The International Student Loan program is available to international students who are studying in the USA at an approved school. Due to the recent credit problems in the USA many loan options are no longer available to international students, however we are continually striving to make options available to international students.
The information below will provide you with some initial information about loans for internationals students.
Eligibility:
You must have a co-borrower who is a US Citizen or permanent resident with a valid permanent-resident card;
Be at least 18 years old;
Be enrolled at least half-time (or accepted) at an eligible US institution; and
Your co-borrower must meet our criteria for creditworthiness. If your co-borrower does not meet our criteria, you can reapply with a creditworthy co-borrower.
Loan Limits:
Typically you can borrow up to the cost of attendance (as determined by your school). For some loans, your school must certify the loan amount you requested. For other loans, you will need to prove you are enrolled at an approved school, but the school does not need to certify the amount of the loan.
Interest Rates:
The interest rate for any international student loan program will be based on a number of factors, the most important being your co-signer's credit history.
The interest rates on our private student loans are variable, composed of an Index (the variable component) plus a Margin (the fixed component). The actual interest rate for each borrower is calculated by adding the value of an Index and a Margin, and then rounding the result as provided in the promissory note. The interest rate will never exceed the maximum rate allowed by law.
Index
The Index is the variable component of the interest rate and typically will be set according to one the U.S. Prime Rate (Prime) or the one or three-month London InterBank Offer Rate (LIBOR). This Index will go up and down during the life of the loan, and the Index reset frequency indicates the frequency with which the Index can be changed. The overall loan interest will go up if the Index increases, and will go down if the Index decreases.
Margin
The Margin is the fixed component of the interest rate and varies by borrower, based largely on the credit of the co-signer. Once the Margin is set, it stays in place for the life of the loan, or in some cases it changes according to a preset schedule. So for example a borrower's interest rate could be set at LIBOR (the Index) plus 3.5% (the Margin), and the actual interest rate will go up and down with the LIBOR, but will always be 3.5% more than the LIBOR.
Origination Fees:
Most student loans include an Origination Fee or Disbursement Fee. This fee is typically charged when the loan is initially disbursed, and it is not paid out of the borrower's pocket. Instead, it is added to the amount of the loan disbursed. Origination Fees typically range from 0-8% of the total loan amount for private student loans. Some loans charge a Repayment Fee instead of a Disbursement Fee -- the only difference being the Repayment Fee is added to the loan amount when repayment begins instead of at disbursement, saving you interest on the amount of the Repayment Fee during the deferall period. Repayment Fees typically range from 0-6% of the total loan amount.
Repayment
Private student loans offer flexible repayment terms, such as:
No payments while in school.
Payments are generally only required after you graduate, leave school, or drop below half-time enrollment.
For more information about specific repayment options, please start the loan application process.
