Student Loans for Immigrants

If you’re an immigrant hoping for a more promising future by going to college, you may be looking for a student loan. Fortunately, there are financial solutions for immigrant students studying in America.

As you look at ways to pay for college, federal student loans should be your first choice, but they are only available to U.S. citizens and eligible noncitizens (for instance, a U.S. national or permanent resident). Private student loans are another common alternative, although you will need a cosigner who is a U.S. citizen—or apply with a lender specializing in nontraditional student loans.

Lender	Best for	Our rating
Dept. of Education	Federal student loans	Not rated
College Ave	U.S. citizen cosigners	5/5
Earnest	Large loans	4.7/5
Credible	Comparison shopping	4.6/5
MPOWER	No cosigners	4.6/5

What student loans are available to immigrants?

When looking for student loans, you should always start with federal loans. These loans come with added benefits that are not available with private student loans.

However, eligibility for federal student loans is difficult for non-U.S. citizens. To be eligible, you must:

Be a U.S. national or U.S. permanent resident with a Form I-551, I-151, or I-551C
Have an Arrival-Departure Record (I-94) showing “Refugee,” “Asylum Granted,” “Cuban-Haitian Entrant,” “Conditional Entrant,” or “Parolee”
Hold a T nonimmigrant status, or your parent must hold a T-1 nonimmigrant status
Be a “battered immigrant-qualified alien” who is a victim of abuse by your citizen or permanent resident spouse, or you’re a child of a person designated as such
Be a citizen of the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau

The best way to confirm which federal student loans are available is to consult your school’s financial aid office. Also, keep in mind that undocumented students and students with DACA status are ineligible to apply for federal student aid. However, these students may still be eligible for state-funded loans, grants, and school-specific aid.

If you don’t meet federal loan requirements, you can consider private student loans. Several private lenders offer student loans to immigrants. Some offer loans that don’t require a cosigner (but they may charge a higher rate); others require a U.S. citizen or permanent resident to cosign the loan.

Federal student loans for immigrants

Students interested in federal aid must complete the Free Application for Federal Student Aid (FAFSA). Non-citizens must enter their alien registration number (commonly called an “A number”) and Social Security number as part of the application process.

Eligible non-citizens can use the FAFSA to apply for the same federal aid as U.S. citizens. Below are the types of federal loans available.

Loan	What to know
Direct Subsidized Loans	Federal government pays the interest while you’re enrolled in school, during the grace period, and during deferment periods; no credit check required
Direct Unsubsidized Loans	Federal government does not pay interest; no credit check required
Direct PLUS Loans	For graduate study or parents paying for child’s undergraduate study; must be creditworthy

The requirements to prove eligible non-citizen status may hinder some immigrants (even some who are documented) from applying for federal financial aid. Immigration status is checked against a U.S. Department of Homeland Security database.

In addition, applicants may need to provide proof from the U.S. Customs and Immigration Services that they intend to become citizens or permanent residents to qualify for financial aid.

Your best bet is to check with your school’s financial aid office to see what type of aid you might qualify for at the federal level before attempting to complete the FAFSA.

Private student loans for immigrants

If you’re a non-citizen who is not eligible for a federal student loan, there are other alternatives that you may want to look into. Mainly, you could look into applying for a private student loan.

It’s not an easy path without a solid network of family members and friends in the United States: for most private lenders, a cosigner is required. This cosigner typically must be a creditworthy U.S. citizen or permanent resident who has lived in the U.S. for a set amount of time. That said, some student loan companies offer loans to immigrants without the need for a cosigner.

MPOWER Financing

No Cosigners

4.6 _/5

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Why it’s one of the best

MPOWER Financing promotes financial inclusiveness by extending education loans to international students and DACA recipients. Loans from MPOWER don’t require borrowers to have collateral, a cosigner, or a credit history to qualify.

Students from more than 190 countries can apply, and the lender does not restrict degree programs or fields of study. Loans range from $2,001 to $100,000 and feature fixed interest rates.

MPOWER offers interest rate reductions of up to 1.50% to borrowers who enroll in autopay, make six on-time payments through autopay, and provide proof of graduation and employment.

