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)


Car Loan for International Student
February 16th, 2022 by Sagnik Santra

car loan for international student

Is it even possible to get a car loan for international students? YES! It is possible. Having a car is a necessity for many people. A car is not just an appliance that provides transportation but also becomes one’s friend.

If you’re staying away from your home, having a car can be pretty helpful. Transportation costs in certain countries like the U.S., UK, or Canada can be expensive. If you are thinking about cabs, they are not a good option. The cost is pretty high, and they are not reliable either.

But on the other hand, cars are not cheap! So what’s the solution? How do you own a vehicle as an international student? The answer would be a car loan for international students. In this article, we will discuss how to get a car loan if you are an international student. So make sure to read the entire article!

Why do you need an auto loan as an international student?

There are many reasons for this. If you live away from your hometown, owning a car can be very important. You want to have the independence of traveling whenever and wherever you want.

There are several benefits of owning a car, but transportation cost is one of the most important. You can always go where you want to because owning a car means that you’re not bound by the timetables of public transportation. Not only does it save time, but it saves money too!

Also, countries like Canada or UK are pretty expensive when it comes to transportation costs. Taxis are overpriced, and buses are crowded. So, this leaves you with the only option of owning a car.

What are the requirements for an international student car loan?

Getting approved for an international student car loan is complex compared to a local student loan. You will be driving in a different country, and you need to obey every rule and regulation. There are thee things that you need to begin with:

1. Drivers license:

car loan for international student

Whether it’s an international license or a local one, you need to have some proof of having the ability to drive. If you don’t have a license, you can apply for one, but take driving lessons first. Driving lessons are compulsory in many countries like Canada, U.S., or UK. Suppose you’re an international student wanting to get a U.S. driver’s license. In that case, the Student Exchange Visitor Program (SEVP) has a detailed fact sheet and various resources to assist you in doing so.

2. Auto insurance:

In the U.S., it is required for every car driver to have auto insurance. Most other countries may not be as strict, but having insurance is always a good option. An international student car loan can have several benefits if covered with insurance. A typical bank loan doesn’t cover the entire cost of the vehicle, so it’s better to get some coverage just in case something happens.

3. An auto loan:

This is the most crucial part. Without a loan, you will not be able to get your hands on your car. So, the next thing you should do is apply for an international student car loan. Several companies offer loans to international students, and they have their own list of requirements and restrictions as well.

Documentation for applying for an Auto Loan as an international student

You may be wondering what sort of documentation you need for this. If you are living in the U.S., there are several things that you can use as your documentation when applying for a car loan.

1. VISA: This is the most common and accepted form for international students. If you’re a U.S. visa holder, you can use it as your primary identification document while applying for an auto loan. Make sure to bring your passport and other personal information with you.

2. Finance qualification form: This is an essential document you need to have. The finance qualification form has some basic information about your employment and financial situation.

3. Payment documents: These documents are the most important ones. These will show your monthly costs for tuition, rent, bank statements, utilities, etc. So make sure to have them ready.

4. Proof of lawful residence: This is unnecessary for you if you’re a U.S. visa holder. However, if you’re living in the country on some temporary status, you’ll need to prove your lawful residence.

5.  Employment letter (if applicable): If you’re working, make sure to have a letter from your employer. The letter should state the monthly salary and the year-long employment period.

How to apply for an international auto student loan?

car loan for international student

Once you have the required documentation ready, you can apply for a car loan. You need to follow several steps to apply for a car loan.

1. Research for car loan companies: Since you are an international student, you have to be careful while choosing the company. Once you have found a few companies, make sure to research them to see which one has better interest rates and fewer restrictions.

2. Compare rates: Compare the cost of auto loans for international students before finalizing your choice. You’ll be surprised by how much different companies offer in terms of monthly payments and interest rates.

3. Apply: Once you have chosen the company, fill out the application form as honestly as possible. The process may take some time, but once it’s done, your loan will be approved, and you can get your car. If you are not aware of some terms, get help from a professional. Don’t sign for anything until you understand the loan terms.

4. Wait for approval: Now that you have applied for a car loan, it’s time to wait for the company to process your application. This may take some while, so relax and don’t worry about anything else until they approve your application.

5. Get auto insurance: This is important for your car, and it’s mandatory as well (in some countries). Make sure to get auto insurance to drive safely on the road.

6. Start making repayment: Now that you are all done and received your desired loan amount, it’s time for you to create a plan and budget to start your monthly payment. This is also another important step, so take it seriously and don’t skip this.

Do I need a cosigner?

car loan for international student

It depends on the lender. Most car lenders require a cosigner if you are not a U.S. citizen. However, some companies have special programs for international students to get approved without any cosigner. If you don’t like the idea of getting a cosigner, then contact these companies and ask if they have an alternative solution for your situation. Also, when it comes to a cosigner, they must be a permanent resident of the country or have been living for two years with a stable job and regular income in the country.

Which is better, an auto loan or a personal loan?

In the case of international students, it’s better to get an auto loan rather than personal loans or student loans. Personal loans have a lot of strict repayment terms, and you’ll understand them only after reading the contract. Also, many companies don’t provide personal loans for international students, so you won’t have a lot of options to choose from. In addition, car loans are tailored to getting a car, so you’ll get a lower interest rate and better payment plans.

Do I need a credit history?

Again, it depends from company to company. Some finance companies might check your or your cosigner’s credit score, while others don’t. There isn’t any universal credit check policy, so you need to ask customer support about it before applying. But if you are signing a cosigner, there is a high chance that they will check their credit history.

