International student loans for the USA: All you need to know

Studying in the US is a big step—and a big investment. With world-recognised universities, research opportunities, and global networks, it’s no surprise that international enrolments remain at record highs. If you’re planning a master’s in the US and weighing up funding options, this guide explains how international student loans work, what to look out for, and how Prodigy Finance can help you cover tuition and living costs when we send the funds to your school.

Why the US?

The US remains a stand-out study destination with strong graduate employment outcomes and extensive alumni networks. Recent data shows international student numbers at an all-time high, reflecting continued demand for US degrees and practical training opportunities. Many students bridge the gap between savings, scholarships, and total costs with education loans.

This guide breaks down the loan types, eligibility, application steps, interest rates, and repayment options—plus tips to help you borrow smart.

Key takeaways

• International students usually rely on private or institutional loans, as US federal student loans are generally not available to non-US citizens who are not eligible noncitizens.

• Start early. Compare lenders, documents, timelines, and how your loan amount maps to your full cost of attendance.

• Loans can be a helpful tool when used with a realistic budget and a clear repayment plan that begins after your grace period (regular).

Understanding international student loans for the US

When you compare lenders, you’ll see three common routes:

• Bank loans: Traditional banks sometimes fund international students, often with strict co-signer and credit history requirements.

• University loans: Some universities partner with lenders or offer limited institutional loans.

• Private/global programmes: Purpose-built products for international students from 120+ countries, often with a fully online journey and tailored eligibility.

Most international students won’t qualify for US federal student loans. They are typically restricted to US citizens, permanent residents, or specific eligible noncitizens. That means private lenders and school options matter most for global students.

Prodigy Finance offers no-collateral, no co-signer loan options for international postgraduate students at supported schools, assessed on future earning potential. Eligible Indian students can also access an optional co-signer product designed to enhance affordability.

Private international student loans at a glance

1) Eligibility: Who can apply?

You’ll typically need to:

• Be admitted to an eligible programme and school.

• Plan to study outside your home country.

• Meet the lender’s country support footprint (Prodigy Finance supports applicants from 120+ countries).

• Maintain satisfactory academic progress once enrolled.

Federal loans aren’t available to most international students. If you don’t have a US-based co-signer or collateral, look for lenders (like Prodigy Finance) that assess your profile, programme, and school outcomes rather than local credit alone. 

Tip: Check whether your university offers its own financing or recommends preferred lenders for international students. Some schools also ask you to complete institutional aid forms (for scholarships or campus jobs). This is separate from federal aid.

2) What expenses can a loan cover?

Lenders usually align your approved amount to your cost of attendance (CoA), which includes tuition plus living costs. Expect coverage for:

• Tuition and mandatory fees

• Living expenses, such as housing, food, and local transport

• Books, supplies, health insurance, and required equipment

• Other school-certified costs

With Prodigy Finance, funds are paid directly to your university when we send the funds to your school. If approved, this can simplify payments and help you prove financial readiness for your visa.

3) Repayment options and planning

Repayment design shapes your total cost as much as your rate does. Look for:

• Grace period: Repayments begin after your grace period (regular).

• Deferral and forbearance: Understand when you can pause payments and for how long.

• No prepayment penalties: Helpful if you plan to repay faster once you start earning.

Create a budget that covers living costs during study, a realistic job search window, and your first months of repayment. If you’re considering the optional Prodigy Finance co-signer product (for eligible Indian students), note that it includes in-school payments designed to reduce the amount that accrues, which can lower total cost over time. 

4) How variable interest rates work

Most private international student loans are variable. Your total interest rate typically combines:

• Fixed margin: Based on your profile and stays the same.

• Benchmark rate: A market rate such as SOFR, which can move up or down.

Your APR shows the all-in cost of borrowing, including interest and mandatory fees. When comparing lenders, use APR (not just the interest rate) and read the representative example.

5) Federal vs private loans: What’s relevant for international students?

• Federal loans: Generally not available to international students who are not eligible noncitizens, so income-driven plans and federal forgiveness programmes do not apply in most cases.

• Private loans: Vary by lender. Some require a US co-signer and local credit history, while others (like Prodigy Finance) focus on your school and programme outcomes and can fund without collateral or a co-signer at supported schools.

Bottom line: If you’re an international student, expect to compare private lenders and school options rather than federal loans. Focus on APR, fees, flexibility, and support after graduation.

6) The application journey: Step by step

Every lender is different, but this is the general flow with Prodigy Finance:

• Check eligibility and get a provisional quote
  Share a few details online to see if you qualify and view a personalised estimate.

• Complete your application
  Add your programme and funding needs. Upload documents such as your passport, admission offer, academic transcripts, and proof of other funding (scholarships or family support).

• Get your final offer
  If approved, review your loan summary, APR, and terms. Your rate can vary based on your profile, programme, and chosen school.

• School certification
  Your university confirms your CoA and enrolment.

• Funds sent to your school
  We send the funds to your school in line with their schedule.

• Study, graduate, and prepare to repay
  Repayments begin after your grace period (regular). You can make early payments if you want to reduce interest over time.

Documents checklist:

• Passport and recent photo

• University offer or I-20 details from your school

• Academic transcripts and degree certificates

• Details of savings, scholarships, or family support

• Visa documentation, when available

7) Borrowing decisions: Smart ways to keep costs down

• Borrow what you need, not the maximum. Map tuition, rent, food, health insurance, and a realistic cushion for arrival costs.

• Compare APRs and fees, not just rates. Small APR differences compound over time.

• Plan for your first 3–6 months after graduation. Build a buffer for job hunting and relocation.

• Use early repayments. Even small, voluntary payments during study can reduce your total cost.

• If you’re eligible for the co-signer option (Indian students), compare the projected total cost and monthly payments over the full term. 

Ready to take the next step?

Check your eligibility and get a personalised quote for a Prodigy Finance loan in minutes.

FAQs

Loan and promotion offers are subject to our eligibility, funding, and credit assessment criteria. Loan amounts are subject to the cost of attendance limits set by schools. Representative APR 12.49% variable. APR includes interest + mandatory fees (all-inclusive rate of borrowing).