Student loan comparison tips

When you’re planning on studying overseas in the U.S. or Canada, an in-depth comparison of international student loans is the key to financing your education.

There are a wide range of student loan options that may be available to you, each with different interest rates, repayment plans, loan terms and eligibility requirements. A student loan comparison can help you decide which lender and type of loan best match your goals and financial situation.

When you know where you want to study and you’re ready to compare loans, our International Student Loan Comparison tool makes it easy to quickly find the best options for you. Before you begin, it’ll be helpful to review the types of loans you may find and the most important options you’ll need to consider.

Types of student loans

Student loans in the U.S. fall into two primary categories – public and private.

Public loans

Public loans are offered by the U.S. federal government and are generally limited to U.S. citizens. However, the U.S. Department of Education states that there are some instances where international students may be eligible for financial aid from the federal government. Check with the financial aid office at the school of your choice for more details.

Private loans

When public loans aren’t an option, private loans are one of the best alternatives for international students. Offered by private banks and financial institutions, private loans feature competitive rates and usually cover an amount up to the total cost of attendance minus any financial aid you receive. You can easily apply for a private loan online and get initial approval within a few weeks.

Student loan conditions

Loans with a cosigner

Many private loans require a cosigner – someone who’ll be responsible for paying your loan if you can’t for some reason. Cosigners must be U.S. citizens or permanent residents, at least 18 years of age, have good credit and must show a reliable source of income. Cosigners enable student loan providers to have more confidence that the money they lend will be repaid on time. As a result, loans with a cosigner typically offer more favorable interest rates and repayment terms. Most international students turn to family members or close friends when looking for cosigners.

Loans without a cosigner

If you don’t have someone in the U.S. who can serve as a cosigner, you may qualify for a no-cosigner loan. Lenders who offer student loans without a cosigner base their decisions on your academic performance, career aspirations and other factors rather than on just your credit history or financial position. No-cosigner loans may have different eligibility and term requirements than other types of loans.

A student loan comparison tool

Remember, when you’re ready to research the best loans for students, you can take advantage of the free International Student Loan Comparison tool on our website. With this online resource, you can quickly view all the private lenders offering loan products that match your needs and your study plans.

To use this education loan comparison tool, you need only answer a few questions about yourself and your studies, including:

Where you’re from
Whether you have a cosigner
Which college or university you plan to attend

After entering this information into the loan comparison tool – it only takes a few seconds – you’ll immediately see a list of private lenders offering loans that may be right for you. By performing all the research needed to locate available lenders, our student loan comparison tool lets you focus on what really matters – finding the loan with the best terms for your situation.

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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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How to compare student loan options

These are some of the most important criteria to consider as you compare private student loans with our student loan comparison tool.

Maximum amount to borrow. In theory, a private education loan will cover the total cost of attending a university, less any amount you receive in financial aid, scholarships or grants. In practice, the maximum amount available to you may vary from lender to lender.
Cosigner required. Some loans require a cosigner while others do not.
Interest rates. The interest rate on a loan determines the amount you’ll have to pay the lender in addition to paying back the amount you borrow. The interest rate a lender offers will depend on things like your credit score, the repayment length of the loan and your income. Fixed interest rates do not change – your payment will be the same each month. Variable interest rates may increase or decrease as economic conditions change, potentially increasing the amount of interest you pay when interest rates increase, as they have recently.
Total cost of the loan. In addition to the amount you’ll pay in principal and interest, private loans also include a variety of fees. In any student loan comparison, it’s important to add the cost of fees to the cost of interest to get the total cost of your loan.
When payments start and end. The terms of your loan include the length of time you’ll have to repay it – most plans are five or 10 years. Some loans will ask you to begin paying your loan immediately. Others may offer a grace period that lets you start repaying loans after you’ve graduated.
Discounts. Some lenders offer reductions in interest rates or one-time discounts for meeting certain conditions. These may include things like loan payments that are automatically debited from your bank account or agreeing to receive monthly statements by email.
Covered expenses. While most private loans will help cover cost-of-living expenses like room and board, others, especially those for Canadian schools, may pay only for tuition.
Customer service. Private lenders vary widely in the quality of customer service they offer. The best loan providers make it easy to communicate via phone, chat and other channels, even during evenings and weekends, without long hold times. Researching customer reviews of each lender will help you understand which providers offer the best service.

How International Student Loan can help?

We understand that it can be a challenge for international students to navigate the world of student loans in the U.S. It can take hours or days to do all the research for a student loan comparison and make the right decision about financing your education. That’s why, at International Student Loan, we offer lots of free resources designed to simplify the process.

Our International Student Loan Comparison tool is the first of its kind to consider the needs of foreign students when providing details on potential lenders. With this helpful tool, students no longer have to write to dozens of lenders to check eligibility – the tool matches you with potential lenders in seconds.

Along with our student loan comparison resources, we offer lots of articles and blogs to help you better understand the ins and outs of student loan financing in the U.S. From changes in the student loan industry to explainers on how student loans work, you’ll find all the information you need to finance your education at InternationalStudentLoan.com.

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FAQs

When should I apply for a loan?

You may apply for a private loan at any time during your education – from the moment you’re accepted at a school, all the way to the very end of your studies. In contrast to federal public loans, there are no deadlines with private student loans.

Can I apply for a student loan if I already have a scholarship?

Yes. Lenders will likely deduct the amount of your scholarship when determining the maximum amount of money you can borrow.

How are interest rates on student loans determined?

Lenders set interest rates based on several factors. These include your credit history (or your cosigner’s history), the amount you’re borrowing, the length of your repayment plan and the strength of the U.S. economy.