In today’s world where student loans are the norm, especially for international students, it is increasingly important to be aware of how you can defer your payments while still in school.
This article will take a look at what exactly student loan deferment is, how it works and how to request to defer your student loan payments. It will also discuss some resources for more information on this topic, including how deferment applies to federal student loans and private student loans.
What is deferment?
Let’s get started with the most important thing to cover – what does deferment mean? In general terms, deferment is when you are allowed to put off paying your loan for a time under certain conditions.
On the surface this seems like a great idea because you are allowed to stop making your monthly loan payments for a time – up to three years in some cases. However, deferring student loans should only be done if you have no other options because during the deferment period you are not reducing your loan balance but your loans accrue interest. This means the total amount you owe, and the total cost of borrowing will increase.
If you’ve borrowed from a private lender then your student loan debt will only increase if you stop making monthly payments. However, federal student loan deferment if you have subsidized loans or Perkins loans can be a good idea because you do not accrue additional interest on federal student aid during deferment.
In the case of international student loans, students who are enrolled at least half time may be offered a repayment plan by their loan servicer that includes a period when no monthly payment is required or the payment is significantly reduced. Often this is during full time studies and until up to six months after graduation.
Deferment, Forbearance and Loan Forgiveness
You have probably heard all three of these terms and you’d be forgiven for being slightly confused about the similarities and differences.
Deferment and Forbearance
Student Loan Deferment and Loan Forgiveness are very similar. Both are temporary solutions for borrowers struggling with student loan repayment. Deferment can be granted for up to three years and forbearance usually up to 12 months.
Both are available on most federal student loans, and interest is accrued during deferment with the exception of subsidized loans or the Perkins loan. Private lenders are not obliged to offer any kind of deferment or forbearance options, but many do – especially in the form of a payment plan where student loan payments are zero or greatly reduced (sometimes interest-only) during school and for up to 6 months after graduation.
Making use of approved deferment or loan forgiveness will not negatively affect your credit score – missing a payment before you have been approved will. However it will impact the length of time and the total amount you repay.
These options are short-term solutions, an income driven repayment plan may be a better option if you believe that your ability to repay your loan will be affected long-term.
As suggested by the name, this is when the lender writes off or cancels some or all of the outstanding payments remaining. This is only used in extremely rare occasions such as foreclosure, bankruptcy or some kind of government legislation.
How in school deferment works
To defer student loans, you need to meet the requirements set out by the lender (or the government). For example, you might have a maximum of 3 years where you can defer your loan.
To request deferment, you need to send your student loan servicer the completed application form and any necessary supporting documentation. If you qualify, they must grant you the deferment. It’s important that you keep making payments until you receive the official notification from them saying that the application was approved. If you stop making the required repayments before you get the approval, this can affect your credit in the future as it will be a missed payment.
How long does an in-school deferment last?
In-school deferment lets you pause your student loan payments while you are an undergraduate, graduate or professional student enrolled half time or more on an approved course of study at an eligible college and for up to six months after graduation. This includes studies on an approved graduate fellowship program.
How to defer student loans for grad school
The process of student loan deferment is the same for graduate programs as for any other students that qualify.
How many credits to defer student loans?
In order to qualify for student loan deferment you will need to be taking enough credits to be considered as attending school half time or more. In most cases an undergraduate is considered to be full time when taking 12 credits per semester – 9 for a graduate student.
References and resources about student loans and financial aid
For resources on International Student Loans visit the resources page.
There are many reasons why study abroad is not for everyone. You need to be aware of the costs, benefits of studying at home or abroad, and the pros and cons of taking out student loans for study abroad before you can make a decision on whether or not it will work best for you.
Study Abroad Costs
Remember that the cost of studying abroad is not just tuition, but also many other expenses such as accommodation and living expenses. A study abroad program is not cheap.
To make the most of your money, it’s important to budget accordingly. Consider everything you need to live like at home: food, clothing, transportation, books and school supplies, entertainment, insurance (health and travel), and incidentals (phone service, toiletries).
When you do this math ahead of time with realistic figures for your destination country, it’s easier to know what you can afford and if you’ll be able to go.
For help with budgeting and other practical questions see our budgeting guide [here].
