What You Need to Know about International Student Loans
Each year, a number of international students aim to pursue further studies or higher education in other countries. However, some of them encounter financial issues when it comes to the massive amount of tuition and fees in universities and colleges abroad. Fortunately, these students may avail of international student loans for financial assistance. With this type of loan, they can avoid formidable handles when it comes to funding their education.
Important Facts about International Student Loans
A few colleges provide loans and financing for international students who are in need of low interest rates and good repayment plans. Some students, though, opt to seek loans from private lending companies. When they decide to do so, they are usually required to have their loan application co-signed by a citizen or permanent resident of the country where they wish to study. In applying for a loan, students should compare their loan options, so they could find a lender that offers the best rates. Some lending companies are willing to offer loans to students in exchange for their commitment to provide services for the corporation for a certain period after completing their studies.
An international student loan is the best option to be considered after all scholarships, grants and federal loans have been exhausted. Several lenders allow students to add a co-signer to their application, and this is likely to give them better interest rates. Because of the nature of international loans, the co-signer can help offset the possible risks of lending money to foreign students.
Typically, international student loans are used to pay for various expenses such as tuition, lab fees, learning materials, housing cost, transportation, board and lodging. Furthermore, this type of loan is more flexible than federal loans, and when there are excess funds over their cost of attendance are sent via check from the school.
Basic Guidelines when Applying for A Student Loan
Since most students have not established a credit history, they need a co-signer with a notable credit rating in increasing their chances of having the loan approved. For quick processing of the application, students should prepare their co-signer’s relevant personal information such as the income, SSN and have other important details ready before they fill out the application form.
As for the loan application process, students may submit the form online or via mail at the lender’s discretion. After the amount to be borrowed has been determined, applicants will be required to provide their co-signer’s SSN, income details, driver’s license and personal references. Moreover, the co-signer’s and applicant’s credit history will be checked.
The average expenses for foreign students may be very costly, which may reach over $50,000 per year in some private universities. In addition, international students should consider the expensive travel costs as they assess the money they will need for higher education. For many students, their only option is to obtain financing from lending companies. As they search for the best lender for their financial needs, they should consider important factors such as the interest rates, repayment schedule and other aspects when applying for an international student loan.