What is a grace period for student loans?
March 29th, 2022 by Sagnik Santra

what is a grace period for student loans?

Student loans are great financial tools for people who can’t afford to pay for their education outright. As the price of education is increasing, more and more people are finding themselves taking out student loans to cover the costs. Even though student loans can be useful, the interest rates might make them difficult to pay back. That’s where a grace period comes in.

It’s not easy for students to get a job as soon as they graduate. They might need some time to save up money and get on their feet before they’re able to start repaying their loans. And a grace period exactly does that. It allows the student to take their time to get settled and start making payments on their loans.

In this article, we will be talking about everything you need to know about grace periods for student loans. This includes when the grace period starts, how long it lasts, and a few more things. So if you are interested in learning more about grace periods make sure to read the full article.

What is the student loan grace period?

what is a grace period for student loans?

As we mentioned earlier, a grace period is a set amount of time where the student doesn’t have to make any payments on their loans. The grace period usually lasts for six months after the student graduates or drops below half-time enrollment. This means that if you graduate in May, your grace period would end in November.

However, the grace period depends from lender to lender. Some might allow for a longer grace period while others might not offer one at all. You must check with your lender to see what their specific grace period is.

How does the student loan grace period affect your loan payments?

The grace period gives students the time to get their finances in order before they have to start repaying student loan payments. This means that the clock on your repayment term doesn’t start until after the grace period is over. For example, if you have a 10-year repayment plan, the grace period would give you an extra six months before you have to start making payments.

This is helpful because it gives you time to find a job and start saving up money. Once the grace period is over, you’ll be able to make your first loan payment without any stress.

Student loan grace period: Federal student loans vs Private student loans

There are mainly two types of student loans, federal student loans, and private student loans. Let’s see how the grace period differs for each type of loan

Federal student loans:

Almost every federal student loan comes with a six-month grace period. This means that you don’t have to start making payments on your loans until six months after you graduate or drop below half-time enrollment. Here is a list of grace period timelines for federal student loans:

  1. Federal direct subsidized & unsubsidized loans: 6 months.
  2. Federal Stafford subsidized & unsubsidized loans: 6 months.
  3. Federal Direct PLUS loans for graduate students: 6 months.
  4. Federal Direct PLUS loans for parents: 6 months
  5. Federal Perkins loans: 6 months (can be extended to 9 months)

Private student loans:

what is a grace period for student loans?

Private loans are offered by banks and other financial institutions. As these loans are not backed by the government, the grace period will differ from lender to lender. Some might offer a six-month grace period while others might offer less or none at all. You must check with your lender to see what their grace period policy is. This way, you’ll know when you have to start making payments on your loans.

When does the grace period start?

The grace period for federal student loans starts the day after you graduate or drop below half-time enrollment. For private student loans, the grace period will start on the date specified in your promissory note. It’s important to note that the grace period for federal student loans is automatically applied. You don’t have to do anything to activate it. However, for private student loans, you might have to contact your lender to activate the grace period.

Does interest accumulate during the grace period?

The interest will accumulate during the grace period unless you have a Federal direct subsidized loan. This means you don’t need to make any payments on the interest for this loan type until the grace period is over. However, if you have any other type of loan, the interest will start to accrue (accumulate) as soon as you enter repayment.

What would happen if you don’t start making payments after the grace period?

what is a grace period for student loans?

If you don’t start making payments after the grace period, your student loans will go into delinquency. This means that you’re behind on your payments. Once you’re delinquent, your credit score will be affected and you might have to pay late fees. If you’re still delinquent after 270 days, your loans will go into default. This is the worst-case scenario as it will damage your credit score and you might have to deal with wage garnishment.

How to make the most of your grace period?

The best way to make the most of your grace period is to start planning for your loan payments before the grace period ends. This way, you’ll be able to make your first payment on time and avoid going into delinquency. Here are a few things you can do to get ready for repayment:

1. Find a reliable job:

The first and most important thing you need to do is to find a full-time job. This way, you’ll have a steady income to make your loan payments. If you can’t find a job right away, you can look for part-time or temporary jobs to tide you over until you find a full-time position.

2. Plan your repayments:

The next thing you need to do is to start planning your loan repayments. You can use a repayment calculator to see how much your monthly payments will be. Once you know how much you need to pay, you can start budgeting and setting aside money for your loan payments.