Conclusion:

If you are an international student and want to buy a car, you need to apply for a car loan. Make sure to check the terms and conditions before signing for anything, and don’t be afraid to negotiate if required. The best idea would be to talk to someone experienced in this, so make sure to ask friends or relatives for help. Good luck!


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!


Loan for international students without cosigner
January 18th, 2022 by Sagnik Santra

loan for international students without cosigner

To pursue your favorite subject in an international college can be expensive. The tuition fees and the living costs are not the only things you need to deal with. There can be other costs like transportation, study materials, accommodation and many more. That is why you may need to take out a student loan to finance your study abroad.

But getting an international student loan is not easy without a cosigner. This is a problem in most cases because it can be hard to find someone willing to act as a cosigner. But there are some international student loans that you can take out without a cosigner. This article will tell you which international student loans are available for students who don’t have a cosigner.

Who is a cosigner anyway?

A cosigner is someone who has a good credit score, and with that, they agree to take responsibility for your loan if you as a borrower are not able to pay back the debt. The cosigner needs to have an income to repay your loan in most cases. They also need to be at least 18 years old. In simple words, a cosigner is a person who guarantees that you will repay the loan.

Why are cosigners necessary?

International students need someone to cosign their loans because they might not meet the requirements for taking out a student loan. A cosigner gives lenders the security that you will repay the loan, which is essential because lenders don’t want to lend money to international students who cannot repay the loan.

Types of student loans:

loan for international students without cosigner

Whether you need a cosigner or not depends on a few factors, and your student loan type is one of them. There are basically two types of student loans:

1. Federal student loans:

These are the best possible student loans because they have a low-interest rate and specific benefits. You can apply for a federal loan without a cosigner if you meet particular criteria, generally based on your academics and your family income. So your priority should be to apply for a federal student loan, and if you don’t qualify, you should apply for a private student loan.

2. Private student loans:

These are much harder to get because there are no specific criteria that make them available to only those students who qualify for it. It depends from lender to lender and how they set their own criteria. You can apply for a private loan without a cosigner, but your chances are much lower, and the interest rates will be much higher than those of federal loans.

Federal student loans that don’t require a cosigner

The good news for international students is that there are three types of federal loans available that don’t require cosigners as well as credit checks:

1. Direct subsidized loans:

These are available to students who have not completed their first bachelor’s degree yet. You can apply for these loans until you reach your maximum study time. The benefit of direct subsidized loans is that the government covers the interest while studying.

2. Direct unsubsidized loans:

This type of student loan doesn’t require a cosigner because the government covers the interest while you are studying. It is for both graduate and undergraduate students. This loan is also called Unsubsidized Stafford Loan.

3. Direct PLUS loans:

This type of loan is available only for graduate and professional students. Parents can also borrow this amount for their kids who are studying abroad. This is the most common international student loan because it requires a cosigner.

How to get international student loans without a cosigner?

A group of friends at a coffee shop

Getting an international student loan without a cosigner is a lot harder than getting one with a cosigner. As we have explained before, you need to meet specific requirements to get a student loan without a cosigner, and the requirements may vary from lender to lender. Here are a few things that you can do to increase your chances of getting a student loan without a cosigner:

1. Opt for federal student loans:

Federal student loans are the best option when trying to get an international student loan as a U.S. student abroad. If you meet certain criteria, you will get the loan without a cosigner. These criteria are not that high, and almost anyone can meet them if they try hard enough. It is mostly about your academic scores and your income in your home country.

2. Go for scholarships before you take out a loan:

Scholarships or other financial aids are the best options for financing your education. However, try to get all the available scholarship money before taking out a loan. If there is no other option but to get a loan to finance your education, you should go for federal loans with low-interest rates and benefits before taking up any private loan.

3. Credit score:

If you have a good credit history, then the chances of getting an international student loan without a cosigner are much higher. The lenders will trust you because of your credit score, and they will not demand any additional help from someone else for them to approve your application.

4. Find the right lender:

To get a good student loan without a cosigner, you need to find the right lender. Most lenders have a reasonable credit score requirement, and they also look for other criteria before approving your application. You have to do your research and shortlist a few lenders before applying for a loan.

Top lenders who approve international student loans without cosigners

loan for international students without cosigner

Here are the top five lenders who typically approve international student loans without cosigners:

1. MPOWER Financing:

If you plan to study in the U.S or Canada, you can apply for a loan from MPOWER. They offer student loans without a cosigner, collateral, or U.S. credit history for students studying at 350+ schools in the U.S. and Canada. They only provide loans to bright and have the potential to succeed.

2. A.M. Money Private Student Loan:

If you are an international student with a good GPA, you can get a private student loan from this lender. This is one of the best lenders that offer loans without cosigners.

3. Ascent Independent Student Loan:

Ascent offers international student loans without cosigners. They provide loans to both undergrad and grad students who need them for tuition, books, and living expenses. It is ideal for Upperclassmen with no credit, income, or cosigner.

4. Prodigy Finance:

If you are a graduate student and looking for an international student loan without a cosigner, you should try Prodigy Finance. Prodigy finance only provides its services in certain states and certain colleges.

5. SoFi:

If you have been paying the loans on time and your credit score is good, then SoFi will approve your loan without a cosigner. They offer loans to graduate students and international students. If you have good academic scores, you can also get extra benefits.

Conclusion:

The process of applying for an international student loan without a cosigner can be a bit difficult. You have to prove that you are responsible enough to be worthy of the loan. You have to do your research and find lenders who offer student loans without cosigners and match your requirements. Good luck!


