For international students, student loan programs offer a practical solution to cover expenses, but navigating the various options can be challenging. This article breaks down key loan programs for international students, student loan refinancing, and other financial aid opportunities, helping you make informed decisions about financing your studies.
Understanding international student loan programs
International students typically don’t qualify for government loans, such as U.S. federal student aid, so private loans and home country loans are the most common options. The two primary student loan types available to international students are:
1. Private international student loans
Private student loans are issued by banks, credit unions and specialized lenders. These loans often come with strict eligibility requirements, including a cosigner, typically a U.S. or Canadian citizen or permanent resident. If you can find a cosigner, private loans can offer favorable terms, but without one, your options might be more limited.
Some education loan providers also issue no-cosigner student loans, evaluating your academic performance and potential future income rather than requiring a credit history or guarantor. These are becoming increasingly popular among international students, especially in fields like STEM or business, where earning potential is higher.
2. Home country loans
Depending on your home country, there may be student loan programs available specifically for students studying abroad. These loans can offer better interest rates or repayment terms but may come with currency exchange risks affecting the overall cost of the loan.
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International student aid: Additional financial support
While student loan programs are an essential part of many international students’ funding strategies, it’s important to explore other financial aid options to reduce the amount you need to borrow.
1. International scholarships and grants
Unlike loans, merit-based scholarships and grants don’t need to be repaid, though you may need to meet and maintain certain criteria. Many universities and private organizations offer scholarships specifically for international students. Applying for these awards can significantly reduce your financial burden.
2. Assistantships and work-study programs
Many graduate students can supplement their income through assistantships or work-study programs, which allow you to work part time while studying. These positions are often tied to academic departments and can cover part of your tuition or provide a stipend for living expenses.
3. Employer sponsorship
For students already working or those with employment lined up postgraduation, some companies offer sponsorships or loan repayment assistance programs as part of their employment package. This is more common in STEM fields like engineering, technology and healthcare.
Why choose MPOWER Financing for a student loan
MPOWER Financing offers student loan programs specifically for international students pursuing their education in the U.S. or Canada. Founded by international students, MPOWER understands the unique challenges faced by those studying abroad. That’s why MPOWER provides more than just flexible loan options. MPOWER also offers additional support services like career guidance, immigration assistance and financial services to help students succeed before, during and after graduation.
Here’s how MPOWER’s student loan programs stand out:
Student loan refinancing: Is it right for you?
Once you’ve completed your studies and begun repayment, refinancing your student loan could be a smart financial move. Refinancing allows you to replace your current loan with a new one – ideally with better terms, such as a lower interest rate or longer repayment period. However, not all international students are eligible for refinancing, so it’s crucial to understand when and where it makes sense.
When should you consider refinancing?
Where to refinance your loan
Many private lenders offer refinancing options for international graduates, but it’s essential to compare lenders and terms before making a decision. Some lenders specialize in refinancing loans for international graduates, often requiring proof of income and a strong credit history in the U.S. or Canada.
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FAQs
Yes, some lenders offer refinancing options for international students, especially those with strong credit histories or steady post-graduation incomes. However, eligibility requirements vary by lender.
Private loans are offered by banks, credit unions and other financial institutions, often requiring a cosigner or an established credit history. University loans are offered directly by some schools and may have more flexible terms but are limited in availability.
Absolutely. In fact, combining scholarships, grants and loans is one of the best ways to fully fund your education without taking on unnecessary debt. Always aim to secure scholarships first, then use loans to cover any remaining costs.
Many lenders now offer private student loans without a cosigner for international students, especially for those studying in high-demand fields. These loans evaluate your future earning potential rather than relying on a cosigner’s credit history.
DISCLAIMER – Subject to credit approval, loans are made by Bank of Lake Mills or MPOWER Financing, PBC. Bank of Lake Mills does not have an ownership interest in MPOWER Financing. Neither MPOWER Financing nor Bank of Lake Mills is affiliated with the school you attended or are attending. Bank of Lake Mills is Member FDIC. None of the information contained in this website constitutes a recommendation, solicitation or offer by MPOWER Financing or its affiliates to buy or sell any securities or other financial instruments or other assets or provide any investment advice or service.
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