Empowering Education: The Student Loan Support Bank

1. Empowering Education: The Student Loan Support Bank

When it comes to financing a college education in the United States, international students face unique challenges. Federal student loans, while advantageous for U.S. citizens and eligible non-citizens, aren't available to the international student community. However, there's good news - the landscape of international student loans is changing. In this guide, we'll explore the best international student loans available in 2023 to help you make an informed decision.

2. Understanding International Student Loans

International students often have limited options when it comes to financing their education. Private lenders step in to fill this gap, offering loans tailored to the needs of non-U.S. citizens. These loans vary widely in terms and conditions, making it crucial for students to compare and choose the one that suits them best.

Key Factors to Consider

Before diving into our list of top lenders, here are some key factors to consider when evaluating international student loans:

• APRs (Annual Percentage Rates): The interest rate on the loan, which affects the total cost of borrowing.

• Pre-qualification Availability: Some lenders offer pre-qualification tools that allow you to assess eligibility without impacting your credit score.

• Fees: Understand any origination, administrative, or other fees associated with the loan.

• Co-Signer Requirements: Most international students need a U.S. co-signer, although some lenders may not have this stipulation.

• Repayment Terms and Options: Look at the flexibility of the repayment terms, such as deferred payments or interest-only payments.

• School Eligibility: Ensure your chosen lender works with your intended school.

• Loan Amounts: Check for minimum and maximum loan amounts.

• Discounts: Explore whether the lender offers any interest rate discounts.

• Credit Requirements: Understand what credit criteria the lender considers.

3. The Best International Student Loans of 2023

Earnest - Best Overall

Pros:

• Offers a nine-month grace period.
• Allows you to skip a payment once a year.
• No fees whatsoever.

Cons:

• No co-signer release program.
• Doesn't offer loans in Nevada.

Earnest stands out as the best overall choice for international students. They offer a wide range of student loans, including specialized graduate loans and refinance loans. Most international students will need a co-signer who is a U.S. citizen or permanent resident, but there are specific criteria for applying without one.

The lender's interest rates are competitive, and they offer the flexibility to adjust your loan term. Earnest also provides a nine-month grace period after graduation, which is longer than the standard six-month period. Forbearance options and modified repayment plans are available for those who may face difficulties in making payments.

Moreover, Earnest doesn't charge any fees except for interest, and they offer a 0.25% interest rate discount if you set up automatic payments.

Juno - Best for DACA Recipients

Pros:

• Can help you qualify for lower interest rates.
• No fees and no commitment.
• Available for DACA and international students.

Cons:

• Limited to their partner lenders.
• The approval process can take longer.

Juno takes a unique approach by bringing prospective borrowers together and getting private student loan companies to compete for their business. This strategy can lead to more favorable interest rates than you might secure on your own. It's a great option for DACA recipients and international students.

Juno's process is cost-free and does not require a credit check. While a co-signer is likely necessary, it can potentially help you save money on your loan. However, it's essential to note that Juno works exclusively with its network of lenders, so shopping around is advisable.

Credible - Student Loan Marketplace

Pros:

• Allows you to compare rates from multiple lenders.
• Doesn't require an application fee or a hard credit check for loan offers.
• Partners with seven different lenders.

Cons:

• Does not partner with all major lenders.
• Borrowers will need to do additional research.

Credible operates as a student loan marketplace, making it easy to get pre-qualified with multiple lenders simultaneously. This can help you determine the right fit for your financial needs. While it doesn't charge a fee for its service, partner lenders don't impose origination fees or prepayment penalties.

Credible is an excellent choice if you're unsure about your eligibility and want to compare rates and terms from various lenders. It's essential to note that the final loan terms depend on the lender you choose.

Ascent - Best Interest Rates

Pros:

• Relatively flexible repayment terms.
• Provides a 1% cash-back graduation reward.
• Offers referral bonuses.

Cons:

• Outcomes-based loans aren't available to part-time students.
• International students must have a co-signer.

