2024 International Student Loan Guide

Funding your education can be complex if you plan to study in a foreign country. Whether you’re a U.S. citizen planning to study abroad or a non-U.S citizen planning to study in the U.S., adjusting to the cost of living while financing your studies can be challenging.

Private lenders and credit unions offer international student loans to aid those who plan to study abroad. These are flexible financing methods with reasonable interest rates and terms that students can repay during or after their education.

Access to international student loans grants myriad opportunities, especially for foreigners who plan to study in the U.S. A study from the Education Data Initiative found that public institutions in the U.S. charge international students twice as much as students from the U.S. Conversely, U.S. citizens who plan to study abroad may be looking at annual tuition fees of less than $2,000.

Explore international student loans, how they work and where an interested student can get one.

An international student is a noncitizen or permanent resident who travels to a different country for higher education. In the eyes of various governments, international students are nonimmigrant visitors who need to apply for a visa to study in or enter the country.

A typical example of this would be a non-U.S. citizen or permanent resident who applied to a college or university in the U.S., got accepted and applied for a student visa. U.S. citizens can also be classified as international students if they attend higher education institutions in a different country, like Australia or France, and must get a student visa to stay for the duration of their education.

An international student loan is a financing method usually offered by private lenders. This type of loan can help students cover the cost of education, including tuition, room and board, books and living expenses.

The requirements for an international student loan vary from lender to lender, but understanding the typical requirements can help students find a loan and lender that works for them. The following are a few common and major factors you may encounter when applying for international student loans:

Whether you’re a U.S. citizen who wants to study abroad or an international student who is interested in coming to the U.S., an international student loan can help ensure that your education is well-funded if you lack the finances. However, not everyone will qualify, which is why understanding the usual eligibility requirements is crucial for incoming students.

A federal student loan is financial aid offered by the U.S. government. It is often the first option for U.S. citizens and eligible noncitizens who plan to study within the country, as it comes with low interest rates and loan forgiveness options.

Some non-U.S. citizens are eligible for federal student aid. They include:

• Permanent residents with a Form-I551, I-151, or I-551C
• Individuals with an Arrival/Departure Record (I-94) showing:
  — Refugee
  — Asylum-Granted
  — Cuban-Haitian Entrant
  — Conditional Entrant (valid only if it was issued before April 1, 1980)
  — Parolee
• Individuals who hold or have parents who hold a T nonimmigrant status
• Individuals who are a battered immigrant-qualified alien
• Citizens of the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau

Certain eligible noncitizens also have to provide evidence to the U.S. Citizen and Immigration Services (USCIS) that they are in the country for other non-temporary reasons.

Conversely, the following individuals are not eligible for federal student aid:

• Deferred Action for Childhood Arrivals (DACA) recipients
• Individuals with I-171 or I-464
• Individuals who are in the U.S. with a student visa (F-1 or F-2)
• Individuals with a G series visa

International student loans from private lenders are the next option for non-U.S. citizens ineligible for federal aid and U.S. citizens planning to study abroad. Banks, credit unions and other private financial institutions offer these loans, and each lender will have its own requirements and qualifications. Generally, however, the common requirements can vary based on your citizenship.

For U.S. citizens who plan to study abroad:

• Proof of acceptance to a university outside of the U.S.
• Enrollment or transcripts from any U.S. university attended
• Credit check for applicant or co-signer

For non-U.S. students who plan to study within America:

• Proof of acceptance to a university, college, or non-degree vocational program within the U.S.
• Student visa
• Transcripts or enrollment documents from any other university attended
• Eligible co-signers

U.S. citizens and international students who plan to study away from their home country may have fewer financing options than others. However, private lenders and non-bank institutions still offer international student loans.

Private Banks

Private lenders are the most common source for international student loans, but they may come with stringent requirements. For instance, most private banks will require that you have an eligible co-signer to guarantee that the loan will be repaid even when you’re out of the country. Some lenders may let you borrow without a co-signer, but you will have to pay higher interest.

Non-Bank Institutions

Non-bank lenders are financial institutions like insurance firms or consumer credit companies without banking licenses. They often operate online and have straightforward application processes but come with higher interest rates and lower borrowing amounts than banks.

When it comes to studying abroad, managing your finances as a student can be challenging. Read the most commonly asked questions below about international student loans.