What you might gain from studying abroad (or not)
Studying abroad is a great opportunity for a student to broaden their horizons and experience new cultures, countries, and lifestyles. It is an experience that will give them new perspectives on life that will have a great impact on them for years to come. Studying abroad will help their resume as they often learn different languages and customs.
But if you choose to study in your home country instead, you’ll benefit from having your parents or other family members available to help you when you need it. Your family will be in the same time zone, and much closer should an emergency arise. You won’t have to deal with language barriers either; instead, everyone speaks your language!
But maybe even more important than all of these is that studying abroad isn’t for everyone.
Don’t be pressured by parents, friends, or family members to do it if you’re unsure about doing so. It takes time to adjust when studying abroad in a different country, so before you commit to something that will change your life forever, consider your options carefully.
Taking out a Student Loan for Study Abroad
It’s rare for students or their families to be able to cover the full cost of a study abroad program without additional financial aid.
Many students get study abroad scholarships or are able to work to help pay for costs, but sometimes they need to take out a student loan. If you’re considering this option -and it is an option- be aware of the pros and cons of getting a student loan for studying abroad.
Student loans for study abroad are different from student loans for studying in your home country.
For U.S. citizens or permanent residents, federal student loans can be used for study abroad programs as long as you meet all the criteria. There are also private study abroad loans. If you choose to study your entire degree program abroad then you may still be eligible for federal funding or private “foreign enrolled loans”.
For other international students the availability of loans to study abroad depends upon your nationality and your destination country. U.S. federal loans are not available for international students in studying in the United States, but there are some federal student aid programs that can help certain groups like DACA recipients. Non-citizens would need a private international student loan.
Understand the pros and cons of taking out student loans for study abroad before making a decision
A student loan is a type of loan that enables you to pay the costs of your education. It can also cover for the cost of living, books, and even tuition fees. The great thing about a student loan is that it is quite manageable, as the monthly repayment is calculated to be manageable for a student or recent graduate.
As there are a limited number of lenders that specialize in international student loans, you’ll be working with a company that has the expertise you need in this area rather than a generic lender. This means you can expect a higher level of service at every stage of the application process.
On the other hand, the bad side is that student loans are not as common as other types of lending, and therefore there is less information about them.
Of course, the main downside of a loan is that you have to repay it plus interest, and since you’re probably going to be a student or fresh graduate with little income, the repayment may seem difficult at first. Student loan debt is no joke if you let it get out of hand and borrow more than you need (and more than you can afford to repay).
Student loans for study abroad can also be quite tricky because you have to take into consideration things such as the currency exchange rates and the different cost of living abroad.
At internationalstudentloan.com we match our readers with the best student loan lenders based on their situation. If you want to use educational loans for your studies, we hope this will help you select the right lender and loan for you.
Research schools abroad and in your home country to make sure you make the best decision for you
Before you can really decide if studying abroad is the best option for you, you should research your options both at home and overseas to find the right combination of school or university plus course plus location.
You may find that some schools abroad are better suited to your needs than similar schools in your home country, and if this is the case then studying abroad is probably a good option for you.
Or you may find that there are similar options in your home country and studying abroad doesn’t suit your needs.
When you’re looking to study abroad, learn as much as you can about the school you want to attend; don’t choose a course purely because it’s cheaper than similar courses at other universities and colleges.
It’s easy to take your safety for granted when you are near home, but when you’re abroad there are additional considerations such as crime and health risks, which can affect your study abroad experience. When picking a campus and housing location, keep this in mind. Ideally your campus should be located in an area where you feel safe, as should your living arrangements.
Another consideration is language issues. For example, if you are from a non-English speaking background and want to study in the United States, you’ll need to demonstrate good English language proficiency when applying for or enrolling at an American college or university. You may be able to take some English language proficiency courses before starting your degree course, but this will depend on the college or university you choose and how intensive it is.
The cost of living in different countries is very different, so don’t assume that the tuition fee for a college or university abroad is similar to what you would pay at home. For example, English universities charge international students up to three times more than domestic students, and in some countries international students can pay up to ten times more than locals.
At internationalstudentloan.com, we are dedicated to helping students get the best student loans possible for their education abroad. We’ll help you find the right lender and loan combination that suits your needs so you can focus on what’s really important: studying!