How to refinance student loans?
January 17th, 2022 by Sagnik Santra

how to refinance student loans

Student loans are some of the best financial tools for students to fund their education. They are great if you don’t have the money to pay for college but still want to earn a degree. Student loans are usually less expensive than other forms of loans.

However, life is not always that smooth, and some people find themselves with too much debt. They owe too much money on student loans, and they do not know what to do. The longer you will take to pay for this debt, the more money you will spend on interest.

This is where student loan refinancing comes into play. It helps you lower your interest rates and pay off student loans faster. This article will explain how this tool works, the pros and cons of refinancing, why it may be a good solution for you, and where to find companies offering this service.

What are student loans?

how to refinance student loans

Before getting into the student loan refinance details, you should know these financial tools. Student loans are a form of borrowing money to cover the expenses related to studying. They are usually offered through banks, private lenders, or the government to help students with their bills.

Student loans are helpful in many cases, but they may also become a problem if you do not know how to handle them. If you borrow a lot of money for college and fail to find a job after this, this can be a significant financial problem. That is why some people decide on student loan refinancing.

There are basically two types of student loans

1. Federal student loans:

The government offers federal student loans. So you can expect to find the lowest interest rates for this type of loan. There are fewer requirements for federal loans, and the borrowers don’t need to prove their creditworthiness. Students must meet certain academic points to meet the requirements.

2. Private student loans:

As their name suggests, private loans are offered by private lenders. These loans usually have higher interest rates, and you must prove your creditworthiness to get approved. The repayment terms are more strict with private loans.

What is student loan refinancing?

Now that we have a clear idea of what student loans are, it’s time to talk about refinancing. By refinancing, you basically change the terms of your current student loan. You apply for a better interest rate, and the company you borrowed money from agrees on this new deal. The companies offering a student loan refinance deal usually have lower rates than those keeping your previous loan.

Why should you consider refinancing student loans?

how to refinance student loans

Here are some of the main reasons why should you refinance your student loans:

1. Lower interest rates:

The main advantage of refinancing is getting a lower rate than your previous one. Usually, once the loan is refinanced, it will be offered at a lower interest rate, and you can save thousands of dollars. You will start saving money when the new contract is signed, and the new interest rate kicks in.

2. Lower monthly payments:

Of course, lower interest rates mean that your monthly payment will be smaller as well. You may even get a different type of loan, which provides lower monthly repayments than what you currently have. This is why it’s essential to read all the offers thoroughly before choosing one.

3. You don’t have to pay for multiple loans:

Yes, student loan refinancing can help you get rid of multiple loans and consolidate them into a new one. This means that your accounts can be closed, and you won’t have to worry about paying for multiple debts at a time.

4. You can pay off your student loan faster:

Another benefit of refinancing is that the repayment terms may change in a way that will allow you to pay back your loan faster. This can be extremely helpful if you know that you will only need the loan for a short period and then manage to pay it back.

5. You can re-arrange your repayment term:

This is one of the main advantages because it allows you to change the loan terms. You can do everything from lengthening or shortening them, changing your monthly payment amount, adding another loan to it, etc. This will depend on your particular situation and your needs.

What are the disadvantages of refinancing student loans?

how to refinance student loans

Even though there are many benefits to refinancing your student loan, you should consider that this may not be the best solution for everyone. There are certain disadvantages which you should know about before making any decisions:

1. Not everyone can qualify:

Not everyone can qualify for student loan refinancing. Before applying, you should read carefully about the requirements, and if you have a poor credit score or a low income, this option may not be available.

2. You lose federal repayment plans:

When you refinance a federal student loan, it means that all of your rights as a borrower are done for good. This means that you won’t benefit from federal repayment plans that can help a lot during a hardship, for instance. You will have to abide by the rules of your new lender, and there isn’t much flexibility here.

3. You might get locked into a fixed repayment plan:

Once you have refinanced your student loan, it’s very likely that you will get locked with a fixed repayment plan and fixed interest rate. This means that you won’t be able to switch from one type of repayment to another during the life of your loan. For example, federal student loans allow borrowers to modify their repayment terms and make them more flexible if they are in a difficult financial situation. This option might not be available when you refinance your loans with a private lender.

How do I refinance my student loans?

how to refinance student loans

Now that we know about the main benefits and disadvantages of refinancing student loans, we can take a closer look at how to refinance your loan.

1. Decide whether you should or shouldn’t refinance your student loan:

Before you apply and refinance your student loans, make sure that this is the best decision for you. You should know whether or not refinancing under a private lender will be beneficial for your situation ahead of time. Once you come up with a definite answer, it’s time to start applying. Also, you have to remember, if you refinance federal loans, your terms can get terminated.

2. Find the best lenders:

When you look for a private lender, make sure that you choose one which suits your needs and offers competitive interest rates and fees. You can get this information from online reviews or even by speaking directly with the loan specialists at different companies before deciding.

3. Choose the repayment rates and terms:

After finding a lender who is willing to refinance your loans, you will have to make a few crucial decisions. This includes the type of repayment plan and the monthly payment amount. There is a wide range of available options depending on your needs and budget.

4. Apply for student loan refinancing:

Once you compare different offers and find one that fits your situation, it’s time to apply for refinancing. When you fill out the application form, make sure that all details are correct and accurate. Otherwise, this may affect your credit score or even lower it if there are any mistakes on your file.

