1-Testing | Study in USA

No Co-signer Student loan for International Students in USA

International students appearing for student F-1 visa interview will usually have higher education loans approved from a bank.

In India, students commonly get loans from banks like SBI, ICICI, HDFC, Canara Bank, and so on. Student loan APRs are much higher compared to student loans in the U.S.

In order to attract more international students, U.S. business schools during the last few months had began the process of creating student loan programs for international students without the need for a co-signer.

Usually, to obtain student loans in the U.S., there should be a co-signer. However, for international students, it’s usually difficult to get a co-signer for a loan unless the student has relatives in the U.S. who can co-sign for the loan.

If the student’ doesn’t pay the loan, then the bank will come after the co-signer so that the loan amount can be paid back.

However, this “no co-signer student loan type for international students” in the U.S. is only available for certain MBA programs.

No Co-signer Student loan for International Students in the USA

Recently, the following business schools have introduced the No co-signer student loan for international students:

  1. University of Chicago
  2. Harvard University
  3. Pennsylvania’s Wharton School
  4. Yale School of Management

According to Graduate Management Admission Council (GMAC), about 40 business schools in the United States and Europe will make the “no co-signer student loan” available beginning with the 2009-10 academic year.

Interest Rates – Student Loans

Interest rates for student loans vary among countries. However, it should be noted that applying for student loans in the US seems to be a much better option than applying for loans in India.

  • Student Loan Interest Rates: India – 12% and above
  • Student Loan APR: USA – 5%+

There is a huge difference between interest rates, so doing it right could save students a lot of money.

Due to the on-going economic recession, there will likely be a decrease in the number of international students planning to attend U.S. universities, even though more students had applied for admission.

Another major reason why students are hesitant is due to the difficulty on getting an H-1B visa due to the strict H-1B visa rules and regulations being implemented by the USCIS.

If students get loans to study in the U.S., but if they cannot find a job or funding assistance/scholarship, it will be hard to pay back the loan amount.

Universities in the U.S. offering engineering and science programs should start offering student loans without co-signer for international students.

This strategy will definitely attract many students everywhere. However, will universities come forward?

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  1. hi I’ve admitted to the Florida institute of technology and I’ve won the scholarship with the worth of 14000$ and the left of the expenses is 33000$ which I should pay for every two semester am from Iran and I can’t find a US co-signer but I have a Canadian one whom can co-sign me where can I find such a loan gift aid and so on that can help me affording my expanses.
    I need some help please.

  2. Could I get a student loan? Im an international student and will be graduating from Utah Valley University in 2010. Please let me know.. thanks

  3. I am an international student and have gotten admission to a school in Canada. I want to know if I can get Canadian visa for my wife and enter together with her or I have to enter Canada first and later apply for visa for her?

  4. Hi, I was an international student graduated from college. With my studies from my country and from the college I was able to apply for an H1-b visa which I was approved with the company that I'm currently working on. I've worked with this company for almost two years including OPT and have reasonable income. Now I want to keep studying to get a bachelor and don't know if I could get a loan with a US citizen co-signer. I also have a good credit but it's new; only two years of credit history.

    Thank you in advance!!!

  5. Hi I'm an international student that have fight to be where i am today. The only child in my family to every receive a degree. I've accomplish my A.A.S and working now on my BA. However it's hard for me and my family to pay for my education but with the will of god and family support i've got this far and am not someone that gives up. However my parents are getting older and working for a income is getting harder and harder for them and i would like an break to take that stress of them. If i can please fine out if there is a way i can apply for a loan being an international student and prove am good for it in paying it back would be great to know. I have no co-signer but i know once i complete my MBA i will be able to pay it back with my income. Thanks in advance and look forward for your response

  6. Hi,

    I am working in US on H1B and have a good credit history. My sister recently joined a MS program here and was wondering whether I can get a student loan for my sister from US banks, if I am the co-signer ? How does that work ? Do I have to pay some monthly amount towards the loan or the payment starts only after the graduation ?

    Please advise !



    1. hi vishal

      the loan amount is payable by your sister after completion of her studies,

      in case she fails to get a job or fails to pay her due

      you as co-signor will be asked to pay

      since she is your sister you can support her is it not my friend

      even if she is not your sister my friend, kindly help a person who is need of help, do not worry about the future.

      life has many surprises buddy.

      it will turn the joblessness in to job fullness

      it is wellness of the mind

      my dear vishal

      hurt never, help ever

      keep cheerful buddy

      love and greetings



      1. Easwaran,
        Of course I am going to help my sister ! I just thought it will be easier if I can get a loan for her, so that she doesn’t have to depend upon me. She doesn’t have a credit history, so I hope my credit history will be of some help to her. Please do let me know if we can get a loan here in US on H1B ..cause most of the banks I checked need a co-signer who is a Citizen or perm resident.

        Thanks !

        1. You cannot get loan for an F1 student without co-signer, unless the university has tie-up with banks to provide such loans.

          1. HSB, Yes I know that and I will be the co-signer provided they accept me as a co-signer !..I'm on a H1B visa and have a good credit history for the past 7 years. Its just that every student loan application which I checked, says they need a co-signer who is a US Citizen or permanent resident …

            So my question is — can someone get a student loan with a H1B visa holder as a co-signer or not ?



          2. hi vishal

            you are right, u need citizenship to be eligible for co signor.inspite of 7yrs in usa, and your credit account being fine

            what to do friend

            ask a fellow who is working with you perhaps us national

            i do not know indian who has acquried his us citizen status will guide you,

            any way try my friend.

            hope your sister gets some financial aid

            ta,ga,ra and what ever it is

            i pray to the almighty to guide you in this troubled time

            keep smiling

            keep safe

            my dear, i respect your courage

            i respect your kindness in helping your sister

            wishing you all the very best

            keep trying

            never ever give up my dear



          3. Hey Vishal,

            I am in a similar situation as yours. My sister is on an H1B over there and I am going there to do my MS. Did u get any regarding this if a loan can be sanctioned on these grounds?

    2. You cannot get loan for an F1 student without co-signer, unless the university has tie-up with banks to provide such loans. You need to be a US citizen to get such loans. H1B visa is not sufficient.

  7. to the kind attention of mr.chandra

    this is the work out

    assuming i take a loan of 10,00,000 loan for my son education from an Indian bank at the interest rate of 12% i will be paying to the bank at the end of one year Rs1,20,000 /

    in the case of us bank loan

    at today's us $ vs Indian money rate lets us say i get US$20,000 loan i will be paying at the end of year us $ 1000 at the rate of 5%

    from the above calculations one will save at the least 50k per year

    what this blog HSB said is correct.

    is it not

    i may be wrong , any further calculations are most welcome

    that way we will be wiser

    thanks for your posting



    1. Wonderful calculation. Alos, money will be used per semester. You will not take $20,000 loan in single semester. It will be taken out as needed.

  8. beloved HSB

    it is amazing to see your quick and very detailed report.

    hats off to you for serving in a selfless way.

    i am very much indebted to you

    yes you are absolutely correct in saying

    "Universities with Engineering and science programs should start offering student loans without co-signer for International Students, it can definitely attract many students. But, will universities come forward?

    hope wisdom dawns on the authorities early

    once again thanks for beautiful response

    with love and immense gratitude



  9. Thought the interest rates may seem to look lower. Work it out in terms of Indian rupees and US dollars. Dont think there should be much difference.

    Comments invited

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