No collateral, no co-signer? Here’s how international student loans work
Learn how no-collateral international student loans work, what they can cover, how applications are assessed, and what to expect from funding and repayment.
If you’ve started looking into funding your studies abroad, you’ve probably seen this phrase more than once: no collateral, no co-signer.
It sounds straightforward. It can also raise a few questions.
How can you get a loan without using assets or asking someone else to support your application? And what does that actually mean for you as a student?
Here’s a clear breakdown of how it works, what to expect, and how it may fit into your study plans.
First, what do collateral and co-signer mean?
Before getting into the loan itself, it helps to simplify the terms.
Collateral
Collateral is something valuable, such as property or savings, that a lender can claim if a loan is not repaid.
Co-signer
A co-signer is another person who agrees to take responsibility for the loan if the borrower cannot repay it.
Many traditional education loans rely on one or both of these.
So how does a no collateral, no co-signer loan work?
Instead of relying on pledged assets or a second person, this type of loan is assessed using a broader view of your profile.*
That can include factors such as:
Your university and programme
Your academic background
Your overall application profile
Your likely career path after graduation
This means the focus is not only on what you have today. It is also on the wider context of your studies and future plans.*
What makes this different from more traditional loans?
Some traditional education loans are built around assets, guarantees or a narrow view of financial history.
A no-collateral loan for international students works differently.*
It may allow eligible students to:
Apply without collateral
Apply without a co-signer
Complete the process online*
Access funding linked to approved study costs
For students who do not want to rely on property or involve someone else in the application, that can remove a major barrier.*
How the process works
The application journey is designed to be completed online and broken into manageable steps.
1. Check your eligibility
You begin by checking whether your university and programme are supported.
2. Receive an initial offer
You may then see an early indication of the funding that could be available to you.
3. Complete your application
This includes submitting your details, supporting documents and financial information.
4. Receive your final offer
If approved, you receive a confirmed loan offer based on your profile and chosen programme.
5. University confirmation
Your university confirms your enrolment and eligible study costs.
6. Funds are sent to your school
When we send the funds to your school, the money goes directly to the university based on its schedule.
What can the loan cover?
The loan is linked to your actual study costs.*
Depending on your approved amount and your school’s limits, it may help cover:
Tuition fees
Living costs, within school-defined limits
That means the funding is designed around the real cost of your education rather than an amount beyond it.
When do repayments start?
It is important to understand repayment from the start.
We include a USD 100 per month in-school payments, and full monthly repayments begin 6 months after your course is complete.*
That structure helps you plan for both your time as a student and the period after graduation.
A simple student example
Imagine you’ve been accepted into a master’s programme abroad.
You do not have property to use as collateral. You also do not want to depend on someone else to support your application.
In that case, a no-collateral, no-co-signer loan may give you a way to explore funding based on your profile and chosen programme, depending on your eligibility.
What to keep in mind
Even though this kind of loan removes common barriers, the offer you receive is still personalised.*
That means it may depend on factors such as:
Your chosen university and programme
Your overall application profile
The approved cost of your studies
The final assessment of your application
So while the route may be simpler, the outcome is still tailored to your individual situation.
Final thoughts
No collateral and no co-signer can make international student funding feel more accessible.*
For many students, that matters because it creates a route to move forward without relying on assets or someone else’s financial backing.
The next step is understanding your costs, checking your eligibility and seeing what funding may be available for your plans.
Ready to see what you’re eligible for?
If you’re planning your studies abroad, you can check your loan eligibility and explore funding options tailored to your profile and chosen programme.*
