Comparison and selection of the latest international student loans in 2022 – What conditions need to be met.
Generally there are the latest types of student loans in the United States for international students and we have provided you with their list according to their selection and comparison below.
1. Federal Student Loans
This is a loan provided by the government and requires a U.S. citizen or green card. Most government-provided loans do not require a Co-Signer (guarantor), which is a co-borrower (except Federal Student Aid).
2. International student loans that require a guarantor
If you have family and friends in the United States who are willing to be a Co-Signer for you, you can find a bank loan. The specific interest rate depends on the Co-Signer’s personal credit score. The higher the credit score, the lower the interest rate.
What should I do if my credit score is too low?
Look for companies that specialize in repairing credit scores, such as CreditRepair.com . This website is a company dedicated to repairing credit for consumers, and it has a team of professional credit experts listening and figuring out the best ways to help customers repair their credit. For more credit repair companies, check out the following articles:
3. Student loans that do not require collateral or guarantees
Since this kind of student loan does not require a mortgage and guarantee, the interest rate is higher than the previous two, but the advantage is that it is very suitable for international students without American status. And because lenders are taking higher risks, they are more motivated to help students find jobs. The current mainstream unsecured lenders all provide free career guidance services.
Below we will focus on introducing the second and third types of study abroad loans.
4. Student loans that require a guarantor
This type of loan is called an International Student Loans. This is provided by the U.S. government to all international students studying in the United States. This program is aimed at undergraduate international students from all over the world who want to study in the United States. It can help students successfully complete their studies at a university or college in the United States.
Because of the large number of international students studying in the United States, and the number is increasing year by year, the need for financial aid is also increasing accordingly. To meet this need, the U.S. government provides a considerable amount of student aid loans to students who are not U.S. citizens.
As long as students are admitted to a regular university recognized by the United States, they can apply by phone or online by applying for Student Loans for International Students, but they need a U.S. citizen or a person with permanent residency in the United States (green card holder), for It is a loan guarantee.
Eligibility for International Student Loans
- Students who are not U.S. citizens or do not have permanent residency in the U.S. (green card holders) and who plan to attend an eligible U.S. university or college.
The borrower needs a U.S. citizen with
- good credit or a guarantor with permanent residency in the U.S. (green card holder). Students who are not U.S. citizens or do not have permanent residency in the U.S. (green card holders) intending to study at a university or college outside the U.S. will not be eligible for the loan.
Conditions to be met by the guarantor.
1. Eligible credit card, living and working in the United States for at least two years.
2. Proof of income, if self-employed, for at least two years.
3. Be a U.S. citizen, or have permanent residency in the U.S. and have resided in the U.S. for the last two years.
What if I can’t find a guarantor?
Unfortunately, all international student loan programs require a guarantor. The sponsor must be a U.S. citizen, or have permanent residency in the U.S. (green card holder), have lived in the U.S. for the last two years, and have a good credit history. A non-U.S. citizen or person without U.S. permanent residency cannot act as a sponsor.
The role of international student loans
International student loans, like other private education loans, can be used for education-related expenses, including tuition, books, insurance, transportation, room and board, and school-related expenses.
The maximum loan amount that an international student can apply for
Depending on your school’s tuition fees, you can apply up to the maximum cost of education (minus financial aid). To determine your maximum loan amount, or what fees are covered on your loan, you will need to contact your school’s financial aid office. When you and your guarantor apply for a student loan and are approved for credit, your school must check the loan amount.
International Student Loan Interest Rate and Repayment Period
The interest rate and repayment period will depend on the student loan option and loan company you choose. Once you’ve chosen the student loan that’s best for you, you’ll need to review its terms or contact the loan company with any questions. The interest rate is calculated by an index plus interest based on the guarantor’s creditworthiness. Based on the guarantor’s credit, additional interest is added to the student loan index, which is the total interest rate, and here you can decide whether you want to continue applying. Every loan company has a different loan amount range, so it’s important to do loan comparisons and review their interest rates and repayment periods.