6 Best Student Loans for Studying Abroad This Year
Explore any one of these student loans and lenders that can help you fund your dreams of studying overseas.

Studying abroad is an amazing opportunity that can bring countless benefits, such as cultural growth, language acquisition, and a global perspective. It also comes with a hefty price tag, so covering the cost of studying abroad can be difficult.
Fortunately, there are student loan options available to help finance this unique experience.
Student loans for studying abroad have become increasingly accessible over the years and can provide much-needed financial assistance. In this article, we’ll look at both private and federal student loans for studying abroad, as well as the best lenders to help you finance your studies.
6 Student Loans for Studying Abroad in 2023
It is important to research and compare lenders to find the best rates and terms that fit your needs. Consider the following lenders offering private student loans for studying abroad.
Lender | Scholaroo rating | Fixed rates starting (APR) | Variable rates starting (APR) |
---|---|---|---|
![]() College Ave Best for no origination fee Visit website | 4.44% | 5.09% | |
![]() Sallie Mae Best for competitive loan rates Visit website | 4.50% | 5.99% | |
![]() SoFi Best for loans without a cosigner Visit website | 4.99% | 5.49% | |
![]() LendKey Best for loan deferment Visit website | 4.89% | 6.03% | |
![]() MPOWER Financing Best for loans based on student’s future potential Visit website | 12.74% | N/A | |
![]() Prodigy Finance Best for quick approvals Visit website | N/A | 11.06% |

College Ave
Best for no origination fee

Sallie Mae
Best for competitive loan rates

SoFi
Best for loans without a cosigner

LendKey
Best for loan deferment

MPOWER Financing
Best for loans based on student’s future potential

Prodigy Finance
Best for quick approvals
#1 College Ave
#2 Sallie Mae
#3 SoFi
#4 LendKey
#5 MPower Financing
#6 Prodigy Finance
Types of Student Loans For Studying Abroad
There are two types of loans available if you want to study abroad – federal student loans and private student loans. Let’s look at the features and benefits of each.
Federal Student Loans
Federal student loans typically offer low interest rates and flexible repayment plans, making them an affordable option for students.
There are three types of federal student loans to study abroad, but you’ll need to apply for Free Application for Federal Student Aid (FAFSA®) first.
- Direct subsidized loans: These loans are given based on financial need and the borrower generally is not required to pay interest while in school or during the grace period. These loans can be used by undergraduates to study abroad as well.
- Direct unsubsidized loans: Direct unsubsidized loans can also be used by U.S. students for education abroad. These loans are not based on financial need and they do require interest payments while in school and during grace periods.
- Direct PLUS loans: These loans are available to parents of undergraduate students to help pay for study abroad. Graduate students can also take out PLUS loans and use them for their education overseas.
Benefits of Federal Student Loans
Choosing a federal loan program can provide you with benefits that can help to make it easier to manage your loan payments. Take a look at the following benefits that come with choosing federal student loans:
- Lower interest rates
- Longer repayment periods
- Deferment option available
- Multiple repayment options such as income-based repayment plans and extended repayment plans
Private Student Loans
Private student loans have relatively quick approval processes, making them ideal for students who need funding fast. However, we always recommend that you exhaust your options for federal student loans first before considering taking out a private student loan.
Benefits of Private Student Loans
Although private student loans may come with higher interest rates and repayments than federal student loans, they have many benefits to offer:
- There are more options available with private loans
- You can borrow enough to cover all your educational expenses abroad
- Flexible repayment terms tailored to your needs
- Co-signer options to increase chances of approval and secure lower interest rates
- No origination fee so you can save money upfront
- Quick approval process
FAQs
Can I get federal student loans to study abroad?
Yes, you can take out federal loans to study abroad if you are a U.S. citizen, permanent resident, or eligible non-citizen. However, federal loans are given on the basis of financial need, mostly, and they require a FAFSA, on the basis of which your eligibility for these loans is assessed. Keep in mind, however, federal loans alone might not be enough to cover the full cost of attending abroad, and you will most like require private study abroad loans to help fill the gap.
Can I get student loans to study abroad?
Yes, you can get a student loan to study abroad through various banks and lenders. To do this, you’ll need to provide documentation of your current financial situation and your academic goals in order for the loan application to be approved. You can also apply for federal student loans.
Does Sallie Mae give loans for study abroad?
Yes, you can get a student loan from Sallie Mae to study abroad. It is one of the most trusted lenders in the U.S. and your loan can cover up to 100% of your certified cost of attendance.
Can US students get student loans in the UK?
There are many lenders who offer loans to students who want to study abroad, including in the UK. If you are enrolled in a school that is supported by your preferred lender, you can get a student loan typically covering up to 100% of your certified cost of attendance.
Which student loan is best for abroad?
Based on our review of lenders, College Ave is a good option if you’re looking to study abroad with a loan that has no origination fees. Sallie Mae is also a good option as they offer a wide range of loans for studying abroad and competitive rates. Ultimately, the best loan for studying abroad will depend on your personal circumstances and goals.
Do students studying abroad need a cosigner?
Students who are U.S. citizens or permanent residents applying for loans to study abroad do not usually need cosigners to apply for loans. However, students do not have a good credit score or history and if the loan provider in consideration requires a good credit score, you will need someone to cosign the loan with you.
There are some lenders who do not consider credit scores as the most important measure when approving a loan. Nevertheless, adding a credit-worthy cosigner regardless of your own credit standing can help you get lower rates and better terms on your loan to study abroad.
What are my financing options apart from loans for studying abroad?
Aside from student loans, there are other financing options available to help those who are looking to fund their studies abroad. For example, you can apply for scholarships or grants. You can also open a 529 Savings Account. Additionally, you can check with your university for any financial aid available.