5 International Loan and Finance Companies Students Can Consider
Have you received an offer to study abroad? Congratulations! Your next concern would probably be covering tuition fees. If you do not have sufficient funds to pay your fees, you can consider these loan and finance companies. In the United States, international students cannot apply for federal loans, so private funding credits may be a good option.
What are loan and finance companies? In the simplest sense, they are organizations who grant loans individuals and businesses; be warned though – the interest rates charged on the sum borrowed are much higher than what the banks would charge.
The majority of their customers include people with substandard credit histories; instead, they turn to loan and finance companies and offer collateral (personal property or assets equal in value to the loan amount) as a form of collateral. If the borrower defaults on this loan, the lending and finance companies may hold the security.
If you are comfortable approaching these companies to fund your education, especially in the United States, here is a list of five popular agencies in no particular order:
Lending and finance companies #1: Juno
Formerly known as LeverEdge, Juno is a student-focused initiative to reduce rates on student loans.
Instead of getting loans for their Harvard tuition, Juno founders – Nikhil Agarwal and Chris Abkarians — brought together 700 students from 10 schools and managed to negotiate a cheaper rate for the entire group, saving approximately $15,000 per person.
Currently, 85,000 members have joined the Juno community. With free membership, they can expect to receive up-to-date information on negotiating with lenders for the best possible rate and alternative loan options.
Based on the concept of group bargaining power (made by Juno), their agreements range from undergraduate loans at MBA Loans which do not require a credit check, and even international health insurance (which seems to be cheaper than the university’s own insurance). Members can opt for a international student refinancing also on their existing loan.
Lending and finance companies #2: MPower
Power is a public benefit corporation whose goal is to have a positive impact on the world. Founded by international students, their goal is to empower global citizens through academic, financial, and professional success.
That’s why using the student’s potential as the primary factor for credit decisions instead of family income or assets allows MPower to offer a non-cosigner ready for those studying at US colleges and universities. Most importantly, for international students, MPower provides Scholarshipsfree immigration resources and career preparation resources.
MPower now has a network of over 350 American and Canadian institutionsand recognizes student borrowers from over 190 countries.
Lending and finance companies #3: Prodigy Finance
Three INSEAD MBA students founded this company to make global education accessible through fintech. Today, more than 20,000 master’s students have used finance prodigy for their studies abroad; 80% comes from emerging markets.
Borrowers can choose from 850 schools in 18 different countries. They just have to pay the to lend six months after the end of the courses and can benefit from flexible repayment terms between seven and 20 years.
Interestingly, you can track your payment from your mobile app and pay early to save on interest without incurring a penalty. There is also no co-signer or collateral required.
Loan and finance companies #4: Ascent
Ascent, the 2021 winner of Best International Student Loan with Lowest Interest Rates by Forbes Advisor, offers a wide variety of loan choices – with or without co-signer (the latter is only for U.S. citizens, permanent residents, and those with Deferred Action Status for Childhood Arrival). Especially for international students, these co-signed loans are available: undergraduate and for graduates – MBA, medical, dental, law and general.
Depending on their credit history, applicants can borrow up to 100% for tuition and school-related expenses (up to $200,000). You can choose to repay the loan up to nine months after graduation. Ascent – with a network of 2,200 US colleges – also offers a 1% cash back reward after graduation.
You can opt for gradual repayment if you prefer to start with lower payments. At the same time, if you make 24 consecutive payments on time and meet certain conditions, you can release your co-signer.
Loan and Financing Companies #5: Discover
International graduate students can apply for a Discover the loan with a solvent U.S. co-signer up to 100% of school-certified costs, including tuition, housing, and books. The minimum loan amount is USD 1,000.
Hard-working students who score 3.0 and above on the GPA are eligible for a one-time cash reward worth 1% of their loan. Each successful new loan qualifies you for this reward.
As always, be sure to check it out lending and finance company websites for the latest details. We hope these loan and finance companies are able to provide you with a viable funding option for your future education – all the best!