Private student loans for studying overseas

When you plan to study abroad in the United States or Canada, you may need to apply for a private student loan.

The cost of an education at a private college or university can be as high as US$70,000 each year, and international private student loans can help cover the cost of tuition, books, fees, room and board and other expenses.

Read on to learn more about how private student loans work, how to search for lenders and how to compare different student loan offers.

How do private student loans work?

There are two kinds of student loans in the U.S.: federal loans and private loans. Since federal loans are available only to U.S. students, private student loans are essentially the only borrowing option for foreign students interested in studying overseas.

Private loans are offered by banks and private companies. You may apply for a loan online at any time, and you may borrow money to cover the cost of your school’s total cost of attendance, including tuition, room and board, books and supplies and other education-related expenses. Most loans have flexible repayment terms, and you don’t need to put up any collateral to receive a private student loan.

Applying for a loan with or without a cosigner

Because you may not have a credit history in the U.S., most private lenders will want you to have a cosigner. A cosigner is a U.S. citizen or permanent resident who has good credit, a stable income and who will take on the responsibility of paying back the loan if you can’t.

While it’s harder to get private student loans without a cosigner, there are some options available. This is good news for international students since many students have a hard time finding someone in the U.S. who’s willing to be a cosigner.

Where to find private lenders

The best way to find private lenders for international students is to use a tool like the International Student Loan Comparison Tool. This free, online search tool can help you discover your options for private student loans in just a few seconds.

To use the tool, simply answer a few quick questions about your citizenship, whether you have a cosigner, where you want to study and the degree you’ll pursue. After you enter this information, the tool will show you all the lenders who offer private student loans for your school and degree. Once you‘ve reviewed your options, you can begin the application process by clicking the “Apply Online” button.

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

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Comparing private student loans

As you look for private student loans, you may have multiple lenders or multiple loans from one lender to choose from. Keep these points in mind as you compare private student loans:

Find the most favorable interest rates. Different lenders and different loan products will come with different interest rates. Interest is the amount of money on top of the original amount of the loan that you’ll need to pay back to the lender. Fixed interest rates offer predictable payments, while variable interest rates may cause your payments to go up or down over time.
Choose repayment terms that work for you. Repayment terms include the number of years it will take to repay the loan and how much you’ll have to pay each month. Terms usually include an amount of time after you finish school before you have to start repaying the loan. You should also look at options for deferring loan payments in the event of financial hardship.
Review the lender’s reputation. All lenders are not the same, and some are easier to work with than others. Be sure to research the history of each lender, read customer reviews and look at the types of support they offer international students.
Understand the details of your loan. Many private student loans come with lots of “fine print” – fees and penalties that can add up to big costs. Read all the details of your loan offer to look for items like origination fees, processing fees and penalties for early repayment. Be sure to factor these expenses into the total cost of your loan as you make your decision. The annual percentage rate (APR) is useful here. 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, including the interest and fees associated with the loan.

Refinancing private student loans

If you already have one or more private student loans, it may be possible to refinance your debt, paying off your existing loans by taking out a new loan. Refinancing can be helpful for several reasons.

Lower your interest rate. If your existing loans have a higher interest rate, taking a new loan at a lower rate may help you reduce the amount you pay in interest over the life of the loan.
Reduce your monthly payments. If you’re having trouble keeping up with monthly payments on your current loan, refinancing may let you pay your loan off over a longer period of time, resulting in lower payments each month.
Consolidate your loans. If you have multiple student loans, you may find it easier to consolidate your debt by taking out one new loan.
Pay your loans off sooner. Refinancing private student loans can also help you make changes in the loan terms that let you pay off the loan faster.

Find the right private lender with International Student Loan

Since 1998, International Student Loan has been helping international students finance their studies in the U.S. and Canada. We understand how complicated the world of financial aid can be, and we’re dedicated to presenting you with the best financing options for international study.

Our International Student Loan Comparison Tool is the first of its kind for international students, quickly providing you with options for loans with or without a cosigner. Our website is also full of resources and information to help you learn more about private student loans, how to work with cosigners and how to build credit in the U.S., along with many other subjects. Offering information about multiple loan providers, we make it easier than ever to find the financing you need to study abroad.

Loans for study abroad

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

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FAQs

Am I eligible for private student loans?

Many lenders offer private student loans for international students who are not U.S. citizens but who wish to attend an eligible U.S. or Canadian college or university. Each lender has different eligibility requirements.

What private student loans are available to me?

The private loan that’s best for you depends on your citizenship, where you want to study and the degree you wish to pursue. Use our International Student Loan Comparison Tool to find the private loans that are best suited for your situation.

What’s the maximum amount of a private student loans?

You may apply for a private loan that covers all the costs of your education, minus any other aid or scholarships received from your school up to the maximum offered by your lender.

What expenses do private student loans cover?

It will vary by lender, but private student loans can typically be used for a variety of education costs, including tuition, room and board, books, fees, insurance, transportation and other school-related expenses.

How are private international student loans different from scholarships and grants?

Scholarships and grants are financial awards that do not need to be paid back. Private student loans are funds borrowed from a lender that must be paid back with interest.