International student loans are educational loans. These are given by governments of Canada and the USA to international students. The educational grants aim to support needy students from under-developed countries. They also help resume their education in the USA and Canada. Students often apply for international loans after trying all other available scholarships. For international student loans, a qualified co-signer is the best available option. In case a student cannot find a co-signer, there are other suitable options also available. Many universities and colleges in Canada, as well as the US, are offering loans without co-signers to the students. This article will discuss the ten major things a student must know before applying for international students loans. These are as follows;
What is a qualified Co-signer?
A qualified co-signer is a party taking the loan’s guarantee. In other words, the entity is bound to pay back the loan to the institute if the borrower fails to return the debt. In case of the borrower not paying the loan, the responsibilities of the co-signer are;
- He is bound to pay the total amount of the loan instead of the borrower.
- bound to pay interest on behalf of the borrower.
- He has to face all legal proceedings in the borrower’s absence (due to any reason).
Why is Co-signer necessary for international student loans?
In almost all Universities, student loan criteria ensure the availability of a few things. The presence of a qualified US Co-signer is one of those requirements. The role of the Co-signer is of two types;
- In case you are an international student, the role of the Co-signer is to take guarantee of your legal proceedings.
- The role of a Co-signer is to enhance the chances of acceptance for your approval. This is applied when you are a US citizen.
- The number of international loans that a government will offer depend on your Co-signer status. They will demand the banking details of your co-signer as well.
Eligibility criteria for the international student’s loan
Before applying for an international student’s loan, make sure you have the following available;
- Valid passport
- Student visa
- A Co-signer
Apart from a few, almost all universities of the US require a guarantee from a well-established US lender. Without trustworthy US permanent residents, there are low chances of getting international student loans. If you want to apply for an international loan, you have to get prepared before time. The global funding organizations will cross-check your financial abilities. The purpose of such investigations is to access whether you will pay back the loan or not?
How to find a suitable Co-signer?
There must be trust between the relations of a co-signer and borrower. Hence, it will be good for you to make your international friend or family member a co-signer. You need to know the financial state of the co-signer. Please don’t forget that the amount of the loan you will get depends upon the financial status of the co-signer.
Differences between private and federal student loans
Recommended by a dissertation help firm, the students must also know the differences between private and federal international loans. These are highlighted as follows;
- Private international student loans are the educational grants private lenders, or private sector institutes give to students.
- Federal international student loans are the educational stipends that international government sector institutes announced to distribute.
- The interest rate on Federal student loans is 4.45% for undergraduates, and 6% for graduates.
- The interest rate on Private student loans is 7.99 %. This may differ for undergraduates and graduates.
- Your personal credit will not affect the Federal student loan aspects. But is essential for Private student loans to have a creditworthy co-signer.
- The government can also provide your Federal student loan. But this cannot happen in the case of private student funds.
How can you use the international student loan?
You can only use the international student loan to meet your educational expenses. The educational costs include;
- Tuition fee
- Experimental appliances
- Hostel dues
- Other necessary expenses (food, drinks, communication, and internet expenses).
Step by step guide to apply for international student loan
If you want to resume your studies abroad, then please follow these steps;
- Before applying for an international student loan, you must know how much money you need to borrow.
- The next step is to allocating total expenses of the program you want to study. So, consider the figures lender mentioned in a financial aid letter.
- Search for the appropriate loans that can meet your needs.
- You can also use some online loan comparison tools to discover the best option for yourself.
- The next part is for your co-signer.
- After completing both parts, the lender will send you further documents.
- Follow deadlines and ensure timely submission of all necessary documents.
- After following these steps, the University will transfer the loan to your student account.
International students’ loans refunding procedure
Most students are curious about the international students’ loan refunding procedure. This is highlighted in easy aspects as follows;
- The amount of loan you have to pay back depends on the interest rate and lender you selected.
- The amount of interest depends on the creditworthiness of the co-signer.
- The repayment rate calculation is different in the absence of a co-signer.
- In the absence of a co-signer, the lender does not need credit scores. Instead, they need all bank details to review the payment history of an applicant.
Can a student apply for an international student loan without using it in a school?
Another important question students often ask is;
‘Can a student apply for an international student loan without applying in a school?
Yes, you can apply for an international student loan without the selection of a school. But in this case, all you need is a student’s visa. The student visa will help complete the loan process. But, the first step of finding a lender at the University of your choice will remain the same.
How much loan you can get?
The total amount that you can get for a loan depends upon the total annual fee. You can calculate the loan amount by subtracting any financial aid from the total semester fee of the institution.