Personal Loans For International Students: The Complete Guide
Updated on August 26, 2024
Written by
Written by
Reviewed by
Rohit Mittal
Reviewed by
Rohit Mittal
Rohit Mittal is the co-founder and CEO of Stilt. Rohit has extensive experience in credit risk analytics and data science. He spent years building credit risk and fraud models for top U.S. banks. In his current role, he defines the overall business strategy, leads debt and capital fundraising efforts, leads product development, and leads other customer-related aspects for the company. Stilt is backed by Y Combinator and has raised a total of $275M in debt and equity funding to date.
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- Before applying for a personal loan, explore alternative options for covering educational expenses, such as financial aid, scholarships, and support from extended family.
- If additional financial support is needed, personal
loans for international students can be considered, provided by private lenders for various purposes, including living expenses. - Interest rates and loan terms vary based on the borrower’s financial background, and most lenders require a cosigner for international student
loans . - Top lenders in this category include Stilt, LendingClub, and SoFi, each with unique features and benefits.
The cost of a college education in the United States has been steadily increasing and in 2012, roughly 71% of international students graduating from four-year colleges needed to take out
However, international students find that with their lack of credit history in the US, the process of applying and qualifying for a loan can quickly become stressful and complicated. To help you out, we’ve put together some of the best options to help fund your education in the US.
Before Applying for a Personal Loan
Please keep in mind: this is a serious financial decision. Before considering student
Best Lenders for a Personal Loan
Financial Aid for International Students
Although financial aid is often limited for international students, there are some available options depending on your immigration status. The most noteworthy is completing the Free Application for Federal Student Aid (FAFSA) if you are a permanent resident. The FAFSA determines the Expected Family Contribution (EFC) amount that the government believes your family will be able to put aside to pay for your education, which will then allow you to qualify for government aid and
For the majority of international students who are not yet permanent residents of the US, the next option is turning to the institution you plan to attend to see if they will offer you any scholarships or grants. Most US colleges will limit their need-based aid for international students, but many of their merit-based scholarships will be available to all students, regardless of residency status.
If you’d like more in-depth information on financial aid, check out the following guide: Guide to International Student Financial Aid.
Additionally, you can find a financial aid counselor or immigration counselor at your school to help you find their institutionally-funded scholarships that you may qualify for.
Scholarships for International Students
There are hundreds of scholarships offered each year, often with no residency qualifications to apply. Online scholarship databases can help you find scholarships that you may qualify for based on your major, career goals, personal identity, and more.
InternationalStudent.com is just one example of a database site that offers a free scholarship database specifically for international student scholarships. Some other great scholarship search sites include Fastweb’s database of 1.5 million scholarships and the CollegeBoard’s database of over 2,200 programs.
Financial Support from Family for International Students
Reaching out to your extended family for financial support can be a great way to obtain more funds for your college education. Students often overlook anyone other than their immediate family to fund their education, but many extended family members may be more than willing to support their niece, nephew, or cousin, on their college journey by pitching in some money.
Personal Loans for International Students
Some international students can cover their entire tuition using just the financial resources discussed above, but that’s not always the case. For those students who need more financial support (including DACA students in need of a loan), there are personal
We cover the essentials down below but go much more in-depth in the following article: Guide to International Student Loans. We laid out information about general terms and conditions, interest rates, documentation needed for
Now, onto the question at hand:
What are Private Loans ?
There are two main types of student
For most international students, they will turn to private
What are Personal Loans for International Students?
A personal loan is money given to a borrower which they can use for any purpose they would like. Therefore, the funds do not need to go directly into paying tuition, but many other things: you could cover living/food expenses, personal purchases, and even use the student loan funds to buy a car (which we do not recommend!).
Download the Personal Loans for International Students Checklist
International students, manage your personal
Interest Rates for International Student Loans
Interest rates vary based on the lender you choose and your own financial background. Borrowers looking for a loan with no credit history (or poor credit history) will usually receive a higher interest rate compared to someone with a high credit score and long credit history.
However, many lenders are turning to a holistic approach to determine interest rates. By looking at an applicant’s education, income, career, and more, lenders may provide a lower interest rate by determining if the applicant is a responsible borrower despite their lack of credit history.