As a new graduate with little income, it may seem difficult to repay your student loans at first but our partner lenders have experience working with international students who want to study abroad. You can rest assured knowing that after signing up for an educational loan from one of our approved lenders, you will be matched with someone who understands how your brain works when making decisions about your student finances.
International student financial aid is a necessity for almost all international students wishing to study abroad and often times it can’t be obtained without applying for an international student loan.
Many international students, however, need a loan in addition to any awards or scholarships received. So what are these loans and how do you get them?
In this article we will explore both topics in order to provide some basic understanding of the complicated world of financial aid for international education, international student loans and how they work.
Read on if you would like some clarity into this confusing topic!
Why international financial aid is necessary
Financial aid for international students is necessary for almost all international students because the cost of studying abroad is more than the average student can afford – even with financial support from their family.
The average cost of studying abroad for a year can range anywhere from $30,000 to more than $70,000
Some of the most expensive in demand countries include the United States and the United Kingdom.
In both cases the tuition fees are more expensive for international students, and you need to add in other necessary costs such as accommodation and food.
The cost is around three times higher than what a student would have to pay at home for the same program.
How to get financial aid for international students
It is not easy to get financial aid as an international student and it requires you to work hard in order to obtain it. The first place to look for financial aid is with the school or university you will be attending.
In most cases students going to a school in the U.S. must first complete a FAFSA (Free Application for Federal Student Aid) and apply for any government funding available – this is often the case even though international students are not usually eligible for federal aid.
Most universities have their own financial aid options and scholarship programs that international students can apply to. Some are merit-based while others are need-based. It is important to complete your application as soon as possible as most programs and scholarships only have a limited number of positions available.
Often times these scholarships have specific requirements, such as a minimum GPA and/or language proficiency but there are also general scholarships available. Once you have completed your application, it will be reviewed by the selection committee and if selected, you will be awarded a scholarship.
Lastly, remember that an international student loan is only a last resort after all other funding has been exhausted – it should never be used instead of applying for scholarships and/or government funding.
There are a small number of lenders who specialize in loans for international students, but they are not available in every country or at every school or university – a lender must have a suitable program for your chosen institution and you must meet their other lending criteria.
Another factor in the availability of loans for international students is that some lenders require you to have a cosigner (also known as a guarantor or co-borrower) who is legally responsible for repaying your loan if you fail to do so. That cosigner must be a U.S. permanent resident.
Paying back your international student loan
Repayment of an international student loan will depend on the terms set out when you took the loan. Different lenders will have different repayment terms and interest rates.
Some lenders will allow you to defer repayments until after graduation while others will want you to start repaying your loan immediately.
Whatever repayment plan you have, your lender will be able to give you the exact details about how much you will have to repay and when – and you should be able to see the total cost of borrowing (including all interest and fees).
International student financial aid is a complex topic and it’s important for prospective students to research their options before making any decisions. There are many ways you can get financial assistance, but the first place to look should always be with your school or university. Your institution may offer scholarships that don’t require an essay; these are often need-based programs so if you’re struggling academically, this might not be a good option.
The next step would be to search the database of international scholarships at www.iefa.org/scholarships where there is no shortage of opportunities available (although some do have specific requirements).
Lastly, remember that borrowing money shouldn’t ever substitute applying for other sources of funding such as government grants or private scholarships – international loans should be used as a last resort. It is also important to look at the terms and conditions of your loan and understand where you currently stand financially before taking on any financial responsibility – if you have to take out an international student loan, make sure that it’s done with care.
Studying abroad is a great way to broaden your horizons and experience different cultures. It’s also an excellent opportunity for students to improve their language skills, or study subjects that are not offered in their home country. International students overwhelmingly report benefiting greatly from the experience during their time abroad and in the impact on their future careers as well.
One of the most frequently asked questions U.S. students ask themselves when they’re considering a study abroad program is whether they should apply for a foreign enrolled student loan or a study abroad loan?
This blog post will help explain the difference between these two loans so you can make an informed decision about how much money you need to borrow while you’re away from home.
