International graduate student loans: What to know and how to find them

When you want to study in the U.S. or Canada at the graduate level, finding the right international graduate student loans can be key to financing your education.

Graduate schools in the U.S. are among the best in the world, but the cost of studying abroad to pursue a graduate degree can be quite high. International graduate student loans can help close the gap between the cost of your education and the amount of financial aid your graduate program offers.

Read on to learn more about the different types of graduate student loans, how to find loans you may be eligible for and how to decide which loan is right for you.

Types of international graduate student loans

Since international students studying overseas in the U.S. are not eligible for loans or aid from the U.S. government, there are two types of international student loans you may qualify for.

Loans with a cosigner

Many lenders offering private graduate student loans require a cosigner who’s a U.S. citizen or permanent resident who has lived in the U.S. for the past two years and has a solid credit history and a stable income. A cosigner signs the loan documents with you and guarantees that if you cannot make payments on the loan after you graduate, they will pay off your debt.

Cosigners are important to lenders because graduate students often have little to no history of borrowing money and making payments. As a result, lenders don’t know how reliable graduate students will be in repaying their loans on time. Cosigners help lenders reduce the risk of a student defaulting on a loan.

For international students, cosigners are usually a family member or family friend who lives in the U.S. However, if you don’t have these kinds of contacts in America, you may take advantage of international graduate student loans that don’t require a cosigner.

Loans without a cosigner

Some lenders make it possible to apply for international graduate student loans without a cosigner. Rather than looking solely at your credit history, lenders will consider your career path and academic record instead, as well as other factors like your home country, your date of graduation and the school you plan to enroll at.

How to find loans you’re eligible for

When you want to learn more about financing a graduate degree with cosigner or no-cosigner loans, the International Student Loan Comparison Tool is a great place to start. This helpful online resource lets you quickly find international graduate student loans for which you may be eligible and provides information that can help you compare different lenders and loan offers.

To learn more about international graduate student loans available to you, you simply need to enter a little information into the Comparison Tool. This includes information about your home country, whether you have a cosigner or not, and where you want to study. The process takes only 15 to 20 seconds, and results are returned immediately.

No-cosigner student loans

Discover international student loans that don’t require a cosigner. Our loan comparison tool can help you find a lender that offers the best option for you.

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Which international graduate student loan is right for you?

Here are some things to keep in mind as you compare the international graduate student loans listed on the Comparison Tool or elsewhere.

Decide on a fixed or variable interest rate. With loans with fixed interest rates, your monthly payments will be the same each month. Variable rates are often lower than fixed rates at the beginning of the loan, but the amount of your monthly payment could go up or down, depending on the U.S. economy. Fixed rates offer more predictability, while variable rates offer the possibility of lower interest rates and monthly payments if the applicable index goes down while presenting the risk of higher interest rates and payments if that index increases.
Look for a low interest rate. The student loan interest rate is a percentage of the total loan that you'll have to pay in addition to the original loan amount. This is the fee the bank charges for loaning you money. The lower your rate, the less money you’ll pay over time.
Don’t forget about fees. When comparing international graduate student loans, it can be easy to forget about fees like origination fees, disbursement fees and guarantee/default fees. Fees can really add up and increase the total cost of the loan. That’s why it’s important to make sure you include all fees when you’re comparing one loan to another. This is where the Annual Percentage Rate (APR) of a loan is a useful marker. The APR includes not only the interest rate but also any fees associated with the loan, providing a complete picture of the true cost of borrowing. This means the APR can give you a more accurate comparison between different loan options, as it reflects the total cost of the loan on an annual basis.
Consider the repayment terms. The terms of your loan outline when you’ll need to start making payments, how much you’ll have to pay each month and how many years you have to pay. Repayment terms typically include a grace period, often six months after you graduate, when you don’t need to make payments. International graduate student loans may also have terms that let you pay less at the beginning and more as you get established or terms that tie the amount of payment to the amount of income you’re making after school.
Research the lender’s reputation. Lenders for international graduate student loans vary widely in reputation. Be sure to read reviews from other customers and research the business history of each lender. Choosing a lender that offers greater flexibility and excellent customer service will help make repaying your loans an easier and more pleasant experience.

When to refinance your international graduate loans

As an international graduate student, you may already have built up some debt from your undergraduate studies. Paying off your undergraduate school loans while taking on new debt can be a financial burden. Refinancing your debt with a private student loan can help to make your financial journey a little easier.

When you refinance your school debt, you’ll take out a new loan to pay off one or more previous loans. There are several reasons this may be helpful.

Getting a lower interest rate. When you take on new debt at a lower interest rate than your old debt, you may save a significant amount of money. Refinancing can help you pay your student loan off faster, restructure your repayment terms or lower your monthly payments.
Releasing your cosigner from your loan. If you obtained an undergraduate loan with a cosigner, taking on a new loan by yourself will release your cosigner from their obligation.
Building your credit history. Refinancing loans from other countries and making timely payments can help to improve your credit score in the U.S. over time. A good credit score is helpful when applying for other loans, renting apartments, applying for credit cards and even applying for jobs.
Working with a better lender. If your previous lender is quite rigid and not easy to work with, refinancing your debt allows you to choose a more reputable and responsive company.

International Student Loan: Information for financing your education

For the past 25 years, International Student Loan has been helping international students navigate the complex world of education financing. We understand how much is riding on your education and how difficult it can be to find financing options as an international student.

Our International Student Loan Comparison Tool is the first of its kind to take the needs of foreign students into account. Additionally, our website is full of articles, blogs and other information to help you understand and compare all your options. From financing options for undergraduate students from Europe to international student loans for African students, you’ll find comprehensive information on our website that can help you make the best decision for your situation.

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FAQs

Is there a penalty for repaying my loans early?

Many lenders will not charge you a penalty for repaying your loans early, but it’s important to confirm with the lender. Paying off your international graduate student loans before the end of your term can help you reduce the amount you pay in interest over the course of the loan. Check the terms of your loan for details about early repayment.

What happens if I can’t pay my loans on time?

Several things may happen when you can’t repay your loans on time. If you repeatedly make late payments, it can affect your credit score. If you stop making payments, your lender may require your cosigner to pay your debt.

Do international graduate student loans require a cosigner?

Many lenders offering international graduate student loans require a cosigner. However, if you don’t have a cosigner, there are certainly options available, and lenders tend to be more willing to offer no-cosigner loans to graduate students.

How can I find options for no-cosigner graduate loans?

The International Student Loan Comparison Tool is a great way to quickly find options for international graduate student loans without a cosigner. This online tool does all the searching for you, helping you quickly find loans you may be eligible for and letting you spend more time comparing loans and lenders.