Loan Terms for International Student Loans
Loan terms can vary anywhere from just one year to 25 or more years. The lender may provide many loan term options from which the borrower can choose the best option based on when they believe they will be in the best financial situation to pay back the loan. Furthermore, it’s important to remember that in the future, you will likely be able to refinance your international student loan, which will ultimately either lower your payments or change the length of time required for paying back the funds you’ve been loaned.
Cosigners for International Student Loans
Since many international students don’t have a previous credit history in the US, they will find that most lenders will require a cosigner for international student
A cosigner assures the lender that if the borrower fails to pay back the loan, the cosigner will then be responsible for repaying the loan.
Most of the time, the cosigner is required to be a US citizen or permanent resident which is difficult for international students to find. However, there are international student loans that do not require a cosigner such as Stilt and SoFi.
Top Lenders of Personal Loans for International Students
There are hundreds of lending options available for nonresidents — particularly students — yet only a select few are truly good.
To help jumpstart your search for the best personal loan option that will meet your needs, here is our list of the top three student lenders for international students.
Stilt
Stilt is at the top of our list because they specifically seek to help international students fund their college education. Founded by two international students themselves, Stilt offers low-cost
Applying for a loan through Stilt is easy through their online process, and all applicants receive a decision within 24 hours of their application.
LendingClub
LendingClub offers a quick application and approval process, with an application time taking only a few minutes to complete. After reviewing their loan offers, you can immediately choose which one you like the best and receive the funds within the next few days. With Lending Club, you can borrow up to $40,000 and start paying it back as soon as you like with no prepayment penalties.
Lending Club is a great option for students who already have a credit history in the US as they do require a minimum credit score of 600. However, you do not need a cosigner and applying for one of their
SoFi
SoFi is one of the most popular lenders out there due to their low-interest rates and benefits. SoFi has a “community-first approach” offering services that are designed for their members to help them succeed. These benefits include networking events like happy hours and dinners, career fairs, and complimentary financial advising.
In addition, SoFi looks at your education, income, and other factors when evaluating your loan application to determine the lowest rate for you. This is ideal for students with a limited borrowing history as they will consider other factors besides credit score to give you a great rate.
Comparison of the Top 3 International Student Loan Lenders
| Lender | Interest Rate | Loan Term | Cosigner Option? |
| Stilt | 7.99%–15.99% | 2-5 years | No |
| LendingClub | 5.98%–35.89% | 3-5 years | Yes, there is an option to have a cosigner |
| SoFi | 6.199%-15.365% | 3-7 years | No cosigner requirements but possibly a cosigner option |
Read More
- International Student Loans with No Cosigner
- How International Students Can Get a Car Loan
- Top 3 Personal Loans for F-1 Visa Holders
- Loans for Canadian Students Studying in the US
- Student Loan Forgiveness for Professors
- International Student Loans: The Complete Guide
Conclusion
Ultimately, which lender you choose to borrow from for your personal loan will come down to your needs as a borrower, especially as an international student. But with the information above, you should be able to make an informed decision when you go to borrow. And if you’re looking for a trustworthy platform for comparing lenders side-by-side, check out Stilt’s Loan Application Tool.
Frequently Asked Questions (FAQ)
Can International Students Obtain Personal Loans in the U.S.?
Yes, international students can obtain personal
What Are the Requirements for International Students to Get Personal Loans ?
The requirements typically include having a valid student visa, enrollment in a U.S. educational institution, a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN), and proof of income or a cosigner.
Do International Students Need a Cosigner for Personal Loans ?
Many lenders require international students to have a cosigner who is a U.S. citizen or permanent resident with a good credit history. However, some lenders may offer
What Types of Personal Loans are Available for International Students?
International students can access various types of personal
How Do Credit Scores Affect Loan Options for International Students?
Credit scores significantly impact loan options. International students with established U.S. credit history may access better loan terms. Those without a credit history may face higher interest rates or require a cosigner.
Can International Students Use Personal Loans for Tuition?
Yes, international students can use personal
Are There Alternatives to Personal Loans for International Students?
Alternatives include scholarships, grants, work-study programs, and financial aid from universities. Some countries also offer education
What is the Maximum Loan Amount an International Student Can Receive?
The maximum loan amount varies by lender and the student’s financial situation, including their income or their cosigner’s income and creditworthiness.
How Long Does It Take to Process a Personal Loan for an International Student?
The processing time for personal
What Should International Students Consider Before Applying for a Personal Loan?
International students should consider interest rates, repayment terms, the impact of loan debt on their future finances, and the credibility of the lender before applying for a personal loan.