The first thing we always suggest to US citizen or permanent resident students who want to study abroad is to focus on all types of financial aid that they are eligible for as well as private student loans. In the case of US citizens, permanent residents and eligible non-citizens, this means looking for federal student aid, federal student loans, grants, awards and scholarships. Interest rates on federal student loans are usually more favorable than with a private loan program.
Getting an international student loan from a private lender would be the next course of action if for some reason you didn’t apply for the FAFSA, or you didn’t meet the deadline, don’t qualify for federal aid, or if you still need additional funding to cover the cost of your international education experience.
If you’re already attending college in the US speak to the financial aid office and the study abroad office at your school for their guidance.
International Student Loans
The international student loans we will discuss in this blog post are “Study Abroad Loans” and “Foreign Enrolled Loans“. These 2 loan types are for American students outside the US studying at schools or universities that are approved by the US Department of Education.
The difference is in the type of study abroad program that you are taking.
These student loans are for those students taking on a short period of international study at an eligible school around the world – often short programs, a semester or a one-year course.
Study abroad students are enrolled at their “home” college, and only travel to international schools for part of their degree. For this reason more private lenders are available for these loan programs because more U.S. schools are approved.
It’s likely that there are study abroad counsellors to advise you on your funding options and help you chose the perfect university to visit.
These loans, in contrast, are for a US citizen, a permanent resident or an eligible non-citizen, who decides to enrol full-time at an overseas college for the duration of their degree – and these are for undergraduate and graduate students.
Foreign enrolled students have no “home” college in the U.S. because they are a full-time international students at their chosen university. This means that funding, and in particular loans are available at fewer schools, however there are many! You can check if your school is eligible here. For a school to appear on the lenders’ lists where a loan program is an option, they must first be approved for federal loans through the U.S. Department of Education.
Students studying abroad are no different from those studying on home soil in the eyes of the lender. No matter where you are studying, you will need to prove that you are creditworthy (meaning that you have good credit).
Because many students do not have enough credit history in their name to demonstrate creditworthiness, it is highly recommended that they ask a US cosigner to join their student loan application.
A cosigner (co-borrower, sponsor, or guarantor) joins the loan application in order to help the primary borrower to qualify, to improve the chances of securing a favorable interest rate on the student loan, and most importantly to guarantee to the lender that if the primary borrower fails to repay their student loan, the cosigner will do so.
With a cosigner, lenders will be able to use their credit score when making the decision on whether to approve the application.
Getting some or all of your education overseas can be expensive. The maximum loan amount that you can borrow will be set by the lender you choose, but your school must also approve this as you may not borrow more than the total cost of attendance.
Interest rates on these loans are set by the provider. Applying with a cosigner is recommended to get the best interest rate available. To learn about fixed and variable interest rates see our resource here.
US student loans are available for international students from around the world. We get many questions from you about the application process and one of our most frequently asked questions is whether international students need social security numbers in order to apply for student loans.
The good news is that you don’t!
Social Security Numbers (SSN) are not a required part of the application process, and many lenders will work with foreign students even if they do not have a social security number – that is as long as you have a US cosigner OR are applying for a loan that does not require a cosigner.
Some international student loan applications allow you to apply right online without making the social security number field required, while others do not. If you find that you are unable to proceed because you do not have one, contact the lender before you give up!
If you receive an error that you are unable to proceed, you can call them and they’ll give you a paper application instead.
Why, you ask?
Many of the student loan application forms were designed with US domestic students in mind and they wanted to make sure that the form is completed in its entirety. But that may not mean that you are ineligible.
If you get an error message, be sure to:
Review the online application and make sure you completed the fields correctly
Call the number listed on the application form for advice on how to proceed
Want to learn more about social security numbers and international students? Check out our article that will detail even more information on this subject so that you can get your international student loan to help fund your international education. And for more on student aid you may be interested in the resources at IEFA.org.
Until recently loans for international students in Canada were not widely available – but things have changed. Read on for more!
The Canadian Bureau for International Education reports that over half a million international students studied in Canada in 2018. That’s more than a 150% increase since 2010. As a result, Canada has overtaken France and Australia to become the 4th most popular destination for international students behind the USA, the UK, and China.
Once students have exhausted all other available sources of funding such as family support, personal savings, and financial aid from their school, they often need to turn to a student loan to cover any remaining costs of their studies.
