myUface Blog

Once you’ve exhausted all other options, if you still need more funds in order to study in the U.S. you might consider taking out a student loan.  But before we talk about the process of getting a student loan, let’s be clear about one thing up front:

Right now – the summer of 2009 – is probably not the best time to be looking for loans from banks.  As InternationalStudentLoan.com notes on its website:

We are also experiencing processing and funding delays due to the turmoil in the student loan marketplace. Borrow as little as you can — make sure you exhaust all other avenues for funding first.

The same site has a great description of the impacts of the “credit crisis” on student loans, so I won’t go into details here.  The money quotation:

Student loans will be harder to get, and for those that get them, they will be more expensive. The harsh reality is that there will be less students who can afford to go to school this coming year. Of course the majority of those impacted will be US students, but international students will face the same hurdles.

The problem stems from the fact that student lenders typically sell their student loans, to raise more capital to make more loans as well as for overhead and profit. Right now, no one wants to buy those loans.

Having said all of that, it is still technically possible to get a student loan, and if you need extra funds, it’s an option you should look into.

Three websites that will serve as good starting points for your search for a student loan:

InternationalStudentLoan.com – although the loan process is currently closed due to the credit crisis, this site is still a good resource for understanding the way international student loans work.

Global Student Loan Corporation – a company with a broad reach, the Global Student Loan Corporation claims to be the only company that will give you a loan without a co-signer in the U.S.  This is due to their partnerships with financial institutions and universities in a variety of countries.

SalliMae – the student loan giant that is familiar to every U.S. graduate, Salli Mae also offers loan programs for international students.

There are undoubtedly many options besides these particular companies, and if you are going to take a loan it’s worth your time to search for the best deal.

A few points that are worth bringing up in regards to student loans:

1. Many – even most – international student loan programs will require an American citizen to cosign the loan.  “Cosigning” means that someone guarantees that the loan will be repaid.  If you don’t repay it, they may be forced to.   Obviously, people will be hesitant to cosign loans and will do so only for people they trust.  Do you know anyone in America who might be willing to cosign your loan?
2. Many international student loan programs will only provide loans to students studying at a list of pre-approved universities.  Generally speaking, these universities have signed on as a partner of the loan company, and agree to follow all of their rules and regulations.  If you’re interested in a specific university, ask their admissions department if they work with any international student loan companies.

The bottom line is that loans are a good way to bridge the final gap between what you have and what you need for study at a U.S. university.  Just make sure the gap isn’t too big to begin with, or you’ll begin you life after graduation with a large pile of debt!

Posts in this Series

1. Your Education is an Investment - 08 Jul
2. Researching Scholarship Opportunities - 07 Jul
3. How to Ask Questions About Financial Aid - 28 Jun
4. Ninth Option for Financial Aid: Loans (This post)
5. The Difference Between Scholarships and Fellowships - 26 Jun
6. Eigth Option for Financial Aid: U.S. Universities - 25 Jun
7. Seventh Option for Financial Aid: Ethnic Communities in the United States - 24 Jun
8. Sixth Option for Financial Aid: Private Organizations in the U.S. - 23 Jun
9. Fifth Option for Financial Aid: U.S. Government Programs - 22 Jun
10. Fourth Option for Financial Aid: Scholarships from International Organizations - 20 Jun
11. How to Ask for Support - 18 Jun
12. Looking for Support in Your Country: Why it Makes Sense - 17 Jun
13. Third Option for Financial Aid: Individuals in Your Country - 16 Jun
14. Second Option for Financial Aid: Private Businesses or Foundations in Your Country - 15 Jun
15. First Option for Financial Aid: Government Programs in Your Country - 14 Jun
16. The Third Step in Financial Aid: Find What's Available - 11 Jun
17. The Second Step In Financial Aid: Identify Your Assets - 10 Jun
18. The First Step In Financial Aid: Identify Your Needs - 09 Jun
19. Finding Financial Aid for your U.S. Education - 08 Jun