Finding a trusted lender as an international student
An international student loan can go a long way in financing your education and covering living expenses in the United States, but finding a reputable lender can be challenging.
If you need help with student loan financing, here are a few strategies to uncover a trusted lender.
How to find a lender for financing education costs
International students might pay US$32,000 to US$60,000 total to study in the U.S. for one year of college, according to an article on the respected International Education and Financial Aid (IEFA) website. So finding funding is crucial. Most international students don’t qualify for federal student loans, but private student loans are a different story.
Below are four ways to find lenders and get help with private student loans.
1. Seek referrals from your network
One way to find a trusted lender is through trusted family and friends. If, for example, you have older siblings or cousins who’ve recently studied abroad, ask for a lender referral.
When asking around for lender recommendations, learn what your friend or family member specifically liked or disliked about a lender. Was the application process convenient? Did it offer fast loan funding? Are there any limitations you should be aware of?
Your inner circle can help you identify which lenders to explore further and which ones to avoid from personal experience.
2. Read international student loan lender reviews
Once you’ve narrowed your choices down to a handful of lenders, look up customer reviews for each one. You can find independent, third-party reviews on websites like Trustpilot.
These sites often have a star-based rating system and details about customers’ personal experience with the lender. Reading lender reviews can help you choose your top preferred lender if you’re undecided between two or more.
3. Find loan programs from your home government
Before leaving your home country, research whether your local government offers an education loan program to resident students who wish to study overseas.
For example, Australian citizens can apply for an OS-HELP loan to help pay for travel-related study abroad costs. In 2023, eligible OS-HELP applicants can borrow up to AUD$9,989, depending on the country you study in. The funds can be applied toward airfare, hotel stays and other travel expenses for your time studying overseas.
Although not all countries sponsor their own education loan program for students studying in another country, it’s worth looking into.
Seek alternative options through your school
Talk to a financial aid administrator from your school. The financial aid office can point you to financial aid options, like scholarships and grants, that you might not be aware of.
Common requirements for international student loans
As you find lenders for financing education costs, confirm whether you meet their basic international student loan eligibility requirements. The private lenders that offer loans to international students also have their own specific applicant criteria. Some common examples include:
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- Proof of qualifying program. The lender might have restrictions regarding eligible degree or certificate programs the funds can be used toward.
- Minimum enrollment. Applicants might have to meet a minimum enrollment level to meet the lender’s criteria. For example, some lenders require at least half-time enrollment.
- Proof of immigration status. International students might be asked for a copy of their student visa confirming they’re permitted to study in the U.S.
- Good credit history. Typically, lenders want applicants to have a solid track record for borrowing money on credit. Strong credit means you’re at a lower risk for defaulting on your student loan repayment. If you don’t have a U.S. credit record, lenders might require you to add a U.S.-based cosigner to your international student loan application.
- Income. When borrowing private student loans, you might need to begin monthly payments as soon as the funds are disbursed. Lenders might ask for proof of income, such as from a part-time, on-campus job, to verify that you can make your minimum payments.
- Satisfactory academic progress (SAP). Generally, lenders want to ensure you’re meeting the school’s minimum academic requirements to remain enrolled. It might request a copy of your school transcript to verify this information.
- Proof of qualifying program. The lender might have restrictions regarding eligible degree or certificate programs the funds can be used toward.
Final thoughts in finding a trusted lender
If you need extra funds to pay for school, finding a trusted student loan lender is essential. Repaying the loan often takes years – typically, around 10 years. Borrowing from a legitimate lender with a reputation for great service can streamline your experience so it’s less stressful.
You might start your search with MPOWER Financing, a trusted lender with a high TrustPilot score and strong track record. Founded by international students, MPOWER offers no-cosigner, no-collateral loans to international students planning to study in the U.S. and Canada.
Although it might be tempting to accept the first international student loan offer you receive, it’s wise to compare your options. Always compare multiple offers to see which one has a competitive student loan interest rate, fewest fees, favorable repayment terms and helpful resources.
