Student loans for international students

Securing student loans for international students to study in the U.S. is achievable, though the process differs significantly from that of domestic students. While you generally cannot access federal financial aid, you can obtain private student loans to fund your education, typically by applying with a creditworthy U.S. cosigner or through specialized lenders that evaluate academic potential rather than credit history.

Studying in the United States offers world-class educational opportunities, but the financial hurdle is often the most difficult part of the journey. Since most international applicants lack a U.S. credit history (FICO score), traditional lenders view them as higher risk. This makes the role of a cosigner vital for approval and competitive interest rates. However, the market is evolving, and viable options now exist for students who do not have a U.S.-based contact to vouch for them.

Navigating cross-border financing can feel complex, but this guide simplifies the journey into actionable steps. You will learn about the specific eligibility requirements for international borrowers, the distinct advantages of cosigner versus no-cosigner loans, and how to gather the necessary documentation for approval. We will also explore how to begin building a U.S. credit profile to support your future financial independence and ensure you have the resources to finish your degree.

Understanding these options is the first step toward closing your funding gap. Before diving into specific lenders, it is helpful to understand the unique financial ecosystem you are entering and why the standard path to funding is different for non-citizens.

Understanding your unique challenges as an international student

To successfully secure funding, it helps to first understand why the U.S. banking system treats international applicants differently than domestic students. The challenges you face are not a reflection of your academic potential, but rather a mismatch between your financial profile and the automated risk models used by traditional American lenders.

The primary barrier is the lack of a U.S. credit history. Domestic lenders rely heavily on FICO scores—a numerical summary of a borrower’s history of paying bills and debts—to determine eligibility. Most international students arrive without a Social Security Number (SSN) or a U.S. financial footprint, making them “credit invisible” to standard underwriting algorithms. Without a score to measure reliability, lenders default to viewing the application as high-risk. While you can eventually establish a score, starting from scratch takes time. For more on this process, read our guide on how to build credit as a student.

Visa status creates a second layer of complexity. Most international students study under F-1 or J-1 visas, which place strict limitations on off-campus employment. Traditional lenders generally require proof of steady income to ensure you can repay the debt. Because your visa restricts your ability to work freely in the U.S., lenders cannot use standard income verification methods to approve your loan, making the approval process more rigorous.

Finally, international loans require strict school certification. Unlike a personal loan where funds might be deposited into your account, student loans must be verified by your university’s financial aid office. The school confirms that the loan amount does not exceed the total cost of attendance. This coordination is critical for international students, as it often serves as the necessary proof of funds required to maintain your visa status.

Because these structural barriers prevent automated approvals, international students are generally excluded from the most common source of college funding: the U.S. federal financial aid system.

Federal student loans: why they’re off-limits (and what that means)

For the vast majority of international students, U.S. federal financial aid is not an option. According to StudentAid.gov, eligibility for federal student aid programs is strictly limited to U.S. citizens and “eligible non-citizens.” If you are in the United States on a temporary student visa, such as an F-1, J-1, or M-1 visa, you generally do not qualify for these government-funded resources.

There are narrow exceptions to this rule. You may qualify as an eligible non-citizen if you hold a U.S. Permanent Resident Card (Green Card), have “refugee” or “asylum granted” status, or hold a T-visa (for victims of human trafficking). However, for most international students arriving specifically to attend university, these exceptions do not apply, and filing the FAFSA will not result in aid.

Being ineligible means you are excluded from the primary funding sources used by domestic students, including:

• Direct Subsidized and Unsubsidized Loans: The standard federal loans that offer lower fixed interest rates and do not require a credit check.
• PLUS Loans: Credit-based federal loans available to parents and graduate students.
• Federal Pell Grants: Need-based grants that do not require repayment.

While this means you miss out on federal benefits like income-driven repayment plans, knowing where you stand allows you to focus your efforts effectively. Since the federal door is closed, your strategy must shift entirely to private financing. Fortunately, the private lending market has developed specific products designed to fill this gap, particularly for students who can secure a creditworthy partner to support their application.

Private student loans with a U.S. cosigner: your primary option

With federal financial aid options unavailable, private student loans become the primary funding strategy for most international students. However, because international applicants typically lack the U.S. credit history required to secure these loans independently, adding a qualified cosigner to the application is almost always necessary. According to Mark Kantrowitz, financial aid expert, “Most students will need a cosigner to qualify for a private student loan,” a reality that is even more prevalent for international borrowers.