This was very difficult to do until recently because of the lack of availability of loans to international students in Canada.
Now, International Student Loan allows these students to connect with loan providers where they can access loans without requiring any credit history, without needing any collateral, and even without a cosigner. These loans are available to students enrolled in Bachelor’s and Graduate degrees in any academic field from countries around the world at 300+ colleges and universities across the USA and Canada.
Students who will be graduating within two years – whether they are undergraduate or graduate students – may apply.
The Benefits Loans for International Students in Canada – without Cosigners
For this type of loan, you don’t need any credit history in the US or Canada, a cosigner, or any collateral
Complete your application online in just a few minutes
Receive a conditional offer from the lender
Upload documents the lender requires to complete your application.
The lender checks to make sure everything you have provided is in order, then sends you final approval of your loan
The lender contacts your school to confirm your enrollment status. Once this is done, your funding is disbursed directly to your school
How much will the loan cost?
Every case is different. This example is for informative use only. This is not a guarantee of costs as they will depend on your individual circumstances and the lender you work with.
An international (non-US, non-Canadian) student, studying a graduate-level program who borrows $10,000 US dollars can expect to repay $100.54 a month while they are studying and for the first 6 months after graduation. After this time the repayment would be $141.62 per month.
Why is Canada such a popular destination for international students?
The Canadian education system is internationally regarded as being of very high quality
Canada is considered a safe country with a tolerant and non-discriminatory society
96% of international students recommend Canada as a study destination, and 60% of international students say that they plan to apply for permanent residence in Canada.
Who are the international students in Canada?
The nationalities with the largest populations of students in Canada are:
Chinese ( around 28% of all international students)
Indian (approximately 25%)
US students represent only around 3% of all international students in Canada.
Where are the international students in Canada studying?
The Canadian province with the largest number of international students is Ontario (with almost half of all international students). The next most populous provinces are British Columbia (a quarter) and Quebec (about one tenth).
Find out more and apply for your International Student Loan in Canada today:
Studying abroad and specifically in the US is a dream for millions of students around the world. More than a million students apply for colleges in the US every year. But most of the students and their families can’t afford the tuition fees and other related costs. In 2019 international students paid over $26,000 per year for public colleges and $32,000 for private colleges on average.
So, how do they pay their international college tuition fees?
International Student Financial Aid:
Financial Aid for international students varies depending on the school and the degree chosen. This financial aid most commonly provides financial support to graduate students, and it is less common for undergraduate students.
Most of the financial aid for international students comes from research and teaching assistance programs. These programs provide paid research and teaching responsibilities to graduate students. Also, financial aid can be funded by grants and scholarships as well. Unlike a loan, you don’t have to repay these types awards in the future.
Also, it can depend on the country you come from, your family assets and background, your merits, existing student loans, and other factors.
Some scholarships are based on the country you come from or your average grades, chosen subject or skills. Some of the scholarships depend on your TOEFL score. There are also sports scholarships available in some schools. You must do proper research on the scholarships available in your school to see if you are eligible or not.
When you find a scholarship you’re eligible for, contact the scholarship administrators and apply for it. It is an effective way to reduce your overall tuition fees. Also, you might be able to win scholarships by winning contests and competitions.
International student loans provide financial support to students who want to study in the US. Mostly through banks and private organizations. The terms and policies and interest rates vary between lenders and organizations.
Private student loans are more expensive than federal student loans, but international students are usually excluded from Federal programs. You should consider choosing scholarships and grants as sources of financial aid first. If there is still a gap between the funds you have and the cost of your education, you should consider getting an international student loan.
Repayment also varies depending on the terms and policies of the lender you choose for your student loan. There are multiple ways you can repay your student loans: Immediate Repayment, Full Deferral, and Interest Only are the standard methods to repay student loans.
It may seem like it is very challenging to cover all the costs to study in the US. But it is not impossible. There are multiple opportunities available for you to explore.
Please note: You should be aware of scams and scammers while looking for funds. There are people ready to take the advantage of you, so always go for reputable and verified schools and lenders.
You’ve researched the total cost of attendance, done all your calculations and budgeting, you’ve applied for as much financial aid as you can from your school, and you’ve even been awarded a scholarship – but what if you’re still not sure if you can cover all of your costs?
