Step by Step Guide To Getting International Student’s Loan

International student loan application is a critical step in securing admission to study in international schools. The inter-relation of Student loans, rigorous visa application processes, and admission procedures make the financing part a bit of a hurdle for the students.

Approximately 63% of visa applicants for international study get rejected. Sometimes loan applications are rejected because of insufficient proof of funds, bad credit history, or incomplete loan documentation. Managing VISA requirements and student finances can be stressful for international students.

The key to overcoming all the hurdles and stress involved in a VISA application is to have good financial backing. And if you are relying on an international study loan to fund your education abroad, it becomes even more necessary to get the application process right. Getting your financial documentation correct is the first step to a successful VISA application.

However, there are common questions that may arise during this process. Here are some of the questions that may come up. What is the step-by-step guide to getting an international student loan if it is necessary? Or how do I refinance the loan? 

The questions above require in-depth analysis.

Below, we have provided a thorough step-by-step guide to getting an international student loan, along with some factors to consider before proceeding with a student loan.

1. Eligibility

Understanding whether or not you are eligible for a student loan is the first and most critical step. For example, United States citizens and some categories of immigrants are eligible for federal student loans. Also, federal loans come with some benefits that make them better and easier to access than private loans. So, you must first check with your loan provider to see if you are eligible for a loan.

2. Applying for Your Loan Online

Most international loan processes are done online from start to finish. And it doesn’t take more than 1 hour to get approval if you are eligible.

Also, you can save your application status and come back to complete it whenever you desire. This process is necessary if you need to stop to verify your documents or whatever reason you may have.

3. Upload the Required Documents

Ensure you check and agree to the loan terms of your loan provider. If the loan terms suit you, you can go ahead and upload your supporting documents. The documents you may need include the following.

• An international passport (this is the proof of identity)
• Admission letter
• Credit report
• Proof of permanent address
• Proof of income or savings (if applicable)
• Proof of sponsorship or scholarship as the case may be
• Financial assistance if applicable

4. Confirm the Loan Rate

Qualified loan applicants may receive approval for their loans based on certain conditions. It may take around two business days to get your loan approved, and the loan offer may be valid for a couple of weeks.

Bear in mind that every offer is personal. Your loan provider takes into account your credit history, as well as your field and type of degree.

And, if you need further clarifications, you can always reach out to customer service. Every loan provider has a team of representatives committed to providing clarifications, they will guide you throughout the entire process.

5. Final Loan Approval

Get a final loan approval once your documents have been accepted. You can ask your loan providers to issue you a letter to support your VISA application if it becomes necessary.

6. Loan Disbursement

All loans are disbursed directly into your school’s account. With this step, you can eliminate all the fees and hurdles associated with foreign currency transfer. And, if there is any money left after paying the necessary fees, your school will send the balance into your account.

Here Are A Few Factors to Consider Before Accessing a Student Loan

1. Loan Terms

If you manage to find a good loan provider for international students, you should always check the loan terms before proceeding. The terms of a loan will affect you for the next couple of years in school. Therefore, it is necessary to find what suits you.

Private loan providers are credit-based whereas federal loans are based on Free Application for Federal Student’s Aid (FAFSA), and they provide fixed or variable interest loans. Variable interest loans offer loan terms that vary, based on several factors. On the other hand, the fixed interest loans determine a borrower’s ability to refinance the loan.

Variable interest loans are risky since they are affected by factors that are beyond your control. Whereas, fixed-interest loans remain the same through the time specified for the loan. However, there are also risks associated with fixed interest loans. For example, if a borrower begins with a high-interest rate, then that interest rate will never change, it remains throughout the loan tenure, and may affect the borrower’s ability to repay.

As you start doing your homework, you should consider some other terms of the loan that might affect your ability to payback, and how much to pay. For example, are there penalties for not paying back on the due date? Does your loan provider offer a reasonable grace period? Are there late payment charges? Can the loan terms be amended? It is necessary to have a satisfying answer to these questions before taking a student loan.

2. Refinancing your Student Loan

What happens if you find out that the interest rate is so high that you can’t meet up with your obligations anymore? You can consider refinancing.

Refinancing your loans will get you a new one with better rates, or simply switch your type of loan to a different one. However, there are caveats to getting your loans refinanced. First, you may end up repaying the loan over a longer period than your original arrangements. But the better part is that you’ll pay less money in total. So, it is still a good idea.