A cosigner is a creditworthy individual—usually a U.S. citizen or permanent resident—who agrees to take equal responsibility for the loan. By signing the loan agreement, they essentially lend you their credit score and citizenship status, mitigating the risk for the lender. If you miss a payment, the cosigner is legally obligated to pay, which is why lenders are willing to offer competitive interest rates to international applicants who have this backing.

Finding the right cosigner is the most critical step in this process. Lenders have strict criteria for who can serve in this role. Generally, a valid cosigner must meet the following requirements:

• Residency Status: They must be a U.S. citizen or a permanent resident (Green Card holder) who has lived in the U.S. for the past two years.
• Credit History: They need a strong credit score (typically a FICO score of 670 or higher) and a history of on-time payments.
• Income Stability: They must demonstrate steady income sufficient to cover their own debts plus your potential loan payments.

Several major U.S. lenders specifically offer loan products for international students, provided a cosigner is present. These lenders typically cover up to 100% of the school-certified cost of attendance, including tuition, room, board, and books.

Source: Lender websites (terms accurate as of January 2025)

As of January 2025, interest rates for private student loans typically range from approximately 4% to 13% APR, depending heavily on your cosigner’s creditworthiness. Borrowers with cosigners who have excellent credit scores generally qualify for rates on the lower end of that spectrum.

Asking someone to cosign is a significant request because it impacts their credit report and debt-to-income ratio. Potential cosigners often include parents, extended relatives (aunts, uncles, grandparents), or close family friends who are U.S. citizens. To make the request easier, look for lenders that offer a cosigner release option.

Cosigner release allows you to remove the cosigner from the loan obligation after you have graduated, secured employment, and made a specific number of on-time payments (usually 12 to 36 months). This assures your cosigner that their responsibility is temporary, provided you build your own financial stability after graduation.

If you have a willing cosigner, you can check your eligibility and compare offers to find the best terms for your situation.

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However, not every international student has a connection in the U.S. willing or able to cosign a loan. If you fall into this category, your options are more limited, but funding is still possible through specialized lenders.

No-cosigner loans: limited but available options

If you cannot secure a U.S. cosigner, you are not out of options. A specialized sector of the private lending market has emerged specifically to serve international students who lack U.S. credit history. These lenders utilize “forward-looking” underwriting models that assess your academic potential rather than your past financial history.

Instead of relying on a FICO score, these lenders evaluate your future earning potential. They analyze your university’s prestige, your specific degree program (often favoring STEM or business fields), and your expected salary upon graduation to determine if you are a safe bet. According to Jason Delisle, a higher education finance expert, “The private market can and does innovate — offering options federal loans don’t, such as variable rates or targeted underwriting.” This innovation allows high-potential students to access funding based on where they are going, not where they have been.

There are three primary lenders that dominate this space, each with distinct eligibility requirements. While MPOWER and Prodigy Finance focus heavily on international visa holders (F-1/J-1), Funding U is a key option specifically for DACA recipients and permanent residents who do not have a cosigner.

Source: Lender websites (terms and eligibility accurate as of January 2025)

While these loans provide vital access, they come with significant trade-offs compared to cosigned loans. Because the lender is taking on more risk without a U.S. citizen guaranteeing the debt, interest rates are typically 2% to 4% higher than cosigned options. As of January 2025, you should expect APRs to range between 11% and 16%.

Additionally, these lenders have strict school and program restrictions. They generally only lend to students attending approved schools—typically the top 300 to 400 universities in the U.S.—because these institutions have higher graduation and employment rates. If you are attending a community college or a smaller regional university, you may find yourself outside their eligibility network.

Finally, be aware of fees. For example, as of January 2025, MPOWER Financing typically charges a 5% origination fee, which is added to your loan balance. This means if you borrow $10,000, you are responsible for repaying $10,500 plus interest. Always calculate the full cost of borrowing before signing.

Find your best loan option

Country-specific loan programs and international options

Before committing to a U.S.-based lender, it is essential to explore financing options available from your home country. Many nations recognize the value of a U.S. degree and offer government-sponsored financial aid or specialized bank loans specifically for citizens studying abroad. In some cases, these loans offer lower interest rates or more favorable terms than what you might find in the American private market.

While options vary globally, several countries have robust systems in place to support students pursuing international education:

• Canada: Canadian citizens can often use federal and provincial government student loans (such as OSAP for Ontario residents) at designated international universities. Additionally, major Canadian banks like RBC, TD, and CIBC offer student lines of credit specifically for studying abroad, often requiring a Canadian cosigner.
• India: Indian students represent a large portion of international enrollment in the U.S., and the domestic lending market reflects this. Public banks like the State Bank of India (SBI) offer secured loans requiring collateral, often with lower interest rates. Alternatively, Non-Banking Financial Companies (NBFCs) like HDFC Credila and Avanse offer specialized education loans that may cover 100% of costs, though rates are typically higher than public banks.
• Mexico: Organizations like FINAE provide education loans specifically for Mexican students pursuing higher education, including international programs. These institutions often work in conjunction with Mexican universities that have partnerships with U.S. schools.

