Studying in Canada provides international students with a world-class education and a unique cultural experience.
However, financing this education can often be a challenge, especially for students who may not have access to traditional funding sources.
Fortunately, several lenders specialize in providing loans tailored for international students.
In this article, we will explore the 7 best student loans for international students in Canada, detailing their key features to help you make informed financial decisions.
Best Student Loans for International Students in Canada
| Loan Provider | Loan Amount | Co-signer Requirement | Interest Rates | Loan Terms | Eligibility Requirements |
|---|---|---|---|---|---|
| Prodigy Finance | Up to $35,000 | No | 7.00% – 12.99% | 10 – 20 years | Graduate students at selected universities |
| MPOWER Financing | Up to $50,000 | No | 10.49% – 12.99% | 10 years | Students attending eligible universities in Canada |
| Sallie Mae | Up to $50,000 | Yes | 1.00% – 12.60% | 5 – 15 years | Requires U.S. co-signer |
| Discover Student Loans | Up to $40,000 | Yes | 4.99% – 12.99% | 15 years | Requires U.S. co-signer |
| Citizens Bank | Up to $50,000 | Yes | 5.99% – 11.99% | 5 – 15 years | Requires U.S. co-signer |
| College Ave Student Loans | Up to $50,000 | Yes | 3.34% – 12.99% | 5 – 15 years | Requires U.S. co-signer |
| Future Finance | Up to $35,000 | No | 9.00% – 12.00% | 5 – 10 years | Students enrolled in UK institutions |
1. Prodigy Finance
Prodigy Finance specializes in providing loans for international students pursuing graduate studies.
One of the standout features is that they do not require a co-signer, making it accessible for those without U.S. contacts.
Prodigy Finance offers loans of up to $35,000, with interest rates ranging from 7.00% to 12.99%.
Repayment terms are flexible, allowing borrowers to choose between 10 to 20 years for repayment.
The eligibility criteria focus on graduate students enrolled in selected universities, so applicants should verify their school’s participation in the Prodigy Finance program.
2. MPOWER Financing
MPOWER Financing is another excellent option for international students, as it does not require a co-signer or collateral.
They offer loans up to $50,000, with interest rates ranging from 10.49% to 12.99%.
The repayment term is fixed at 10 years, which can be beneficial for budgeting. MPOWER assesses applicants based on their future earning potential and academic performance, making it a viable option for students from various disciplines attending eligible universities in Canada.
3. Sallie Mae
Sallie Mae is a well-established name in the student loan industry and provides loans to international students with a U.S. co-signer.
They offer a maximum loan amount of $50,000, and interest rates range from 1.00% to 12.60%. The loan terms are flexible, ranging from 5 to 15 years.
While Sallie Mae offers a broad array of loan options, the requirement for a co-signer may restrict access for some international students.
4. Discover Student Loans
Discover provides private student loans tailored for international students, but applicants need a U.S. co-signer to qualify.
They offer loans of up to $40,000, with interest rates ranging from 4.99% to 12.99%.
Discover’s loan terms extend up to 15 years, and they also provide flexible repayment options, including deferment while the student is in school.
This can significantly ease the financial burden during the academic period.
5. Citizens Bank
Citizens Bank offers loans for international students, but a U.S. co-signer is required.
Students can borrow up to $50,000, with competitive interest rates ranging from 5.99% to 11.99%.
Loan terms can vary from 5 to 15 years, allowing students to choose a repayment plan that best fits their needs.
Citizens Bank also offers multi-year approval options, which can streamline the funding process for students pursuing extended degrees.
6. College Ave Student Loans
College Ave provides loans for international students, but they require a U.S. co-signer.
They offer loans up to $50,000, with interest rates ranging from 3.34% to 12.99%. The loan terms are customizable, lasting from 5 to 15 years.
College Ave also offers flexible repayment options, such as interest-only payments while in school, which can help students manage their finances better.
7. Future Finance
Future Finance is specifically designed for international students enrolled in UK institutions, providing loans without requiring a co-signer.
They offer a maximum loan amount of $35,000, with interest rates ranging from 9.00% to 12.00%.
The loan terms typically range from 5 to 10 years, making it a straightforward option for students who may face challenges securing traditional funding sources.
Quick One: We have other useful loan articles here.
Frequently Asked Questions
What is the maximum loan amount that international students can borrow in Canada?
The maximum loan amount varies by lender. For instance, MPOWER Financing and Citizens Bank offer loans up to $50,000, while Prodigy Finance and Future Finance typically provide loans up to $35,000. It’s essential to review the specific terms of each lender to determine your borrowing capacity.
Do international students need a co-signer to qualify for loans in Canada?
It depends on the loan provider. Some lenders, such as Prodigy Finance and MPOWER Financing, do not require a co-signer, making it easier for international students to secure funding. However, other lenders, like Sallie Mae and Discover Student Loans, do require a U.S. co-signer. Prospective borrowers should check the specific requirements of each lender before applying.
What are the interest rates typically offered to international students in Canada?
Interest rates for student loans can vary significantly based on the lender and the borrower’s profile. Generally, rates range from approximately 1.00% to 12.99%, depending on factors such as creditworthiness and whether a co-signer is involved. It is crucial to compare rates from multiple lenders to find the most favorable terms for your financial situation.
Conclusion
Navigating the landscape of student loans for international students in Canada can be complex, but options like Prodigy Finance, MPOWER Financing, and others provide essential support.
Each lender has different eligibility requirements, loan amounts, and interest rates, making it vital for students to conduct thorough research to find the best fit for their needs.
By understanding these options, international students can secure the necessary financial support to pursue their education in Canada, turning their academic dreams into reality.