Ascent offers several student loan options for international students, particularly for graduate studies. The lender provides a variety of repayment terms, including the option to postpone payments after graduation for up to 9, 36, or 48 months, depending on the loan program.

In addition to a 0.25% autopay discount on your interest rate, Ascent offers a cash-back reward worth 1% of your loan balance upon graduation. If you refer friends to Ascent, both you and your friends can receive bonuses.

While international students require a co-signer who is a U.S. citizen or permanent resident, Ascent offers a range of benefits and flexible repayment options.

Citizens Bank - Best for Graduate Students With a Co-Signer

Pros:

• Offers a loyalty discount for existing customers.
• Allows borrowers to get multi-year approval.
• Co-signer release is available.

Cons:

• Not available for community college students.
• Relatively low aggregate limits.

Citizens Bank stands out for its array of graduate student loans, making it easier for students to find loans tailored to their specific needs. The lender provides a 0.25% interest rate discount for automatic payments and an additional 0.25% discount if you or your co-signer has a qualifying Citizens Bank account at the time of application.

Multi-year approval is a notable feature, saving you from submitting a new application each year. While you'll need a creditworthy co-signer who is a U.S. citizen or permanent resident to get approved, you can have them removed once you meet certain requirements.

Discover - Best Big Bank

Pros:

• Offers a 1% cash reward for good grades.
• Rewards interest-only payments.
• No fees whatsoever.

Cons:

• No pre-qualification available.
• Only offers one repayment term.
• No co-signer release program.

Discover excels in offering undergraduate and graduate student loans to international students, provided they have a creditworthy U.S. co-signer. While Discover offers a 0.25% interest rate discount for automatic payments and a 0.35% discount for choosing to make interest-only payments while in school, they provide the added benefit of a 1% cash reward if you achieve a 3.0 GPA.

Discover sets no origination fees or prepayment penalties, offering a straightforward approach to student loans. However, they have limited flexibility in repayment terms, typically offering a 15-year term for undergraduate loans and a 20-year term for graduate loans.

MPower - Best for Undergraduate Students Without a Co-Signer

Pros:

• International students don't need a co-signer.
• Autopay discount of 0.25%.
• Doesn't require a credit score or history for approval.

Cons:

• Only offers a single repayment term.
• Interest rates are high.
• Charges an origination fee and interest-only payments in school.

MPower fills a critical gap by offering loans to international undergraduate students without the need for a U.S. co-signer. While they provide a 0.25% autopay discount, it's important to note that MPower's interest rates tend to be higher than those of other lenders.

Additionally, MPower charges a 5% origination fee and requires interest-only payments while you're in school. Repayment terms are less flexible than some other lenders, with a fixed 10-year term for all borrowers. If you don't have an eligible co-signer, MPower can be a valuable option, albeit with higher interest rates.

Prodigy - Best for Graduate Students Without a Co-Signer

Pros:

• No co-signer required for international students.
• Can use loans at schools in 20 countries.

Cons:

• Only available to graduate students.
• Interest rates are high and variable only.
• The lender charges an administrative fee.
• Only certain schools are eligible.

Prodigy Finance caters to graduate students who aspire to study in the U.S. or 20 other countries. The lender distinguishes itself by not requiring a co-signer for international students, eliminating a significant barrier to obtaining loans.

While Prodigy offers flexible loan terms, it imposes a 5% administrative fee, which is added to the loan when disbursed. Interest rates are high and variable, which can be a drawback if you have an established credit history or a co-signer with one.

Remember that Prodigy Finance loans are only available at select schools, and not all U.S. states are eligible. Loan minimums can also be restrictive, so ensure your school and program qualify.

4. Conclusion

International students face unique challenges when seeking financing for their U.S. education. While options may be limited and potentially expensive without a co-signer, there are lenders willing to provide financial support. It's essential to carefully review and compare your options before making a decision. Don't hesitate to reach out to your school's financial aid office for additional guidance on paying for college. Your journey to a U.S. education begins with the right financial choice.