If you choose to borrow from a lender in your home country, you must carefully consider currency exchange risk. This occurs when the value of your home currency fluctuates against the U.S. dollar.

When comparing a home-country loan (denominated in your local currency) against a U.S. loan (denominated in dollars), calculate the potential impact of exchange rates on your total repayment amount. Borrowing in the same currency you expect to earn your future salary in can often act as a natural hedge against these fluctuations.

Whether you choose a U.S. lender with a cosigner, a specialized no-cosigner loan, or a bank from back home, the next hurdle is universal: navigating the paperwork. International student loans require a specific set of documents to satisfy both banking regulations and visa requirements.

Documentation and application requirements

Applying for a student loan as an international student involves navigating two distinct bureaucratic systems: U.S. banking regulations and immigration compliance. Unlike domestic students who can often apply with little more than a Social Security Number, you must provide extensive documentation to prove your identity, legal status, and academic standing. Having these documents organized before you begin the process can save weeks of processing time.

Lenders must verify that you are legally authorized to study in the United States. You will need clear, digital copies of the following:

• Valid Passport: Must be valid for at least six months beyond your intended period of stay.
• Form I-20 (Certificate of Eligibility): This is the most critical document. Issued by your university, it confirms your acceptance and outlines the estimated cost of attendance. Lenders use this to cap your loan amount so you cannot borrow more than the school-certified costs.
• U.S. Visa (F-1, J-1, or M-1): If you have already received it. If you are applying for the loan to get proof of funds for your visa interview, lenders may provide a “conditional approval” letter first.
• Form I-94: The arrival/departure record, if you are already in the U.S.

Your loan is contingent upon your enrollment. Lenders need to verify where you are going and, for no-cosigner loans, your potential for success.

• Admission Letter: Official proof of acceptance from an eligible U.S. university.
• Past Transcripts: Required primarily for no-cosigner loans to assess academic performance. These usually need to be translated into English and evaluated for U.S. equivalency (e.g., by WES).
• Standardized Test Scores: Scores from exams like the GRE, GMAT, LSAT, or TOEFL may be required by lenders like MPOWER or Prodigy Finance to assess your future earning potential.

Lenders need to see the full financial picture to determine how much you still need to borrow.

• University Cost of Attendance (COA): A breakdown from your financial aid office listing tuition, fees, and living expenses.
• Proof of Other Aid: Award letters for any scholarships, grants, or family contributions. Lenders will deduct these amounts from your total COA to determine your maximum loan eligibility.
• Cosigner Documents (If Applicable): If applying with a cosigner, they must provide their Social Security Number, proof of U.S. citizenship or residency, and proof of income (pay stubs or tax returns).

Gathering these documents is the heavy lifting of the process. Once you have a digital folder prepared with these files, the actual step-by-step application becomes significantly faster and less stressful.

Step-by-step application process

With your documentation organized, you are ready to begin the formal application process. While applying for a loan is straightforward, the timing for international students is critical because loan approval often serves as the “proof of funds” required to secure your student visa. The entire process typically takes 4 to 8 weeks from application to disbursement, so we recommend starting at least three months before your tuition is due.

Follow these steps to navigate the process efficiently:

1. Confirm School Eligibility: Before applying, check if the lender works with your specific university. International student loans—especially those without cosigners—are often restricted to a specific list of approved schools. You can usually verify this quickly on the lender’s website by typing in your school’s name.
2. Calculate Your Exact Funding Need: Determine your “funding gap” by taking your school’s total Cost of Attendance (COA) and subtracting any scholarships, grants, or family contributions. According to Mark Kantrowitz, financial aid expert, “Every dollar you save is a dollar less you have to borrow,” which reduces your long-term interest costs.
3. Submit Applications to Multiple Lenders: Do not settle for the first offer you see. Apply to at least two or three lenders to compare rates. If you are applying with a cosigner, this is the stage where they will need to submit their financial details. Submitting multiple applications within a short window (typically 14 to 45 days) generally counts as a single inquiry on your cosigner’s credit report, minimizing the impact on their score.
4. Review and Compare Offers: Look closely at the Annual Percentage Rate (APR) rather than just the monthly payment. Be sure to check for origination fees, which are common with international loans (often ranging from 0% to 5% of the loan amount). A loan with a lower interest rate might actually be more expensive if it carries a high origination fee.
5. Sign the Promissory Note: Once you select the best offer, you and your cosigner (if applicable) will sign the Master Promissory Note (MPN). This is the legal contract wherein you agree to repay the loan. You may also need to complete a quick online entrance counseling session to confirm you understand the terms.
6. School Certification and Disbursement: After you sign, the lender sends the loan details to your university for “certification.” The school confirms your enrollment and that the loan amount fits within your cost of attendance. Once certified, the funds are disbursed directly to the school to pay your tuition and fees. Any remaining balance is typically refunded to you for living expenses.

