Each week, I am going to talk about a certain topic to do with International Education, and this week I am going to choose International Student Loans.
International Loans are probably one of the hardest forms of funding for an international student! One of the major stumbling blocks is you will need a US cosigner, which for many international students is near on impossible to get.
One of the main questions I tend to hear is “why do I need a cosigner?” and the simple and honest answer is that banks in the USA are not going to lend money to an international student because they have nothing to tie them to the USA. So once they have graduated they could effectively move back to their home country and then that lender would have a very tough time to get payments from that individual. That is why lender want a US co-signer, so that if that student defaults on the loan, they have someone in the USA who they can get payments from.
So, as you can see co-signers are needed from the lenders perspective. Also, I often hear things like “how do I get a co-signer?” and questions like that. Really, that is up to you to get a co-signer! Being a co-signer is a huge responsibility and it would generally have to be someone you know and trust. There is no point in posting messages on forums and websites asking for a co-signer as you won’t find one that way.
A good article to read about co-signers:
Next blog, I will talk about the loans that are available at the moment