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International Students/Alternative Loans

Because international students do not qualify for educational loans from the U.S. federal government, borrowing options for international students are more limited than those for U.S. citizens and permanent residents. However, they may qualify for alternative loans. Sometimes referred to as "private loans," these loans are commercial loans offered by outside lenders.

Eligibility:

Eligibility for educational student loans is calculated as the difference between a student's cost of education and the financial assistance s/he receives from other sources. Taking marital status, number of dependents and living arrangements into account, the Graduate School Office of Student Life determines a student's eligibility for educational loans according to the following formula:

  • Cost of attendance (includes tuition, housing, food, books and expenses for one academic year);
  • Less financial aid from Princeton and other sources (includes departmental prizes, fellowships, maintenance allowance, assistantships-in-instruction and assistantships-in-research);
  • Equals LOAN ELIGIBILITY.

Lender Selection:

One of the most important decisions you face as a borrower is selecting your lender. Banks, credit unions and other financial organizations act as alternative loan lenders.

It is Princeton’s policy to process loan applications through any lender a student chooses. Princeton does not recommend lenders or maintain a “preferred lender” list. It is your right and responsibility to select your lender.

We realize that choosing a lender can be a significant task. Below are items to consider as you research lender options. 
A.  Interest rates and fees

Some lenders may offer better interest rates and fees, but you should also consider the additional factors listed below in your decision.

B.  Repayment benefits

Some lenders offer principal balance or interest rate reductions tied to repayment performance. Some repayment benefit plans are simple and others are complex. Make sure you understand the terms you must meet and the likelihood of receiving the benefit in repayment before choosing on this basis.

C.  Application process

Many lenders offer online application and signature processes.

D.  Customer service

The ability to quickly reach a knowledgeable representative to check on the status of your loan is important. Also, consider how you can find out information about your loan or speak with someone during hours that are convenient for you.
In addition to these items, you may want to consider the following: the profit status of the lender (for-profit or not-for-profit); what organization handles the origination of the loan (the lender or a third party); and what company will you work with during repayment of the loan (the lender or a third party servicer).
In most instances, international students who wish to borrow an educational loan must have a cosigner who is a U.S. citizen / permanent resident and has a good credit history.