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.
So much of life is made up of the choices you make and loan repayment is no different. Making the right choice when you take out your loan makes a big difference when you have to make those repayments.
Knowledge is power and the more you know about these choices the better prepared you will be to fulfill you loan obligations.
Your lender’s specific terms will be determined by the type loan you select and your individual circumstances.
Note that lenders have put in place specific programs to assist students since the COVID-19 Pandemic. If you currently have a loan and are worried about repayment, or if you’d like further information on the measures in place, read more about that in this post.
Broadly speaking, repayment terms vary in response to three different factors:
How much will the monthly payments be?
When will payments begin?
How long students may be able to defer paying back the loan?
And in general there are three main loan repayment types available to international students.
Although the differences between these three options can seem complicated, taking the time to understand and make an informed choice at the outset can save students from a lot of uncertainty and worry in the long term.
immediate repayment loan
full defferral loan
interest only loan
Students with this arrangement are required to begin making payments on both the interest and the principal of the loan as soon as it is disbursed.
The prospect of such immediate repayment is doubtless intimidating to many international students because most cannot or do not want to work while they study in the United States. They therefore have little chance of being able to make the repayments.
Long-term the repayments compound meaning that in total a borrower may pay less back with this type of loan than with others, and may clear their debt quicker as a result.
A full deferral loan, by contrast, offers completely different loan repayment options. With loans like these full-time students are able to defer – that is, postpone until later – repayment of both the interest and the principal for up to four consecutive year or until after they graduate.
This means that in the short-term this loan would be most affordable as no repayments are due until a set date. In most cases the interest is accumulating during this time, and as a result it is likely that this type of loan will be more expensive and take longer to pay off.
A third option that splits the difference between these two ways also exists.
These so-called interest only loans require international students to make payments on the interest only (and not the principal) of their loans while in school and often allows them to defer the start of their principal repayment for up to 45 days after graduation.
Like the full deferral loan option students are only eligible to postpone repayment for up to four consecutive years and while enrolled full-time.
As you can see, the choices you make can have a huge impact on your bottom line!
Before applying for a loan, be sure to check with your lender the exact terms and conditions on repayment as this may change depending on the lender and the loan you apply for.
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.
The IIE have released their latest data covering international students in the USA and American students studying abroad – here are the highlights we discovered:
International Students in the US:
Over 1 million international students studied in the US in the academic year 2019/20, this includes those taking an academic program and those on OPT (Optional Practical Training).
That represents over 5% of the total number of enrolled students in the US, but it is roughly 20,000 students lower than the previous period. Early indications suggest that due to the pandemic international student enrolment in 2020 could be down by as much as 16%.
American Students Abroad:
Almost 350,000 US students studied abroad for academic credit in 2018/19 which is the latest data available at this time.
That’s almost 2% higher than 2017/18 – continuing the trend which has been increasing year after year for over 10 consecutive years.
Incoming Student Data:
Incoming students to the US came mainly from China (35%) and India (18%).
The top 10 countries of origin for incoming students were:
California was the state that hosted the most international students in total (over 160,000 international students).
The most popular school in the US for international students was New York University – hosting over 20,000 students from around the world!
Outgoing Student Data:
Outgoing US students’ top destinations were the UK (11%), Italy (11%) and Spain (10%).
The top 10 destination countries for US study abroad students were:
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.
It is a dream for many international students who want to study engineering in the U.S. – Loans for International Students are also available. The U.S. is one of the best choices for international students who want to study engineering, and students who would like to earn a U.S. degree in engineering but require additional funding may be eligible for an international student loan.
A recent report from the Institute of International Education stated that in 2019 over 20% of international students enrolled at US universities were studying engineering or related courses.
Why is that the case? Well, aside from the quality education they get, students also have a higher chance of finding a job after they graduate. There’s also a huge likelihood of them getting high-paying jobs compared to graduates who studied in other countries.
