Loans for international students in the US?

As an international student hoping to study in the US, what options do I have for taking out loans? Are there specific lenders that cater to international students, and what should I know about repayment terms?

International students do have loan options, although they may be somewhat limited compared to those available to domestic students. Here are a few things to keep in mind.

1. Lender Options: Most U.S. federal student loans are reserved for citizens or permanent residents. However, there are some private organizations that provide loans specifically designed for international students. For example, Sallie Mae, Discover, and Prodigy Finance all offer student loans for international students.

2. Co-Signer Requirement: The majority of these loan options will require an eligible U.S. citizen or permanent resident to co-sign for the loan. The co-signer bears legal responsibility for the loan, which can be a significant commitment. It's important to note, though, that Prodigy Finance is an exception, in that they do not require a co-signer.

3. Loan Terms: The terms and conditions of student loans can vary widely. Interest rates may be variable or fixed, and repayment periods can range from a few years to 20 years or more. It's crucial to read the fine print and understand the long-term cost of your loan.

4. Repayment: Generally, you'll need to start making repayments after you graduate or if you drop below half-time enrollment. Some loans have grace periods, allowing you to get settled in a job before repayments begin, while others might require payment straight away.

5. Interest: Keep in mind that while you're in school and not making payments, interest may still accrue on these loans. This could significantly raise the cost of the loan over the long term.

6. Income-driven repayment plans: Some lenders could offer an income-driven repayment plan, where the amount you pay is based on your income and family size, and may change as those change.

Remember, borrowing money for college should be a decision made with careful thought and planning. Make sure you exhaust all other options, like scholarships and work-study opportunities, before resorting to loans. Always remember to borrow only what you need and what you will be able to repay comfortably in the future.