Navigating the financial landscape of higher education can be challenging for international students in the United States.
Federal loans are highly sought after due to their typically low-interest rates, flexible repayment terms, and various support options.
However, federal loans are generally limited to U.S. citizens and permanent residents, making it difficult for international students to qualify.
Some private loan options are often paired with federal benefits or structured similarly to federal loans, giving international students a chance to finance their studies affordably.
In this article, we’ll explore some of the best federal-like loan options and additional private alternatives.
Best Federal student Loan for International Students
| Loan Provider | Loan Amount | Co-signer Requirement | Interest Rates | Loan Terms | Eligibility Requirements |
|---|---|---|---|---|---|
| 1. Direct Subsidized Loans | Up to $5,500 per year | No | 4.99% | 10 – 25 years | U.S. citizens only |
| 2. Direct Unsubsidized Loans | Up to $20,500 per year | No | 4.99% – 7.54% | 10 – 25 years | U.S. citizens only |
| 3. Parent PLUS Loans | Up to cost of attendance | No, for parents | 7.54% | 10 – 25 years | U.S. citizen or resident co-signer |
| 4. Grad PLUS Loans | Up to cost of attendance | No | 7.54% | 10 – 25 years | For graduate U.S. students |
| 5. Sallie Mae Smart Option | Up to 100% of education cost | Yes | 4.25% – 12.62% | 5 – 20 years | Requires U.S.-based co-signer |
| 6. College Ave Student Loans | Up to 100% of cost of attendance | Yes | 4.29% – 14.49% | 5 – 15 years | U.S.-based co-signer |
| 7. MPower Financing | Up to $50,000 per year | No | 11.99% – 13.99% | 10 years | No co-signer required |
1. Direct Subsidized Loans
Direct Subsidized Loans are available to undergraduate students with demonstrated financial need.
The federal government covers the interest during certain periods, such as while you’re in school at least half-time.
The maximum amount is $5,500 per year, with a fixed interest rate of 4.99%.
Loan terms vary from 10 to 25 years, depending on the repayment plan chosen.
Unfortunately, these loans are limited to U.S. citizens and eligible non-citizens, making them inaccessible to most international students.
2. Direct Unsubsidized Loans
Direct Unsubsidized Loans are available to both undergraduate and graduate students, with no requirement to demonstrate financial need.
Annual loan limits vary up to $20,500 for graduate students, with interest rates ranging from 4.99% for undergraduates to 7.54% for graduates.
Loan terms range from 10 to 25 years. However, these loans are restricted to U.S. citizens and eligible non-citizens, making them inaccessible for most international students.
3. Parent PLUS Loans
Parent PLUS Loans are federal loans that parents of dependent undergraduate students can use to cover education costs up to the total cost of attendance.
With a fixed interest rate of 7.54%, these loans provide a viable option for parents who are U.S. citizens or eligible non-citizens.
Repayment can span from 10 to 25 years.
While this loan requires a U.S. citizen or resident parent as a co-signer, international students can benefit if they have a parent who meets the requirements.
4. Grad PLUS Loans
Grad PLUS Loans are available to graduate or professional students to cover up to the full cost of attendance, with a fixed interest rate of 7.54%.
These loans do not require demonstrated financial need and have flexible repayment terms ranging from 10 to 25 years.
However, Grad PLUS Loans are limited to U.S. citizens and eligible non-citizens, which restricts access for most international students.
5. Sallie Mae Smart Option Student Loan
Sallie Mae Smart Option Student Loan offers private loans to international students, covering up to 100% of the cost of attendance.
Interest rates vary from 4.25% to 12.62%, depending on credit qualifications.
Loan terms are available from 5 to 20 years, and a U.S.-based co-signer is required for international students.
Sallie Mae offers flexibility in payment options, making it easier for international students with a co-signer to access funds.
6. College Ave Student Loans
College Ave Student Loans provides private loans that cover up to 100% of the cost of attendance for students, with interest rates from 4.29% to 14.49%.
Loan terms vary from 5 to 15 years, offering various in-school payment options.
A U.S.-based co-signer is required for international students.
College Ave’s streamlined application process and flexible terms make it a strong option for students who can secure a qualified co-signer.
7. MPower Financing
MPower Financing is designed specifically for international and DACA students, offering up to $50,000 per year with interest rates between 11.99% and 13.99%.
Loan terms are set for 10 years, and no co-signer is required, making it ideal for international students who cannot provide a U.S.-based co-signer.
MPower also considers various factors like future earning potential, offering a unique approach to supporting international students.
Quick One: We have other useful loan articles here.
Frequently Asked Questions
Are international students eligible for any federal loans in the U.S.?
Generally, federal loans are only available to U.S. citizens and eligible non-citizens. However, some private loans offer terms similar to federal loans and are accessible to international students with a co-signer or specific eligibility requirements.
Can international students apply for PLUS Loans?
International students cannot apply directly for Parent PLUS or Grad PLUS Loans, but if they have a U.S.-based parent who qualifies, they may be able to use a Parent PLUS Loan to cover their education costs.
Do private loans offer benefits similar to federal student loans?
Yes, certain private loans, like Sallie Mae and College Ave, offer repayment flexibility, similar to federal loan programs. Some lenders, such as MPower Financing, offer loans without the need for a co-signer and consider future earning potential in the eligibility process.
Conclusion
While federal loans may not be directly accessible to most international students, alternatives like Sallie Mae, College Ave, and MPower Financing offer similar terms and accessibility.
These private loan options, designed with international students in mind, provide substantial support in covering educational expenses while offering competitive interest rates and repayment flexibility.
