Student loans 21 February 2023

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.

Student loans for studying abroad

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.

LenderScholaroo ratingFixed rates starting (APR)Variable rates starting (APR)

College Ave

Best for no origination fee

Visit website
4.9/54.44%5.09%

Sallie Mae

Best for competitive loan rates

Visit website
4.9/54.50%5.99%

SoFi

Best for loans without a cosigner

Visit website
4.8/54.99%5.49%

LendKey

Best for loan deferment

Visit website
4.7/54.89%6.03%

MPOWER Financing

Best for loans based on student’s future potential

Visit website
4.6/512.74%N/A

Prodigy Finance

Best for quick approvals

Visit website
4.5/5N/A11.06%
Lender

College Ave

Best for no origination fee

Scholaroo rating
4.9/5
Fixed rates starting (APR)
4.44%
Variable rates starting (APR)
5.09%
Visit website
Lender

Sallie Mae

Best for competitive loan rates

Scholaroo rating
4.9/5
Fixed rates starting (APR)
4.50%
Variable rates starting (APR)
5.99%
Visit website
Lender

SoFi

Best for loans without a cosigner

Scholaroo rating
4.8/5
Fixed rates starting (APR)
4.99%
Variable rates starting (APR)
5.49%
Visit website
Lender

LendKey

Best for loan deferment

Scholaroo rating
4.7/5
Fixed rates starting (APR)
4.89%
Variable rates starting (APR)
6.03%
Visit website
Lender

MPOWER Financing

Best for loans based on student’s future potential

Scholaroo rating
4.6/5
Fixed rates starting (APR)
12.74%
Variable rates starting (APR)
N/A
Visit website
Lender

Prodigy Finance

Best for quick approvals

Scholaroo rating
4.5/5
Fixed rates starting (APR)
N/A
Variable rates starting (APR)
11.06%
Visit website

#1 College Ave

Best for no origination fee

Apply now

College Ave

4.9
Scholaroo Rating
Fixed Rates Starting (APR)4.44%
Variable Rates Starting (APR)5.09%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Founded in 2014, College Ave is an online private lender that offers student loans for students studying abroad. They have a very straightforward application process and take a customized approach to student loans, making them a popular lender among international students.

They have competitive rates starting at 4.44% APR and flexible repayment plans, including deferred payments for up to six months after graduation. Plus, College Ave has a quick approval process and there are no origination fees.

College Ave covers up to 100% of your school-certified cost of attendance and applicants can apply with a cosigner. Cosigner releases are available after 24 full and consecutive payments.

Pros

  • Fix rates start from 4.44% APR
  • Pre-qualification without a hard credit check
  • Flexible repayment terms

Cons

  • High fixed APRs
  • International students need a cosigner who is a U.S. citizen or permanent resident
  • Applicant must be at least 16 years old (18 years for refinancing loans)
  • Students must be attending at least part-time an accredited college or university

There are four repayment options for students:

  • Deferred payments – no payments for up to six months after graduation
  • Flat $25 monthly payments during school and up to six months after graduation
  • Interest-only payments while in school and up to six months after graduation
  • Repay the full amount during school

#2 Sallie Mae

Best for competitive loan rates

Apply now

Sallie Mae

4.9
Scholaroo Rating
Fixed Rates Starting (APR)4.50%
Variable Rates Starting (APR)5.99%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Sallie Mae is one of the largest providers of student loans in the U.S. and has been in business for more than 50 years. They offer a range of loans including federal and private loans, as well as consolidation loans and Parent Plus loans.

With Sallie Mae, you can cover up to 100% of your school-certified cost of attendance, including for students who study abroad. Their loan rates start at 4.50% APR and they offer repayment terms of up to 20 years. They have multiple payment options available, including full deferment, $25 monthly, and interest-only payments.

A great benefit of Sallie Mae is that they offer a very fast cosigner release option compared to other lenders, with a release available after 12 months.

Pros

  • No origination fees
  • Fixed rates start at 4.50%
  • Can cover 100% of your school attendance cost
  • Cosigner release after 12 payments

Cons

  • Charges late fees
  • International students need a cosigner with good credit (670 or above)
  • Must be a U.S citizen or permanent resident
  • Students must be enrolled at least part-time

There are three payment options with Sallie Mae:

  • Deferred repayment – no payments while in school, and during the grace period
  • Fixed repayment – $25 payments while in school, and during the grace period
  • Interest-only payment while in school, and during the grace period

#3 SoFi

Best for loans without a cosigner

Apply now

SoFi

4.8
Scholaroo Rating
Fixed Rates Starting (APR)4.99%
Variable Rates Starting (APR)5.49%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Founded in 2011, SoFi is a private lender that offers student loans and refinancing. They provide competitive rates and flexible repayment plans, plus they offer additional perks like career coaching. SoFi also offers other financial products like personal loans and credit cards, with interest rate discounts on student loans to borrowers who are already ‌SoFi customers.

SoFi was the first lender to refinance private and federal student loans together. Their loans come with rates starting at 4.99% and repayment terms of up to 20 years.

