F1 Visa Student Loans

An F1 Visa Student Loan is granted to international students who are enrolled in a US college or university. An F1 Visa Student Loan enables foreign academic students to cover the costs of their education and living in the United States. F-1 students are eligible for private student loans issued by a bank, a financial institution, a state agency, a credit union, or a school. 

Private student loan lenders require the borrower to have a reliable credit standing. You must have a cosigner who lives in the US, a good credit score, and a solid credit history to qualify for an F1 Visa private student loan. A cosigner for an F-1 Visa Loan is a responsible adult who signs for the student loan together with the F 1 student. An F 1 Loan cosigner shares the burden of timely and full loan repayment should the student be unable to pay for the loan. Other requirements for an F1 Student Loan include proof of your identity, evidence of enrollment in an accredited program and institution, and a credit bureau report.

What is an F1 Visa Student Loan?

An F1 Visa Student Loan is a specific kind of loan intended to assist international students in covering the costs of post-secondary education and related expenses, including tuition, books, and living costs. An F1 Visa Student Loan typically has a much cheaper interest rate and a deferred repayment plan while the borrower is still enrolled in school in comparison to other loan kinds. 

An F-1 student is allowed to apply for a private student loan. Most lenders require a credit history of 2 years and a good credit score. The credit requirement makes the process a little tough for international students who want to apply for F1 Visa Student Loans. Having a cosigner with a substantial credit history and a good credit score is helpful for foreign F1 students who encounter difficulty in proving a stable credit history. A cosigner is a person who signs for a loan together with the primary borrower. An F1 cosigner for a Student loan is legally obligated to pay for the loan in case the primary borrower fails to do so. 

What are the Types of Student Loans?

The types of loans available for students are federal and private student loans. Federal student loans are funded by the US government and are only available to US citizens and permanent residents. Private student loans are accessible to F-1 foreign students and are provided by an institution such as a bank, school, credit union, or state agency. 

Federal Student Loans

A federal student loan, usually referred to as a government loan, enables parents, guardians, and students to obtain money from the federal government for educational expenses. Federal student loans are accessible through the Federal Direct Loan Program. Federal loans have a number of advantages over private student loans such as lower costs and the ability to apply without a cosigner.  

Private Student Loans

Private student loans are issued by a bank, a financial institution, a state agency, a credit union, or a school. Lenders of private student loans have restrictions put in place and are more expensive than federal student loans. 

What are the Best Student Loans?

The best loans for student loans are Federal and Private student loans. 

Best Federal Student Loans

These are the different classifications of Federal Student Loans.

• Direct Subsidized Loans are available to undergraduate students who are in need of a loan. You do not pay any interest since the interest is paid by the U.S. Department of Education while the student is enrolled at least half-time, throughout the grace period after leaving school, and during the deferment period.
• Direct Unsubsidized Loans are accessible to undergraduate, graduate, and professional students and are decided on the financial need of the student. Your school decides on the maximum amount of the loan based on the cost of attendance and financial aid. The interest is charged to the student continuously. During the loan term, the interest may occasionally be capitalized (when unpaid interest is added to the loan’s principal amount), which raises your overall federal loan cost.
• Direct PLUS Loans are unsubsidized, credit-based federal loans. Parents of dependent students and graduate/professional students are eligible applicants for Direct PLUS Loans. Direct PLUS loans assist with covering educational costs up to the cost of attendance when all other forms of financial aid are used up. Financial need is not a factor in eligibility, although a credit check is necessary. Those with a poor credit history must fulfill additional conditions to qualify. Interest is levied at all times and may be capitalized at specific points during the loan term, which might raise the cost of your federal loans overall.

Best Private Student Loans

Private Student Loans are available to undergraduate and graduate students. Undergraduate Loans are for college students pursuing a bachelor’s, associate’s, or certificate at a degree-granting university or college. Graduate Loans are for graduate students looking for loans to cover the costs of their master’s or doctoral degrees, master of business administration (MBA), or careers in the medical or legal fields. 

Here are the top Private F1 Student Loans.

College Avenue  

College Avenue loans are for undergraduates, graduates, medical students, graduates in other health professions, law students, careers, parents, and refinancing of student debts.

You are eligible for a College Avenue loan even if you only attend classes occasionally as long as you are registered at a recognized institution and making good academic progress. College Avenue lends money directly to the university up to the full cost of tuition. Additionally, parents are eligible to loan up to $2,500 to assist children with managing extra costs like books and transportation.

