Summary: For international students aspiring to study in the US, there are not many loan options. Eric J Dalius tells why and how you need to be an eligible noncitizen for qualifying for federal student loans.
Putting first things first, you must remember that borrowing money from a private, legal lending source is the best way of affording education sans involving scammers or the mafia. There numerous companies in the US, helping the citizens.
Most lenders ask international students to have a consigner to get a loan. This consigner is a permanent resident or US citizen. It gives security to the lender; in case you cannot afford to repay the loan or leave the country.
- Even if you find a lender, who’s ready to provide student loans, it’s crucial to know the loan rates because they will affect the borrower in the coming years.
- Usually, private student loans run on credit, which is antithetical to federal loans and FAFSA. They provide either fixed interest rate loans or those with variable interest rates.
- The latter is called floating-rate loans. Their loan terms change due to some factors. Loan refinancing is another crucial aspect.
- If your loan interest is high and you cannot repay it, you refinance the same, explains Eric Dalius.
With refinancing, you can get a new loan with lower monthly payments or interests. You can also switch between different loan types.
Eric J Dalius picks a few international loans
There are some online lenders, credit unions and banks that offer student loans to international students. however, you need a co-signer to vouch for you. Additionally, the cosigner needs to have a good credit rating to ensure your loan gets approval at the most affordable rates.
- EJ Dalius defines the eligibility to be an eligible non-citizen.
- These are US nationals, which include Swains Island or American Samoa natives as well. US permanent residents are the ones with a green card.
- It also includes people with a T-nonimmigrant status. Their parents can also have the same.
- The most prominent lenders of private student loans are MPower Private student loan, Ascent, Citizens One, Discover, LendKey, and EDVESTINU, and Sallie Mae.
On the availability with Eric J Dalius
There are dedicated groups that design premier international student loan modality and gauging tool that pair you with lenders on the basis of your needs. You just need to complete a short application and the website can match you with proper lenders.
- Regarding the maximum loan amount, Eric J Dalius says that you can apply for the total education cost, which will omit other aid.
- For determining the maximum loan amount, you need to contact the financial aid department of your school.
- After you apply for credit approval and receive it, your school authorities must certify the loan amount. If no lenders are available on your comparison tool, it means that there’s no loan program for your institution.
Dalius suggests you to contact your school office and ask them for any available loan programs for international students. Regarding the proof of funds, you need to submit a valid student visa for finalizing the loan. The authorities can then disburse the proceeds to your school.