3. Create a budget:

Creating a budget will help you track your spending and make sure that you have enough money to make your loan payments. When creating a budget, be sure to include your essential expenses, such as housing, food, transportation, and utilities. You should also include your loan payments in your budget.

4. Consider consolidation or refinancing:

what is a grace period for student loans?

If you have multiple student loans, you might want to consider consolidation or refinancing. Consolidation means combining your loans into one loan with one monthly payment. Refinancing means taking out a new loan to pay off your existing loans. Both options can lower your monthly payments and make repayment easier.

5. Stay disciplined:

And lastly, once you start making your loan payments, it’s important to stay disciplined. This means making your payments on time every month. If you can’t make a full payment, be sure to at least make the minimum payment. By doing so, you can avoid going into delinquency or default.

Final thoughts:

The grace period is a great time to start planning for your loan repayments. By doing so, you can make sure that you make your first payment on time and avoid going into delinquency. Make sure to make the most of your grace period by finding a job, creating a budget, and staying disciplined with your loan repayments.


Reputable student loan consolidation companies
March 29th, 2022 by Sagnik Santra

reputable student loan consolidation

Student loan debt is one of the biggest burdens for students as well as parents. It is not always to make the ends meet and monthly installments on the loans can be quite a task. Many students spend almost one-third of their lives on the repayment of these debts. If not managed correctly, it can take a huge toll on the financial well-being of the person.

To ease this burden, many people look for student loan consolidation companies that can help in lowering the monthly payments or even get rid of the debt completely. But, with so many options available in the market, it can be difficult to decide which company is reputable and can be trusted.

In this article, we will be talking about what student loan consolidation is, how does it work, and some of the best and most reputable companies in the market. So if you are a student or parent looking for a student loan consolidation company, this article is definitely for you.

What is student loan consolidation?

First thing first, let’s take a look at what student loan consolidation is. In simple terms, student loan consolidation is the process of taking multiple student loans and combining them into a single loan with a lower interest rate. This way, you will only have to make one monthly payment instead of multiple payments. In simple words, student loan consolidation is a type of student loan refinancing.

It will be a lot easier for parents and students to keep track of the payments as they don’t have to manage multiple loans at once. In addition to interest rates, you might also get more suitable repayment terms and lower monthly payments.

How do student loan consolidation and student loan refinance work?

reputable student loan consolidation

So now that we know what student loan consolidation is, let’s take a look at how it works. As we mentioned earlier, student loan consolidation is the process of taking multiple student loans and combining them into one. But, the term ‘consolidation’ can be a bit misleading as you are not consolidating or merging your loans, you just refinance student loans.

What happens is that you will take out a new loan to pay off your old student loans. This new loan will have a lower interest rate and more favorable terms than your original loans. In addition, the consolidation company might be able to get you a lower monthly payment than you are currently paying.

Student loan consolidation: Federal student loans vs Private student loans

When it comes to student loan consolidation you can either consolidate your federal student loans or your private student loans. Let’s take a look at the difference between the two:

Federal loans

If you want to consolidate or refinance federal loans, you will have to do it through the Department of Education’s Direct Loan Consolidation program. This program is only for federal student loans such as Stafford Loans, PLUS Loans, and Direct Loans.

The biggest benefit of consolidating your federal student loans through this program is that you will be eligible for certain repayment plans that are not available for private loans. In addition, you might also be able to get a lower interest rate on your consolidated loan.

Private student loans

reputable student loan consolidation

If you want to consolidate your private student loans, you will have to do it through a private lender or a loan servicer. Many private lenders offer student loan consolidation services and you can shop around to find the best rates and terms.

The biggest benefit of consolidating your private student loans is that you might be able to get a lower interest rate than your current rate. In addition, you will also have the flexibility to choose your repayment terms.

Note: You can combine your federal loans and private student loans for consolidation. This means if you have both federal and private loans, you have to make two separate consolidation applications, one for your federal loans and one for your private loans.

What is a direct consolidation loan?

The direct consolidation loan is a federal student loan that combines two or more federal loans into one. Similar to other types of consolidation loans, a direct consolidation loan will have a low fixed interest rate and more flexible repayment terms.

