How U.S. Students Can Get Student Loans for International Schools

If you want to earn all or part of your degree in another country, federal student loans might help cover some expenses. The type of financial aid you can get depends on your year in school, plus the country and program you want to attend.

If federal loans aren’t an option, you can also consider private student loans for studying abroad. Either way, you may be able to end up with relatively less debt by studying abroad, since some foreign schools cost much less than comparable U.S. institutions, and others charge no tuition at all.

Federal student loans for international schools

U.S. students can use the same federal student loans available at stateside schools to pay for their international programs. Over 750 international schools participate in federal student loan programs.

Federal loans are likely the best place to look first, since they often have lower rates and more benefits than private student loans. Examples include income-driven repayment plans and student loan forgiveness programs.

Among federal options, the Direct Loan Program offers some of the most affordable and accessible student loans for international schools, though PLUS loans can also come in handy. Here are your choices:

• Undergraduates can get Direct subsidized and unsubsidized loans. The interest rate for these is currently 4.99%, but they also include a one-time 1.057% origination fee. If eligible, you should utilize subsidized loans first since the government pays the accruing interest while you’re in school.
• Parents of undergraduates can help finance their child’s degree with parent PLUS loans. These loans have an interest rate of 7.54% and a one-time fee of 4.228%.
• Graduate and professional students can access Direct unsubsidized loans with a rate of 6.54% and a 1.057% fee. Grad PLUS loans are also an option, with a 7.54% interest rate and a 4.228% fee.

The usual student loan limits apply to federal student loans for international schools. For example, a college sophomore classified as a dependent student can only borrow up to $6,500 (of which only $4,500 can be in subsidized loans) for the school year.

Unfortunately, these student loans are the only federal aid offered to U.S. students at foreign colleges. Other types of federal student aid, such as Pell Grants or work study, won’t be an option when earning a degree at a non-U.S. school.

Getting Direct loans for foreign schools

Accessing federal loans at a foreign school is similar to getting them at a U.S. college. Here’s what you must do to access federal student loans for international schools.

Make sure your international school is eligible for federal student loans. You can check the list below to see if your school qualifies, or else consult the Federal Student Aid’s list of participating foreign schools, which is updated quarterly. Verify with your school that it’s currently eligible and participating in the Direct Loan Program.

International schools participating in the federal student loan program

Submit a Free Application for Federal Student Aid (FAFSA). The form is the same for all students, whether attending U.S. or foreign colleges. When submitting your FAFSA, select the international school you’re attending. This will allow the school to receive and process your FAFSA information so you can get the federal student loans you need. Again, be sure to research schools abroad that accept FAFSA.

Make sure you meet all federal student aid eligibility requirements. In addition to submitting the FAFSA, you must show you’re eligible for federal student aid, such as being enrolled at least half time and being a U.S. citizen or eligible noncitizen. You’ll also need to maintain your school’s satisfactory academic progress (SAP) by completing courses and getting decent grades.

Work with your international school to complete the student loan process. Your school can guide you through its process to claim your federal student loans. These funds will generally be disbursed to your foreign school directly.

Private student loans for international schools

If you’re ineligible for federal aid, or have reached your federal borrowing limit, private student loans could be the next best choice to fund your education abroad. These are loans issued by banks, credit unions and online lenders.

However, finding private loans for your international degree can be a challenge. Many U.S. lenders limit their business to stateside students, leaving relatively few willing to extend private student loans to American students attending a foreign school.

How to find private student loans for foreign colleges

Although the search for private student loans for international study can be tricky, it is still possible. A great place to start is with your foreign university or college. Your international school should know the options available to its U.S. students and point you to the right lenders.

If you find your school’s options lacking, or you want to ensure you get the best deal for your situation, consider top-rated private student lenders (for example, our own LendingTree list of private student loans). If possible, compare interest rates and terms of at least a handful of lenders.

Sallie Mae, for instance, lends to students attending some (but not all) schools outside the U.S. You can search for your foreign school within Sallie Mae’s loan application in order to make sure it’s eligible.

When searching with lenders, be careful that your school doesn’t have a similarly-named peer within the U.S. For example, there’s a Regent College in Vancouver, British Columbia but there’s also a Regent University in Virginia.

Be aware that you’ll likely run into many lenders who don’t offer any international student loans.

Here’s what to look for in private student loans for international schools:

• Eligible lenders: You’ll need to apply with lenders who extend funding for your foreign school. Many borrowers will also require a student loan cosigner to meet the higher credit requirements on private student loans.
• Affordability: Look for private student loans with low-interest rates and little or no fees. You can estimate your monthly payments by using our student loan repayment calculator to ensure you can afford the loan once it enters repayment.
• Deferment option: Ask about deferment policies on private student loans. For example, if you don’t want to make payments while in school, make sure the lender will allow you to defer those payments until after graduation.

Unless you’re heading to one of the countries with free college, securing financing for your tuition can be vital. Overall, you’ll have the easiest time getting student loans for international schools if you attend a program offering federal Direct loans.

By planning ahead to get the student loans you need, you can attend your dream school outside the U.S. while minimizing financial stress. And if you find a less-expensive education abroad, you can avoid some of the costly burden many U.S. student loan borrowers face.

Things to consider when earning a degree abroad

There are many advantages to earning your degree abroad, such as the opportunity to immerse yourself in a new culture and way of life. However, it’s important to consider the potential downsides before moving forward with your adventure.

• Limited federal financial aid: Not only are you ineligible for a Pell Grant and certain other awards, but as mentioned above, you also won’t be able to take advantage of the federal work-study program when studying abroad.
• Extra time researching scholarships: While there are scholarships for studying abroad, you might need more time and effort to find them. Start with a scholarship search tool and the University Studies Abroad Consortium (USAC) to find opportunities to see the world.
• Different licensing procedures: Double-check that your degree from abroad will hold the same value in the U.S. For example, the U.S. might not honor certain medical or teaching degrees from another country.

If you’re currently attending a U.S. college or university, you can also check to see if it offers a study abroad program. Some programs allow you to study abroad for a semester or a year while paying the exact cost of your current school. You’ll earn credits while exploring a new country, but you can then return home to finish your degree.