Bank loans for International students to study abroad
Did you know that you can take a student loan now and pay later?
An aspiring international student should set their financial goals right as they are essential to your pre-departure journey. You should be set with enough financial proof before submitting a visa application. The first step to trying funding for your study abroad journey would be to try for a scholarship. However, it can be competitive to get a scholarship leaving you with an option to self sponsor or avail of a student loan. If you are looking for loan options to fund your studies, then you should first know what a student loan is. A student loan is a type of loan used to fund all your education needs like tuition, books, living, and sundry expenses. Unlike a housing or a personal loan, a student loan can be repaid at the middle or end of your studies or even after you get a job.
Read on to learn more about loan options if you wish to study in Australia, the UK, the USA, Canada.
- Loan options to study in Australia
To be eligible for an international student loan in Australia, you should hold a high school diploma, a valid visa, and demonstrate financial proof for repayment. There are private banks that offer loans to international students. Banks like Harmony and HSBC provide loans at nominal interest rates for international students. Australian universities also offer loans that can be paid when you finish graduation. The repayment has to be prompt and needs to be done at the stipulated time; otherwise, your credit score will be affected, which decides your work visa and other prospects.
2. Loan options to study in the UK
Applying for an international student loan in the UK is a complicated process. One needs a solid credit score to get a loan in the UK. However, an international student may not have a credit score, making them ineligible for a federal loan. They may also need to have acquainted with someone who can co-sign with them on the loan documents. Don't worry, as you can avail of tuition loans and maintenance loans from private banks as an international student. You need to maintain a monthly balance of £1000-£ 1200 in your bank account to be eligible to maintain your status. So, the best bet would be to secure a student loan from your home country. This would ensure that you are free of any financial pressure when you land in the UK.
3. Loan options to study in the USA
An international student loan is a popular means of financing to study in the USA. These loans are available for the full amount of money you may need for your studies with flexible repayment options. They are also available at nominal interest rates that make repayment easier after studies. You should have a consigner ready to sign as a guarantee and would be liable to pay in case of non-repayment. The co-signer should be a resident of the USA with a good credit score. The interest and other terms would be based on the co-signer credit rating, so you need to ensure that the co-signer has a good credit history and is known to you personally.
4. Loan options to study in Canada
An International student may not be eligible for a Federal loan in Canada. If you need a loan to study in Canada, you may have to approach a private lender who has a tie-up with the Canadian government. You would also need a co-signer who is a Canadian citizen or a permanent resident and is ready to sign as a guarantor. If you fail to repay, then the onus of repayment of the loan would fall on the co-signer. There are select universities in Canada that have tie-ups with lenders and can provide you with a loan without a cosigner. The repayment varies from case to case. You can start repayment of the loan after you finish your studies and find a job. The interest rate would depend on the repayment structure, and if the co-signer has a good credit rating, then you can avail of low-interest rates. You can also avail of partial student loans to cover a portion of your accommodation or living expenses.
It is essential to chart out your finances carefully before taking a loan. The interest rates for certain loans can work out to be steep and may be a liability if you are unable to pay on time. It is prudent to make a realistic budget and stick to it so that your finances are under control and you are not left with many loans at the end of your student life. At AECC Global Nepal, we are here to assist you with the finance options available to you as an international student. Walk into our office for a session on the various options available to you before deciding on your study destination.