I’m Brianna Davis and I’m here with international student loan. We’re going to talk about study abroad loans. Now, often if you’ve watched our Hangouts in the past, usually we do talk directly to international students. Non-US citizens coming to the US, but today we’re going to mix that up a bit. We’re going to talk directly to US citizens who are going to be studying abroad. More than likely you are enrolled in your US school and are going to be spending a semester or a year abroad. If you are not a study abroad student, that’s fine. Don’t feel like you have to go anywhere.
Study abroad loans, you might be worried that. Since you’re studying abroad, you don’t have any options whenever it comes to loans. It’s because they’ll be outside the US but that’s really not the case. You actually have two different options. You have federal loans which is to the government and then you have private loans which is through a separate entities, such as a bank. We’re going to talk about both of those options.
We touch briefly on federal and then dive more into private loans because an international student loan, we specialize in private loans. Let’s go ahead and start. We start with federal loans. I want to start by saying that if you have not ever completed the FAFSA. Or if you don’t even know what it is, you’re going to look into that. You most definitely want to complete the FAFSA and what it is. It’s the Free Application for Federal Student Aid. By completing it, it’s going to do what type of aid you have available to you. It’s going to tell you what types of loans you have available to you in your situation. But, it’s also going to tell you what types of scholarships or grants you might be eligible for.
We’re only going to be talking about loans, but the FAFSA just to throw that out there. It lets you know more than just loan, about scholarships as well. Complete that FAFSA and you’ll keep in mind the deadlines for that. The deadline is June 30th. There’s also going to be some state and school deadlines, so you’ll want to double check on what the state deadline is as well as what the school deadline is whenever you’re going to complete that FAFSA.
US citizens are able to complete the FAFSA. There might be a few stipulations you want to keep in mind, such as having a social security number and then as well as qualifying non-US citizens. You might be wondering what exactly is a qualifying non-US citizen. If you go down to, if you go to www.fafsa.gov, you’ll be able to find out more information. If you’re a qualifying non-US citizen or not and then you’ll also be able to check out those other few stipulations that US citizens might have.
You can get more information there at that site on the federal the federal regulations. There’s a few different types of federal loans available that you might be eligible for. I’m going to briefly cover what those are. That way you can know what you might be able to receive.
The first one is the direct subsidized loan. For this one, it’s only available to undergraduate students and you have to be able to show financial need. The next one, we have direct unsubsidized this one. There’s sort of a wider pool that’s available for this loan. You can be a graduate student an undergraduate student and then the great thing is you don’t have to show financial needs. Like I said, it opens the pool to a wider variety of people.
Next, we have the PLUS loan. If your parents have been so generous to say that they want to help you out with funding your education, this is more than likely going to be the loan that they utilize the PLUS loan. Then next, we have the Perkins. It’s going to be a little bit narrower pool you have to be able to show high financial need in order to receive the Perkins loan. Those are just a few different types that you will want to be aware of.
The next, looking at benefits. There’s a lot of benefits to being able to receive a federal loan. Before you even look at private loans, you will see what federal loans you have available to you. Let’s look at some of the benefits.
First of all, you’re going to be able to get a low fixed rate which is great because that means less you have to pay back later on. Also, it’s going to be income based repayment more often than not and so what you have to repay can be parallel to what your actual income is. It’s a little bit more flexible when it comes to that. Then cancellation options, you might be really excited about I’m knowing. There are cancellation options with federal loans but it’s only going to be in a few instances. Such as if you have been in a teacher in a low-income area for so many years or if you’ve done special service positions things like that, there are special instances not everyone has a cancellation option.
Unfortunately, it is an option for some and then deferment options, if you aren’t able to find a job quickly after you graduate, things like that. It’s a temporary postponement of paying back that loan. In some instances that pending on the loan the US government may actually pay the interest for you. It’s a pretty great option. First, before you check out private, you’ll want to check out federal loans. Once again, you can do that by going to this site.
Let’s go ahead and look at private loans because sometimes as we all know family help and personal savings and even federal loans. It’s just not enough, so you have to find something else and that’s why private loans come. They’re great for filling in the rest of the gap, so the rest of the aid that you need to find to pay for your education. One of the great things about private loans is there’s not going to be a deadline. I’m sort of a rolling process. Keep in mind that it does, it can take up to two to six weeks for the initial approval. If you need your funds immediately tomorrow, that’s not going to happen. Even though, there’s not a deadline. It’s gonna take you know about two to six weeks for that initial approval. Keep that in mind, there’s not a deadline which is great.