Successfully securing a student loan solves your immediate financial need, but it also opens a door to your financial future in the United States. One of the hidden benefits of repaying a U.S. loan is the opportunity to establish a credit score, which can make future financial milestones much easier to achieve.

Building U.S. credit for future borrowing

While securing your initial student loan often requires a cosigner or high interest rates, your financial story doesn’t end there. One of the most strategic moves you can make upon arriving in the U.S. is to actively build your own credit history. Establishing a strong U.S. credit score (FICO) is the key to unlocking financial independence, qualifying for apartment leases, and eventually refinancing your student loans on your own terms.

To start building a credit file, you generally need a unique identifier. If your visa allows you to work on campus, you can apply for a Social Security Number (SSN). If you are not eligible for an SSN, you can apply for an Individual Taxpayer Identification Number (ITIN) through the IRS. Many banks and credit card issuers accept an ITIN to report your payment history to the major credit bureaus.

Since you cannot get a standard credit card immediately, consider these entry-level options:

• Secured Credit Cards: You provide a cash deposit (e.g., $500) that serves as your credit limit. Using the card for small purchases and paying the balance in full every month builds a positive history.
• Student Cards for International Students: Some issuers, such as Deserve or certain major banks, offer cards specifically for international students that do not require an SSN, using your passport and visa for verification instead.
• Authorized User Status: If you have a trusted family member in the U.S., they can add you as an authorized user on their credit card. Their positive payment history will help boost your score.

For a deeper dive into this process, read our comprehensive guide on how to build credit as a student.

Building a score takes time—typically 6 to 12 months of on-time payments. However, the effort pays off. A strong score is often the primary requirement for cosigner release, allowing you to remove your family member from the loan obligation. According to Mark Kantrowitz, financial aid expert, “Cosigner release is a valuable feature offered by some private lenders, rewarding responsible repayment.”

Additionally, once you have graduated and secured employment, a good credit score may allow you to refinance your high-interest international loans into a new loan with a lower rate, potentially saving you thousands of dollars over the life of the loan.

Securing funding as an international student is a significant hurdle, but it is a challenge that thousands of students successfully overcome every year. While the process involves more paperwork than it does for domestic students, the investment in a U.S. degree remains a powerful step toward your future career. According to Beth Akers, economist, “College is still worth it, even for those who need to borrow.”

To move forward with confidence, keep these three primary pathways in mind:

• With a Cosigner: This is generally your most affordable option. If you have a creditworthy U.S. contact, start here to access lower interest rates and better terms.
• Without a Cosigner: If you are navigating this independently, focus on specialized lenders like MPOWER or Prodigy Finance, while being mindful of the higher rates and specific school restrictions.
• Home Country Options: Always compare U.S. offers against government or bank loans from your home country to see which offers the best overall value and currency stability.

Your Next Steps: Start this process at least 3 to 4 months before your tuition deadline to align with visa processing timelines. Gather your digital documents—specifically your I-20, passport, and admission letter—and apply to multiple lenders to ensure you secure the most competitive deal available.

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References and resources

Navigating the U.S. financial system is easier when you have reliable information. Keep these official resources handy as you manage your funding, visa status, and financial future:

• StudentAid.gov (International Students): Official U.S. Department of Education guidance on federal aid eligibility for eligible non-citizens.
• Study in the States: Department of Homeland Security resources on maintaining your F-1 or M-1 visa status and understanding employment rules.
• EduPASS: A comprehensive guide covering financial aid, scholarships, and cultural navigation specifically for international students.
• Your University’s International Student Services (ISS): Your primary contact for I-20 updates, work authorization (CPT/OPT), and campus-specific emergency aid.
• AnnualCreditReport.com: The official site to monitor your U.S. credit history for free once you have established a financial footprint.

Remember, your school’s financial aid office is often your best advocate. Don’t hesitate to reach out to them directly if you encounter issues with loan certification or funding delays.