Sunday, 18 September 2011

Private loans for international students

Private loans for international students
Financing of education in the United States is difficult, even for a U.S. student. For international students, for college in the U.S. is even more difficult. Almost two thirds of all students enrolled in private four-year institutions in U.S. schools receive loans of some kind. U.S. students eligible for government guaranteed loans (Stafford loans, among others), but these loans are not valuable to international students. Fortunately, private student loans are available to international students on the same terms received by U.S. students. 
Before applying for a loan, you should exhaust the following potential sources of funding:

1. The international financial aid application from your school. Here is a list of schools
seeking to provide financial aid to international students:
Click Here....

2. Research and apply for scholarships for international students on their own:
Click Here

3. Carefully evaluate the amount of money you or your family can provide for their education. Every dollar you can pay directly is one less dollar you have to borrow.

Some international students can fund their U.S. education the simple use of the above. However, like U.S. students, most international students will have to finance at least part of their education in the U.S., if not all, with the loans.

U.S. co-signer required. International student loans require a U.S. citizen or permanent resident (green card) as a co-signer. Loans are based on credit, ie, the guarantor must have good credit history, employment history well (or the history of other income if the support does not work), and must have lived in the U.S. over the past two years. Although not everyone can find a relative, friend or U.S. citizen or permanent resident co-sign for them, for they do, can access private student loans the same way as U.S. students.
The funds paid directly to you. Loan funds are paid to you, not the school. This is a great feature in that you can use the funds for living expenses - but that also means it's up to you to use the funds responsibly. Tuition, room and board, health insurance and early books - anything extra is a luxury!
Refund. Return an international student loan can be deferred while in school, and for six months after finishing school. After that, you will have up to 20 years to repay the loan, with payment due each month. You are also eligible for extensions of the difficulties if you run into unexpected circumstances that prevent him from being able to repay the loan for a short period of time.
Proof of Finance. An important feature of international student loans is that you can use the loan approval in order to satisfy the school and visa requirement of showing the financial resources of one year. You can apply for the loan without proof of registration at their school, and receive conditional approval. Then you can provide your school with the prior approval of the lender, and the school will have to do with the funds. Generally, financial aid officer or international student advisor at a U.S. school is very familiar with this process and help you. After admission and enrollment, you can complete the loan process and receive your funds.
Rates.Interest interest rates are variable based on LIBOR plus a margin. LIBOR is always several points below first, so that the margin is 3.5% to 7.75%, and will be set by the lender based on credit history of your co-signer and payment of plan you select. The better your co-signer, the better your rate! LIBOR changes monthly, up or down, so the rate is reset every month.
Apply Online. You can apply online or by phone, and receive an almost immediate response as to whether you are conditionally approved for the loan. Then, you must sign a promissory note, and provide proof of enrollment and immigration status to receive funds.
No application fees. There is no fee to apply for a loan from an international student. There is an origination fee if you actually receive the loan, but that amount is rolled into the loan amount and not have to pay out of pocket. 
For more information on international student loans, visit
Click Here

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