Sallie Mae 

Sallie Mae loans are for students studying undergraduate and graduate degrees, and for students enrolled in non-degree or career training programs. Sallie Mae offers graduate students unlimited 100% coverage for all school-certified fees. Furthermore, Sallie Mae provides loans for dental and medical school residencies, health professions, MBA programs, law schools, and bar exams.

Sallie Mae offers students 2 options. First, graduate F-1 students have the option of making interest-only payments for a year following graduation. Second, F 1 students receive a deferment of up to 48 months if the students are enrolled in an internship, fellowship, clerkship, or residency program.

Citizens Bank

Citizens Bank loans are available to undergraduate and graduate students, and parents.

Citizen Bank is the top provider of student loans for parents. Citizens Bank has affordable rates and a range of discounts. F1 Visa students are eligible for specialty loans from Citizens Bank if they are under programs such as a master of business administration (MBA), legal, medical, dental, bar study, and medical residency. 

Citizens Bank does not allow prequalification for borrowers. Students or parents must agree to a rigorous credit investigation to know what rate they qualify for. Parents and student borrowers can estimate their monthly loan installments using the student loan calculator prior to filing their loan application. 

SoFI

SoFI is available for undergraduates, graduates, MBA, health professions, and law schools. SoFI has no-fee private student loans and a range of incentives to help students and parents who want to pay for a college education. F 1 students do not have to worry of late fees if a monthly payment is missed.

SoFI discounts on private student loans include the following.

• Interest rate reduction of 0.25 percent after autopay signup.
• Interest rate discount of 0.125% for SoFI members (borrower or cosigner).
• Interest rate reduction of 0.125% for return borrower (borrower or cosigner takes out a second loan).
• Family Interest rate discount of 0.25% for cosigners who have more than one undergraduate loan account.

 Membership discounts under SoFI include the Member Rewards Program, personalized career advice, and the Unemployment Protection Program.

Ascent

Ascent has both cosigned and non-cosigned loans. 

• Cosigned loans are intended for undergraduate, graduate, Deferred Action for Childhood Arrivals (DACA), and foreign students. The benefits for cosigned loans include an automatic 0.25% deduction rate and a 1% cash back graduation reward. An F1 Visa student can apply for a cosigner release after 12 consecutive on-time payments.
• Non-cosigned outcomes-based loans are eligible for undergraduates, graduates, and Deferred Action for Childhood Arrivals (DACA). Ascent establishes your eligibility for non-cosigned outcome-based loans on your university, major, program, academic standing (GPA), graduation date, and cost of attendance.

LendKey 

Lendkey has loans for undergraduate, graduate, and post-graduate students.

LendKey offers in-house customer care and services for the loans that borrowers get through its marketplace. LendKey teams up with more than 13,000 small banks and credit unions. LendKey is not a lender and will not disburse or underwrite your loan. LendKey will manage all administrative and customer-related aspects of your loan.  

Applications are evaluated based on credit, and cosigners are accepted if the borrower doesn’t match the requirements. Release of a cosigner is subject to lender approval and criteria. 

LendKey’s private student loans start at $2,000 and can be used to pay for textbooks, lodging and board, tuition, fees, transportation, and other approved education-related costs.

What are the Other Options for a Student Loan?

There are many ways to pay for a college education. You can combine 1 or 2 methods at once to pay for your tuition and other educational costs. Below are 8 options for a student loan.

1. Grants are a predetermined sum of money that you are never required to repay. Grants are available in the United States from federal and state governments, colleges, universities, and nonprofit organizations. Check with the financial aid department of your institution or university. The staff knows the relevant grant programs and can assist you with the application procedures.
2. Scholarships are comparable to a grant. You can choose from merit-based or need-based scholarships. The merit-based scholarship is for students with exceptional intellectual or athletic talent, or aptitude in another area. The need-based scholarship is available to students in dire need of financial assistance.
3. Work-study program lets you work part-time as a required component of your degree program through a work-study program. You can obtain work experience and make some money through work study. The majority of work-study programs involved on-campus jobs like working in the campus gym, dining hall, or library especially available for undergraduate students.
4. Part-time job gives you the opportunity to make more money than you would have through a government work-study program.
5. Income-Sharing is a contract between you and a company that will pay you money, typically from big institutions, though certain private corporations may also be involved. You will then have to pay back a predetermined proportion of your wage for a predetermined period of time once you graduate and land a job.
6. Corporate Sponsorships refer to some businesses, typically big professional service providers like engineering or auditing firms, that provide newly hired young graduates with advantages like tuition reimbursement. In most cases, the sponsorship is in return for a commitment to work for the company for a predetermined amount of time, usually a few years.
7. Payment Plan is available in many colleges and universities. These educational institutions let you set up a payment plan if you are unable to pay your tuition in full upfront. F-1 students benefit from payment plans if they have part of the upfront funding (from grants or scholarships) but still fell short. With a payment plan, you are able to work part-time to pay the balance over the course of a semester.
8. Savings is another option to take one or more years to work full or part-time to save up enough money to pay for tuition. The advantage of this is that academic strain is relieved. You can spend more time working to increase your income while still getting adequate time for yourself.