5. Start repaying with the new terms and plan:

Once you get approved for student loan refinancing, it’s time to start repaying your loans with the new terms and repayment plan. Ensure that you stay on top of your monthly payments and if you get any reminders about late fees, act immediately to avoid these.

Best student loan refinances companies:

Here are some of the best companies you can choose from when refinancing your federal or private student loans:

1. MPOWER Financing

2. SoFi

3. PenFed

4. Earnest

5. Discover Student Loans

6. LendKey

Conclusion:

When you refinance your student loans, it’s very important to have a clear idea about the benefits and disadvantages of this type of financing. Make sure that before making any decision, you research different lenders and see what they have to offer in terms of rates, fees, repayment plans, and so on. Good luck!


Everything you need to know before doing MBA in the U.S.
December 30th, 2021 by Sagnik Santra

mba from usa

The U.S. is undoubtedly one of the best countries where you can pursue your MBA. Many top business schools offer high-quality education and help students explore their full potential. Studying in the U.S. is like a dream come true as students get the opportunity to learn with the best brains of this nation who have set benchmarks. At present, there are some of the best business schools offering MBA courses and scholarships in the U.S.

In this article, we will be discussing everything you need to know before doing MBA in the U.S. So, let’s begin?

Why should you choose the U.S. to do your MBA?

mba from usa

There are many reasons you should choose to do your MBA in the U.S. The first and foremost reason is that the U.S. offers some of the best business schools in the world. These schools are known for their high-quality education and rigorous curriculum.

Additionally, studying in the U.S. exposes students to the industry’s best business practices and latest trends. American colleges are also known for their great networking opportunities, which can help students to build powerful connections in the industry.

Apart from that, studying in the U.S. is also a great way to improve your English skills. The U.S. is a melting pot of cultures, and you will get to learn a lot about the American way of life. Also, America being a developed country, you can explore various job opportunities after completing your MBA.

What are the eligibility criteria for doing an MBA in the U.S.?

The eligibility criteria for doing an MBA in the U.S. vary from school to school. However, most colleges require students to have a Bachelor’s degree from an accredited institution. Some schools may also require work experience or a GMAT score. You can check the eligibility criteria from the official websites of business schools across the U.S.

Is MBA expensive in the U.S.?

An MBA is indeed expensive in the U.S. Most MBA colleges charge students a hefty fee for their MBA programs. The average cost of an MBA program from a top business school in the U.S. can be anything between $28,000 and $35,000 (excluding living expenses).

Even the living cost can be pretty expensive as well. You need to budget around $1,000-1,500 per month for living expenses in a major city like New York or San Francisco.

But luckily, you can find tons of full and partial scholarships to study in the U.S. If you are planning to pursue MBA in American colleges, make sure to apply for scholarships well in time.

How to apply for an MBA scholarship in the U.S.?

mba from usa

Most universities across the U.S. offer various types of scholarships to study their business management courses. Some universities may provide merit-based scholarships, while others may give you need-based scholarships. There are university-specific as well as general scholarships that are available throughout the year.

You can search for scholarships on the university’s official website or various scholarship portals. Please read the eligibility criteria and other important information carefully before applying.

Top business schools in the U.S.

When it comes to business schools and universities, America has a lot to offer. You can find numerous world-class MBA colleges in the U.S. The top business schools in the U.S. usually feature in the global rankings of the best business schools.

Some of the most popular and renowned business schools in America are:

  • Harvard Business School
  • Stanford Graduate School of Business
  • Columbia Business School
  • MIT Sloan School of Management
  • Chicago Booth School of Business
  • Wharton School of the University of Pennsylvania

So these are some of the best business schools in the U.S. that you can consider for your MBA. Do your research and find the school that is best suited for you.

Top MBA programs offered in the U.S.

The top MBA programs in the U.S. are ranked on various parameters. They include value for money, network, quality of faculty members, student satisfaction, and placement statistics. Some of the most popular MBA degrees to study in American colleges are:

  • Full-Time MBA
  • Executive MBA
  • Part-Time MBA
  • Online MBA

So, these are some of the top MBA programs that you can consider if you want to study in the U.S. Now let’s take a look at some of the best MBA courses in the U.S.

  • General Management
  • Human Resource ManagementFinance
  • Marketing
  • Operations Management
  • International Business
  • Rural Management
  • Healthcare management
  • Supply Chain Management
  • Energy and Utility Management
  • Retail Management

Not only these but there are also many other specialized MBA courses available in American colleges. So you can choose a program based on your career interests and current academic qualification.

Top MBA scholarships in the U.S.

mba from usa

As we mentioned, MBA courses can be expensive in the U.S. But there are various scholarships available to help finance your education. Some of the top MBA scholarships that you can apply for are:

1. Harvard business school scholarship

It is a scholarship offered by Harvard business school. The scholarship is open to full-time MBA, DBA, and EMBA students. It is one of the most prestigious scholarships in the world. You can be offered both partial and full scholarships depending on your profile.

2. Columbia business school scholarship

Columbia business school offers a wide range of scholarships for both domestic and international students. You can avail yourself partial to full scholarship based on your profile and course requirements. If you meet the eligibility criteria, you can also apply for a Ph.D. scholarship at Columbia business school.

3. Wharton Fellowship Program

The Wharton fellowship program offers scholarships to students from different backgrounds and countries. The fellowship program provides a full tuition waiver to students and provides a stipend for living expenses. You must meet specific eligibility criteria such as required grade, leadership skills, and career goals to apply for this fellowship program.

