Banks in US that give Loan to international students
International students ideally find it difficult to secure a loan for themselves to finance their education. This is because most banks require plenty of documents and eligibility before you can get a loan as an international student. This article will disclose some of these banks that offer loans to international students at ease.
Loan options available in the US for students.
- Federal student loans
Federal loans are student loans that are not meant for international students, it is rather for US citizens(students) who are studying in the US. These types of loans have low interest rates and flexible repayment option
- Private loans
However, the loan options for international students are called Private international student loans. International student loans are a type of loan tailored to international students to assist them pay for their tuition and other educational expenses.
These loans are mostly given out by banks or other financial institutions, with strings attached to it ( terms and conditions ) These terms and conditions vary from one lender to the other. Repayment plan and interest rates may vary among different lenders.
Requirement for international student loans
Good credit history
Co-signer or sometimes a collateral
Proof of income
Good visa status
Transcript
Passport
Proof of enrollment
Benefits of taking a loan to finance your education.
Here are some benefits of taking an international student loan.
- Easy to apply
The processes involved in applying for a student loan is quite very simple and quicker than other types of loans such as home loans. This is because most private lenders and banks have the application form available online, which makes it easy to fill out the form and submit it quickly right after you have finished filling the forms.
2 Flexible repayment terms
Many student loans offer flexible repayment terms that allow you to pay back the loan in installments over a period of time.
The repayment period may vary from lender to lender but typically ranges from 5 to 10 years.
Some of the repayment options are:
Full Deferral – This is where the student does not have to pay for his or her loan once they are still in school. This type of loan helps you to focus on your education since you have no liability obligations to execute
This gives you enough time to pay off the loan without putting too much strain on your finances.
Interest Only – Since the principal amount of money that was borrowed is very huge, it can be very difficult to pay such an amount of money while you are still in school. But this type of repayment option helps the student to pay only the interest on the amount borrowed. International students only pay the interest while in school, up to four consecutive years.
Immediate Repayment
- Low-interest rates
Most international students’ loans are accompanied with low interest rates.
Most lenders offer relatively low-interest rates on student loans, making it easier for you to pay back the loan over a period of time.
- A chance to improve your credit score
Taking an education loan is a great way to build a positive credit history and improve your credit score. This is done when you pay your loan on time. Since it helps you develop a good financial profile which can help you secure other big loan opportunities.Banks that offer loans to international students
MPOWER Financing:
They provide loans to international students studying in the USA based on their future income potential and without requiring a cosigner. Students enrolled in autopay are also eligible for an interest rate discount. Also students are able to get scholarship opportunities and career support.
Ascent student loan
With Ascent, students can secure a loan with or without a cosigner or collateral and also with or without a good credit score. It has also won the award for best private student loan company.
Ascent offers affordable rates, no fees, flexible repayment plans, and exclusive benefits.
Discover Student Loans
Discover Bank offers Discover student loans to international students in the USA who are enrolled in an eligible college or University. Loan terms and conditions require a cosigner. They also offer a full deferment payment plan. Thus, do not charge any fees or require payments while students are still in school.
Other banks include
Prodigy finance
Sallie Mae
Wells Fargo
Juno
Earnest
Credible
Citizens Bank