Well, the good news is that an international student loan can help – but don’t just take on a loan without first understanding what you’re getting into.
What is an International Student Loan and How Do They Work?
International students have fewer options than domestic borrowers. Unless you’re an eligible noncitizen who can qualify for federal student aid, you will have to borrow from a private lender, as federal student loans are reserved exclusively for US citizens.
International Student Loans are specialized private education loans that are available for international students who are studying in the USA or Canada. We recommend that you only apply for international student loans after exploring all other options like scholarships, personal funds and other options.
Undergraduate students and graduate students can apply.
A number of lenders offer student loans for international students, but most require the borrower to have a creditworthy co-signer who is a U.S. citizen or permanent resident to join the application. The co-signer will need good credit to be approved and to help you get the most competitive rates.
If you’re not able to find a co-signer, some lenders do offer loans without a co-signer, but only at select colleges and universities, and you’ll usually pay higher interest rates on these loans.
If you need to borrow money to help pay for university, it is important to understand how these loans work before you sign the paperwork.
Student loans typically have lower monthly payments and lower interest rates than other types of private loans, and repayment terms are also usually more relaxed. But remember that the total cost of the loan is greater than the amount borrowed due to the cost of borrowing. Most lenders don’t require full payments while you are still attending school, in fact many offer a period of time after graduation before repayments even start.
The funds of your student loan will normally be paid out (disbursed) directly to your school at specific times to pay for direct university-related expenses. Funds are not usually transferred directly to the student, however any surplus funds will be paid into your nominated bank account after you have covered all of your university costs.
How do I apply for a private student loan?
One option is to research all the private student loan lenders and fill out all their applications. This can be time consuming and frustrating, because you may find out after all that work that you aren’t eligible for a loan with that lender.
Another option is to first find out if you are eligible and compare lenders using the loan comparison tool at internationalstudentloan.com/apply – it takes less than 10 seconds to find out if a lender is available for you based on your school and circumstances.
You can then apply online directly with the lender, knowing that they should have a plan that works for you.
After that, approval of your loan can happen in just a few weeks.
Who is eligible to apply for these loans?
To apply you should not be a U.S. citizens or permanent resident, and you must be attending an eligible U.S. or Canadian college or university. In most cases you must be attending full time – part time students may not be eligible. Undergraduate students as well as those taking graduate degrees may apply in most cases.
Also, borrowers are required to have a creditworthy co-signer who is a U.S. citizen or a non-citizen permanent resident for most lenders. You and your co-signer will undergo a credit check.
Loans that do not require a co-signer are available at a number of schools, and these will be shown in the loan comparison tool. If you do not have a creditworthy co-signer and you are an undergraduate student you may find it harder to secure a loan until you are within 2 years of your expected graduation date.
Your field of study usually doesn’t affect your loan application, although there are special categories of loans for medicine.
Like all private education loans, loan funds can be used for education-related costs including tuition fees, books and supplies, other school fees, insurance, transportation, room and board (living expenses) and other school-related expenses.
Speak to your school’s Financial Aid Office to check their published Total Cost of Attendance which will give you an official estimate of the total amount of funding and financial aid you will need to cover all of your costs.
Begin by using the loan comparison tool. This will show you the options available to you and allow you to choose the lender best suited for your situation and needs.
You will then apply directly with the lender. You and your co-signer (if required) will need to complete the entire online application thoroughly and supply any documents requested by the lender.
Interest Rates Explained
When you take out a loan through a lender, you will be responsible for paying back the amount of money you borrowed (called the principal) plus an additional amount charged by the lender for the loan known as the cost of borrowing.
This interest rate is calculated based on an “index” plus a margin that will add an additional percentage interest rate depending on your or your co-signer’s creditworthiness. Every lender’s range of rates varies so it is important to do the loan comparison and review the interest rate and repayment terms.
The two most common indexes used for international student loans are the Prime Rate and LIBOR Rate.
When your application is approved, the lender will provide information on your specific interest rate and you can then decide whether to accept the loan or not.
Interest begins to accrue (build up) as soon as the funds are disbursed to your school. Interest will accrue on your loan while you are in school, even if you are allowed to defer repayments until after you graduate.
After you select the loan that works best for you, you will need to review the terms or contact the lender directly with any questions.