Eligibility requirements for immigrants

Must be an undergraduate or graduate student within two years of graduating or about to begin a 1- or 2-year program
Must attend an approved school in the U.S. or Canada
Must provide proof of identity and have a valid visa
Must provide pay stubs or proof of financial support

Loan details

Rates (APR)	Starts at 12.74%
Loan amounts	Up to $100,000
Repayment terms	150 months; interest-only payments required during school and six months after graduating. Payment starts 45 days after the loan is disbursed.
States	All 50 states, Puerto Rico, and Canada
Credit score	MPOWER reviews credit scores and history but does not require students to have one
Annual income	None; approval-based future earnings

College Ave

Best for U.S. citizen cosigners

5.0 _/5

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Why it’s one of the best

College Ave is our top-rated student loan lender. It offers loans to international students with a valid U.S. Social Security number. All international students must apply with a qualified cosigner who is a U.S. citizen or permanent resident.

Borrowers can choose from fixed- or variable-rate loans with flexible repayment terms. Loans can be used to fund undergraduate or graduate study, including professional degree programs.

Payments can be deferred as long as the student is enrolled in school. There is a six-month grace period that applies after graduation or if the student falls below half-time enrollment.

Student loans for undergraduates, graduates, and parents
You choose your repayment term
No fees to apply

Eligibility requirements for immigrants

International students must have a valid U.S. Social Security number
A cosigner is required for all loans offered to international students
Cosigners must be U.S. citizens or permanent residents
Borrowers must be enrolled at an eligible school and be making satisfactory academic progress

Loan details

Rates (APR)	3.99% – 17.99%¹
Loan amounts	Up to 100% of your cost of attendance including tuition, fees, books, housing, and other costs.
Repayment terms	5 – 15 years
States	All 50 states
Credit score	If you have a cosigner, they’ll want to have a credit score in the mid-600s
Annual income	College Avenue doesn’t list an annual income on its website, just that there will be an “income review.”

Credible

Best for comparison shopping

4.6 _/5

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Why it’s one of the best

Credible is an online marketplace that lets you compare prequalified offers from lenders in its network. You can see your estimated rates with one online form at no cost. This is an excellent option for immigrant students as it doesn’t affect your credit score.

It has no restrictions on who can fill out a form, though adding a cosigner will likely increase your chances of being prequalified with at least one lender.

Students can borrow up to 100% of the school’s certified cost of attendance, less any other financial aid received. Fixed-rate and variable-rate loan options are available.

Compare prequalified offers
Doesn’t affect your credit score

Eligibility requirements for immigrants

Credible doesn’t have any requirements to use its form

Loan details

Rates (APR)	3.79% – 17.99%
Loan amounts	Up to cost of attendance
Repayment terms	Varies by lender
States	All 50 states, Washington, D.C. and Puerto Rico
Credit score	640 and above optimal
Annual income	Varies by lender

Earnest

Best for large loans

4.7 _/5

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Why it’s one of the best

Earnest is an online lender offering various student loans for different borrowers. Most of its student loans can be applied for by international students with a U.S. citizen or permanent resident added as a cosigner.

An online form can be completed in two minutes to confirm whether you prequalify without impacting your credit score. Other benefits include no fees, choosing between four repayment plans, and a nine-month grace period.

Accepts international students with a U.S. citizen or permanent resident as cosigner
No origination, disbursement, or late fees
Check your rate without affecting your credit

Eligibility requirements for immigrants

Be a U.S. citizen or permanent resident or have a cosigner who is
Students must be attending or enrolled to attend full-time at an eligible four-year Title IV institution
Live any state other than Nevada (Washington, D.C. residents are eligible)
Be the age of majority in the state of residence

Loan details

Rates (APR)	Starts at 4.17%
Loan amounts	Up to 100% cost of attendance
Repayment terms	10 years
States	All U.S. states except Nevada and U.S. territories
Credit score	At least 650
Annual income	Student or cosigner must make $35,000 minimum

Eligibility criteria for student loans for “Dreamers” and immigrants

If you’re an immigrant or a “Dreamer,” a term that refers to an immigrant youth who was brought to the United States as a minor and remains undocumented, you’re in good company. It’s estimated that there are 408,000 undocumented college and college graduate students, according to the Higher Ed Immigration Portal.

