One of the easiest ways you can improve your chances of getting loans approved at a much lower interest rate is by applying for an international student loan with no cosigner. We all know how expensive studying in countries like the United States, Canada, or the United Kingdom can be, which is why many international students default to taking out loans.
Traditionally, you would require a cosigner with a good credit score to take out loans. This cosigner usually is a citizen of that country or a permanent resident who will guarantee repayment. However, most students do not have relatives or close contacts that can fill in this cosigner role for them, making it difficult to qualify for traditional loans.
Fortunately, options now exist for international student loans that do not require a cosigner. These loans are designed to help international students cover their tuition and living expenses without the need for a local guarantor, and in this article, we will address a few of them.
What is an International Student Loan With No Cosigner?
This is a type of loan that allows you, as an international student, to borrow money for your education without the need for an intermediary. In other words, you don’t need someone to stand in for you or someone with a strong credit history to back up your loan application.
Loans With a Cosigner vs. No Cosigner
With a cosigner: The lender will rely on the cosigner’s credit score to issue the loan. If, in any case, the student is unable to pay back, then the cosigner becomes responsible for repayment. This type of loan reduces the risk for the lender and often comes with a lower interest rate.
Without a cosigner: Unlike with a cosigner, the lender is taking a bet on your academic potential and your future earning capacity. In some cases, they will also look at the reputation of the university and the kind of program you are offering.
Best international student loan with no cosigner.
Federal Subsidized/Unsubsidized Loan
Federal Subsidized/Unsubsidized Loan is one of the best international student loans with no cosigner. It is our top pick for all student loan borrowers. They offer generous repayment flexibility and have the lowest fixed interest rates you’ll find. You do not need a credit check or a minimum income to borrow. Their loan amount are between $5,500 #31,000, depending on your year of study. The repayment window is 10 to 25 years once repayment begins, depending on the repayment plan.
| Pros | Cons |
| They have a lower interest rate than many private lenders | You are required to pay an origination fee |
| There a more flexible repayment options for struggling borrowers. | |
| Subsidized loans do not collect interest while in school or during deferment. |
Ascent Non-Cosigned Student Loan
This lender is great for upperclassmen with no credit, income, or cosigner. It is perfect for upperclassmen with good grades and strong credit. They offer a minimum $2,000 up to $200,000 per year for future income-based loans.
| Pros | Cons |
| They offer you a grace period of 9 months, which is more than most lenders will give you. | Not all international students will qualify. |
| They have one of the best payment flexibilities. |
MPOWER Private Student Loan
The Mpower loan is the best international student loan with no cosigner requirement. They consider future income potential and do not worry so much about your credit score. Their minimum loan amount is $2,000, and the maximum is $100,000, but you do have a limit of $50,000 per academic period.
| Pros | Cons |
| They offer non-cosigned student loans for international students | You are required to start repayment while in school |
| You can request forbearance up to 24 months, which is longer than many lenders offer | They offer only one repayment term. |
| You get assigned a dedicated student loan advisor. |
Funding U Private Student Loan
Perfect lender for a student with a strong GPA. You need to maintain a required GPA to qualify for this loan. If you are a high-achieving student and have enrolled in a four-year program, then you should consider this loan. They offer a minimum amount of $3,000 up to $10,000. And their repayment window is 10 years.
| Pros | Cons |
| You don’t need a cosigner to get this loan | A loan is not available for everyone |
| It’s easy to tell if you qualify for this loan and to know exactly what rate you are getting. | Repayment begins while you are in school. |
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How to get a student loan with no cosigner
It’s not very easy to find lenders that will offer you International student loan with no cosigner. I would advise that you utilize federal aid first before you even think of exploring international student loans with no cosigners.
Only when federal aid is no longer an option can you turn to private loans and lenders. Keep in mind that most lenders will assess your future earning potential and your academic outcomes, so be prepared for that. In case you still want to get loans with no cosigner, here are a few things you need to keep in mind;
Build credit before you apply for a private student loan:
If you have credit, do everything in your power to see that you strengthen your score before you think of applying for any loan. Some lenders might not use it as a requirement, but it helps more than you know. Fix the errors on your credit report, pay off any outstanding debt, and use as little credit limit as you possibly can.
Compare requirements and loan features.
While you are looking for loans without cosigners, ensure you always review requirements and compare offers to ensure that you are getting the lowest rate. Do your findings on repayment options, late fees, how easy it is to reach the lender, and origination fees. It is also important that you find out if the lender will postpone repayment, just in case you are having difficulties with repayment at the given time.
Opt for a fixed interest rate:
If possible, always go for loans with fixed interest; it’s a much safer bet than those with a variable interest rate. This is because fixed rates don’t increase over time, but variable interest rate does. Again, it all comes to your capability to repay the loan within the given period.
Consider refinancing in the future:
After you graduate, you will have time to build your credit score profile. Once that is done, you may be able to refinance private student loans to an even lower interest rate. But to this, you need a solid income, a good credit score as well.
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Pros and cons of International student loan with no cosigner
Pros
- You have access to these loans regardless of your ability to find a good cosigner in your country of study.
- If you opt for a referral student loan, you get more repayment options and borrower protection as well
- No don’t have to burden someone to take on the liability for your loans