International students seeking financing for studies in the U.S. face unique challenges as they are typically ineligible for federal Student Loans; this page covers the main options, eligibility, and key considerations for student loans for international students.
Who This Loan Is For
Primarily non–U.S. citizens seeking undergraduate or graduate degrees at U.S. colleges and universities.
Students who do not qualify for federal student loans unless classified as eligible noncitizens (such as green card holders).
Borrowers who may need alternative private loans, often with additional residency, visa, or cosigner stipulations specific to their status.
Key Facts (At-a-Glance)
Item
Details
Program Type
Private student loans for international students; federal student loans not generally available unless eligible noncitizen status is met.
Interest
Variable and fixed rates, typically higher than U.S. domestic rates; illustrative minimums often start around 10% APR (e.g., Prodigy Finance advertises starting variable rates as low as 10.08%, but actual rates depend on credit risk and market conditions).
Accrual
Interest generally accrues from disbursement and may capitalize at repayment or when enrollment drops below half-time.
Repayment Plans
Custom options set by lender; no access to federal IDR plans like PAYE/SAVE; terms and options vary.
Grace Period
Usually 6 months after leaving school or graduating (“sample/illustrative”); varies by lender.
Deferment/Forbearance
Lender-determined; some offer temporary relief for hardship, but definition/details vary.
Forgiveness/Discharge
Uncommon for private loans; limited lender-specific hardship waivers may exist.
Annual & Aggregate Limits
Based on school-certified “cost of attendance” minus other aid; exact caps vary.
Fees
Origination and servicing fees apply; sample/illustrative figures vary by lender.
Cosigner Rules (Private)
Many lenders require a U.S.-based cosigner; some, such as Prodigy Finance, offer “no cosigner” loans for graduate studies at eligible schools.
Pros
Provides access to education funding for international students otherwise shut out of federal loan programs.
Specialty lenders such as Prodigy Finance and some bank partners offer products that do not require a U.S. cosigner for certain postgraduate programs.
Supports higher education mobility and options for non-U.S. citizens.
Cons
No federal student protections or built-in income-driven repayment (IDR), deferment, or forbearance guarantees.
Interest rates generally higher than federal loans offered to U.S. citizens; credit risk and market changes affect pricing.
Limited options for undergraduates; higher risk if economic or political circumstances affect repayment capacity.
Costs, Interest & Repayment Mechanics
Interest rates for private loans to international students commonly exceed those for U.S. federal loans, with sample/illustrative starting points in the 10%+ APR range.
Interest accrues while in school for many private loans; capitalization means interest may be added to the principal at the start of repayment.
Repayment structures are lender specific and may involve full repayment, interest-only payments during school, or deferred payment options.
No access to federal IDR; payments are not income-adjusted or eligible for U.S. government loan forgiveness programs.
Example
Principal
Rate/APR
Plan
Monthly Payment
Total Paid
Sample Scenario
$40,000 (sample/illustrative)
11% variable APR (sample/illustrative)
10-year level repayment
$550–$600 (sample/illustrative, depending on rate & term)
$66,000–$72,000 (sample/illustrative total over 10 years)
Application & Disbursement Steps
Identify schools that certify loans for international students and confirm eligibility for private loan products.
Apply through lender’s portal, providing documentation such as passport, visa, school admission/acceptance, and financial evidence; cosigner information if required.
Receive approval and accept terms; school certifies loan amount based on cost of attendance minus other aid.
Lender disburses funds directly to the school; any excess may be issued as a refund to the student per school policy.
Repayment, Deferment & Forbearance
Repayment typically begins after graduation or loss of full-time status, following a lender-defined grace period (commonly six months, but this varies).
Limited deferment/forbearance options sometimes exist for hardship, illness, or further education, but these are not guaranteed and may be less flexible than federal options.
Interest generally continues to accrue during deferment or forbearance unless specified otherwise in the loan contract.
Forgiveness & Discharge Pathways
Federal loan forgiveness programs (such as Public Service Loan Forgiveness or IDR forgiveness) are not available to international students with private loans.
Some private lenders might offer loan discharge in extreme cases (such as death or permanent disability), but this varies and is not universal.
Closed school or fraud-related discharges are rare and depend on lender policy.
Risks & Responsible Borrowing
Defaulting on a private student loan can severely harm credit history and may create legal/financial complications in the U.S. and internationally.
Failure to repay can affect visa/immigration status if the loan is tied to documentation or future U.S. employment.
High interest rates and the lack of income-based payment relief increase the risk of financial stress, especially if post-graduation employment is uncertain.
Borrow only what is necessary, and maintain a clear plan for repayment before accepting a private loan.
Alternatives & Comparisons
Side-by-Side Comparison
Feature
Federal Loans
Private Loans (International Student)
Underwriting
Not available for most international students; eligibility-based for U.S. citizens/eligible noncitizens
Credit/income-based; cosigner often required unless using specialty lenders
Rate Type
Fixed (for federal programs)
Fixed/Variable; generally higher for international borrowers
Protections
Access to IDR, forbearance, official forgiveness/discharge
Limited; deferment/forbearance and forgiveness at lender’s discretion
Forgiveness Potential
Possible (federal programs under qualifying circumstances)
Rare/uncommon
Frequently Asked Questions
Can international students get federal student loans in the U.S.?
No, unless they qualify as eligible noncitizens (e.g., permanent residents, refugees/asylees); most international students do not have access to U.S. federal student loans.
What are common requirements for private student loans for international students?
Valid visa and U.S. school admission; often a U.S.-based cosigner is required unless applying through a specialty lender like Prodigy Finance for certain graduate programs.
What are typical interest rates for international student loans?
Variable and fixed rates; sample/illustrative starting rates often begin at 10%+ APR but actual rates depend on credit, school, program, and lender policies.
Are income-driven repayment or forgiveness options available?
No; private student loans for international students do not qualify for federal repayment or forgiveness programs.
How much can I borrow as an international student?
Loan caps are generally set by the school’s cost of attendance minus other financial aid; specific annual and aggregate limits depend on the lender and program.
Can I apply without a cosigner?
Some graduate-level lenders (for example, Prodigy Finance) may offer no-cosigner loans for certain schools and degrees; most undergraduate private loans require a creditworthy U.S.-based cosigner.
What happens if I cannot repay?
Default can harm your U.S. and international credit, trigger collection actions, and may affect future visa or employment prospects; no federal safety net is available for private loan defaults.
Conclusion & Next Steps
International students should fully explore scholarships, grants, and school-specific financial aid before considering private loans and confirm up-to-date eligibility policies directly with prospective schools and lenders.
Only use private student loans for international students if there is a clear plan for repayment and after accounting for total costs, variable interest rates, potential fees, and the lack of federal borrower protections.
Refer to each lender’s official website or your target university’s financial aid office for the most accurate and current information; U.S. Department of Education’s Federal Student Aid homepage provides basic eligibility guidelines for federal versus private loans.
Stay informed about changing visa, work, and financial aid regulations through official channels to mitigate academic and financial disruption.
