It is known that study in the United States is paid for everyone: for Americans, and, moreover, for foreign citizens. Of course, there are also opportunities to get free higher education. Both those and others can study for free in any educational institution in the United States, subject to receiving sponsorship, scholarship or grant: government, private or allocated by the educational institution itself. But not all applicants can receive such privileges. Nevertheless, it is still necessary to finance the studying. In this case, educational loans in the USA come to the rescue.
In the United States, the practice of providing student online loans Tennessee to students and their parents has existed for a long time. This form of financial support is popular. After all, the average American family does not have enough money to pay for at least one year of study even in the cheapest college. And this is not including the cost of accomodation (if the student is studying in another city), food, textbooks and other necessary things. For foreign students, these amounts increase several times.
Student loans in the United States come in three forms:
- federal student loans;
- parent loans;
- private loans.
And only one of them is available to foreign students. This is a private loan, which is called the Private International Student Loan.
Private International Student Loan
This is a special type of financial aid for students who are not citizens or residents of the United States who wish to study at one of the US colleges or universities.
The loan is issued by investors and lenders, which can be banks. It is difficult to obtain such an educational loan, but it is possible if certain terms are met.
Terms for issuing a loan
The complete list of conditions and requirements for a student applying for a private education loan may differ depending on the lender. However, there are a number of basic and mandatory terms that must be met when applying for a loan.
First, a prospective student over the age of 18 must not be a US citizen or resident. Secondly, the applicant must be admitted to the chosen college or university and have the appropriate confirmation of the university. He must also obtain a student visa and take out insurance.
One of the most important terms for all foreign students to receive private financial aid is a sponsor. The surety plays an important role in the lending procedure, since this person undertakes an obligation to pay the student’s debt if, after graduation, he cannot cope with financial obligations on his own or intends to refuse to comply with them. Only a US citizen can act as a surety. Well, or a resident who has permanently resided in the United States for at least two years. In addition, he must have an official job and a good credit history.
Finding a guarantor is one of the most difficult tasks that a foreign student will have to face. Typically, this role is played by family members or relatives who are US citizens or residents. They can also be friends or family members. The guarantor must:
- prove your solvency;
- provide all the necessary information about yourself (status, work, income), which will be included in the loan application;
- sign this statement on a par with the borrower himself.
You will also need documents confirming the availability of any funds from the applicant himself. It can be:
- bank deposits;
- paycheck rate (in case the applicant works);
- income earned from the rental of real estate;
- the total income of the parents, etc.
This issue should be taken into account especially carefully, since correctly selected documents and the student’s own funds not only increase the likelihood of a loan being approved by the bank, but can also slightly lower the interest rate.
Benefits of the student loan program
As with all loans, a private loan is non-repayable and is subject to interest payments. But the system of private educational loans is flexible enough, and interest rates are lower than with a regular loan. This allows you to create a fairly convenient payment schedule.
There is also a deferred payment option. Moreover, not for one year, as in many federal loan programs, but for the entire period of study. This means that the borrower must pay the first loan payment shortly after graduation. Typically, the loan term for such a program is 10 years. Most lenders do not charge a prepayment fee if the graduate is able to do so.
In addition, unlike most grants and scholarships, a private educational loan is issued to cover the cost of both the training itself and the costs associated with it (housing, transportation, teaching aids, etc.).
How to get a student loan?
If the applicant has already entered an educational institution in the United States, then the first thing to do is to contact the Financial Aid Office at the chosen university. Center staff will help you calculate the full tuition fees and the amount that a prospective student can request as a private loan, taking into account other tuition-related costs. In addition, it is in the center of financial assistance where they provide information about the banks with which the university cooperates and which it is worth contacting with a loan application.
In addition, there is a special organization (International Student Loan Services) that provides assistance to international students.
Employees of the organization are capable to:
- provide the necessary information;
- help to select a creditor and find a surety;
- help to draw up a convenient schedule for future payments.
There are also several sites dedicated to education in the United States in general and the training of international students in particular. On these resources you can:
- find all the necessary information, the lender;
- find out with which financial institution the university cooperates;
- compare all offered programs;
- apply online.
Of course, getting such a loan is a troublesome and very responsible business. Before making a decision, you need to think carefully about everything and weigh the pros and cons. After all, a future student will not only have to live and study in a foreign country. He will have to bear certain financial obligations for many years. When receiving money in this way, you must be ready for the fact that the lender can request a report card. On the basis of the report card, he will be able to draw a conclusion about the prospects of the student as a future specialist.