When it comes to direct consolidation loans, only students with federal loans can apply. Students who have private loans are not eligible. They have to find a private lender to consolidate their loans.

What are the benefits of student loan consolidation?

There are many benefits of student loan consolidation. Let’s take a look at some of the most important ones:

reputable student loan consolidation

1. Lower interest rates: The best part about consolidating your student loans is that you can get a lower interest rate, which means fewer loan payments. This will save you money in the long run and help you pay off your loan faster.

2. More flexible repayment terms: Consolidating your loans will give you more flexible repayment terms. This means that you can choose a repayment plan that fits your budget. But first, you have to qualify for a repayment plan.

3. You can focus on a single loan: When you have multiple student loans, it can be difficult to keep track of all of them. But when you consolidate your loans, you will only have one loan to focus on. This will make it easier for you to stay on top of your payments and avoid defaulting on your loan.

4. Peace of mind: Consolidating your loans can give you peace of mind. This is because you will know that all of your loans are in one place and you are only making one payment each month.

Disadvantages of student loan consolidation

While there are many benefits to student loan consolidation, there are also some disadvantages that you should be aware of:

1. You might lose your grace period: When you consolidate your loans, you might lose your grace period. This means that you will have to start making payments on your loan right away instead of after the grace period.

2. You might have to pay more in interest: If you consolidate your loans, you might have to pay more in interest over the life of the loan. This is because your grace period will be reset and you will have to start paying interest right away.

reputable student loan consolidation

3. You might have to pay an upfront fee: Some lenders might charge an upfront fee for consolidation. This fee can be anywhere from 1% to 5% of the total loan amount. So make sure to shop around a find a suitable lender.

4. You might not qualify: Not everyone will qualify for a consolidation loan. This is because you have to meet certain eligibility requirements, such as having a good credit score. So check the eligibility criteria before applying.

How to find a suitable student loan consolidation company?

To get the best deals, it is very important to find a reputable and reliable student loan consolidation company. Here are some tips that can help you:

1. Shop around: The best way to find a good consolidation company is to shop around. There are many companies out there and each one has different terms and conditions. So it is important to compare the offers before you choose a company.

2. Read reviews: Another great way to find a good consolidation company is to read reviews. Many websites offer reviews of different lenders. So make sure to read the reviews before you make a decision.

3. Look for an upfront fee: As we mentioned earlier, some lenders might charge an upfront fee for consolidation. This fee can be anywhere from 1% to 5% of the loan amount. So it is important to find a company that doesn’t charge this fee or at least charges a lower fee.

4. Check the eligibility criteria: Make sure to check the eligibility criteria before applying for a consolidation loan. This will help you determine if you are eligible for the loan or not.

5. Check the interest rate: The most important thing to consider when consolidating your loans is the interest rate. Make sure to find a company that offers a lower interest rate. Lower interest means lower monthly payments and less money paid in the long run.

These are just some of the things to consider when consolidating your student loans. If you take the time to shop around and compare the offers, you will be able to find a good consolidation company that meets your needs. So make sure to do your research before making a decision.

Top student loan consolidation companies

Here are some of the top student loan refinancing lenders:

reputable student loan consolidation

1. MPOWER: Refinance your U.S. or foreign student loan with MPOWER. Release your cosigner and collateral. Benefit from lower, more convenient payments, and build your U.S. credit history.

2. SoFi: SoFi is one of the most popular student loan refinance companies that offer low and fixed interest rates and a range of other benefits. They have a good reputation and are known for providing excellent customer service.

3. Credible: Credible is another popular student loan consolidation company. They offer a wide range of services and have a good reputation. For an overall good experience, Credible is a good choice.

4. LendKey: LendKey is a company that specializes in student loan consolidation. They offer low-interest rates and a wide variety of lenders to choose from. If you are looking for a specific lender, LendKey might be the best choice.

5. RISLA: RISLA is a student loan consolidation company that offers low-interest rates and flexible repayment options. You can have options like income-based repayment options and deferment options.

6. Discover: Discover is a well-known financial institution that offers student loan consolidation services. They offer low-interest rates and a wide variety of repayment options. Discover is a good choice for those who want flexibility in their repayment options.

These are just some of the top student loan consolidation companies. If you are looking for a consolidation company, these are some good choices. Each one has its own set of benefits and features. So make sure to compare the offers before you make a decision.

