Hi! My D is cming to USA as a freshman student of architecture @ UC DAAP. We are from India. We don’t have any co-signer in US. Is there any bank or institution which might give loan to her?
How much can you afford per year? Does she have any scholarship?
It’s unwise to borrow large amount of money in USA, and the banks that may let you borrow loan without a cosigner…I would doubt its legitimacy
Can you get a loan in India? Banks in the US require a cosigner. There would be too much risk if there wasn’t a way to collect.
The Global Student Loan Corporation apparently gives loans to international students with a co-signer from their home country in partnership with a bank from that country. But I don’t know if it is a legit organization at all. There are no banks in the US that give loans to international students without a US cosigner. Given the great amount of Indian students who go to college in the US, I’d suspect that many banks in India offer loans for studies abroad. And I suspect there are also other types of loans that banks provide that are not specifically for studies abroad but would serve that purpose. In every case, the student would need a cosigner with good credit and a income according to the monthly payments. Usually, the cosigner’s monthly income must be at least 3 to 4 times the amount of the monthly payment for the loan.
Good luck!
@ Paul2752- D has been offered an initial sch of 5000usd, we are expecting a better final offer anytime now. I am ready for 20k per year from my side. Can you explain why it would be unwise to borrow large amt in USA?
@ gearmom- I too think so, but still no harm in trying. Interest rates in India are high about 12% and in USA are supposed to be less than that.
@ undecidedac96- Banks in India do give edu loans. I just wanted to explore all options.
Thank you all.
As other posters have said, banks need a way to collect their money before they authorize a loan.
If not a cosigner, what other form of guarantee could you offer them? A collateral would work, for instance, if you own property in the US. (Then it’s technically a mortgage, not a student loan, but the end result is the same: money for college.)
I’ll jump in here. American students are advised against taking large student loans because it’s easy to overestimate your repayment ability after graduation. Realistically, most students will be working fairly low-income jobs after graduation. Unlike most other forms of debt, student loans cannot be discharged in bankruptcy proceedings, so there’s really no way to get rid of them short of leaving the country. Not making payments on time results in bad credit history, which makes it difficult to get anything from a rent contract to a cell phone to a car loan. (And you can easily see how not having a reasonable place to live or a car would impede a young person’s professional life, making it even harder to stay afloat…)
In short, young adults in the US can ruin their financial future for the rest of their lives if they overextend themselves on student loans.
^^^
Perfect answer.
Thank you b@r!um and paul2752. It was insightful.
I would like to know if the interest charged for student loan with cosigner is at par with interest charged for loan against property as collateral?
That is a question you need to ask each lender.
Generally speaking, mortgages seem to charge less interest than student loans. A quick google search suggests that interest rates for mortgages are hovering between 3% and 5%, while interest rates for student loans can range anywhere from 3% to 15%, depending on the credit-worthiness of the student and their co-signer.
The “Parents Plus” loan starts at 7 or 8%. It is full amortized, in other words the interest and principle repayment starts on day one or as soon as you borrowed the money.