The cosigner should have a significant and stable source of income. In order to prove the eligibility for loan repayment, the lender asks for the recent pay stubs of the co-signer.
The cosigner should be willing to sign on your behalf. The number of people who are willing to cosign a loan is significantly less because, if in case the borrower forgets to make necessary payments then the credit history of the borrower will be affected.
Most international students might have their first-times in the United States and would be unaware of all the procedures for a financial aid application.
With so many uncertainties in hand, most international students find application for student loans a Herculean task. Hence, it is natural to think about the reasons why international students should need a co-signer for loan application. The reasons why lenders insist on cosigner-application for student loans is as given below.
1) Low/no credit score and credit history
As most international students would have just come into the United States, for their higher studies, they might not a good credit score or sometimes no credit https://paydayloan4less.com/payday-loans-ms/ score. Even if some would have started building credit in the initial days of the college, they would not usually have a good credit history.
2) Very little income for students
Income requirements for private students are also not met by the college students, as most often they wouldn’t have developed the necessary skills for a job or if in case they have developed the skills, they wouldn’t find sufficient time to spend for jobs, after their studies.
There are some students who barely meet up the eligibility criteria, but do not have a cosigner. In this case, the lender can make you charge a much higher interest rate. Though the higher interest rate is an available option, in a long time this plan can be disadvantageous.
How can a loan cosigner be found by an international student?
An immediate friend or a family member, who is either a US Citizen or a permanent resident with good credit, can sign your loan if you are willing to approach them.
They might take up the responsibility to cosign your loans as they have been through everything that you are currently undergoing and they are living an established life.
Websites such as the Cosigner Finder also help you in finding a willing and eligible co-signer to sign for your loan.
How to obtain a loan without a cosigner?
It would definitely be difficult for an international student to cosign their loan. However, there are several options available to obtain a loan without a cosigner. Some of these methods are as given below.
Many online lenders have framed loans that would specifically suit the demands of an international student. Three top lenders who offer private loans for international students are as given below.
Immigrants, international students, and DACA (Deferred Action for Childhood Arrivals) holders offer loans to immigrants, international students, and others who found it difficult to obtain a loan in the United States.
As they have fewest qualification requirements, Stilt is the top pick. Applications for loans can be received within 24 hours after application completion.
Loans are granted to students who have higher earning potential. However, one disadvantage of MPOWER is that it grants loans only for a few majors.
In order to be eligible to apply to the MPOWER, you should attend a school supported by MPOWER and you should also be in the last two years of your education.
The loan application process usually takes three weeks with MPOWER and the funds are directly passed on to the school rather than the borrower.