Can you find the scholarships you need to support your dream of obtaining an international education? Do you need additional financial support to help you pay for your tuition fees abroad? Worry no more, because there are international loans for you to choose from.
You must know what a student education loan is and how it will help you pursue your education overseas. It is also essential that you understand the payment arrangements you can afford, before applying for one.
According to the International Student website, if you’re planning to study in Canada, for instance, you may apply for the Canada Student Loan Program or the Private Student Loan. The Federal Student Loan is primarily offered to Canadian citizens, although some international students with protected status like refugees are qualified to apply.
While some international students may qualify for federal student loans, the main source of loans is through a private lender with no ties to the government. Usually, to apply for, and be granted a private student loan, one has to have a consigner. A co-signer is someone who will be accountable for loan repayment if the borrower is unable to do so.
What is a Student Education Loan?
Fundamentally, federal loans are popular with United States students who study in the US, although they are not available to international students. Instead, the latter are eligible for international student loans which are specialized private education loans that international students studying in the US are qualified to apply for.
An international student loan is currently quite a realistic approach for financing an international student’s education in the US. In addition, this loan type is extremely flexible and can offer high amounts, enough to pay for an individual’s entire education, although with extended repayment terms and reasonable interest rates. Therefore, if you are an international student who’s granted a loan, you can afford the repayment after graduation.
What to Consider When Applying for an International Student Loan
An International Student Loan report specified that Canada is attracting more than 90,000 international students every year from all over the world. Students arrive in Canada looking to pursue their studies in one of the best educational systems worldwide.
A good academic track record is an essential consideration for your student loan approval. Banks and NBFCs, in general, are looking for consistency above high scores. The reason for this is that banks are in search of students who have the potential to earn well enough after college to pay off their debts.
Because banks are considering students as their investments for the future, the college or university you eye getting admission to can have a substantial effect on your loan applications. The same logic is applicable in terms of the courses to take. STEM courses, for instance, are generally being opted because of their potential to generate high income.
Moreover, any student loan requires extensive documentation from the applying student, their parents, colleges, schools, as well as other institutions. In connection with this, it is essential to double-check the integrity or honesty specified in such documentation to guarantee the smooth processing of the loan application.
Like any other loan application, an international student’s credit score is of paramount importance to the NBFC or bank helping him. A CIBIL score of 600, in general, or lower, is considered unattractive from the viewpoint of a lender. For international students, this credit consideration is extended to the loan’s co-signer, who typically resides in the destination country that’s backing up the credit request, not to mention, taking on some of the liability of the debt.
Lastly, it is important to know that the country you are hoping to study in is making a difference to the loan application or at least the terms and conditions you may be offered. The US, the United Kingdom, and Australia are among the countries usually associated with top-level higher education. A Financial Express report said these nations are making for far more attractive candidates as compared to those who go to typical sites like Japan or China, among other countries.
3 Important Terms to Remember
- Interest : This is a percentage of a loan you, as the borrower, are charged by your lender.
- Repayment : While repayment may vary according to your choice of loan option, specifically for federal Canada Student Loans, there is a non-repayment period of six months after graduation. You won’t need to start repayment for your student loan until six months from your graduation date.
- Co-signer : The Consumer Financial Protection Bureau describes the co-signer as someone who agrees to repay a loan along with the main borrower. Essentially, a co-signer is equally accountable and legally obliged to repay the loan.
References:
Biswas, S. (2022, November 18). International education loans: Things every student should know. Financial Express. Retrieved from https://www.financialexpress.com/money/international-education-loans-things-every-student-should-know/2845596/
Consumer Financial Protection Bureau. (2021, June 23). What is a Co-signer for a student loan? CFPB. Retrieved from https://www.consumerfinance.gov/ask-cfpb/what-is-a-cosigner-student-loan-en-565/
International Student Loan. (2022). Canada: Eligible schools for international student loans. International Student Loan. Retrieved from https://www.internationalstudentloan.com/eligible_schools/international/Canada/
International Student. (2022). Student loans for international students. International Student. Retrieved from https://www.internationalstudent.com/study_canada/student-loans-for-international-students/