Some lenders additionally give you the choice to show further evidence to prove that you qualify for an F 1 Visa loan. These lenders request you to present a non-traditional credit account like insurance or utility bills. A satisfactory credit history or credit rating from a foreign credit reporting agency is accepted by some lenders.

Other lenders additionally consider your employment status or monthly income in determining your eligibility as a borrower in addition to credit-related variables.

What is a Cosigner for Student Loan?

A cosigner for a student loan is a responsible adult who cosigns for a loan with the student. A cosigner shares the burden of timely and full loan repayment along with the student.

Private student loans are credit-based. Students find it challenging to get a private student loan approval because of the absence of credit history. Lenders are more willing to approve the loan with a creditworthy adult consigner for a student loan.

Cosigners for student loans are not limited to loans for undergraduate students. Having a cosigner is advantageous if you’re applying for a graduate student loan without a credit history.

What are the Requirements for a Student Loan?

The requirements for F-1 Student Loans are listed below. 

• Proof of identity. Your passport identification page with your photo is a universally acceptable confirmation of your identity. 
• Proof of address. You need to secure documentation stating your name and U.S. address. Additional information such as your monthly rent may be required by some lenders. 
• Letter or email of admittance. You need to obtain confirmation from your school that you are accepted in a program approved for F-1 Visa. The letter or email should have the name and address of your school. 
• Course information. You need to disclose your F-1 program and the course period/s that you are enrolled in.
• Credit bureau report. Some lenders will require a report of your credit history and score in the US. F1 students with US cosigners are able to use the credit reports of their cosigners to apply for F 1 Student Loans. The major credit bureaus in the U.S. that release credit reports are Equifax, Experian, and TransUnion. 
• F1 students with no credit history. Most F1 students will not have a credit history in the US or a cosigner. Many providers of Student Loans now allow F-1 Visa holders to apply even without a U.S. credit history or cosigner.
• F-1 students with a job will need to show their payslips and bank statements.
• F-1 students with a job offer after graduation will need to show proof of future employment such as a signed employment contract. Some lenders consider your future earning capacity as a valid requirement for F1 Visa Loan.
• Proof of savings. Statements from your savings account that show your available funds dedicated to your education are acceptable. Investments in stocks do not qualify as valid savings funds.
• Financial support. You will need the bank statements of the person/s who are paying for your education if applicable.
• Sponsorship or scholarship. A letter with the official letterhead of the provider should be submitted which indicates you as the beneficiary.

The type of student loan determines the requirements for F1 Visa loans that every student must keep in mind to obtain loan approval.

Who is Eligible to Apply for a Student Loan? 

Eligibility for a student loan depends on the type of loan being applied for. 

Federal Loan Requirements

• Indicate a need for money. Financial need is necessary to be eligible for Direct Subsidized Loans.  
• Must be a qualified noncitizen or a citizen of the United States. Some lawful permanent residents who lack citizenship can be eligible. 
• Must have a Social Security number. You must possess a current Social Security number, with the exception of people who reside in a few U.S. territories.
• Enrolled in a qualified degree or certificate program. Federal student loans must only be used for accredited or recognized programs.
• Completed academic work successfully. Each institution establishes its own academic requirements. You run the danger of having your access to federal aid programs revoked if you don’t maintain the minimum grades required by your school.
• Apply for Selective Service. Male students between 18 and 25 years old must register for the draft through Selective Service.
• Enroll at least part-time. You must enroll in at least a half-time course load to qualify for the majority of student loan programs.