Here we’ll show you why the U.S. is a great place to study engineering. We’ll also help you know how to get an international student loan in the country.
Specialize in the course you want
One of the best things about enrolling in engineering courses in the United States is that American universities offer numerous specialization courses.This gives you a great range of options to choose the course you really want. Take for example the University of Arizona which offers over ten engineering majors including aerospace, chemical, biosystems, environmental systems, and more.
The same goes for most universities. You’ll get to choose what course interests you, and take it as early as the third semester!
Work as soon as possible
Getting your first job after graduation is becoming more competitive by the day. Competition between fresh graduates is high, not to mention that you’ll also be competing with the experienced veterans in the industry. But, that’s less of a problem if you’re an engineering graduate with a degree from the U.S.
You’ve got the edge over others because of the quality of education you get. Plus, the demand in the American engineering market is so high. Companies such as Apple, Amazon, and other big multinational companies, as well as smaller companies may have opportunities for internships and training positions from time to time.
Boost your earning potential
Another good reason why studying engineering in the U.S. is a must is because you get a higher earning potential.
Graduating with an engineering degree in the US gives you a good reputation for being competitive, both in the academic and practical sense. Engineers working in the U.S. generally also earn higher salaries than those working in other countries.
According to PayScale, engineers can expect to earn a decent salary after graduating.
Enjoy state-of-the-art amenities and equipment
The U.S. is the center of cutting edge technology in engineering. It’s the place to be if you want to experience top-tier education surrounded with the latest tools and equipment to support your dream of becoming an engineer one day. You’ll be taught and supervised by some of the best professors and top researchers in the country.
Furthermore, the U.S. government spends billions of dollars on university education. This assures that you get the best of both worlds, both in the learning experience and earning potential.
Work in the U.S.
The U.S. government allows companies to employ foreigners through Optional Practical Training (OPT) and Curricular Practical Training (CPT) as long as they meet the eligibility requirements. This can be done as long as workers are covered as “specialty subjects,” in this case, engineering being one of them.
Get the best engineering student loans in the U.S.
If you would like to study engineering in the US but your finances are lacking, then it might be best to get an international student loan.
Here at InternationalStudentLoan.com, we’ll help you see if you’re eligible to get one. We offer international student loans that are available at eligible schools for engineering students.
We have a loan comparison tool to help you know if you can apply and show you which loan suits you best.
The InternationalStudent.com annual Travel Video Contest is open for entries for 2019!
International Student are giving you a chance to win 1 of 5 unique awards, including the $4,000 grand prize! To enter, you will need to submit a video that you made specifically for the 2019 InternationalStudent.com Travel Video Contest. Your 4-minute video should be about one of two things:
That your dream is to be an international student, and that you have a school in mind to attend that you want to tell us about.
That you are currently an international student with a dream trip that you’ve always wanted to take that you want to tell us about.
If your video is selected, you could win one of the following prizes:
Loans Without a Cosigner for International Students in the US
If you are or are planning to become an international student inside the US, you will usually be required to have a cosigner when applying for a loan.
Cosigners for international student loans must be US citizens or permanent residents, and they must have lived in the US for the past 2 years. They must also have good credit history. Non-US citizens and non-US permanent residents cannot act as a cosigner for loans.
Although most international student loan applications require a cosigner, international students attending a select few colleges and universities in the US and Canada are able to apply for a loan without one.
If you’re not able to find a cosigner, then a “no cosigner loan” could be the best option for you.
Since most international students in the US do not have any credit history, a cosigner joins the standard international student loan application process. Loan approval and rates are then based on the creditworthiness of the cosigner.
The cosigner is then also legally bound to repay the loan if the borrower is unable to pay.
With no cosigner loans, instead of looking at credit history, lenders look at your academic success and career path, as well as other factors when assessing you for the loan. Some of the factors they will consider when you apply include your home country, graduation date, and what school you attend.
International student loans are typically only for non-US citizens studying in the United States. However, loan options now exist at a number of select universities for those who want to study in Canada!