4. Chicago Booth MBA Scholarships

The Chicago Booth MBA scholarships are offered to students who have demonstrated excellence in academics, professional achievement, and leadership. The scholarships can range from partial to full tuition waivers.

5. MIT Sloan MBA Scholarships

MIT Sloan MBA scholarships are awarded to highly talented students with excellent leadership skills and academic success. To qualify for the scholarship, you need to meet specific eligibility criteria such as minimum GMAT score and GPA.

6. Yale SOM

If you plan to study at the University of Yale, you can avail yourself of several scholarships offered by the school. The scholarships are provided to students with excellent academic credentials and leadership skills. You can get both full and partial scholarships based on your profile.

Final thoughts

So there you have it! Everything you need to know before doing an MBA from the U.S. We hope this article has been helpful. Do your research and find the school that is best suited for you. Also, don’t forget to apply for scholarships that can help finance your education. Good luck!


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.


Best International Scholarships for International Students
December 14th, 2021 by Al C

man smiling while sitting and using internationalstudentloan.com

In a world where the competition is increasingly fierce, it’s no wonder that scholarships are in high demand. In fact, for international students who have to pay higher tuition fees than their local counterparts, it can be a life-changing opportunity. Fortunately, there are many scholarship opportunities available to today’s international students.

This article will cover some of the best and most popular options for international students looking for international financial aid. We will also cover some important things that might help you in your scholarship hunt.

What is an International Scholarship for Students?

woman reading book as she studies abroad

An international scholarship, as the name suggests, is a financial award available to students who are not citizens of the country in which they are studying. International scholarships can come from a variety of sources, including governments, universities, and private organizations that support a student for his/her financial need.

It helps students to pay for their educational expenses while they are attending a university or college in another country. Most scholarships are either full or partial. In full scholarships, the student receives all the money they need to cover their tuition and living expenses. Partial scholarships give students a percentage of the money they need.

Types of International Scholarships

There are various scholarships available to students from other countries. The most common ones include:

1. Academic Merit based scholarships

Merit scholarships are awarded to students based on their academic or other achievements. Often, the selection committee will look for students who have shown potential in their chosen field of study.

2. Need-based scholarships

These scholarships are awarded to students who can demonstrate that they need financial assistance in order to attend university. The selection committee decides how much money each student needs, and bases the scholarship on that amount.

3. Career-based scholarships

These scholarships are offered to students who wish to study in a particular field of work after graduation. For example, there may be scholarships available for students who want to become doctors, lawyers, or engineers. These types of scholarships are usually very competitive.

4. University-specific scholarships

Scholarships are also available to students at particular universities or in particular fields of study. These awards are usually given by private companies in the university’s field of business, industry, etc. Such awards can be vital for international students who may not have many other scholarship options.

5. Government-specific scholarships

These scholarships are funded by national governments and international organizations such as the United Nations. They can be instrumental in helping students study at universities around the world.

6. Location-based Scholarships

Location-based scholarships are one of the most famous scholarships among international students. They are usually restricted to students who wish to study in a particular region, such as Europe or South America. It opens up opportunities for bright students who belong from rural areas of their home country.

There are many, many more types of scholarships available to international students studying outside their home countries. It is important to research all the options carefully before applying!

Best Study Abroad Scholarships for an International Student (Undergraduate Students/Graduate Students)

Graduate in the library

There are many different scholarship programs available for international students. However, not all of them are created equal. Some scholarships are more prestigious and difficult to obtain than others. Here are some of the best scholarships available to international students:

1. The Fulbright Scholarship (USA)

The Fulbright program is one of the most famous and highly respected scholarships in the world. It is offered to students who wish to study in the United States. The scholarship covers all expenses, including tuition, room and board, and travel. The Fulbright Scholarship is awarded through a competitive selection process in which students are judged according to their academic and leadership potential. It is regularly in the top ten of all scholarships available in the world.

2. British Chevening Scholarships (UK)

The Chevening Scholarship is offered by the British government to students who wish to study in the United Kingdom. The scholarship covers all expenses, including tuition, room and board, and travel. The selection process is highly competitive, and only the top students are chosen. It is one of the most prestigious scholarships available to students from around the world.

3. University of Alberta International Country Scholarship (Canada)

The University of Alberta International Country Scholarship is provided by the University of Alberta (Edmonton, Canada) is open to international students who are not Canadian citizens or permanent residents. It offers scholarships for bright students who have shown excellence in their previous academic work. The scholarship covers the cost of tuition and living expenses.

4. Cambridge Trust Scholarship Awards (UK)

The Cambridge Trust Scholarship Awards are offered by the University of Cambridge (UK) to international students who demonstrate outstanding academic achievement and potential in their chosen field of study. The scholarship is awarded for the full duration of a student’s program at Cambridge and covers the cost of tuition and living expenses.

5. The Humphrey Fellowship Program (USA)

The Humphrey Fellowship Program is a fully funded fellowship offered by the United States government to students from developing countries who wish to study in the United States. The fellowship covers all expenses, including tuition, room and board, and travel. Since it is a government-backed program, the Humphrey Fellowship is extremely competitive.

6. Bell Fellowship for International Scholars (USA)

The Bell Fellowship offers fellowships to future leaders and young professionals in the field of population and development. The program offers a two-year research and leadership training at one of the world’s leading universities, with a focus on social and environmental determinants of population health, aging societies, workplace and wellbeing, and social and family demography. Selected fellows receive a full scholarship that covers tuition, room, and board and travel expenses.

