Private education loans for studying abroad

Looking for ways to finance your study abroad in the U.S. and Canada? Private education loans may be the answer.

There are many education loan lenders that are happy to work with international students. The money from private education loans> can help cover the cost of tuition in the U.S. and Canada, as well as books, supplies, food and living expenses in the U.S. One of the best things about private student loans is that there are no deadlines – you can apply any time during your studies.

The key to finding the right loan for you is to understand how private education loans work, what a cosigner is, where to search for loans and how to compare different loan products.

How private education loans work

Private education loans are offered by banks and private financial companies. As long as you’re planning to attend an eligible school, you can apply online in many cases and get approval within just a few days.

Covered expenses

Typically, you can borrow an amount that’s equal to the total cost of attending your chosen school, less any other aid you’re getting. However, it’s important to research student loan lenders and ensure you understand which expenses are covered under your international education loan, as this can vary by lender or school. Evaluate whether the loan amount covers all necessary expenses and aligns with your personal and educational objectives.

Consider the total cost of attendance, which can include a number of expenses such as:

Tuition – usually the largest cost during each year of study
Mandatory fees – including activity fees, recreation fees, student center fees and other required expenses
Books and supplies – including lab costs, laptop expenses and costs for other class materials
Room and board – the cost of living in an on-campus dorm with a meal plan, or living in an off-campus apartment in the U.S. with costs for rent, utilities, and groceries
Transportation – including a parking permit or a pass for public transportation
Personal expenses – including miscellaneous costs for living as a student, healthcare costs and more

Interest rates

The interest rate on your loan is the amount of money you’ll need to pay the lender on top of the principal, which is the original amount you borrow. The lower your interest rate, the less your loan will cost overall. Interest rates may be fixed or variable. Fixed rates stay the same throughout the life of your loan, making your monthly payments predictable. Variable interest rates rise or fall based on changes in the economy, so variable rates are sometimes lower than fixed rates.

Disbursement

The money from private education loans is usually sent to your school, rather than directly to you. The school will apply the loan proceeds toward tuition and mandatory payments, and then may make any remaining funds available to you to use for other expenses. You’ll need to check with your school to see if they’ll allow this.

Cosigner vs. no-cosigner: What’s the difference?

In education loan financing, a cosigner is someone who has the legal responsibility to pay back the loan if you cannot for some reason. Because lending money is a risk, financial institutions want to make sure the person they offer a loan to is likely to pay it back. Most international students have never borrowed money before, so they have no history of making payments on time and paying off loans as expected. A cosigner gives lenders confidence the loan will be repaid.

A cosigner must be a U.S. citizen or permanent resident with good credit and a stable income. For most students, cosigners are a family member or close family friend who’s invested in their academic success.

If you don’t have friends or family in the U.S., you still have options for an education loan without a cosigner. These loans may come with higher interest rates, different eligibility requirements and fewer schools to choose from. But the good news is, applying for an international student education loan without a cosigner is quick and easy, and the loan can help cover many of the costs of attending school in the U.S. or Canada.

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Our loan comparison tool can help you find an international student loan that’s right for you.

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Comparing private education loans

You can use the International Student Loan Comparison tool to quickly find private education loans you may be eligible for. With this free education loan comparison tool, you’ll answer a few simple questions about yourself, your plans for study and whether you have a cosigner. Within seconds, you’ll get a list of all the lenders offering private education loans – with or without a cosigner – that match your needs. You can even use the student loan comparison tool to begin the application process.

As you compare private education loans, there may be multiple options to consider. Here are a few tips for choosing the best loan for you.

Compare interest rates. The lower your interest rate, the less you’ll pay overall to borrow money for your studies.
Look at repayment terms. Repayment terms include the amount of years it will take to pay back your loan and what your monthly payment will be. Terms may also include the amount of time after you’re done with your studies before you must start making payments on your loan – usually six months. Some loans offer repayment terms that include options for renegotiating the payment schedule if you run into financial hardship.
Read the fine print. There’s often a lot of “fine print” in education loan paperwork. This is information about things like origination fees, penalties, processing fees and other costs that can add up over time. Be sure to understand each fee and factor it into the total cost of the loan as you compare one product to another.
Check the lender’s reputation. While there are many fine lenders, there are also a few that are more difficult to work with. Be sure to read reviews of each lender and compare the types of support they offer to students like you.

International Student Loan: A trusted source of information

International Student Loan has been helping international students find the information and resources to finance their studies since 1998. We know how confusing it can be to uncover all the options for student loans, so we offer lots of free tools and resources to help simplify the process of applying for financial aid.

Our International Student Loan Comparison tool is the first of its kind to take the needs of international students into consideration. With this helpful resource, you no longer need to research and communicate with every possible lender to see whether you’re eligible – the tool provides you with this information in seconds.

You’ll also find lots of articles and blogs on our website to help you make sense of educational financing in the U.S. and Canada and to keep you up to date on all the options for financing your studies.

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FAQs

What are private education loans?

Private education loans are loans for students offered by a private bank or financial company rather than by the U.S. government.

Am I eligible for private education loans?

Many lenders offer loans to international students who are interested in studying at an eligible U.S. or Canadian university. Each lender has its own eligibility requirements – you can use the International Student Loan Comparison tool to quickly find loans you’re eligible for.

How much can I borrow with a private education loan?

With private education loans, you can usually borrow an amount that’s equal to the total cost of your education each year, minus any scholarships, grants or financial aid that you’ve received from your school. Each lender may have a different limit on the total amount of money they’re willing to lend you, so it’s important to compare multiple lenders.

What is a credit history?

Your credit history is a record of how reliable you've been when making payments on bills and loans in the past. Lenders rely on a student’s or cosigner’s credit history when deciding whether to approve a loan. A good credit history may give you access to lower interest rates or better terms on your loan.