Loans for International Students in Canada
International students in Canada may now apply for a student loan without a cosigner!
International Student Loan is now working with a lender that is able to offer loans to international students, including US students studying at select schools in Canada. Until now it has been very difficult for international students to fund their education in the Great White North, but thanks to MPOWER Financing and International Student Loan, there are now a number of schools in Canada where loans are available without a cosigner.
If you are studying in one of the eligible schools, you can apply for a student loan to cover the costs of your education including tuition, housing, food, insurance, and textbooks.
Remember, with this type of no cosigner loan, rather than looking at your or your cosigner’s credit history, lenders look at other factors such as your academic record and career path, your home country, expected graduation date, and what school you will attend.
Students who are not US citizens or permanent residents and those attending schools outside the US/Canada are not currently eligible for an international student loan.
Finding and Comparing No-Cosigner Loans
If you’re an international student and would like to explore the option of a loan that doesn’t require a cosigner, you’re able to use our loan comparison tool to see if your school has one available. If they do, you can then research the terms and conditions of the loan and apply directly through the lender.
When researching a loan, here are a few things to consider:
How much you can borrow
The interest rate (and whether it’s fixed or variable)
The repayment period
When and how your funds will be disbursed
Once your loan application has been reviewed you will receive further details on your loan. These will include the interest rate and the amount you can borrow. These will vary by lender and depend your situation.
As an example, no-cosigner loans through our partner have a fixed interest rate and allow you to borrow up to $50,000 total over 2 years. You must state how much you would like to borrow on your application. The approved amount along with your designated interest rate will be assigned to you after your application has been reviewed.
If you are approved for a loan, funds are disbursed directly to the college or university.
To give you an idea of the length of time that is required, the entire process usually takes about 6 weeks, so be sure to plan accordingly.
US institutions are attracting students from around the globe and applications from Europe are on the rise. The number of UK students looking to study a graduate program in the US continues to increase, and undergraduate programs are only just behind. This article will tell you all the basics about international student loans for students from the UK who hope to study in the US.
There are over 4000 US institutions, many of which offer programs in specialisms many of us have never heard of. This allows students to find the degree that’s right for them, adding something unique to their CV.
One of the main deterrents for studying in the US continues to be funding. While university fees are subsidized in the UK, tuition fees and living costs in the US are on the rise. Many students now seek a student loan to support their education expenses.
FindingInternational Student Loans for Students from the UK
The easiest way to be considered eligible for a US student loan is to find a co-signer who is also an American citizen. A citizen with a good credit rating is the perfect candidate to cosign your loan, making the application process much easier. Many lenders offer loans to students with co-signers who have proof of income, as they can act as a guarantor for the funds.
A cosigner must be a US citizen or permanent resident who has lived in the US for the past two years and has good credit.
Your cosigner should have a stable job with a steady income and an established credit history. Lenders may look at how long your cosigner has lived at their current address and how long they’ve been employed at their current job.
Your cosigner is taking on the obligation to pay back your loans in the event that you cannot, so it’s important that the cosigner can afford to cover these expenses. International student loans and study abroad loans lenders will take into account the total income of your cosigner and their total debts (mortgage, car payments, credit card debt, and any student loans they may have on their own) when reviewing a loan application.
In the United States, the cosigner’s credit history is evaluated by a credit score that is based on outstanding debts and their payment history. Lenders will evaluate your cosigner’s existing and past loans and whether they were paid on time.
Cosigner Not Required?
However, this is not an option for everyone. If you do not have a cosigner and you’re looking for international student loans for students from the UK there are specialist lenders who offer this service. Lenders such as MPower Financing understand how difficult it can be to secure funding. They support students in the visa and college application process as well as providing funding, to reduce the stress over expenses. There’s information about finding a loan without a cosigner here.
To compare the best student loans for British students looking to study in the US, then look no further than our comparison tool.