Education loan comparison: How to find the right financing

Need financing for studying in the U.S.? Use our education loan comparison tool to find competitive rates and flexible repayment plans.

When you’re planning to study abroad in the United States and are looking for education loan financing it’s good to perform an education loan comparison during the process. By comparing several private education loans and their interest rates, terms and repayment plans, you can find a product that works best for your academic and financial situation.

Types of student loans to compare

There are several types of student loans you’ll want to consider as you plan to finance your education in the U.S.

Public versus private loans

Public loans are available from the U.S. government. These loans generally have favorable interest rates and repayment terms. While most international students aren’t eligible for U.S. federal loans, there are some instances in which foreign citizens may qualify for federal student aid. It’s worth checking with the financial aid office at your chosen school to learn more.

Private student loans available from banks and financial institutions that are happy to work with international students. These loans typically offer competitive rates, easy online applications and fast approval. Plus, you can usually borrow up to the total cost of attendance, less any other financial aid you’re receiving from your school.

Private education loan terms to consider

Cosigner versus no cosigner

When applying for a private loan, you’ll find options for loans with and without a cosigner. A cosigner is someone who signs the loan with you and guarantees to repay it if you cannot. Cosigners must be U.S. citizens or permanent residents who are at least 18 years old and who’ve lived in the U.S. for at least two years. They must also have a good credit history and prove they have a stable income.

Loans with a cosigner are easier to find and offer better rates, since they’re less risky for private education loan lenders. While loans without a cosigner may have higher interest rates, they’re still an excellent option for international students.

What to look for in an education loan comparison

Here are the key steps to take when performing an education loan comparison:

Find the lowest interest rate. The interest rate on your loan is the percentage of the amount you’re borrowing that you’ll have to pay to the lender each year in addition to payments on the principal or the amount of the original loan. Interest is the cost of borrowing money, and your interest rate determines the cost amount. Interest rates can be fixed or variable, and it is important to compare like to like.
With fixed-rate loans, the interest rate will not change over the course of your payments – you’ll pay the same amount each month. With variable rates, your interest rate may rise and fall based on factors in the U.S. economy. Variable rates may be cheaper than fixed rates at certain times and more expensive at others.
Choose an advantageous repayment plan. A repayment plan is a schedule you’ll follow for paying back your loan over time. Typical repayment plans are five or 10 years, but certain lenders may offer more flexibility.
Some repayment plans require you to begin making payments right away, while others offer a grace period, allowing you to wait or pay less until you graduate before making payments. Some repayment plans allow you to pay less while you’re earning less money and pay more if your revenue increases.
Calculate fees. You may see additional costs like origination fees, disbursement fees and default fees in the loan agreement. These are usually upfront costs and should be added to the total cost of borrowing money in your education loan comparison.
Review additional terms. These items may include terms like requiring a cosigner, a minimum credit score or discounts on repayment if you use automatic payments or maintain good grades in school.

Find my international student loan

Our loan comparison tool can help you find an international student loan that’s right for you.

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A helpful tool for an education loan comparison

One of the best ways to conduct an education loan comparison is with the International Student Loan Comparison Tool. After you enter some information about yourself and your study plans, the online loan comparison tool will quickly give you a list of lenders offering loans that match your needs.

To use this student loan comparison resource, you simply need to answer a few questions. The process takes just a few seconds, and you’ll immediately get a list of lenders offering loans that match your criteria.

With this information, you can spend less time researching individual lenders and more time studying your education loan comparison data to help you find the best financing options.

International Student Loan history and other resources

At International Student Loan, we understand how challenging it is for international students to finance their education in the U.S. or Canada. Since 1998, we’ve been providing informational resources and tools that help simplify and demystify the process of finding student loans and handling education loan comparison.

In addition to our education loan comparison tool, you’ll find dozens of helpful articles, blogs and other resources on our website. These are designed to equip you with the information you need as you navigate the complex and sometimes confusing world of international student aid.

Loans for study abroad

Thinking about studying abroad? Learn how International Student Loans can help you finance your studies overseas.

Understand your Options

FAQs

When should I apply for an education loan?

There’s no deadline for applying for private student loan applications. You can apply at any time, from the moment you’re accepted at a school, all the way through to the completion of your education.

Can I apply for a loan before I’m accepted at a school?

While you can begin a loan application before being accepted to a school, you won’t be able to finalize your loan until your acceptance and your student visa are finalized.

How much money can I borrow with a private education loan?

Private education loans usually allow you to borrow up to the total cost of attendance, less any money you’re receiving in financial aid, scholarship and grants. The total cost of attendance includes tuition, room and board, books and supplies, transportation and other school-related expenses. However, it will vary by lender.