Repayment terms will depend on the lender and details of the loan you choose. It is important to consider how much your monthly payments will be, when these payments will start, and how long you may be able to defer (delay) beginning to pay back the loan (known as periods of forbearance). The repayment period typically ranges from 10-25 years, however the larger the loan the longer the repayment period.
You may be offered the following repayment types by your lender:
You may be able to defer payment of both the interest and principal until up to 6 months after graduation as long as you continue to be enrolled full-time. Payments can be deferred for a maximum of 4 years – the typical length of a degree.
Lenders may refer to deferral as periods of forbearance.
Interest Only Repayments
You start making repayments while you are at school, but only pay the interest for up to 4 consecutive years of full-time study. You can then defer repayment of the principal until 45 days after graduation. With an interest only repayment type you may have to start repaying the principal immediately if you drop your course load to part-time.
You immediately start making payments on both interest and the principal once the loan has been issued and disbursed.
What about Federal Student Loans?
Federal loans and federal student aid are not normally available for international students.
What is the FAFSA I always hear about?
FAFSA is the Free Application for Federal Student Aid. Even though international students are usually not eligible for this type of aid, your school may require you to complete the application in order to help them determine your eligibility for other funding.
What if I have specific questions about my loan?
Once your loan has been approved, if you have any questions you should contact the lender directly for support.
We really hope this helps you with understanding your international student loan!
If you’re reading this then you must be interested in comparing Study in the USA vs. Study in Canada as an international student.
Well, you’re in the right place – because in this article we’ll cover some of the major benefits of studying in these countries.
So let’s dive right in with
Why you should consider studying in the US
Flexibility in deciding your major field of study
48 of the top 100 universities around the world are reported to be in the USA. One of the biggest factors that differentiates US colleges from other universities around the world is the flexibility in academic fields.
You are not usually required to decide your major until after your second year of study. Most students will use these two years to pursue different academic interests before they settle on a major. In most other nations, students are required to decide their field of study before they even apply.
A varied, general education
Most colleges in the U.S. require you to take general education or core courses.
These give you the opportunity to learn about a wide range of academic subjects – not just your major or concentrated research area. These “liberal arts” courses cover topics from writing to science.
Opportunities for internships & career prospects
You can get a head start on your career with an internship – which most US colleges offer. You can get hands-on experience and gain real-world exposure to your field, plus the chance of better-paid work after graduation because you already have some in-work experience.
U.S. colleges and universities are renowned for offering a huge variety of sports, clubs, societies and activities outside of the classroom. Whatever you’re interested in – you’ll find it on campus!
Students from all over the world study in the US. When you’re one of them, you’ll have the ability to meet new people from different cultures every day, learn new languages, make friends and learn about other cultures.
Specialist International Student Assistance
Many schools have a dedicated office entirely devoted to helping their foreign students with any needs. They might assist you with improving your English, or dealing with visa problems , financial aid and even adapting to cultural differences in your new home.
One important thing to note with studying in the US is that it can be very expensive – significantly more expensive than many other countries around the world. you can learn more about how to fund your education in the US in this article:
A Canadian degree is just as valuable as a degree from the United States , Australia, or the United Kingdom.
Canadian universities perform well in international rankings, and Canadian Universities rank in the top 50 universities worldwide.
Whether you’re attending a university, college, or technical school, there’s no doubt that a Canadian education is a world-class education.
For most students looking to study abroad, expense is the most significant barrier.
And while international students at Canadian universities do pay higher tuition fees than domestic students , the average annual tuition for a Canadian undergraduate degree for a foreign student is significantly lower than the United States, Australia, or the United Kingdom.
Foreign students also need to find housing and fund their daily life. Relative to many other top destinations for foreign students the cost of living in Canada is quite affordable. And when you add the average annual cost of living being lower than other countries with average annual tuition fees which are also lower, Canada seems like a very good opportunity, indeed.
Remember that loans for international students in Canada are also available if you need additional funding:
While Canada is a fairly affordable option in global terms, studying abroad is unquestionably costly.
Thankfully, foreign students in Canada are entitled to work up to 20 hours per week during school term time and full time (30 hours per week) during scheduled breaks such as vacations. Most students don’t need a work permit to work while they are studying.
