or with a friend.
2. Transportation cost:
If you’re studying at a university or college that isn’t close to your home, you will need to pay for transportation on daily basis. An average student who drives to school might spend up to $50 per week on gas and other costs. If they are taking the bus, it’s safe to say that this amount can be higher depending on how far they need to travel.
3. Food cost:
It’s normal to go out with your friends and family for dinner, drinks or fast food. This can be very expensive if you do this every day! Let’s say it costs you $50 per week just to eat outside and socialize.
4. Books and course materials:
Most schools and colleges expect their students to have their own books and course material. The average cost of a book is approximately $200-$250 if the textbook is new. If you’re studying engineering or medicine, you’ll need other study materials such as laboratory kits, CDs, and software.
5. Other expenses:
You might need to visit the dentist or doctor for a checkup. If you need glasses, contact lenses, or other medical aids, don’t forget to add this expense too! Other expenses like going out or entertainment are also included.
Federal student loan debt vs private student loan debt
If you need to take Federal student loans or a private student loan, here’s what you should know. Federal loans have better conditions and lower interest rates than private loans. For example, the federal government sets their student loans interest rate depending on the type of study program and the year you’re in at school. On the other hand, private lenders set their own interest rates. They are usually higher than federal rates, so it’s better to avoid them.
The average federal student loan in the USA is $36,000. In Canada, this amount can be higher or lower depending on your province of residence and what study program you’re taking at a college or university. In order to reduce the loan payments, you can take a look at their plans such as the Federal Family Education Loans.
When it comes to private student loans or direct loans, the average is $14,400 for graduates with bachelor’s degrees. On the other hand, students who drop out of college or university have more than $20,000 in private student loan debt on average.
You can find information about private international student loans here:
What country is #1 in student loans?
The USA is the country with the highest student loan debt in the world, so it’s no surprise that they also have one of the highest average college tuition fees. On average you need to pay $35,000 if you study at a US university or college after high school.
In 2017, student loan debt has reached a new record in the USA. It currently amounts to $1.33 trillion which means every American owes an average of $37,172. It’s even higher than the car and credit card loans.
It’s not the tuition that’s causing the problem, but the cost of living which is very expensive in most cities. Cities like New York and Los Angeles have a very high cost of living. And the same this is happening in Canada. With high tuition fees and living costs, it won’t be surprised if we reach $100,000 in the next few years.
What would happen if you fail to pay your student loans?
If you fail to pay back your student loan, this can lead to serious problems
1. Increased interest rates:
If you default on your student loans, the federal government can increase the interest rate for their federal loans. This means that instead of paying 6% (the current interest rate), it will be 18-23%, which is very high! The interest rates could increase more if you take direct loans or personal loans from private student lenders. And if you can’t manage to find a suitable job you will find yourself in more debt.
2. You can’t pass the background check:
If you want to work for the government or join the military, you will need to pass a thorough background check. One of these is passing a credit score check. If your credit score is low, it means that you’re not reliable with money and this isn’t something you want to show on your background check.
3. Bad credit:
If you fail to pay your student loans, the federal government will send your account to a debt collection agency. If they can’t contact you or get you to pay back, this will affect your credit score and ruin it. This means that if you want to buy a house in the future, take out a loan for any other reason, or simply need a credit card, you won’t be approved because your credit score isn’t good.
If the debt collection agency fails to get in contact with you or can’t help you pay back, they will sue you for the money that you owe. If the court decides that you need to pay it back, they will take your bank account, tax refunds, and wages. This means that if you have any savings or are planning to get a big salary raise in the near future, it will be taken away from you by the courts!
Student loan debt reaches $2 trillion in 2021
We are in the last quarter of 2021. According to the student loan statistics and the federal reserve bank, the total student loan debt has reached a staggering $2 trillion. That means the average debt is $25,000 per person.
The cost of living has risen dramatically since 2007 and it’s expected to rise even further. The total number of students attending public universities has also risen to an all-time high and the cost of living is higher than ever before.
The cost of health care, food, and shelter has risen dramatically over the past few years which means that people spend much more on these items. This leaves less money for anything else like student loans.
In total, student loan debts have crossed the auto loans and private loans in the USA. And the number of people with student loans is expected to rise by about 1 million every year. The average net income of students has also fallen, which means that they have less money to spend on other things like loans and credit cards.
So what does this all mean?
The outstanding student loans will only continue to rise and it’s likely that we might reach $3 trillion in the next few years. The cost of living will continue to rise, which means that even if you don’t have student loans, life would be pretty expensive.
The average wage is already not enough to pay back your loan and it’s likely that we might reach $30,000 in the next few years. This means that if you want to continue your education and borrow an additional $30,000 for college expenses, you will have to pay back about $60,000 in the next 10 years.