International students studying in the United States often face high tuition fees and living costs, making it essential to explore various funding options.
While federal loans are typically limited to U.S. citizens and permanent residents, there are still a few options worth exploring for international students.
This guide “Best Federal Loan for International Students” presents the best federal and federal-like loan options for international students, including private loan providers who offer comparable terms.
The following table summarizes key details about each loan provider, and detailed descriptions are provided to help you choose the best fit for your needs.
Best Federal Loan for International Students
| Loan Provider | Loan Amount | Co-signer Requirement | Interest Rates | Loan Terms | Eligibility Requirements |
|---|---|---|---|---|---|
| 1. Federal Direct PLUS Loan | Up to the full cost of attendance | Yes | 7.54% (fixed) | 10 – 25 years | Requires U.S.-based co-signer (parent/guardian) |
| 2. Federal Perkins Loan | Up to $5,500 (limited availability) | Yes | 5% (fixed) | 10 years | Limited to specific schools |
| 3. Sallie Mae | Up to 100% of cost of attendance | Yes | 4.25% – 13.62% | 5 – 20 years | Co-signer required for international students |
| 4. MPower Financing | Up to $50,000 per year | No | 11.99% – 13.99% | 10 years | No co-signer required |
| 5. Prodigy Finance | Up to 100% of tuition | No | 7.5% – 12% (variable) | 7 – 20 years | No co-signer required, eligible programs only |
| 6. College Ave Student Loans | Up to $100,000 | Yes | 4.29% – 14.49% | 5 – 15 years | Co-signer required for international students |
| 7. Citizens Bank | $1,000 – $150,000 | Yes | 5.25% – 11.65% | 5 – 15 years | Requires U.S.-based co-signer |
1. Federal Direct PLUS Loan
The Federal Direct PLUS Loan is available for international students who can secure a U.S.-based co-signer, typically a parent or guardian.
This loan covers up to the full cost of attendance and has a fixed interest rate of 7.54%.
Loan terms range from 10 to 25 years, and students can explore various repayment plans based on financial needs.
The Direct PLUS Loan may also offer deferment options while the student is in school at least half-time.
2. Federal Perkins Loan
The Federal Perkins Loan program, though limited and gradually being phased out, is available at certain institutions for students with significant financial needs.
This loan has a fixed interest rate of 5% and does not require repayment while the student is in school.
Loan amounts are limited to $5,500 annually and are subject to availability at participating schools.
International students may be eligible if they meet the criteria and secure a U.S.-based co-signer.
3. Sallie Mae
Sallie Mae provides loans that cover up to 100% of the cost of attendance, including tuition and living expenses.
For international students, a U.S.-based co-signer is required.
Interest rates range from 4.25% to 13.62%, with loan terms from 5 to 20 years.
Sallie Mae also offers multiple repayment options, including deferred payments, interest-only payments, and fixed monthly payments, giving students flexibility based on their financial situation.
4. MPower Financing
MPower Financing stands out for international students as it does not require a co-signer.
With fixed interest rates between 11.99% and 13.99%, MPower offers loans up to $50,000 per year.
The loan term is 10 years, and borrowers can benefit from reduced interest rates if they set up automatic payments.
MPower is ideal for students with limited access to U.S.-based co-signers, as it evaluates candidates based on academic and career potential.
5. Prodigy Finance
Prodigy Finance provides loans specifically for international students, especially those pursuing graduate studies.
Prodigy’s loans do not require a co-signer, and they offer variable interest rates from 7.5% to 12%, based on the school and program.
Loans cover up to 100% of tuition, with terms ranging from 7 to 20 years.
This lender is an excellent option for students in eligible programs who need flexibility without a co-signer.
6. College Ave Student Loans
College Ave Student Loans offers loans up to $100,000 with fixed or variable rates between 4.29% and 14.49%. A U.S.-based co-signer is required for international students.
Loan terms range from 5 to 15 years, and College Ave provides a variety of repayment options, including immediate, deferred, and interest-only payments.
This lender is well-suited for students seeking competitive rates and repayment flexibility with the support of a co-signer.
7. Citizens Bank
Citizens Bank offers educational loans with amounts ranging from $1,000 to $150,000.
Interest rates range from 5.25% to 11.65%, and loan terms are available from 5 to 15 years.
Citizens Bank requires a U.S.-based co-signer for international students, making it ideal for those who have access to a reliable co-signer and need substantial financial support.
The lender offers both fixed and variable interest rates, along with discounts for autopay.
Quick One: We have other useful loan articles here.
Frequently Asked Questions
Can international students qualify for federal loans in the U.S.?
Federal loans are generally limited to U.S. citizens and eligible non-citizens. However, international students may qualify if they have a U.S.-based co-signer, such as a parent or guardian, for loans like the Federal Direct PLUS Loan.
Do any lenders offer educational loans without a co-signer for international students?
Yes, lenders like MPower Financing and Prodigy Finance provide educational loans specifically designed for international students without requiring a co-signer. These lenders focus on students’ academic potential and career prospects rather than credit history alone.
How does having a U.S.-based co-signer impact my loan options?
A U.S.-based co-signer can expand your loan options significantly, especially among private lenders. Having a co-signer may help secure lower interest rates and better loan terms, as lenders view co-signers as added security, making the loan less risky.
Conclusion
While federal loans for international students are limited, options like the Federal Direct PLUS Loan and private lenders such as MPower Financing and Prodigy Finance make it possible for students to access financial aid.
By carefully reviewing the loan providers listed above, international students can find the most suitable loan based on their financial needs.
Eligibility, and support options, ensuring a smoother path to achieving their educational goals in the United States.