Personal safety is another big reason many students choose to come to Canada. It can be scary to study abroad, because you leave your family and friends – your safety net – in your home country. Canada was ranked 8th most peaceful nation in the world by the Institute for Economics & Peace. Canada’s location and relative isolation offers a bit of a buffer against most international disputes.
Canada has a freely-elected government, and Canada’s Charter of Rights and Freedoms protects the basic rights and freedoms of people living in Canada. Canada’s reputation around the world is that of an inclusive and non-discriminatory country. Immigrants make up 20% of the entire population of Canada and Canadian laws ensure that all people are shielded from discrimination regardless of their circumstances.
Opportunities for Immigration
As an international student you usually get temporary status in the country where you study. When you graduate, you usually need to return home.
Unlike many countries, though, Canada has a number of programmes that enable the transfer of international students to permanent residence status after their studies. Options such as the Post-Graduation Work Permit allow students to stay and work after graduation on an unrestricted work permit, and give them the opportunity to gain some Canadian work experience. Most Canadian provinces have Provincial Nominee programs for applicants with experience studying or working in the province, and the points-based immigration system rewards Canadian work and study experience. About half of all international students consider applying for permanent residence in Canada after their studies end.
Canada is one of the world’s biggest economies, and there are plenty of incentives for graduates to work. You have the ability to meet and network with leaders in your chosen field. And you can gain valuable experience working for industry-leading companies in Canada while you study, or after graduation.
If you want to return to your home country, your Canadian education and enhanced language skills in either English or French might provide global opportunities.
If you choose to live in Canada, Canadian employers appear to favour Canadian work experience over international work experience , so your student and work experience could make you stand out above other applicants!
So there you have it! Some great reasons why you might want to choose to study in the US or Canada! Let us know in the comments where you want to study!
Repayments of federal student loans in the United States will be paused automatically between March 13th 2020 and September 30th 2020 and interest is being temporarily set at 0%, meaning that if you are in receipt of a federal student loan your payments will stop during this time and there is no penalty for doing so in terms of additional interest being accrued. This policy was included in the CARES Act which was signed into law by the President on March 27th. You may, if you choose to, continue to repay, but this is optional.
However, the U.S. Department of Education does not have legal authority over private student loans, and they are not covered by the CARES Act. This applies to federal student loans that have been refinanced through a private lender. Note that some FFEL Program loans and Perkins Loans are not owned by the federal government.
So, how will you be affected by the Covid 19 outbreak?
Some private lenders are offering students relief, such as temporary forbearance.
The good news is that private lenders are taking the current situation into account and are making accommodations for those students who suffer economic hardship and may struggle to make their student loan payments – they will work with you to give you options and find the best solution.
For the most up to date information you should contact your lender directly to find out about making payments – especially if money is a big concern for you at the moment.
We will summarize the range of options that may be available to you due to the Coronavirus pandemic, and you should check directly with your lender which ones are available through your account.
The key message is this: If you can’t afford to make the payments on a private student loan, you should contact your lender as soon as possible. They might be willing to offer solutions, such as a forbearance, which would suspend your payments for a short time, meaning that you would not default on your loan, and would thereby protect your credit.
Remember, though, interest will likely still accrue if your private loan payments are paused, and this could ultimately increase your monthly payment, and the total you pay over the term of your loan.
Here are some of the most common new initiatives that private lenders have put in place:
Up to 3-month (or 90-day) forbearance period – a temporary pause on your repayments. Some lenders have left this open ended for “as long as the national emergency continues”
Waiver of late payment fees
Temporary reduction of interest rates
Temporary reduction of repayments
Extension to loan repayment term
60-day forbearance with options to extend
If you have questions about your rights, contact customer service or your account manager at your lender to receive the most up to date information.
Q. I have some federal and some private loans – what does this mean for me?
If you have both federal and private loans and focus on making the payments of the private loans while qualifying federal loans are suspended.
Q. Do I need to apply to suspend my payments or interest?
For Federal programs, no. For private lenders you should contact them as soon as possible.
Q. Do I need to pay a fee to suspend my payments?
No – if you are contacted by someone requesting a fee to assist you with your student loan and offering this type of service be aware that it may be a scam.