The bottom line

There are many student loan consolidation companies out there that can help you refinance your student loans. It is important to find a reputable and reliable company that offers low-interest rates and flexible repayment options. You can use the tips above to find a good consolidation company. So make sure to do your research before making a decision.


LIVE EVENT ANNOUNCEMENT
March 11th, 2022 by Al C

international student loan live event

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)


Where to apply for a student loan?
February 4th, 2022 by Sagnik Santra

where to apply for a student loan

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

where to apply for a student loan

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?

where to apply for a student loan

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

where to apply for a student loan

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

where to apply 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.

Final thoughts:

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!


What is International student loan refinancing, and how does it work?
December 29th, 2021 by Sagnik Santra

international student loan refinancing

Some people think of international student loan refinancing as a means to get out of debt. Others, however, see it more like an investment in their future. The truth is that there are many different ways to approach this topic, and for some people, the best option may not be apparent at first glance. This article will help you understand what international student loan refinancing is and how it works so that you can make informed decisions about your financial future.

What is International Student Loan refinancing?

International student loan refinancing is a financial product that allows borrowers to take out new loans at lower interest rates than their current loans. Unlike federal student loans issued by the Department of Education, these loans come from private lenders such as banks and credit unions.

The terms and conditions of international student loan refinancing can vary from lender to lender, but most loans have a fixed interest rate and a set repayment term. Borrowers can usually choose between a range of repayment options, including traditional fixed monthly payments, interest-only payments, and graduated repayment plans.

How does it work?

International student loan refinancing works similar to federal student loan consolidation or home mortgage refinancing. Borrowers who refinance their loans get access to better rates and longer repayment terms, which can help reduce monthly payments.

These days, students have more options than ever when managing their educational debt. While taking out new loans to refinance old ones may seem like an unnecessary complication, it can be a smart move for students who want to lower their monthly payments and improve their financial future.

Benefits of Refinancing

international student loan refinancing

There are several benefits to refinancing your loans with a private lender, including:

1. Reduced interest rates of your student loans:

International student loan refinancing offers borrowers the opportunity to take out a new loan at a lower fixed interest rate than their current loans. This can help students save money on interest over time and have more funds available for other things, such as building their credit score or getting ahead on their retirement savings.

2. Extended repayment terms:

Another benefit of refinancing is that borrowers can access longer repayment terms than federal student loans. This means lower monthly payments over the life of the loan. Borrowers who have trouble keeping up with their current monthly payments may find this option helpful.

3. More repayment options:

Most international student loan refinancing products offer borrowers a range of repayment options, including traditional fixed monthly payments, interest-only payments, and graduated repayment plans. This gives borrowers more flexibility in managing their debt and can help make monthly payments more manageable.

4. Better customer service:

Companies that offer to refinance international student loans are constantly improving their customer service and making the process as simple as possible. Many lenders have trouble keeping up with demand for this option, which means that if you qualify, you probably won’t have a difficult time getting your loan approved.

5. Builds credit history:

One final benefit of refinancing is that it can help borrowers build their credit history. This is because when you take out a new loan to refinance an old one, your new loan will be reported to major credit bureaus. Over time, this can help you establish a good credit score and access a broader range of financial products.

Disadvantages of Refinancing

international student loan refinancing

While international student loan refinancing has several positive benefits, it isn’t the right option for everyone. Before you jump into this type of debt consolidation, take a moment to consider the following disadvantages

1. New credit inquiries:

One potential disadvantage is that taking out a new loan will result in multiple hard inquiries on your credit report. This can temporarily lower your credit score and make it more challenging to take out other loans in the future.

3. Not available for all students:

Another downside is that not all borrowers will be eligible for student loan refinancing. This is because lenders typically have stricter eligibility requirements than the federal government. To qualify, you’ll need a good credit score, steady income, and a low debt-to-income ratio.

4. Origination fees:

Another thing to consider is that most lenders charge an origination fee for their refinancing products. This fee can range from 1-5% of the total loan amount, so it’s important to factor this into your calculations before you decide to refinance.

5. Requires higher credit scores:

Finally, it’s important to note that some lenders have more stringent credit score requirements than the federal government. You’ll need a strong credit profile and a decent-paying job to qualify for refinancing. Those who don’t meet these criteria may not be eligible for this option.

