A quick guide on loans and scholarships in the United States for international students

Studying in the United States is a dream for many, however, countless hopefuls decide not to go through with it because of the hefty price tag attached to achieving higher education in the US. If you are reading this, you want to believe there is a way you can achieve your goals without burning a hole in your wallet.

We are here to tell you that there indeed are ways to combat the high costs associated with studying in the United States. For instance, international students can explore getting scholarships, international student loans, or opportunities for employment while studying in the US. We cover every aspect of all different ways you can fund your studies in a series of articles on our website. Browse through our site so you can learn the ins and outs of all the possible ways you can fund your education in the States.

In this article, we are going to focus on getting a loan or a scholarship because that is where most students get stumped on what their options are.

Let’s get into it!

How to get started

The three most important things you need to do when you are planning on how you will pay for your US education are to:

1. Start your research on different types of loans and scholarships available to you
2. Ask several questions to university financial aid officers, loan suppliers, and scholarship committees about requisites, terms, and options
3. Start applying to loans and scholarships now!

First of all, if you are planning to get a loan or scholarship in the United States, research is of utmost importance! When it comes to loans, different institutes offer different kinds of loans – and on top of that, as more institutions start to offer loans, the market gets more competitive and your loan options increase. This means you have to know everything that is available to you so you can choose the best loan for you. On the other hand, when it comes to scholarships, most have early application dates and have a variety of requisites that need to be met before you can apply. Do your research on what you need so you can start collecting the right documents and the right experience to stand out on your scholarship application.  Being prepared and planning these things out will make your life much easier!

The next thing you need to do is ask several questions about literally EVERYTHING to anyone who might possibly give you the answers you need. For instance, with loans, once you have done your research and found out about all your possible options, make sure to make a list of questions and fire them away at the financial institutions giving out loans. You should be asking whether their rates are fixed or variable, what the length of repayment is, and if there are penalties for making early payments, prepayments, or missing a month of payment. All the questions mentioned above are really important to have answered before you decide to get a loan. The same goes for scholarships. If something is not clear in your application, make sure to clarify it with the scholarship committee so that you can turn your application incorrectly. Not only does this show your dedication as an applicant, it might put your name on their radar for showing such proactiveness and drive.

The last important thing you need to do is not wait too long to apply for your loan or scholarship once you have been admitted to your college or your university. This is especially important for you if you do not have the finances to show you can pay for your studies to get your visa. Loans and scholarships will be counted in the evaluation of your visa admittance to the United States so make sure to get through this as soon as possible. It also helps that you will have your finances figured out before you even get to the university!

Loan and Scholarship Options for International Students in the United States

1. Loans from US Universities:

You might have read that international students are not eligible for subsidized or unsubsidized loans from the U.S. government. Do not fret, though, because that does not mean there are other options you can’t explore.

Although getting a loan as an international student in the United States is a little more difficult than it would be for an American student, it does not mean it is impossible.

Nowadays, several US universities and colleges offer financial aid packages for international students, including some of the more well-known Ivy League schools like Columbia and Harvard – these schools offer an average award size of about $60,000 to international students! That is some serious aid for those wanting to pay for their college education. Of course, getting this award is very difficult and is not for everyone. That is why several universities decided to offer several small financial aid packages to international students. You can find out which schools do this by checking with financial aid offices at the schools you are planning to attend. This is a good option for you if you only need partial funding for your education and are not looking for options that cover your entire cost of studies.

Please note that every school has different rules and regulations on giving out loans to international students. We recommend that you double check with each school to see what is available to you!

2. Loan from a Private Financial Institution:

In case your university or college doesn’t offer student loans for international students, you still have the opportunity to get a loan from a private financial institution. There are some differences in the process of getting these kinds of loans, for instance, a loan from a university doesn’t require a cosigner, while private institutions might ask that you bring on a US citizen or a permanent resident to cosign your loan. If you are an international student, this can be very difficult if you don’t have family currently living in the United States. However, there are ways to combat this is as well!

We live in a digital world, which is creating an increasingly competitive market for loans. Today, there are more and more online lenders willing to give out student loans to international students without judging the traditional metrics of credit. One of these lenders is MPOWER, a company that specializes in giving out student loans for international students without a cosigner in the United States. Companies like MPOWER will evaluate different criteria instead of your credit history to give out a loan.

3. Scholarships:

The last option you have are the beloved scholarships. We recommend you look into these before getting a loan because they are much more appealing to anyone looking to fund their education. Scholarships and grants carve out the burden of paying high university costs by releasing FREE MONEY to you. You heard that right.  You do not have to pay back the money you get with scholarships, making them a hot commodity for international students and American students alike. In order to find out more about scholarships and grants, check out the EducationUSA website, which gives you further insights on financial aid in the United States. We also have a series of articles on how to get a scholarship in the United States. Check them out here!

Studying in the US is a hefty investment, however, receiving world-class education will reap you even more benefits later down the road. It is definitely worth the investment once your return is higher than what you put in!

Our recommendation is that you take your time to get your priorities straight, prepare your checklist, and get cracking on exploring the loan and scholarship options available to you. Make sure to choose wisely since you will be staying at this university for quite some time!

How did you choose to finance your studies in the United States? Let us know in the comments section below so we can learn new ways to attain the dream of studying the United States. Good luck on your university, scholarship, and student loan hunt in the US! Remember to keep these tips in mind!

About Stilt:

Stilt provides loans to international students and working professionals in the U.S. (F-1, OPT, H-1B, O-1, L-1, TN visa holders) at rates lower than any other lender. Stilt is committed to helping immigrants build a better financial future.

We take a holistic underwriting approach to determine your interest rates and make sure you get the lowest rate possible.

Learn what others are saying about us on Google, Yelp, and Facebook or visit us at https://stilt.com. If you have any questions, send us an email at team@stilt.co

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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