Table of Contents
- What is a US cosigner loan?
- Top benefits of a US cosigner loan
- Amount, Interest rate, and Repayment terms
- Eligibility requirements
- Who is considered a good cosigner for US cosigner loan options?
- Documents required for a US cosigner loan option
- How to find a cosigner in the US?
- How to begin the application process for a US cosigner loan option?
- Frequently Asked Questions
Financing your studies in the US can be challenging, given the high tuition and living costs. To overcome the challenge, US cosigner education loan options help. They let you study without worrying about the expenses if you have a financially responsible cosigner in the US.
What is a US cosigner loan?
A US cosigner loan option refers to the education loan option international students can take from a US lending institution with a US citizen or permanent resident as the cosigner. The cosigner can be a relative, a professor, or a close contact of the student who earns well in the US. Any international student who gets admission to a US institution is eligible for US cosigner loans, provided they have a financially strong cosigner in the US.
Top benefits of a US cosigner loan option for international students
- No collateral security required: US cosigner loan options are without collateral in most cases. It allows international students to get funds for their studies without mortgaging anything.
- Minimal documentation: Lending parties in the US ask for minimal documents from the student and cosigner, thus allowing for an easy documentation process.
- More institutional coverage: US lending partners will typically cover more colleges and universities compared to other lending partners. It means you may have more chances of acceptance for US cosigner loan options compared to other education loan options.
- No FOREX conversion charges: Education loan options from India are subject to FOREX conversion charges (1% – 5% of the loan amount), which is the cost of converting the amount from one currency to another. On the contrary, for US cosigner loan options, there are no FOREX charges, helping you save more.
- Up to 100% of loan option amount availability: Typically, there is no fixed cap for US cosigner loan options. International students can get up to 100% of their cost of attendance through a US cosigner education loan option.
- Multiple repayment options: Repayment of a US cosigner loan option can be made in a single payment, fixed monthly installments, interest-only payments, or no interest payment while studying. The flexibility with repayment options allows international students to pay off their debt according to their financial ability.
US cosigner loan option amount, interest rate, and repayment terms
US cosigner loan options offer high amounts at an affordable interest rate that is fixed or variable, depending on the lending partner and market conditions. Multiple repayment options available for US cosigner loan options allow international students to repay the debt according to their financial strength.
| US Cosigner Loans | |
| Maximum Amount | Up to 100% of the cost of attendance |
| Loan Option Coverage | Tuition fees, Living costs, Housing costs, Food, and Books |
| Interest Rates | Fixed Rates: 4.11% – 15.90% *APR Variable Rates (with autopay discount): 5.62% – 16.51% APR Disclaimer: The interest rates are subject to market conditions and can change from case to case. |
| Additional Fees | 0 (no application, penalty, or origination fee levied at the time of application) |
| Repayment Period | 5, 7, 10, 12, & 15 years |
| Repayment Options | Immediate: Pay the full amount + interest in one go Interest only: Pay SI/PSI interest every month Fixed pay: Pay 25 USD every month Deferred: No payment while studying |
*APR: APR stands for Annual Percentage Rate and represents the total cost of borrowing on an annual basis. The APR includes the nominal interest rate on a loan option and additional fees or costs associated, such as origination fee, closing fee, and discount points.
Eligibility requirements for a US cosigner loan option
US banks provide education loan options to international students if the students and cosigners meet the eligibility requirements. Here are the typical criteria for US cosigner loan options:
Eligibility requirements for students
- Secure admission to a US school
- Have a good GPA (minimum 2.0 – 3.0)
- Possess form I-20 at the time of application
Eligibility requirements for cosigner
- Be a US citizen or permanent resident for at least 10 years
- Have at least 3 years of good credit history
- Possess a minimum credit score of 650
- No history of bankruptcy
Who is considered a good cosigner for US cosigner loan options?
- Show repayment capacity: The cosigner must earn a regular and sufficient income to repay the debt in timely installments. It is acceptable to have already pending payments if the monthly income is adequate enough to cover it.
- Financial stability: Depending on the lending partner, the cosigner has to show proof of regular and stable income. The cosigner should possess a good financial history with no debt records.
- Living in the US for a long time: Lending partners make sure that the cosigner is living in the US for a long time, typically at least 10 years. The cosigner can be either a US citizen or a permanent resident with a stable source of income and banking credibility.
Documents required for a US cosigner loan option
Compared to other education loan options, a US cosigner loan option involves a minimal documentation process. It can be completed within a short time. Given below are the must-have documents for US cosigner education loan options:
- Permanent address proof of the student
- Copy of form I-20 (showing course details and cost of attendance)
- Proof for extra expenses not shown in Form I-20
- Cosigner’s address proof showing name, email, and home state in the US
*Note that additional documentation may be required depending on the lending partner.
How to find a cosigner in the US?
Finding your cosigner in the US is the crucial aspect of the application process for a US cosigner loan option. The cosigner is responsible for the debt while you are studying, which is why US lending institutions accept only trustworthy cosigners.
Here are some suggestions for finding your cosigner in the US:
- Look for close relatives or friends in the US who earn a regular income
- Approach your professors and ask for their willingness to be your cosigner
- Do network for US settled-Indians and request them to be your cosigner
How to begin the application process for a US cosigner loan option?
The US cosigner loan options application process is online and hassle-free, with minimal documentation. If you are interested in a US cosigner loan option, get in touch with Nomad Credit. Our dedicated counselor evaluates your profile and provides valuable guidance on admission, university shortlisting, education loan options, and student visas at zero cost.
Get this no-cost guidance right now and save yourself from intricacies related to US cosigner loan option application and documentation processes.
Frequently Asked Questions
Why do our students take US cosigner loan options over other loan options?
US cosigner loan options enjoy a greater acceptance rate among US institutions. Also, they have an easy criteria for accepting applications compared to other lending partners.
Can I get a 100% education loan option in the US?
Typically, banks offering US cosigner student loan options fund up to 100% of the Cost of Attendance (COA) as reflected on the student’s I20 or school portal. These loans are typically disbursed for one academic year at a time. For subsequent academic years, students are required to initiate a new loan application. This process may involve using the same existing cosigner or finding a different cosigner.
Am I eligible for a loan option in the US?
You can begin the application process for a US cosigner education loan option if you get admission to an academic institution in the US and have an eligible U.S. cosigner.
Is a US cosigner education loan option risky for international students?
Taking a US cosigner education loan option comes with benefits and challenges. If you don’t repay the loan option amount, the accrued interest rate can be higher and can pose a financial challenge to you. Proper financial management makes your repayment an easy process.
Can I repay the US cosigner loan option while studying?
Many students opt for the repayment of interest while studying. If you are financially good enough to repay the interest while studying, it is better to do so for a reduction in the repayment debt by the time you complete your studies.
What if my cosigner backs off at the last moment?
It is mandatory to have a cosigner for US cosigner loan options. If your cosigner backs off at last, find another cosigner to get your education loan option.
Is it okay if my cosigner is a non-US citizen but earning well in a tech company?
Your cosigner must be a US citizen or a permanent resident with sufficient earnings.
Can I change my cosigner in between my semesters?
Some students may need to change their US cosigner due to poor financial conditions or the death of the cosigner. In such emergencies, reach out to your lending partner and request a change. The ultimate decision is from the lending partner.
What if I am not in a condition to repay my education loan option?
If you don’t repay the education loan option, the interest will be accrued, and your debt will be higher. If you don’t repay the debt for long, the cosigner will be responsible, and legal action may be taken against them.