Private Student Loan Requirements

• Enrolled in a certified course or program and educational institution.
• Meet the required demographics. You must have a high school diploma or its equivalent, and be at least 18 years old.
• Use the loan for your schooling. You must use the loan for your education.
• Possess a good credit history. Private loans demand a credit check. You must have a good credit score, often one that is 700 or higher to qualify for the loan. You would need a cosigner who has good credit standing if you have a bad, fair, or no credit history.
• A proven source of income. Lenders will check your income and debt-to-income ratio to verify if you can afford to repay the loan.

How to Know if I’m Eligible for a Private Student Loan?

Private student loan lenders are meticulous in granting student loans. These are the primary criteria private student loan lenders consider before approving your student loan application.

• Credit history and score. There is no minimum credit score required to qualify. Higher credit scores increase your chance of getting a private student loan. You can potentially qualify for reduced interest rates with good credit. You might choose to apply with a cosigner if you have bad credit. Analyze your credit record and search for methods to make it better before applying for a student private loan.
• Income and debt. A source of income, even if you don’t make much, helps you qualify. Lenders consider your debt-to-income ratio (DTI) which evaluates the relationship between your monthly debt payment and your monthly income. You’ll be eligible for better loans if your debt-to-income ratio (DTI)  is lower.
• Enrollment in an acceptable educational program. The lender contacts your school to confirm your enrollment before authorizing your loan. The lender checks whether you’re not taking out more debt than you need to cover your tuition and other educational costs. You must be enrolled full-time to be eligible for a private student loan. Keep in mind that the lender might not accept all sorts of universities and degree programs.

How to Apply for a Student Loan?

These are the steps on How to Apply for an F1 Visa Loan. 

Applying for a Federal Student Loan

1. Fill out and submit a Free Application for Federal Student Aid (FAFSA) form to apply for a federal student loan. Your college or career school will send you a financial aid package that includes federal student loans based on the Free Application for Federal Student Aid (FAFSA) form results. Your college or university will explain how to accept all or a portion of the loan.
2. Attend entry counseling. Entry counseling is a method to ensure you comprehend your need to pay back the loan
3. Agree to the terms of the loan by signing a Master Promissory Note.
4. Get in touch with the financial assistance office of your school to obtain information on the procedure at your school,

Applying for a Private Student Loan

Direct private college loan applications are available on each lender’s website. 

• Submit a loan application once you’ve decided which school to attend and once you know how much money you’ll need to borrow.
• Fill out the form with your basic financial and personal details.
• Select the type of interest rate and repayment terms.

 Private student loans allow you to apply with a cosigner who has good credit. Cosigners must provide their financial information on the student loan application. 

What are the Short- and Long-term Consequences of Not Paying My Student Loan?

Make sure to pay your F1 Student Loan according to the agreed repayment terms to avoid the following consequences.

Short-term consequences

• Late payment fee typically applies if you make your payment after the due date. Not all lenders charge this fee and the amount varies depending on the lender. Lenders generally charge flat late fees or fees that are a percentage of your missed payment. 
• Wage garnishment is a court order requiring an employer to deduct money from a person’s paycheck to pay an obligation. A few months overdue on your student loan can amount to up to 25% of your disposable income if you are working while enrolled in a course. Your employer has the right to continue doing this until you have partially repaid your loans and are in good standing.

Long-term consequences  

• Default. Your loan will go into default if several months go by with missed payments. There are differences in the time and implications of default. You would be obliged to pay the full student loan balance at once in extreme situations.
• Ineligibility for future assistance. You risk losing out on any upcoming financial help, including grants and scholarships if you are currently in default. Having defaulted loans on your credit report make it more difficult to obtain a mortgage, a car, or a credit card.
• Credit rating decline. Your credit score suffers the more you delay paying off your college debt.
• Potential legal action. Your initial lender can sell your loan to a debt collection company, which will then try to collect the debt by contacting you and sending you letters. Lenders must file a lawsuit to garnish earnings. You can be sued if you don’t pay back your student loan.

Can I Use my Student Loan to Apply for An EB-5 Visa From F1 Visa?

No, your F1 Student Loan is generally for expenses related to your education and living costs in the United States as a foreign student. The EB-5 Visa requires funds that came from lawful sources for the minimum investment criterion of the program. Loans for an EB5 Visa must be secured by the immigrant investor’s personal assets and the EB 5 investor must be the primary borrower of the loan. Aside from an EB 5 Visa Loan, you can also use gifts, inheritance, employment earnings, and business profits as your investment funds to get an EB-5 Visa from F1 Visa.  

FAQs about F1 Visa Student Loans