Student Loans for International Students Without a Cosigner: Best Options & How to Qualify
Introduction
Studying abroad is a dream for many, but financing an international education can be challenging especially when you don’t have a cosigner. Traditional student loans in the U.S. often require a U.S.-based cosigner, which can be a significant hurdle for international students without close relatives or friends in the country.
Fortunately, there are lenders and financial aid programs that cater specifically to international students who lack a cosigner. In this guide, we’ll explore the best options available, discuss eligibility criteria, and walk you through the application process.
Why Do Many Lenders Require a Cosigner?
A cosigner acts as a financial guarantor, ensuring the lender that the loan will be repaid even if the borrower defaults. Since international students typically lack a U.S. credit history or income source, lenders view them as high-risk borrowers. However, some financial institutions and lenders recognize the potential of international students and offer loans without the need for a cosigner.
Best Student Loan Options Without a Cosigner
1. MPOWER Financing
MPOWER Financing specializes in student loans for international and DACA students without requiring a cosigner. They evaluate applicants based on future earning potential rather than credit history.
Key Benefits:
✔ No cosigner or U.S. credit history required.
✔ Loans available for undergraduate and graduate students.
✔ Fixed interest rates with flexible repayment terms.
✔ Free career support and visa assistance.
Eligibility Criteria:
Must be enrolled in a U.S. or Canadian school.
Must be within two years of graduation.
Must meet academic and career potential criteria.
2. Prodigy Finance
Prodigy Finance offers loans to international students pursuing graduate degrees in business, law, engineering, and other select fields. Instead of requiring a cosigner, they assess applicants based on earning potential.
Key Benefits:
✔ No need for a cosigner or collateral.
✔ Loans available in over 150 countries.
✔ Competitive interest rates based on risk assessment.
✔ Grace period after graduation before repayment begins.
Eligibility Criteria:
Must be enrolled in an eligible graduate program.
Must be from a supported country.
Repayment terms vary based on the applicant’s future income.
3. Ascent Independent Student Loan
Ascent provides loans for international students with and without a cosigner. Their credit-based loans require strong financial standing, while their outcome-based loans assess future earning potential.
Key Benefits:
✔ Loans up to $200,000.
✔ No U.S. credit history required.
✔ Various repayment options.
✔ Borrowers can build credit in the U.S.
Eligibility Criteria:
Must be attending an eligible school.
Must be pursuing a degree in an approved program.
4. University-Specific Loan Programs
Some universities have partnerships with private lenders to offer loans to international students without cosigners. These programs are school-specific and have varying eligibility requirements.
To find out if your university participates, check with your financial aid office.
Additional Financial Aid Options
1. Scholarships and Grants
Many organizations offer scholarships for international students, including:
Fulbright Program (U.S. government-funded).
Joint Japan/World Bank Graduate Scholarship Program.
Your university’s international student scholarships.
2. Work-Study and Part-Time Jobs
Some international students qualify for on-campus jobs, helping them cover living expenses. Be sure to check visa restrictions before applying for work.
How to Apply for a Loan Without a Cosigner
Step 1: Research Your Options
Compare lenders that offer loans without cosigners and check their eligibility requirements.
Step 2: Gather Your Documents
Typical requirements include:
Proof of school enrollment.
Passport and visa information.
Academic transcripts.
Financial and income documentation (if applicable).
Step 3: Submit Your Application
Apply online through your chosen lender’s website, ensuring all documents are uploaded correctly.
Step 4: Wait for Approval and Accept Loan Terms
Once approved, review your loan agreement carefully before signing.
Step 5: Receive Funds and Begin Your Education Journey
Funds are typically disbursed directly to your school to cover tuition.
Frequently Asked Questions (FAQs)
1. Can international students get federal student loans?
No, U.S. federal student loans are only available to U.S. citizens and eligible non-citizens.
2. Is a cosigner ever required for student loans?
For most private lenders, a cosigner is required. However, lenders like MPOWER Financing and Prodigy Finance cater to students without cosigners.
3. Are interest rates higher for loans without cosigners?
Yes, interest rates are typically higher since lenders assume more risk. However, some lenders offer competitive rates based on your future earning potential.
4. Can I build credit in the U.S. with these loans?
Yes! Repaying your loan responsibly helps establish your U.S. credit history.
5. What happens if I can’t repay my loan?
Failing to repay can hurt your credit and future financial opportunities. Always consider repayment plans and options for deferment or forbearance if needed.
Conclusion
Financing your education as an international student without a cosigner may seem challenging, but it’s entirely possible with the right lenders and financial planning. MPOWER Financing, Prodigy Finance, and Ascent are some of the top options available, and scholarships or university-specific aid can further ease your burden.
