The International Student Loans is an option for student’s seeking to study overseas, whether they are United States citizens studying abroad or non-U.S. citizens studying in the United States. This is a private lender whose loans are credit-based rather than need based. Because the loans are based on students’ creditworthiness, anybody can apply for a loan with International Student Loans, so long as they have good credit or a cosigner. Private lenders are good for a last reserve, considering scholarships and grants are not to be repaid, and Federal Loans are made precisely for students to get a leg up in financing their education.
Private lenders are for profit, as opposed to government non-profit programs. However, when you are still in need of money, private loans are a good way to supplement. With International Student Loans, students can download applications online to fax or mail, with quick response from the company. Whatever money you have requested from them for use with board, fees, travel and other expenses, and tuition, will be sent as a check to you between 5 and 10 days of the application being accepted.
Always remember that with private lenders you want to do as much research as possible before landing on one specific lender. Do your research through other sites and through the financial aid office at your school. With International Student Loan, you can only be accepted if your school is eligible, TERI-approved.
Make very sure that there are more pros than cons when it comes to the loan company you choose. See if any loans offer interest rate reductions or grace periods. International Student Loans, like other private lenders, will offer a higher APR when you are without good credit, or a cosigner with a beneficial credit history. It is because of these negative aspects that you want to be sure to research as many private lenders as possible before committing to one.
Whether you are a U.S. or Non-U.S. citizen, you must pay an origination fee. This fee is usually a percentage of the total amount that you are borrowing for each loan, ranging from 3.0% to 10.5%. For instance, if you are borrowing $10,000, there may be an origination fee of 4.5%, there will be an extra charge of $471. Thus, you will only be getting $10,000 to put towards your tuition, but you will owe $10,471, to start with, even before interest kicks in. Luckily, you are often able to deduct up some of the interest from student loans on your taxes.
With the International Student Loans, you can borrow as little as amount as you need. With an International Student Loan there is a maximum of $30,000 per year. International Student loans also have an aggregate of $130,000, meaning the total amount borrowed for a single individual’s loans which cannot be exceeded. But, remember, you will only want to use this private loan to fill in the financial hole left between your other financial aids and your tuition for your overseas education, it is not advisable to depend wholly on a private loan lender.
If you are a Non-U.S. citizen applying for the International Student Loan, you must have a United States citizen cosigner, no exceptions. The private lenders insist on a creditworthy consigner when the student borrower is without a credit history, so that the company will know that you are a good investment. However, having a cosigner is a good thing for you, the borrower, considering that the cosigner’s good credit can help you get a reduced interest rate. A high interest rate can end up doubling the initial amount borrowed after 10 to 30 years of monthly interest charges. The lower the interest rate, the better.
International College Loans allow a six months grace period. You do not have to start repaying on your International Student Bank loan while you are enrolled in an accredited college. Furthermore, there is no penalty if you pay off your loan early. These types of loans come with a several repayment plan options, most with a $25 minimum monthly payment. Thus, with all these subtle fees and charges, you want to make sure that you do not have an interest rate that will hurt you when you are trying to repay the loan.