Private student loans for international students in the US for 2025

Students who want to study in the US will find that securing financial aid is much more difficult than it is for American residents if they aren’t eligible for a scholarship.

73% of international students in the US rely on resources outside the country to finance their education, such as from family members, their home country’s government or universities, or their personal funds, according to the Institute of International Education.

When push comes to shove, and you lack the funds to pay your fees, you may want to consider looking into loan and finance companies.

In the US, international students cannot apply for federal loans, so private finance credits can be a good option.

 

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What are loan and finance companies?

While it may sound shady at first, there are reputable loan and finance companies that will help issue a private loan in order to finance your studies.

In the simplest sense, you borrow money from them to fund your study abroad journey.

The majority of their clients include people with substandard credit history; they turn to loan and finance companies instead and offer collateral (personal possessions or assets valued as equal to the loan amount) as a form of guarantee. If the borrower defaults on this loan, the loan and finance companies can own the collateral.

The pros of loan and finance companies

Should you choose to engage with loan and finance companies to fund your degree abroad, the good news is that they are generally more accessible.

Most loan and finance companies will let you borrow the entire amount needed, as compared to some scholarships that only partially fund your study abroad experience. You’ll be able to plan your expenses ahead without too much stress.

You can also apply for a larger amount if you require more money to fund the cost of living abroad in the US.

But the cons are almost twofold.

The cons of loan and finance companies

Be warned — the interest rates charged on the borrowed sum are usually much higher than what banks would impose.

If you’re tempted to utilise it for your own enjoyment and non-student related expenses — such as using it to travel around the US and beyond — you may even over-borrow. Remember that you will have to pay it back eventually and there is an interest payment tagged onto it.

Just be mindful that your co-signer is liable to pay the loan if you are unable to; in usual cases this refers to your parent or guardian.

If you are comfortable with the idea of approaching these companies to fund your studies, especially in the US, here is a list of popular agencies in no particular order:

Reputable loan and finance companies for those who want to study in the US

Juno

Formerly known as LeverEdge, Juno is a student-first initiative for lower rates on student loans. To this day, the company has issued over US$1 billion in loans.

Instead of getting loans for their Harvard tuition fees, Juno’s founders — Nikhil Agarwal and Chris Abkarians — gathered 700 students from 10 schools, and successfully negotiated a cheaper rate for the whole group, saving about US$15,000 per person.

Currently, 204,688 members have joined the Juno community. With free membership, they can expect to receive up-to-date information on negotiations with the lenders for the best possible rate, and loan alternative options.

Based on the concept of group bargaining power (done by Juno), their deals span from undergraduate loans to MBA loans that do not require a credit check, and even international health insurance (which appears to be cheaper than the university’s own insurance). Members can opt for an international student refinancing on their existing loan as well. 

 

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MPower

Founded by international students for international students, MPower is striving to empower young, talented individuals through academic, financial and professional successes. NerdWallet named the company as the 2024 “Best Student Loan for International Students” for its flexible funding options.

Rather than using a cosigner or collateral, your potential is the main factor for credit decisions. As long as you show that you’re hardworking and dedicated, MPower is happy to offer no-cosigner loans for those studying in US colleges and universities.

More importantly, for international students, MPower provides scholarships, free immigration resources and career preparation resources.

MPower now has a network of over 500 US and Canadian institutions, and recognises student borrowers from over 190 countries.

 

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Prodigy Finance

Three INSEAD MBA students founded this company to make global education accessible through fintech. Today, over 45,000 international master’s students from 120+ countries have used Prodigy Finance for their overseas studies.

The company offers up to US$220,000 upfront with no collateral needed, with interest rates starting from 8.35%  and tailored to your future earning potential.

Borrowers can choose from 850 schools in 18 different countries. They only need to pay the loan six months after classes finish, and can enjoy 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 any penalty. 

This is for you if you’ve decided that instead of public student loan options, you prefer a private one that has perks like not requiring co-signers. You should consider Ascent Private Student Loans.

Learn more of @ascent_funding pros & cons ➡️ https://t.co/28eosJZ0tS pic.twitter.com/1qJYBSfwUd

— The College Investor (@CollegeInvestin) October 17, 2023

Ascent

Ascent, the 2021 winner of the best international student loan with the lowest interest rates by Forbes Advisor, offers a wide variety of lending choices – with or without a co-signer (the latter is only for American citizens, Permanent Residents and those with a Deferred Action for Childhood Arrival status).

Particularly for international students, these cosigned loans are available for undergraduate and for graduates – MBA, medical, Dental, Law and General. Over 115,000 students have used Ascent’s services and graduated successfully.

Depending on their credit history, applicants can borrow up to 100% for attendance costs and school-related expenses (up to US$200,000 for undergraduate, US$400,000 for graduate). You can decide to repay the loan up to nine months after graduating.

There is a 1% cashback reward upon graduation as well.

You may opt for the Progressive Repayment if you prefer to start with lower payments. At the same time, if you make 24 on-time consecutive payments and meet certain conditions, you can release your co-signer. 

Earnest

Earnest has a mission to make higher education accessible and affordable for everyone. Since its establishment, the company has refinanced US$19.6 billion worth of student loans, with over 293,000 happy clients.

The company offers a wide variety of student loans, including specialised graduate and refinance loans. International students can apply if they have a Social Security Number (SSN) or an individual taxpayer identification number (ITIN), a physical address in the US, and a cosigner who’s an American citizen or permanent resident.

When it comes to repayment, there’s a lot of flexibility. Earnest allows you to adjust your term down to the month. You’ll also get a nine-month grace period after you graduate rather than the standard six-month period.

Earnest doesn’t charge any fees aside from interest, and it offers a 0.25 per cent discount on your interest rate if you set up automatic payments.

SoFi

SoFi is one of the largest online loan and finance companies that offers a variety of financial products, including student loans and student loan refinancing. Over 500,000 students have used SoFi to finance their study abroad.

The platform offers a variety of student loans depending on whether you need lower monthly payments or want a lower interest rate. Opt between five to twenty years, and choose between fixed or variable rates between 4.49% and 9.99%.

One interesting aspect is that SoFi allows borrowers to consolidate and refinance existing federal and private student loans, potentially leading to lower interest rates or more favourable repayment terms. They also have reward point programmes that can be used to pay for loans.

Other platforms with loan and finance companies

PenFed

PenFed Credit Union is America’s second-largest federal credit union, serving 2.9 million members worldwide with over $31 billion in assets.

While the company doesn’t directly offer in-school student loans, the institution has partnered with Sparrow, which is an online marketplace that helps students compare private student loan options from various lenders.

The platform works with credit unions to allow those financial institutions to offer student loans to their members, along with refinancing options.

Fill out a form, check out personalised rates from Sparrow’s partner lenders, then compare offers to choose one that suits your needs best.

Do note that the actual loan’s terms and conditions, eligibility requirements, interest rates, and repayment options are still determined by the individual lenders, so make sure to check those out.

Credible

Founded by an Australian, Steven Dash started Credible to help American students unburden themselves of student loan debt.

For students who are unsure about their eligibility, Credible makes it easy to get pre-qualified with multiple lenders at once. Similar to Sparrow, you can compare rate quotes and terms to determine the right fit for you.

Credible doesn’t charge a fee for its service, and its partner lenders don’t charge origination fees or prepayment penalties. However, they may charge late fees. They may also offer various interest rate discounts, which can be worth exploring.

Disclaimer: This article was last updated on March 13, 2025.