Introduction
Studying abroad is a vision filled with so much promise. This includes new cultures, top education, and life-altering experiences. However, for many international applicants, the excitement very quickly meets a harsh reality which is, drumroll, how to pay for it all.
Imagine an A student from Nigeria granted admission into a top U.S. university, only to realize she’s not eligible for federal loans and her family can’t cosign a private one. She’s not alone. This raises the big question: Can international students get student loans? The short answer is yes—but it’s not straightforward.
In this post, we’ll explore the financial hurdles international students face, unpack loan options (including no-cosigner solutions), and share expert insights and emerging trends that offer hope for a more accessible future.
The Big Picture: Why Student Loans Matter for International Students
Each and every year, millions upon millions of students cross borders in pursuit of higher education, bringing not just dreams but also real economic impact. In the U.S. alone, international students contributed a staggering $43.8 billion to the economy in the 2023–24 academic year thus fueling over 378,000 jobs and enriching campuses with global perspectives.
But behind the impressive numbers are individual stories that are not as pretty and colorful. Picture Arun, a brilliant student from India who landed a spot in a top engineering program. Do you want to know his tuition bill? Guess what? Over $60,000 a year. Excited but anxious, Arun quickly learns he’s not eligible for U.S. federal student loans which is the very system that supports most American students.
Here’s the bitter truth:
- Education costs are rising globally, often outpacing wage growth.
- International students are not included from nearly $1.7 trillion in federal loans from the States.
- Only 32.9 percent of colleges in the States provide financial aid to international students like Arun.
Without access to student loans, thousands such as Arun are left scrambling for private lenders or relying on family savings. This is a sad reality and this is why finding viable loan solutions isn’t just helpful but essential for their success.
Can International Students Get Student Loans?
Yes, international students can get student loans—but not from the U.S. federal government. They’re entirely excluded from the $1.693 trillion federal loan system, which supports millions of American students. For someone like Sofia, a high-achieving student from Brazil accepted into a U.S. university, this reality hits hard. She discovers that FAFSA isn’t even an option for her. So where does she turn?
- Most international students are left to piece together funding from:
- Private lenders, who often require a U.S.-based cosigner.
- Institutional aid, which is limited and highly competitive.
- Family savings, which for many don’t stretch far enough.
So, what is the biggest barrier? Ever heard of something called the cosigner requirement? This is the Thanos to our Avengers narrative. Traditional lenders want a U.S. citizen or permanent resident with solid credit and many students like Sofia don’t know anyone who qualifies. That’s why no-cosigner loan programs are increasingly gaining popularity through offering an alternative based on academic performance and future earning potential.
In short, while the path to student loans is more complex for international students, new solutions are starting to change the game.
What Is the Best Loan for International Students?
When Diego from Colombia was accepted into a U.S. graduate program, the excitement turned to panic quickly when he realized he had no cosigner, no U.S. credit history, and no family nearby to help him out. That is when he found MPOWER Financing and Prodigy Finance, two of the most reputable loans available for international students.
The thing that sets them apart from traditional lenders, aside from not requiring a cosigner, collateral, or U.S. credit history, is that they use their underwriting guidelines based on your academic performance, which field of study you are pursuing, and what your earning potential will be. This is a very important process when none of the traditional lenders wanted to consider his case.
What makes MPOWER Financing a great option?
- Fixed-rate loans of $2,001 to $100,000
- No cosigner or collateral needed
- Can fund 100% of the education cost
- The Path2Success Program provides visa support, financial literacy, and employment tools
Similarly, Prodigy Finance lends to graduate students from selected schools and uses future-income models for their eligibility. These lenders represent more than just loans for students like Diego—they represent hope.
Common Challenges International Students Face with Loans
When Mei, a student from China, was offered admission from a top-ranking university in the United States, she assumed the work on her study abroad was primarily done. Yet, navigating a loan now presented its own challenges. Most importantly, finding a cosigner. Every lender she contacted required her to find a cosigner with good credit living in the U.S. for at least two years, and ideally a U.S. citizen. Mei was unable to identify a non-student, financially responsible individual in the United States.
And this was only the beginning. International students come up against other roadblocks as well, including:
Documentation and timing. Schools wanted Mei to prove that she had the funding for her education before granting her admission, while lenders wanted proof that she was accepted to a program before issuing the loan. It is a frustrating catch-22.
Credit history. If an international student has no prior financial history in the U.S., they are seen as riskier applicants, even if they are an outstanding student.
Currency and Exchange risks. It is also reasonable for many of these students to worry about their ability to repay their loan later on. If Mei’s home currency becomes weaker, it could change the amount she owed to a much higher amount in her home currency.
These barriers create a stressful environment, but these barriers are only stressors when one does not know about them, and identifying them is often the first step towards establishing actionable solutions.
Emerging Solutions Making Loans More Accessible
Although Amina from Kenya was rejected by three lenders because of not having a cosigner, she was willing to defer her college dreams—until she found a loan from MPOWER that didn’t require a cosigner. She suddenly had a way forward. She didn’t need a cosigner or credit history in the U.S.; her grades, area of study, and potential mattered more.