We’re just talking about study abroad loans, so US citizens or residents who are studying at an eligible school. Keep in mind that’s for study abroad and loans and we also with international student loan. There’s an option for international students, some non-US citizens. To see what loans are available to you as well but for the sake of study abroad loans, you have to be a US citizen, a resident studying at an eligible school and you actually do not need a US cosigner. if you’re a US citizen, why this might be great keep in mind that sometimes it’s still beneficial to have that US cosigner. They can help ensure that you actually get that loan and they can help ensure that you have the best interest rate possible. Just because he does, it doesn’t mean that you shouldn’t find one.
Then, a few of the benefits as we’ve already discussed know, there’s the rolling deadline. Sometimes, you just need more as we touched upon. Sometimes, you don’t have the aid that you need with your personal funds and with the federal funds. Private loans are a great way to give you that extra aid that you need and then also perhaps you’ve missed the FAFSA deadline, perhaps you just don’t want to bother with it at all.
Doing the private loan is going to be a good option if you go to international student, you can read more on study abroad loans. Then, we have an easy loan tool finder, so you can see what lenders are available to you as a US citizen studying abroad. I recommend if you are wanting to utilize private loans. You’ll want to use that tool. It’s going to narrow down. Well, lenders will work with you in your situation so you can then go in and compare the different lenders. Read their terms and conditions and then find the best one for you.
Now, that you know a little bit about federal and private loans. Let’s get to some of your questions. Let’s answer Esther’s question: “Can I get a loan from the beginning of a new semester at a university in Australia?” It’s going to depend on the timeframe that you actually apply for the loan. Once again, how you do a private loan is going to take two to six weeks for the initial approval. For a university in Australia, if you’re studying abroad as a US citizen you know when you’re enrolled in an eligible school. That’s a definite possibility you want to go and see. You’ll have to be at an eligible school so you can go there and see if doing a private loan is actually a possibility for you, for your journey to Australia
Next, one of the procedures to get a loan in the USA, it appears that you are an international student so non-US citizen coming to the US and as I mentioned before we have lenders who work with non-US citizens who are studying inside the US. But to see what lenders are available to you, you would have to go and use the loan. Find your tool and you would have to answer just a few questions such as if you’re a US citizen, if you have a cosigner on your school, things of that nature and it’s going to give you a list of lenders that will work with you. As an international student at your school, not every lender will work with every school and they don’t always work with international students so that tool is a great way to narrow down what lenders will work for you if you want to go and complete that tool.
Let’s look at our next question: “Can I get a loan for a transfer?” It sounds like you might be attending one school and you’re going to be transferring to a different school. You’re wondering if you can still get a loan at the new school and it’s going to depend on your school if you have an eligible school or not also on your situation. So once again, if you are an international student, I recommends going on to the loan finder tool completing putting in the information and completing everything you need. Then you will see if your new school is an eligible school and if you have any lenders who are willing to work with you as an international student at that school.
Matthew: “What is the best loan?” To get at the lowest interest rates, make sure you can afford everything you need to study abroad and not eat ramen noodles the whole time. That is a great question from Matthew. You know of the ramen noodles are great. I can see how those can get pretty old after a while. Eating ramen noodles all the time is not fun and but really the answer is you’re gonna have to compare the different loans and see which lender can offer you the best rate. Your rate is going to vary not just by lender but also depend on if you know the credit that’s attached to the application. Perhaps of whether that’s yours or your co-signers that can the interest rate can vary depending on that.
Well, so you’re really gonna have to see what loan what lenders are available to you. Then compare what they’re able to offer you in order to see which one is the best because it’s not going to be the same for everybody. Once again, whether you are a US citizen going abroad or whether you are a non-US citizen coming to the US, you can use the loan finder tool. Then compare their terms to find the best one for you. You’re not stuck with eating ramen all year.
I went to study abroad but I still don’t know where between Australia, Canada, UK, Sweden, Germany, Finland – that’s a lot of choices. That’s good. I’m keeping up into your options. I just wanted to ask in the country that has a good education system where can I get a study abroad line without having a resident sponsor like in the US. Unfortunately, if you are not a US citizen then we actually would not have a loan program available for you. You will not be studying inside the US, so non-US citizens sitting outside the US may unfortunately do not have a loan program. We would only have one if you’re a non-US citizen studying inside the US or if you’re a US citizen going abroad. Either you know to be a study abroad student or directly enrolled, you might want to reconsider the US if you do need a loan, if not then you know any of those other places would be great. You might just want to consider perhaps a scholarship or something of that nature.