7. Rhodes Global Scholarship to Study in (UK)

The Rhodes Global Scholarship is for exceptional students from outside the UK to study at the University of Oxford. It was one of the oldest and most prestigious scholarships in the world. The Rhodes Scholarships were founded in 1902 by Cecil Rhodes and are open to students from around the world who have the passion to make a difference in their community. The scholarship awards full tuition, room and board, and travel expenses for two or three years of study at Oxford.

8. Chevening Scholarships (UK)

Chevening Scholarships, funded by the Foreign and Commonwealth Office, are available for postgraduate study in almost any subject at master’s level at participating UK universities. The scholarship is open to students from around the world who have been invited by a UK university to study for an English language master’s degree.

9. AAUW International Fellowship (USA)

The American Association of University Women (AAUW) offers International Fellowships for women who are not United States citizens or permanent residents. The fellowship is open to graduate students in any discipline and awards up to $30,000 per year for two years of study.

10. Civil Society Leadership Awards (USA)

The Civil Society Leadership Awards (CSLA) are open to emerging leaders from civil society organizations working in the following areas: human rights, social justice, peace and reconciliation, the environment, and women’s empowerment. The CSLA program provides fellows with up to $90,000 for graduate study in the United States.

Things to consider before applying for scholarships:

There are a few things that foreign students have to keep in mind when applying for scholarships.

1. Do your research: Make sure you do your research on the different scholarships that are available to you. There are many different scholarships with different eligibility requirements, so make sure you find one that is a good fit for you.

2. Get organized: Make a list of all the scholarships for which you are eligible and start applying. Applying for scholarships can be a lot of work, so make sure you get organized before you start.

3. Show your commitment: You should always show your commitment to the scholarship or award by writing a personal statement on why you deserve the scholarship and what it will mean for you to receive it.

4. Be prepared to accept rejection: There are many reasons why some applications might not be successful, so don’t be discouraged if you don’t get the scholarship that you applied for. There are many other scholarships available, so keep looking for other sources that offer scholarships.

5. Follow the instructions: Make sure you read and follow the instructions carefully when applying for scholarships. If you don’t follow the instructions, your application might not be considered.

6. Apply for multiple scholarships: Don’t just apply for one scholarship. Apply for as many scholarships as you can, because you might not get selected for the first one that you apply for. You can also get selected for more than one scholarship, so it’s always worth applying.

7. Focus on your academic excellence: Make sure you focus on your academics because scholarships are not the only thing that matter in your life. Make good grades, get involved in extracurricular activities, and volunteer.

8. Show your passion: Show the scholarship committee how much you care about whatever scholarship or award that you are applying for. If you have a strong passion for whatever award or scholarship, then the committee members will be more likely to select you.

Final thoughts

Studying abroad is the dream of millions of students for higher education. And what better way than getting a scholarship to support their financial needs. But getting a scholarship is not easy, but it’s definitely worth the effort. Make sure you do your research, get organized, and follow the instructions carefully. And don’t forget to have fun while you’re applying for scholarships! There are many different scholarships available, so you’re bound to find one that’s perfect for you. Best of luck!


International Student Financial Aid UK
November 30th, 2021 by Al C

three round white wooden tables

Studying in the UK doesn’t have to be expensive. While tuition fees are on the rise, international students can apply for funding through government grants, scholarships, and international student loans. For American students, both federal financial aid and international student loans are also available. Financial support is available to help cover living expenses as well so that’s not something you need to worry about when it comes time to study abroad!

Financial aid is often given by the government or a few private sources. These can be obtained by students who are going to study abroad and want to finance their education outside of their home country. In addition, financial aid is given by many organizations which help in making an individual’s journey smooth and easy but they do not cover all costs. They can cover up to a certain percentage of the total amount.

Whatever form of financial aid you get, it’ll only help you with your finances throughout your academic journey. In this article, we will be looking at the major types of financial aid available in the UK for international students including American students.

Financial aid in the UK for international students

four people watching on white MacBook on top of glass-top table

The UK government and UK universities offer hundreds of international scholarships, financial support programs, and student loans to international students each year. The government awards scholarships to students based on their performance in academics, sports, or any other talent they possess. These are awarded to help with tuition fees and living expenses while at university.

Application procedures for international scholarships vary from one scholarship program to the next. But most of them require you to research your options then submit an application form including academic merit credentials as well as personal achievements. You may have to write an essay or submit a portfolio for some scholarships.

What do UK Financial aid offers cover?

They can cover a wide range of costs depending on the kind of program you qualify for. But here are some of the most common ones:

1. Tuition Fees:

Tuition fees are probably the most expensive thing you’ll have to pay for when studying abroad. Financial aid can help with tuition fees. You may also be able to get a scholarship or award that covers the full amount of your tuition fee so you don’t need to take out student loans at all!

2. Living Costs:

The second most expensive thing you need to worry about is living costs. Some programs take care of your living expenses both partially and in some cases, in full as well. So you can focus more on your studies and less on rents.

3. Other Expenses:

A few sponsors can help with other expenses including academic costs like books, stationery, and equipment. These are usually included in the tuition fee but if they’re not then you may be able to get a scholarship or award that covers these too.

Different types of aid in the UK

person walking on concrete road beside brown concrete house near green high trees under white sky during daytime

There are many types of aid which are available for international students in the UK. Here are some of them:

1. Scholarships

These can be given by governments, universities, or even private sources to help with tuition fees and living expenses while at university. Scholarships mainly cover your tuition fee and living costs to help with the overall cost of studying abroad.