Repayment options include interest-only, flat-fee, and deferred. There are no late fees, prepayment penalties, or application fees. Cosigner releases are available after 24 on-time, full monthly payments.

Pros

  • Career coaching through the member benefits program
  • Qualify without hurting your credit
  • A 0.125% interest rate reduction if a cosigner is a SoFi customer
  • No origination or late payment fees

Cons

  • Requires a high credit score for loan refinancing
  • No cosigner release option
  • Must have U.S citizenship, be a permanent resident, or visa holder
  • Must be enrolled in a degree program
  • A minimum credit score of 650
  • Deferred payments while in school and for six months after graduation
  • Monthly minimum payment of $25 while in school
  • Interest-only payment option while in school
  • Full payment while in school

#4 LendKey

Best for loan deferment

Apply now

LendKey

4.7
Scholaroo Rating
Fixed Rates Starting (APR)4.89%
Variable Rates Starting (APR)6.03%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Founded in 2009, LendKey is an online lending marketplace that offers private student loans and refinancing. The company partners with credit unions and community banks across the country to offer competitive rates, flexible repayment plans, and a fast application process.

LendKey’s rates start at 4.89% fixed APR and there are no origination fees. However, a late fee of 5% or $10 applies, whichever is less. You can get a 0.25% discount if you set up AutoPay.

With LendKey you can compare rates from various lenders and choose the one that best suits your needs. You don’t need a cosigner, but you can improve your chances of approval if you have a cosigner with good credit. Cosigner releases are available after 12 on-time payments.

Loan repayment terms are available for up to 20 years and you can borrow up to 100% of your school-certified cost of attendance.

Pros

  • Loan deferment is available for up to 24 months during your studies abroad
  • Low interest rates
  • Flexible repayment plans
  • Compare multiple loan offers

Cons

  • Not available in all states
  • Higher origination fees – some credit unions and banks have higher origination fees
  • Only one repayment term of 10 years
  • Must be 18 years of age or older
  • Must have U.S. citizenship or permanent residency
  • Must not live in Maine, Nevada, North Dakota, Rhode Island, or West Virginia
  • Minimum credit score of 680 (660 with a cosigner)
  • Minimum income of $24,000 per year ($12,000 with a cosigner)
  • Full payment starts as soon your loan is disbursed
  • Deferred repayment – no payments while in school, and during the grace period
  • Fixed repayment – $25 payments while in school, and during the six-month grace period
  • Interest-only payment while in school, and during the six-month grace period

#5 MPower Financing

Best for loans based on student’s future potential

Apply now

MPOWER Financing

4.6
Scholaroo Rating
Fixed Rates Starting (APR)12.74%
Variable Rates Starting (APR)N/A
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

MPOWER provides study abroad loans for Canada to U.S. citizens, residents, and international students, that do not require a cosigner. They do not base their decision on the borrower’s credit score or history. It assesses the student’s future earning potential and approves the loans based on that.

With MPOWER Financing, you can get a loan of up to US$100,000 that can go towards all your university-related certified educational expenses. With their fixed rates, you won’t have to worry about an increase in the cost of the loan over time. You can even get a rate discount of 0.25% upon signing up for auto-pay. MPOWER also provides visa support to its loan applicants that can help you get through the visa process with convenience and ease.

Pros

  • Available to international students
  • No credit requirement
  • Loan based on future earning potential
  • No cosigner required
  • Provides visa support

Cons

  • Supports Canada and U.S schools only
  • Single repayment term of 10 years
  • Only fixed-rate loans are available
  • Must be a U.S. citizen or permanent resident, DACA recipient, refugee, or asylum-seeker
  • Must be enrolled at an eligible school
  • Should be an undergraduate or graduate student
  • Be within two years of your graduation date

Interest-only payments while in school with full payments after a six-month grace period.

#6 Prodigy Finance

Best for quick approvals

Apply now

Prodigy Finance

4.5
Scholaroo Rating
Fixed Rates Starting (APR)N/A
Variable Rates Starting (APR)11.06%
Why We Like ItPros and ConsEligibility RequirementsRepayment Terms

Prodigy Finance is a great option for international students looking to secure student loans for studying abroad. They offer competitive interest rates and flexible payment plans. Prodigy Finance stands out because international students don’t require a cosigner to apply, and they have an easy online application process.

They support students in more than 850 schools worldwide with various repayment options. Their loan rates start at 11.06% variable APR and loan amounts go up to $220,000.There is no prepayment penalty and no late fees. Loan terms are available from seven up to 20 years.

Pros

  • No cosigners required for loans
  • Loan terms up to 20 years
  • No late fees or prepayment penalties
  • Online pre-qualification with no hard credit check

Cons

  • No fixed interest rates
  • Must attend a school they support
  • Must reside in one of the countries they support
  • Must be looking to study abroad

There are two in-school repayment options:

  • Full payments as soon as the loan is disbursed
  • Deferred payment while in school and during the six-month grace period

Post-school repayment options include:

  • No payments during the grace period of six months
  • Forbearance available on a case-by-case basis
  • Academic deferment available on a case-by-case basis

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.