Who should go for refinancing?

People with good to excellent credit looking for a lower interest rate and a longer repayment term may want to consider refinancing their international student loans. These borrowers can potentially save thousands of dollars over the lifetime of their loan by taking advantage of this option.

Who should not go for refinancing?

Borrowers with poor credit or high debt levels may not qualify for international student loan refinancing. In this case, student loan consolidation and student loan refinancing are not options, and borrowers should consider other alternatives to help with their loans, such as federal income-driven repayment plans or private student loan refinancing.

Borrowers who don’t have a steady source of income should also avoid refinancing their international student loans, as they may not meet the eligibility requirements of most lenders.

Best international student loan refinancing companies

international student loan refinancing

The best student loan refinancing companies will provide international students with personalized attention and help find them the lowest interest rate possible. When choosing a lender, consider products offered, customer service, repayment options, terms of service, account management tools, eligibility requirements, rates & fees, etc.

1. MPOWER Financing:

MPOWER Financing is a student loan company that offers loans with no collateral and no cosigner. They work with you to build your credit and offer career guidance, too.

Details:

Fixed APR: 6.99-7.99%%

Credit score requirement: Not required

2. Sofi:

Sofi is a student loan refinancing company that offers competitive interest rates and a range of repayment terms. Because of its outstanding customer service, leading-edge technology, and ethical business practices, Sofi is one of the finest companies in the student loan refinancing industry.

Details:

Variable APR: 1.74-6.59%

Fixed APR: 2.49-6.94%

Credit score requirement: Not required

3. Commonbond:

Commonbond is one of the best lenders that provides student loan refinancing to borrowers with good credit. This company prides itself on exceptional customer service, low rates, and personalized repayment terms.

Details:

Variable APR: 1.99-5.61%

Fixed APR: 2.98-5.79%

Credit score requirement: 680 (The higher, the better)

4. Citizens Student Loan Refinance:

Citizens Bank is a well-known bank that offers student loan refinancing to borrowers with good credit. This company has a wide variety of repayment terms and competitive interest rates.

Details:

Variable APR: 2.24-8.90%

Fixed APR: 3.74-7.99%

Credit score requirement: 650+

Conclusion:

So now you know a little more about international student loan refinancing. This article explored what refinancing is, who should consider it, and the best companies. We also outlined the eligibility requirements and rates & fees associated with refinancing.

If you want to refinance student loans, be sure to shop around and compare interest rates and terms from different lenders. By doing so, you can find the best deal possible and save yourself thousands of dollars over the life of your loan.


Breaking News: Borrow up to $100,000 if you’re studying in the U.S. or Canada
October 29th, 2021 by Al C

Borrow up to $100,000 if you're studying in the U.S. or Canada

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


Is Sallie Mae legit?
October 11th, 2021 by Al C

College lecture hall

Sallie Mae is a private student loan lender that can help you get the money to pay for school. And the simple answer to the question above is YES -it’s one of the largest and best regarded providers of private student loans in the U.S. and has been operating since 1973.

Sallie Mae, or Sallie Mae Bank, offers student loans of all types and sizes, giving students more options when borrowing than ever before, including to underserved groups – like DACA recipients or foreign residents who are seeking education in America and are usually ineligible for federal student loans.

In this post we’re going to cover some of the most common questions we get about Sallie Mae and private student loans in general.

What are the benefits of a Sallie Mae loan?

There are a number of benefits to a Sallie Mae student loan that set them apart from some other private loan companies.

Accessible for more applicants

With federal student loans and many private student loan lenders, eligibility criteria restrict many groups from accessing the funds they need to pay for their education at an American college or university. Sallie Mae does not exclude part-time students, international students or those with DACA status.

Loan forgiveness for death or disability

Sallie Mae will forgive, or “discharge”, the loan balance if the student is permanently disabled or dies – including in cases where it is the parents who are the borrowers and not the student themselves. Not even federal Parent PLUS loans have this benefit.

Cosigner release option

After 12 consecutive months of making your loan payments on time you can request that Sallie Mae remove your cosigner from your loan. Of the other private lenders that offer cosigner release, the majority only do so after several years of making payments on time.

Are there any drawbacks to Sallie Mae loans?