Scholarships are available to international students at all levels of their academic journey including undergraduate, postgraduate, and Ph.D. programs as well as many other courses too! They’re also awarded based on a variety of criteria so you can find scholarships that match your personal qualities or interests. You can even qualify for more than one scholarship as well.

2. Grants

Similar to scholarships, grants cover your tuition fee and living costs. They’re given by governments or UK universities for different reasons so they can vary in their eligibility criteria too! Grants are awarded based on merit but some of them also take into account the financial situation of the applicant’s family as well. You may need to submit documents before you get a grant so make sure you meet all the eligibility criteria before applying.

Grants are usually awarded for undergraduate studies but some universities offer grants to postgraduate students or Ph.D. candidates as well! You can also get a government-funded scholarship if your country has an agreement with the UK, allowing their citizens to receive funding while studying in the UK.

3. Federal Student Loan

These are big loans that you can use to pay your tuition fee and living costs. They’re called federal as they’re are a part of the government student loan programs and come with low-interest rates. They are a great option if your scholarship or grant is not sufficient to cover the expenses. Federal loans are also given to students who can’t get a scholarship or grant and need extra financial support for studying in the UK.

Federal Loans also called Stafford Loans which are divided into two types: subsidised (given with no interest) and unsubsidised (with interests). Federal loans offer all students including American students and other international ones Ph.D., postgraduate, and undergraduate scholarships.

4. Private Student Loan

These are loans from private sources that you can use to pay for your tuition fee or living costs. They’re not given by the government so they have higher interest rates and some of them may also require a co-signer since international students usually don’t have a credit history.

You should be careful before taking any private loans as they usually require good credit history and higher interest rates. You must compare different lenders in order to find a suitable option.

5. Work-study program

This is another type of program that can help international students. It allows you to get a part-time job while studying. It will help with covering your tuition fee and living costs. You’ll be able to work for up to certain hours (depending on the university) per week during academic sessions, allowing you more time for studies too!

A work-study program is usually awarded to undergraduate students. It’s available at different universities in the UK so you can look for work-study programs while applying for your course of studies.

How to apply for financial aid in the UK?

aerial photography of people sitting on chair

The process of applying for support is different at each university so you need to check their website or contact them directly. There are also scholarships that can be applied online without any additional documents but some require specific ones like high school transcripts and SAT scores for example.

Here are the necessary steps that you must follow to apply for funding like this in the UK:

1. Research:

The first thing you need to do is research the types of financial aids/international student loans available for students like you. It will help you find scholarships and federal loans that match your personal qualities or interests. It will also help you estimate how much money you’ll need to pay for tuition, living costs, and other expenses.

3. Compare

List down the best options that you found after researching. It’s important to compare different aid options and their eligibility criteria before applying for anything. You should also check the university website or contact them directly if you need more information.

4. Look for merit-based scholarships

These types of scholarships are usually given for academic excellence, specifically when a student has outstanding results during his/her course of study! Merit-based scholarship programs generally have specific criteria so be sure to check them before applying.

5. Read the documents

Read the documents of your chosen options carefully. They usually have eligibility criteria so you need to meet them in order to get approved for any federal or private loans or scholarships. You should also check the application dates and deadlines since it’s important to be on time when applying especially if a deadline is closing soon!

6. Apply

Apply as soon as possible so you don’t miss any important deadlines. The sooner you apply, the better chances of getting approved! You can also boost your chance by writing a compelling cover letter and resume that highlights your achievements and skills to impress potential sponsors or donors.

Key takeaways

1. You should research the types of financial aid available to international students.

2. There are different sources for private loans and work-study programs that can be part of your financial aid package.

3. Check university websites or contact them directly if you need more information about financial aid options.

4. Make sure that you meet all eligibility criteria before applying for any type of financial aid.

5. Read the documents carefully and apply as soon as possible to improve your chances of being approved!

Final thoughts

The UK is one of the most popular destinations for international students looking for a world-class education. However, the cost of tuition is very high so it’s important to look for financial aid options that meet your needs and requirements! This article will help you understand how financial aids work in the UK and how to apply for one. So make sure to read it carefully to find out the best ways of covering all your tuition fees without putting a big dent in your savings.


How to Apply for Private Student Loans
November 11th, 2021 by Al C

Working out the pros and cons of student loans

Private student loans make up 7.80% of the total outstanding student loan in the USA. That is more than $130 billion.

Private student loans are some of the most useful financial tools that help students pay for their education, especially when traditional financial aid is not sufficient. A private student loan is a great alternative option if you don’t qualify for a federal student aid program. And because banks and lenders offer many options for repayment, private loans may also be more suitable for your own needs.

Also, there is a high chance of getting approved with private student loans because with certain lenders these loans are not even based on the credit history of the applicant. Therefore, a private student loan would be ideal if you don’t qualify for a federal student loan or if you don’t have any credit history.

In this article, we will be digging deep into private student loans! We will discuss how they work, their advantages and disadvantages, the application process, and other useful information so you don’t get confused when you apply for a private student loan. So let’s get started!

What are private student loans?

Unlike federal student loans, private loans don’t originate from the government. Private student loans are used when a student either doesn’t qualify for the federal student loan or when their amount of financial aid is not enough to pay for his/her education.

Private student loans are mostly offered by the major banks, savings & loans companies, credit unions, and some other lenders who provide personal or educational loans. A private student loan typically offers benefits that include low-interest rates, flexible repayment options, and lenient borrowing limits. However, the interest rates on private student loans are higher than federal student loan rates.

How does a private student loan work?

