Table of Contents
- What are No Cosigner Education Loan Options?
- What are US Cosigner Education Loan Options?
- Overview: No-Cosigner vs US Cosigner Education Loans
- Interest Rates: No-Cosigner vs. US Cosigner Education Loans
- Which is Better – No-Cosigner or US Cosigner Loans?
- Frequently Asked Questions
Studying abroad is an opportunity for a lifetime. Unknown land, fresh encounters with a different culture, and a novel education system greet you with offerings and challenges. Before you start the real battle, financing your education is a mandatory requirement for the student visa. The hefty cost of attendance abroad can be a challenge for many students.
Luckily, education loan options help students support their study abroad. Among the diverse education loan types available, let’s compare no-cosigner and US cosigner options to choose your funding source right.
What are No Cosigner Education Loan Options?
No cosigner education loan options help you study abroad without collateral or cosigner guarantee. Eligible students must secure admission to an institution listed by the lenders. In most cases, the student’s CIBIL score comes into the picture.
- Check the universities & courses funded by the lenders. Mostly, STEM courses are funded by no-cosigner loan lenders.
- The minimum age for no-cosigner loans is 18 & there is no maximum age limit.
- The documentation process is simpler compared to other loan options.
What are US Cosigner Education Loan Options?
US cosigner loan options are provided on the guarantee of a cosigner residing in the US. International students can apply for these options once they secure admission to a US university. Unlike no-cosigner loan options, the student’s CIBIL scores do not determine the loan eligibility, but the cosigner’s CIBIL scores do.
- Your US cosigner must be a US citizen or a permanent resident
- The course of study can be bachelor’s or postgraduate, culminating in a degree or diploma
- The documentation process takes 2 – 5 business days in typical cases
Overview: No-Cosigner vs US Cosigner Education Loans
No-cosigner loan options and US cosigner loan options help international students study abroad. They offer up to 100% of the cost of attendance for many cases. The major difference between them is the involvement of a cosigner in getting an education loan.
| Parameters | No-cosigner Loans | US Cosigner Loans |
| Lended by | International Lenders | US Banks |
| Maximum Loan Amount | Up to 100% of the expenses | Up to 100% of the expenses |
| Interest Rates | 10.5% – 14% APR, fixed & variable rates | 4.11% – 16.2% APR, fixed & variable options |
| Repayment Tenure | 5 – 20 years | 7 – 15 years |
| Moratorium Period | Course years + 6 – 9 months | Course years + 6 – 12 months |
Interest Rates: No-Cosigner vs. US Cosigner Education Loans
The interest rates for no-cosigner and US cosigner education loans are calculated in APR (Annual Percentage Rate), which includes interest plus the processing fee. Calculated in US dollars, the rate of interest accumulates over time and gets reduced as the student makes proper repayments.
- For no-cosigner loan options, the interest is 10.5% – 14% APR. The rates are fixed or variable, depending on your profile.
- For US cosigner loan options, the interest rates are 4.11% – 16.2% APR, with fixed & variable options.
Which is Better – No-Cosigner or US Cosigner Loans?
Picking between no-cosigner and US cosigner loans depends on your situation. Both have advantages, but the best choice hinges on your eligibility.
- US cosigner loan options are exclusive for institutions in the US. No-cosigner loan options are available for the US, Canada, Australia, and the UK, as well as select other countries.
- Compared to no-cosigner options, US cosigner options fund more universities in the US.
- Talking about the interest rates, US cosigner loan options start at a lower rate of 4.11%, while no-cosigner options start at 10% onwards.
What’s the final verdict? Well, it is up to you. Consider your situation, understand both loan types in detail, and make your decision. What we can do is to help you make a better choice. Connect with us, and our counselor will evaluate your profile and offer tailored guidance further. Choose, apply, and receive your funding with us.
The best part? Nomad Credit’s guidance comes at a zero-cost price tag. Achieve your dreams abroad. Join our team today.
Frequently Asked Questions
Can I get an education loan to study abroad without a cosigner?
Yes. If you get admission for a course and to a school listed by the lender, you can get an education loan without a cosigner. To check your eligibility and more details, connect with Nomad Credit today.
Can a non-US citizen cosign for an education loan?
The cosigner for a US cosigner loan must be either a US citizen or a permanent resident. No other person can cosign for a US cosigner loan.
Should the US cosigner be related to the student?
It is not mandatory for a US cosigner to have a relationship with the student. The cosigner can be your relative, friend, professor, or anyone who is ready to take accountability for your education loan.
Can a student study anywhere with a no-cosigner loan?
Your country of study must be supported by the lender. Mostly, the lender keeps a list of countries to which an education loan is provided.
Does the student’s nationality matter for no-cosigner loan options?
No-cosigner loan lenders offer education loans to students from diverse nationalities. They keep a list of eligible nationalities to provide an education loan.