Here are some of the new solutions to help make loans more accessible:
No-cosigner loan programs
MPOWER Financing, Prodigy Finance, and Funding U provide loans based on an applicant’s academic and career potential instead of requiring U.S. credit or citizenship ties.
AI and alternative credit scoring
Rather than looking at past credit, lenders now use algorithms to measure applicants based on future earnings. This includes:
- GPA and academic performance
- Field of study (e.g., STEM)
- University ranking and graduate outcomes
Outcome-based financing & ISAs (Income Share Agreements).
Rather than fixed repayments after graduation, students will pay back a percentage of their income in the years after earning their degree.
Programs such as Purdue’s Back a Boiler, CHANCEN eG, and Lumni will reduce the repayments based on how much salary the graduate earns, and in some cases, offer a cap on repayment when income is lower.
All these models of financing transfer the risk from students to lenders and make funding world-wide for students like Amina more accessible.
What Is the Easiest Fully Funded Scholarship for International Students?
When Fatima from Pakistan began searching for fully funded scholarships, she was hoping she would find the EASIEST fully funded scholarship, something with little competition. It quickly became apparent to her that there was no such thing. Instead, in most cases success depended on how well a student matched the objectives of the particular program they were applying to.
Some of the fully funded scholarship programs known worldwide are:
- DAAD program – for studying in Germany, especially in fields related to development
- Fulbright Program – a U.S government-sponsored program for research or study in the U.S.
- Chevening scholarships – a UK government-funded program for future leaders
If you are interested in applying for a fully funded scholarship, I’d recommend you remember the following:
- Apply Early – Wait until the last minute and you could pay the price for carelessness in the submission process
- Make the essays matching the objectives of the grant issuer
- Meet all the eligibility guidelines
- Choose Scholarship Matches for your academic goals, or nationality!
Fatima ended up winning the DAAD scholarship – not because it was the easiest fully funded scholarship, rather it was the best match for her profile.
What’s the Hardest Scholarship to Get?
When Daniel, who is from South Africa, thought about applying to the Rhodes Scholarship for study at Oxford, it felt like a long shot. But Daniel applied anyway. He knew the odds were against him, there were thousands of applicants and only a few selected each year.
Some of the hardest scholarships to obtain are:
- Rhodes Scholarship – for study at Oxford University
- Gates Cambridge Scholarship -for postgraduate study in Cambridge
- Knight-Hennessy Scholars – for graduate programs at Stanford
These three programs provide some of the lowest acceptance rates and highest levels on the bar of academic achievement, leadership, and service. But “hard” does not equal “impossible.” When students like Daniel take time to prepare, they will write a good story, and they will find good references, students can (and do!) succeed.
Which University Gives the Most Scholarships?
When Laila from Egypt first started her search for college, she wasn’t looking for a prestigious university; she needed a college that recognized financial need. That’s when she found out that some of the best universities in the United States provided amazing financial aid opportunities that could even relieve international students from financial burdens.
Here are a few universities that are known for generous aid:
- Harvard, MIT, Yale — all need-blind for international applicants and meet 100% of need
- Hampshire College, Dartmouth– strong need-based aid complemented by competitive merit-based scholarships.
These are primarily private institutions which traditionally offers significantly more aid than a full-service public university.
To find the best fit for students like Laila, they should:
- Look at each school’s “International Student Financial Aid” page.
- Compare schools’ policies, deadlines, and documentation.
- Look for schools that meet 100% of demonstrated financial need without loans.
Often the best opportunities arise from asking the right questions early.
Expert Advice for Loan Planning
If you’re an international applicant, you need to plan for your student loans well in advance and think strategically. Experts agree that you should start researching your financial options at least two years before you apply to universities. There are many funding options and methods to explore!
Tips for planning a smart loan:
- Apply to several scholarships and lenders; rely on one option.
- Talk to your university’s international student office; they often know of hidden or local funding programs.
- Weigh cost against return on investment (ROI); think of the degree and your potential income in the future against the amount you are planning to borrow.
The sooner you can plan for your student loans, the fewer surprises you will have financially!
The Future of International Student Loans
After exhausting options and searching tirelessly for a cosigner, Jorge from Peru finally obtained a loan from a fintech organization that used its artificial intelligence to analyze his potential for future earnings. Jorge’s situation is becoming more common—and a glimpse into the future.
Here are trends to keep an eye on:
- Schools and countries expanding no-cosigner loan programs
- Official partnerships between universities and fintech companies to increase loan access and support for students
- AI-driven loan approving processes that.value potential over credit history
- More comprehensive use of Income Share Agreements (ISAs) with payments linked to post-graduation earnings
The future of international student loans looks more equitable. However, like Jorge, students should learn about their loan options early on and be intentional about what they utilize to maximize their benefit from the new eco-system.
Conclusion
Yes, international students can obtain student loans—but the process looks much different than the traditional path for domestic students. As the lending landscape changes with technology advancement and innovative lending programs, pathways are opening for those who think ahead.
If you are an international student (or a parent) now is the time to research new lending options, and apply early, and research scholarship opportunities for which you may be eligible. Don’t leave it until the last minute—begin your research, and comparing your options. The sooner you act, the more confident you will feel and the better financially prepared you will be when you get your acceptance letter.