A private student loan is the same as any other student loan, but they are offered by private financial institutions. When you apply for a private student loan, you need to submit your credit history and income information. The bank or lender will assess your particular situation and determine if they offer you the amount of money that you require.

Once you get approved, the lender will send your school’s financial aid office the funds. They will credit the required amount of money directly to your account and you can use it for paying tuition, housing fees, or any other expense that is related to your education. If there are any funds remaining, your school will transfer those to your nominated bank account.

How to apply for a private student loan

online application form

Before you apply for a private loan, make sure you understand all the terms and conditions of the loan. Compare different lenders or banks that offer student loans before settling on one. Once you have identified the lender with whom you want to go, it’s time for applying for a private student loan! Here are some steps that you need to follow:

1. Check whether you qualify for a federal loan or not

It is advised to apply for a federal student loan before you go for any other type of student loan because these loans offer lower interest rates. Interest rates on private loans are higher than federal student loan interest rates. Therefore, it is better to opt for a federal loan if you qualify for one. In most cases international students in the U.S. do not qualify for federal student aid.

2. Get your credit history in order

If you do not have an established credit history, then it will be difficult for you to get approved by some of the major lenders or banks. Make sure your credit report is error-free and clean. You can check your credit history from the three major credit bureaus: TransUnion, Experian, and Equifax. Once you have a good credit history, apply for a private student loan. There are a small number of lenders that do not require credit history and you can find out about them here.

3. Find a cosigner

It can be hard for students to build their credit score, so the easiest way to get approved for a private student loan is by getting cosigned. If you have someone who loves and trusts you (family members), they can be your cosigner on your application form. This will make it easier for the lender to approve your application because another person has vouched for you! In addition, if your cosigner’s credit history is up to the mark, you can get better repayment terms. Your cosigner must be a U.S. citizen or permanent resident. Most international students will need a cosigner, but there are a number of lenders that do not require one.

4. Find a suitable lender or bank for your private student loan

The most important step in applying for a private student loan is to find the right lender or bank that can provide you with the amount of money that you require. Each lender has its own terms and conditions. You can find different lenders by searching online or visiting your local bank or credit union. Take time to review different loans, rates, and terms before choosing one. One of the easiest ways to find a loan as an international student is to use our loan comparison tool.

5. Fill the application form carefully

Once you have found a good bank or lender, it’s time to fill out their application form. You will need your social security number, credit history, annual income, and other details in order to apply for a private student loan.

Filling out this form should be done carefully because this information will be used to make a decision on your loan approval. If you have any doubts or do not understand something in your application form, it is better to ask the bank before filling it out. Once you are done with it, submit the form.

6. Be aware of hidden charges and fees

Once you have submitted your application, you will receive paperwork from the bank. Make sure you review all the terms and conditions carefully to avoid any hidden charges or fees that can increase your loan amount.

7. Get approved for a private student loan

After filling out an application form, waiting patiently for a response from a lender, and going through the required paperwork, it’s time for you to get approved for a private student loan! Once you have been approved for a loan, the lender will transfer money to your school.

8. Paying back your private student loan

Once you get a private student loan, it is important for you to be aware of the repayment period and other charges. The bank will send you an email or letter that tells you about the amount that must be paid back. You should also know if there are any penalties or charges for not making monthly payments on time.

Federal student loan vs Private student loan

The federal government provides loans to domestic students

Federal loans are the safest option when it comes to taking out a loan for college if you are eligible for them. Federal student loans typically have lower interest rates compared to private student loans, they do not require a co-signer, and you will not accumulate any additional debt if your student situation changes.

Private student loans may be used for continuing education or for students who do not qualify for federal loans. Before applying for a private student loan, make sure that you understand the terms and conditions of your lender or bank. You can get your credit report and score from all three major credit bureaus: TransUnion, Experian, and Equifax to help you find a suitable lender.

Note: Consider getting a private student loan only when you don’t get approved for a federal student loan or your federal student loan is not enough for your education expenses.

Advantages and Disadvantages of Taking Private Loans

Private students are great alternatives for students who have a bad credit history or have applied for a federal loan but did not get approved. But they do come with both pros and cons that must be considered before applying for them.

Advantages

1. Private student loans give you the freedom and flexibility of choosing your own loan amount and loan duration.

2. You can get rewards for having good credit. Your interest might get lower if you have a good credit history.

3. You get more freedom to use the money that you borrow in any way you want during your college years.

4. You can apply for a private student loan anytime you want. No matter if you are in the middle of your college career or if you are graduating, you can still apply for a private student loan.

5. Private student loans can be used to repay your previous student loans.

7. Ideal for students who have a bad credit score or didn’t get approved for federal loans.

Disadvantages

1. You will be charged with higher interest rates than if you get a federal loan.

2. You are required to have a co-signer if you have a bad or no credit history with most lenders.

3. It is essential that you review all transaction and loan terms with your lender to avoid any misunderstandings or miscommunications.

4. You may not be able to change the duration of your repayment without increasing the interest rates

A few things to consider

  • Opt for private student loans only if you don’t qualify for a federal student loan
  • Compare multiple lenders and banks before finalizing a lender
  • Borrow only what you need to stay in school and pay for your education expenses
  • Don’t miss out on any repayment term and make sure you repay your private student loan on time
  • Find a co-signer if you need one
  • Read the terms and conditions carefully before signing any agreement

Final thoughts

So there you have it! A private student loan is great if you don’t qualify for a federal student loan. Make sure you consider all options before you apply for a private student loan. Always review the terms and conditions with your lender before you sign anything.


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