i am from bangladesh and i am planning to study undergrad in the usa. i am currently looking into student loan options because my family cannot pay the full cost. i do have someone who can be a co-signer.
i wanted to ask if anyone here was an international student and already took a student loan for undergrad in the us. it would be really helpful for me to talk with someone who actually went through this process.
i mostly want to understand things like how the loan process worked, which lenders you used, how the co-signer part worked, and if it was manageable after graduation.
if someone has similar experience and is open to answering a few questions or sharing advice, i would really appreciate it. even a little guidance would help me a lot because this process feels very confusing.
Is your qualified cosigner a U.S. citizen residing in the United States? This will likely be necessary if you are looking for U.S. based loans. And are they willing to co-sign for all four years of your undergrad studies here.
Have you looked into loans in your home country for students wishing to study abroad?
Hey, I can share a bit from what I know since a few of my friends went through this.
The two lenders that come up the most for international students are MPOWER Finance and Prodigy Finance. MPOWER does not always require a co-signer depending on the school, and they have a list of approved universities on their site. Prodigy is similar but tends to work better for grad programs. For undergrad with a co-signer, you might also want to look at Sallie Mae international loans or even some credit unions that work with specific universities.
The co-signer part is pretty straightforward. They basically need someone with US credit history (citizen or permanent resident) to guarantee the loan. The lender will check their credit score and debt-to-income ratio. Your co-signer should know they are equally responsible for the payments if you cannot make them, so it is a real commitment.
One thing I would suggest is to reach out to the financial aid offices of the schools you are applying to. Some schools have institutional loan programs or emergency funding for international students that are not widely advertised. Also check if your schools are on MPOWER approved list because that can simplify things a lot.
After graduation, repayment usually starts 6 months after you finish. The interest rates for international student loans tend to be higher than federal loans (think 7-12% variable), so try to pay down as much as you can during school if possible.
Good luck with the process. It is definitely doable, just takes some research upfront.
thanks for explaining this. one thing i heard is that mpower usually gives loans starting from the 3rd year, so they don’t cover the first two years. but i actually need funding starting from the first year.
if any of your friends used sallie mae for an international student loan, i would really appreciate if i could talk with them directly and ask a few questions about their experience. it would help me understand the process much better. if they don’t want to comment here publicly, that’s totally fine. we can also talk through private messages or text.
also, do you know roughly what credit score the co-signer usually needs for something like sallie mae? i want to understand if the person who will co-sign for me might qualify.
thanks again for sharing the information, i really appreciate it.
It’s not just their credit score. It’s also how much collaterol they have in case they and you default on the loan. The lending institution wants to have something they can get…if you default. So this could be money in the bank, a home, very sufficient and consistent income.
You can have a high credit score and have no real collateral. A high credit score means that you have paid your bills…and on time…and/or have very little debt. It does not define a qualified cosigner for significant loan. Having a good credit score is one piece of the pie.
The ‘6 months after ending school’ (graduation or just not returning) is for federally sponsored/guaranteed loans. These loans will NOT be guaranteed so aren’t student loans with the same terms and rules as for federally sponsored loans.
You and your co-signer are just borrowing from a willing lender and that lender can set any rates and terms they want. Loan secured with real estate or other property usually have better interest rates and terms than unsecured loans. A lot will depend on what your co-signer is willing to provide to the lender (security, credit rating, terms) and it is likely repayment will start immediately.
”So you’re looking at attending school in the U.S., but you’re not sure how to fund it. It can be tricky to find financial aid for U.S. colleges and universities. While international students can’t receive U.S. federal student aid like federal loans or work-study, there are still options available to help pay for higher education. You might be eligible for financial aid allocated for international students, as well as scholarships, grants, and even private student loans.”
So yes, look at any programs your school has, for merit aid, and suggestions from the school for lenders willing to take your co-signer.
Agree it’s more than credit score. In addition to your points, for example, some loan companies won’t allow a co-signer greater than a certain age (e.g., grandparents.)
OP needs to have their college funding sorted by the time they apply for their student visa. Typically, that requires liquid funds for the first year, and a plan for the remaining years. I’m not an expert in that, especially from Bangladesh. Maybe someone else can chime in @SJ2727?
I don’t know how much OP plans on borrowing, but the co-signer’s credit rating/ratio and their ability to take on other debt will be negatively impacted (same as OP’s.)
I also don’t know OP’s intended major/career goals but they should plan on returning to their home country after graduation. Here is a loan calculator so they can understand how much they will need to repay based on their specifics (total projected loan amount, interest rate, loan fees, repayment term, etc.) Loan Payment Calculator - Finaid
They are not prescriptive in exactly what needs to be shown but require evidence of “ * How you will pay all educational, living and travel costs.” Typically at least the first year’s funding needs to be shown. The remainder will depend on circumstances example if the family is high income, documentation would be different (say just proof of parent salary) than if they were relying on loan funding.
When I did visa processing for a college, I needed proof of actual funds on hand for the first year & evidence of the ability to pay for the second year (it was a two year graduate program). I only had one international student who had to get a co-signer for a loan, and it took a while for her to obtain the loan (I don’t remember who she got it through). She was first accepted into the school, then she had to be approved for the loan before I could begin her visa process (issuing an I-20). She had to wait to begin that process, because I could not provide her with an I-20, required to make an appointment for a visa with USCIS, until the loan was approved. Ultimately, it is the U.S. government that determines whether or not to issue a visa, and they will review the ability to pay carefully.
our first year funding is already shown as solid funding in savings and it is enough for the i-20 proof.
but for some reason my parents will not be able to provide that funding right now. because of that, i am looking into taking a loan for the first and second year instead.
For a federal student loan that has to be guaranteed (Plus loans), it can be any parent, step parent, grandparent and they do not require qualification (credit check, age, etc).
But you need to not think of this as a student loan as it is not guaranteed by the US govt. It is a private loan and you may find the rates to be pretty high, repayment may start immediately, the co-signer may be required to have a certain credit score, provide collateral.
Again, this will not be like other student loans as it is not guaranteed by US govt. The terms will be different. Your interest rate could be really high as this most likely will be an unsecured loan.
This is a link that is on the U.S. government site, Education USA: https://www.internationalstudentloan.com. There is another international student loan information link on the Education USA site, but it doesn’t take you to the loan link like it is supposed to.
And this is an important consideration: typical salary in home country paying back a US-level college loan $. There are not many places that works out well.
One thing to keep in mind- if it turns out that the expense and hassle and uncertainty of the loan guarantor means you can’t study in the US…. why not pivot and give some thought to studying in your own country for your Bachelor’s and then coming to the US for a Master’s degree? You’d be looking at two years (most likely) not four; the chances of finding a US employer to sponsor you is greater (most likely– Master’s degrees means you’ve got a higher skillset than just a bachelor’s) etc.
To answer from a practical point of view, they’d likely need 750+ AND own their home which would be a collateral. Meaning they’d be willing to bet their family’s house on your being able to pay the loan back. It’s a big risk. The reason is that you’re international so you could just go back overseas and never pay, snd the bank couldn’t get to you. So the US backer has to be solid.
No one knows what the rules on OPT will be when you graduate but in any case you wouldn’t be able to pay back a sizable loan (10k or more, total) just from OPT.
My advice would be not to take more than the recommended 27k over 4 years.