Unfortunately, if you are an undocumented student, you are not eligible for federal financial aid. Still, there are avenues you may be able to take to fund your college education.

In 25 states and Washington, D.C., you may qualify for in-state tuition rates.
In 19 states and Washington, D.C., you may be able to get state financial aid.
Many scholarships and grants are offered to immigrants and Dreamers.
Some organizations, like TheDream.U.S., exist to help undocumented students fund their education.
While federal student loans aren’t an option, student loans from private lenders are.

Tips for immigrants seeking student loans

If you’re an immigrant or a Dreamer looking for student loans, you’ll want to consider several things.

Try to find a cosigner. You may be able to find a private lender that won’t require a cosigner, but it’s certainly easier to find private loans if you have one – and you’ll likely pay lower interest rates. For some individuals, it may be a challenge to find a family member to cosign for student loans. But it is something you’ll want to start thinking about.
Comparison shop. As noted, you may be able to find a private lender that won’t require a cosigner, and some lenders specialize in working with immigrants and Dreamers. But finding the best private student loan deals requires time.
Establish good financial habits. Down the road, you may be able to refinance any student loans you take on and get better terms. That’s only going to happen if you’re living a life where you’re paying bills on time and not taking on more financial responsibilities than you can handle, like being buried in credit card debt.

Expert take: How can borrowers minimize the long-term financial impact of student loans?

Erin Kinkade

CFP®

Make sure you budget well and make the minimum payment and potentially extra payments to help reduce the overall debt. I also suggest staying abreast of any benefits that could be awarded, such as loan forgiveness or employer programs that help pay a portion, if not all, of their student loans; for example—a teacher working in a specific geographical area with a certain demographic for X amount of years could have their loans forgiven. In addition, some employer retirement plans may elect to contribute to the employees retirement plan in an amount equivalent to their monthly student loan payment. Alternatively, if you are unable to make a payment due to hardship or other negative financial circumstances, it is critical to communicate this immediately to the lender to avoid negative credit reporting and the possibility of being denied a job or and a loan for a vehicle and/or home.

What happens to my student loan if my immigration status changes?

If your immigration status changes—for instance, you become a U.S. citizen—you’ll still owe student loans. It can’t hurt to update your lender in case you’re now able to get better terms, but in all likelihood, nothing will happen to your student loan.

That said, if you needed more loans for, for instance, graduate school, and you are now a U.S. citizen or an eligible noncitizen, you would now be eligible for federal student loans.

Which student loan is best for immigrants?

The best student loans for immigrants are student loans that are designed for immigrants.

Ideally, you want a lender that specializes in working with immigrants. The best student loans for immigrants will allow students to borrow the money they need to pay for school without setting impossible-to-meet qualifying requirements.

When comparing student loans for dreamers and immigrants, the most important considerations include:

Cosigner requirements. While some private lenders require a cosigner for international student loans, others do not. Ideally, you’ll have a cosigner lined up beforehand, so if you need one, you won’t have to spend a lot of time looking and asking for one.
Documentation requirements. When applying for a student loan as an immigrant, there are certain pieces of documentation you may need to verify your identity and residency status. It’s important to know which visa statuses are accepted and what other documentation you may need to submit if you’re a DACA recipient.
Loan details. In addition to knowing what you’ll need to qualify, it’s also helpful to understand how different loans measure up. You’ll want to look at minimum and maximum loan limits, interest rates, and fees to decide which loan suits your needs. It may not be easy to sift through all of that information if you’re stressed and just want money for college, but you don’t want to solve one problem only to create another one (getting stuck with a debt that has really bad terms).

Also, it’s important to consider the timing for applying for loans. While many online lenders can process applications for student loans for immigrants quickly, it can still take time to finalize the loan details. Ensure you have enough time to get approved and have funds disbursed to your school before the term starts.

Are there student loans for undocumented immigrants?

Yes, there are student loans for undocumented immigrants. Unfortunately, undocumented students, including DACA recipients (Deferred Action for Childhood Arrivals), are not eligible for federal student loans. Private lenders will lend to undocumented immigrants, although you may need a cosigner.

