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Some 750 international schools offer Direct Subsidized, Unsubsidized and PLUS loans to US citizens who enrolled as full-time students. Federal loans are most popular in Canada, England and Australia but you can also find schools in countries like Russia and China that offer federal aid.
Go for these federally-funded loans if you can — not only are they the easiest for Americans to get abroad — they’re often the cheapest, with interest rates set by the US government. The relative low cost of international schools means you’re less likely to run out of funding, even for housing and other expenses.
The process is the same abroad as it is in the US: Apply online with the help of your school’s financial aid office and start repaying six months after you graduate. You might need a local bank account to deposit your checks if you need to cover housing, textbooks and other expenses.
You could, but it’s not likely you’ll get funding for education from a foreign country. Many countries only offer financing to permanent residents. Other countries don’t offer loans for cultural reasons. Your best bet is borrowing from an American lender or getting an international scholarship.
Some international schools are accredited US institutions. What does this mean for you? Not only do they offer federal aid, your degree doesn’t need to be verified by the US before applying for jobs or other degree programs. Look for schools with names like “American University of Paris” or “American University of Beirut.”
Alternately, you can apply for an international campus of an American school. New York University, for example, has campuses in Italy, Argentina, Ghana and more.
Going to a school that doesn’t offer federal student aid? Can’t get the money to cover your education expenses? You might want to take a look at private student loans.
Getting a loan with a local lender doesn’t make sense unless you plan on working in that country long enough to pay back your loan — otherwise you’ll deal with monthly, potentially costly money transfers until your loan is paid off. You’re better off with a US lender.
As an international student you might not meet eligibility requirements for your standard private student loan, and collecting your funds inevitably involves an international money transfer. It’s best to look for a lender that specializes in providing financing to international students.
Some US lenders offer loans for US citizens or permanent residents who want to complete a degree outside the US, often called “foreign enrolled loans.” To qualify, you likely need to provide proof of enrollment — a letter or transcript from your university — and your acceptance letter.
Lenders might have lists of approved schools, so find one that’s willing to finance a degree from your university. You’ll also need a cosigner if you’re like most undergraduates and have no credit history.
Peer-to-peer and online marketplaces are new to the lending world, giving you yet another option to get the money you need. Peer-to-peer lenders like GreenNote and have popped up offering loans from third-party lenders where investors can choose to finance your loan wholly or partially. Online marketplaces like Credible and LendingTree that matches you with loan offers from local banks and credit unions.
Interest rates for these loans can sometimes be lower than federal loans and don’t always require a cosigner to hang around once you’ve proven you can make payments on time.
There are, though not all banks offer student loans. Since banks tend to have stricter eligibility requirements than online lenders, you might not be able to qualify unless you’re studying at a school that’s eligible for federal loans.
Keep in mind that your bank might not offer student loans at all. You might want to look into alternatives if you bank with Chase or Bank of America. Or, you might have better luck with smaller banks like PNC Bank, Citizens Bank or SunTrust.
Still can’t find enough funding with a private student lender? You might want to consider taking out a personal loan to cover leftover education costs.
Getting a personal loan is a bit involved while living abroad, but it’s possible. US online lenders — rather than banks — are your best bet because they tend to have more lax residency requirements. You might need a cosigner to qualify — most lenders ask that applicants have verifiable income and a certain credit score.
Provider | Loan amounts | APR | |
---|---|---|---|
SoFi | $5,000 to $100,000 | 5.74% to 14.70% | |
Laurel Road | $1,000 to $45,000 | 7.50% to 24.75% | Read review |
LendingClub | $1,000 to $40,000 | 8.05% to 35.89% | |
LendingPoint | $2,000 to $36,500 | 9.99% to 35.99% | |
NetCredit | $1,000 to $10,500 | 34% to 155% | Read review |
If it’s unavoidable, try borrowing money from a family member in the US who can make sure your account always has funds. Otherwise, you might have to apply for a work visa and get a job — not always an easy process.
Free money might not be as out of your reach as you think. While you might not be able to qualify for scholarships offered at your university, apply for international scholarships that could cover your education costs.
Search online for a scholarship that fits your academic and career interests — you’re more likely to qualify for something you’re good at. With so many scholarships out there, make sure you meet the eligibility requirements before you get started on the application.
Financing a semester abroad is generally easier than paying for an entire degree at an international university. First, contact your school’s financial aid office and ask them about what financing you can get through your school. Chances are, it’ll be enough.
Here are some types of financing to cover the cost of your study abroad program:
So you’re done with school but you’re not ready to go home yet. Unfortunately lenders won’t defer your payments while you’re out of the country. Here’s some tips for making sure you make payments on time:
Getting financing for education abroad isn’t as complicated as it sounds. Most Americans attend schools that provide federal financing simply because it’s easier to verify those academic credentials in the US.
You can also get private financing from a US lender, but your options are limited and repayments will start while you’re still abroad and not making money. Sometimes it’s your only choice. If that’s the case, compare your options before making any decisions.
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Hi ! I’m from philippines and planning to continu my studies in canada. What do you think is the best option for me among the five categories? Please help me out! I badly need an advice . Thank yoy
Hi Esteward,
Thanks for your question! finder.com is a US site, so we only write about products available in the US. You might want to try reaching out to the financial aid office of a few Canadian schools you’re interested in applying to. They might be able to give you a personalized overview what options would be available to you.
Hope this helps,
Anna
Good day. I have a child who is in Grad school in USA and I would like to find out about a student loan for this semester which is the very last semester before the start of her career in USA. Please advise me. Repayments if the loan will be guaranteed as she has secured a job in USA for 2019
Hi Tanya,
Thanks for your question! Your child’s student loan options depend on her status in the US. If she’s on a visa, then you might want to check out our page on international student loans or look at providers like Mpower, Prodigy and Boro. If she’s a US citizen or permanent resident, then she’s also eligible for federal loans and private student loans.
I hope this helps!
Anna