Personal loan for international student
May 9th, 2022 by Sagnik Santra

personal loan for international student

Every year, many international students choose to study in international colleges. While most students finance their education with a combination of scholarships, grants, and student loans, some students also rely on personal loans to cover their costs. A personal loan for international student is a great financial tool for students and parents who can’t afford to pay for their education. The cost of education in international colleges is expensive and it is important to have a good financial plan.

In this article, we will discuss personal student loan for international student. We will share a few tips on how you can get a personal loan and how you can use it to finance your education. So if you are a student looking to pursue a degree in an international college, read on!

What are personal loans for international students?

Similar to personal loans, personal loans for international students are unsecured loans that can be used for a variety of purposes. One popular use of personal loans is to finance the costs of education. International students often rely on personal loans to cover the cost of tuition, fees, and other educational expenses.

Personal loans are available from a variety of student loan lenders, including banks, credit unions, and online lenders. The interest rate on a personal loan for international students will vary depending on the lender and the borrower’s credit history.

What are international student loans?

Now when it comes to international student loans, these are student loans that are specifically designed for international students who are attending college in the United States. International student loans generally have lower interest rates and more flexible repayment terms than traditional loans.

Different types of loans for international students

There are mainly two types of international student loans

1. Federal student loans:

personal loan for international student

A federal student loan or federal student aid is a type of loan that is offered by the US government to eligible students attending an eligible school or university in the United States. Federal student loans are available to both US citizens and international students. Federal loans are cheaper in terms of interest rates and they offer more repayment options as compared to private loans.

There are mainly 4 types of federal student loans

1. Direct subsidized loans: These loans are offered to eligible undergraduate students with financial needs. The US government pays the interest on these loans while the student is in school, during their grace period, and during deferment periods.

2. Direct unsubsidized loans: These loans are available to both undergraduate and graduate students; however, the student is responsible for paying the interest on these loans.

3. Direct PLUS Loans: These loans are available to graduate or professional students as well as parents of dependent undergraduate students. The borrower is responsible for paying the interest on these loans.

4. Direct consolidation loans: These loans allow the borrower to combine all their eligible federal student loans into a single loan with a single monthly payment.

2. Private student loans:

As the name suggests, a private student loan is provided by private organizations, such as banks and credit unions. These loans usually have a variable interest rate that is higher than the federal rate. Private student loans can be used to cover any educational expenses, including tuition, room and board, books and supplies, and transportation.

Federal loans are often the better option for students, but private student loans can be a good choice if you have exhausted your federal loan options and need additional funds to cover your educational expenses.

If you are an international student, you may not be eligible for federal student loans. In this case, private student loans may be your only option.

How to apply for a personal student loan?

Here are some of the things you need to keep in mind when applying for a personal student loan:

1. Shop around

personal loan for international student

To find the best international student loans, it’s important to shop around and compare the interest rates and terms of different lenders. You can easily compare the rates by going online and checking the websites of different lenders. There are hundreds of companies that offer international student loans and have their rates, monthly payments, terms, and conditions. So make sure to compare the offers before you decide on a loan.

2. Find a cosigner

If you are an international student looking for a personal loan, you will likely need a cosigner. A cosigner is someone who agrees to sign the loan with you and is responsible for making the payments if you cannot. Usually, a cosigner is a parent or other relative. Your cosigner has to be a permanent resident of the US and have a good credit score.

3. Check your credit score

When it comes to personal loans, your credit score is very important. You have to meet the minimum credit score requirements of the lender. If you don’t have a good credit score, you may have to get a cosigner. So it’s important to check your credit score before you apply for a loan.

4. Read the terms and conditions

Before you sign the loan agreement, it’s important to read the terms and conditions carefully. You should understand the interest rate, repayment schedule, grace period, late fees, and other charges. If you have any questions, make sure to ask the lender.

5. Fill up the application form

Once you meet all the requirements, you can fill up the application form and submit it to the lender. Make sure to provide all the necessary information accurately. You will be asked to provide certain information such as your name, address, date of birth, Social Security number, and the amount you need to borrow.

Things to consider before applying for an international student loan

Here are a few things you should consider before you apply for an international student loan:

1. Your eligibility

personal loan for international student

Before you apply for a loan, make sure you are eligible. Most lenders have certain requirements that you need to meet, such as being enrolled in an accredited school, having a good credit score, and being a US citizen or permanent resident. Different lenders have different requirements, so make sure to check the requirements of the lender you are considering.

2. The interest rate

The interest rate is one of the most important factors to consider when comparing loans. Make sure to compare the interest rates of different lenders before you decide on a loan. Keep in mind that the interest rate will affect your monthly payments and the total amount you will have to repay.

3. The repayment schedule

Another important factor to consider is the repayment schedule. You should know when you have to start making the payments and how much you need to pay each month. Make sure you can afford the monthly payments before you apply for the loan.

4. Apply for federal loans first

Applying for federal financial aid should be your first option. Federal loans usually have lower interest rates and more flexible repayment options. If you are not eligible for federal aid, then you can consider private student loans.

5. Make your payments on time

Once you have taken out a loan, it’s important to make your payments on time. Don’t miss a payment or you will be charged late fees. If you are having trouble making the payments, contact your lender and try to work out a repayment plan.

Conclusion

So there you have it! These are a few things you need to know about personal loan for international student. Make sure to do your research and compare the offers before you decide on a loan. And remember to make your payments on time!


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!


When To Apply for an International Student Loan
May 10th, 2013 by Jennifer Frankel

Apply For International Student Loan

If you are running the numbers on the cost of your education, you may find that even though you’ve scraped together your money, applied to an overwhelming amount of scholarships, and sought out any institutional aid – you are still coming up short to cover your education costs. The good news is that whether you’ve realized this before your academic term or even once you’ve started, you can apply for an international student loan throughout the year.

Read the rest of this entry »


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