Undocumented students should also consider that they may be able to secure state aid for their education, as well as financial assistance from colleges and private scholarships.

Does immigration status affect my loan terms and repayment options?

A new immigration status won’t affect an undocumented student’s loan terms and repayment options. If you’ve taken out a loan as an undocumented immigrant, and you become an eligible citizen or U.S. citizen, you’ll still owe a private lender the money you borrowed for your higher education.

While anything is possible, it isn’t likely that, with a new immigration status, the interest rate will come down or that the years you have to pay off the loan will now change.

But it would be wise to update your lender and inform them of your new status. A lender can’t discriminate against somebody simply for being an undocumented immigrant. In fact, depending on the situation, that may be illegal. But (complicating matters), lenders can consider that an immigrant might have trouble paying because of where they live.

So, with a new immigration status, it would seem feasible that your private lender might offer you additional student loans. You might also find that your new status may make it easier at some point to refinance any student loans to get a better interest rate or smaller monthly payment.

Alternative sources of financial aid for immigrants

In addition to federal and private student loans, immigrant students may qualify for other types of financial aid.

Pell Grants

Certain eligible non-citizens may qualify for federal Pell Grants and other types of free federal aid. Citizens of the Republic of Palau are eligible for Pell Grants, Federal Supplemental Educational Opportunity Grants, and federal work-study.

Citizens of the Federal States of Micronesia and the Republic of the Marshall Islands are eligible for Pell Grants.

Private scholarships

Prospective students can check out the National Association of Student Financial Aid Administrators (NASFAA) website to learn about grants, fellowships, and scholarships in their state.

Country-specific aid

Immigrants may want to contact their country’s embassy, consulate, or government to see if they offer grants, scholarships, or student loans to help them attend college in the U.S.

While it can be more challenging to finance a college education if you are not a naturalized U.S. citizen or a lawful permanent resident, options are available.

FAQ

What options are available for undocumented students or DACA recipients?

Undocumented students and DACA recipients have several options for financing their education, though they are not eligible for federal financial aid. They can apply for state-based financial aid programs in states that offer in-state tuition and financial aid to undocumented students. Additionally, many private scholarships are available specifically for undocumented or DACA students. Some universities also offer institutional aid. It’s important to research and apply for these opportunities early and seek guidance from financial aid offices and organizations that support undocumented students.

Do I need a cosigner for private student loans?

Whether you need a cosigner for private student loans depends on your credit history and the lender’s requirements. Many private lenders require a cosigner if the primary borrower has limited or poor credit history, as a cosigner can provide additional assurance of repayment. Having a cosigner with good credit can also help you qualify for better interest rates and loan terms. However, some lenders offer private student loans without a cosigner, typically at higher interest rates.

Can I apply for student loans if I am on a visa?

Yes, students on visas can apply for student loans, but their options are limited. International students typically do not qualify for federal student loans, but they can apply for private student loans. Most private lenders require international students to have a U.S. citizen or permanent resident cosigner. Some institutions and lenders specialize in loans for international students and may have different requirements. It’s essential to research and understand the terms and eligibility criteria before applying.

Are there any loan forgiveness programs available for immigrant students?

Loan forgiveness programs specifically for immigrant students are limited. However, immigrant students who qualify for federal student loans through programs like DACA may be eligible for general loan forgiveness programs, such as Public Service Loan Forgiveness (PSLF) or income-driven repayment plan forgiveness. These programs have specific eligibility criteria and requirements, such as working in a qualifying public service job or making a certain number of payments under an income-driven repayment plan. It’s crucial to review the terms and conditions of each forgiveness program to determine eligibility.

How we selected the best student loans for immigrant students

LendEDU evaluates student loan lenders to help readers find the best student loans. Our latest analysis reviewed 725 data points from 25 lenders and financial institutions, with 29 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.

These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.

Recap of the best student loans for immigrants

Lender	Best for	Our rating
Dept. of Education	Federal student loans	Not rated
College Ave	U.S. citizen cosigners	5/5
Earnest	Large loans	4.7/5
Credible	Comparison shopping	4.6/5
MPOWER	No cosigners	4.6/5