Like all private loans, there are pros and cons. Here are the lowlights of a student loan from Sallie Mae:

Fees for late or returned payments

Compared to other lenders, Sallie Mae charges a fee, or a higher fee, for making monthly payments late, or failed (returned) payments. A returned payment is when your payment “bounces” due to insufficient funds. At time of writing a fee of $20 is charged for these. For late payments the fee is 5% of the payment amount, or $25 – whichever is lower.

College student studying

Credit check required

In order to see if you qualify for a student loan from Sallie Mae, you have to complete the application and they will carry out a credit check which will potentially affect your credit score. Some alternative lenders pre-qualify applicants to give them an idea of if they would qualify and what typical loan terms would apply without carrying out a full credit check.

Now that we’ve looked at the main pros and cons of Sallie Mae Bank compared to other lenders, let’s take a closer look at what kinds of loan are available and more detail on Sallie Mae as a loan servicer.

Student loan options

Sallie Mae offers the following types of student loan:

Undergraduate student loan

Sallie May undergraduate student loans allow dependent students to borrow additional funds over and above the maximum amount they can borrow with a federal student loan. You can borrow between $1,000 and the total cost of attendance over 5, 10 or 15 years without origination fees and without prepayment penalties.

Professional training loans

Whether it’s culinary training or another type of technical or trade school, Sallie Mae’s Career Training Smart Option Student Loan allows students to borrow from $1,000 up to the total cost of attendance over 5, 10 or 15 years.

Loans for graduate programs

If you’re studying for a master’s degree, Sallie Mae offers graduate school loans that have no origination fees. The repayment term for the graduate loan is 15 years and includes a 6-month grace period after graduation.

MBA loan

If you’re attending business school, and studying for your master’s in business administration you can apply for a loan to cover all of your school-certified expenses. There is a 6-month grace period on this loan and you can defer payments for up to 48 months while you take on an internship.

Also available

Sallie Mae also offers student loans for those enrolled in Dental, Medical or Law school.

Eligibility

You must meet the following requirements in order to qualify:

  • Be 18 or over in most states
  • Be a U.S. citizen or permanent resident. If you are a DACA student or foreign resident and you have a U.S. citizen cosigner you may be eligible.
  • You or your cosigner must demonstrate sufficient income to repay the loan.
  • You or your cosigner must undergo a credit check.

Repayment

There are a number of repayment plan types.

With deferred repayment no payments are required until after graduation and the end of any grace period.

On a fixed repayment plan a fixed amount is paid every month until graduation (or the end of any grace period) and then the borrower begins to repay the principal and interest.

With an interest repayment plan the borrower makes payments against the interest accruing on the loan during school and then begins to pay off the interest and principal after graduation / grace period.

Do you need a cosigner?

International and DACA students do require a cosigner but U.S. students do not.

Don’t forget to search and apply for other types of financial aid like scholarships and tuition waivers before relying on a loan.

Funds from private loans, like federal loans, are usually disbursed directly to your school to cover tuition and other expenses paid directly to the school before any remaining funds can be sent to your own bank account.

If you would like to apply for a student loan first check your eligibility. You will be shown any lenders that have a suitable program for you and be able to compare their terms and interest rates.


Things to Consider Before You Study Abroad
September 10th, 2021 by Al C

international students face many challenges including financial ones

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

federal student aid is not usually available for international students in the U.S.

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.

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Understand the pros and cons of taking out student loans for study abroad before making a decision

private loans can support your international education dreams

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.

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Research schools abroad and in your home country to make sure you make the best decision for you

there are many financial aid options for international students

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.

Other considerations:

Safety

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.

Language skills

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.

Money issues

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.


Repayment for International Student Loans in 2021
May 16th, 2021 by Al C

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.

Repayment for International Student Loans in 2020

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:

  1. How much will the monthly payments be?
  2. When will payments begin?
  3. 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

Immediate Repayment

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.

Full Defferal

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.

Interest Only

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.

Find your loan using our loan comparison tool:

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Are you looking for a study abroad loan? Or a foreign enrolled loan instead?

Read about how lenders are adapting when it comes to loan repayments during the COVID-19 pandemic.


Social Security Number for International Student Loans?
February 1st, 2021 by admin

searching for information about social security number for international student

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:

  1. Review the online application and make sure you completed the fields correctly
  2. 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.

Are you interested in studying in Canada instead?


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