Guide to International Student Loan Refinancing

Scholar mortgage refinancing is when a non-public lender pays off your present loans and offers you a brand new mortgage at immediately’s rates of interest. Refinancing pupil loans may be useful to debtors in a number of methods.

First, you would possibly be capable of scale back your rate of interest or compensation time period, which reduces your total price. If decrease month-to-month funds is your important aim, you would possibly be capable of lengthen your compensation time period throughout refinancing, too.

However one of many downsides of pupil mortgage refinancing is that many banks require debtors to be U.S. residents to qualify. And that may make it harder to refinance pupil loans for immigrant debtors who aren’t everlasting residents (inexperienced card holders).

However worldwide pupil mortgage refinancing isn’t inconceivable. In truth, you’d be shocked on the variety of lenders that is perhaps prepared to work with you. On this information, we’ll lay out the perfect choices for refinancing for worldwide college students and easy methods to get began.

Why pupil mortgage refinancing for worldwide college students may be difficult

As talked about above, many U.S. banks and lenders will solely lend to U.S. residents, leaving many worldwide college students and non-U.S. residents out. Though this eligibility requirement could appear restrictive, there are two sensible causes that banks don’t conventionally lend to worldwide pupil debtors.

Worldwide college students pose a better threat of completely leaving the U.S.

U.S. monetary establishments are sometimes leery of lending cash to worldwide pupil mortgage debtors who’ve non-permanent visas. Examples of non permanent visas that worldwide pupil mortgage debtors could maintain embrace:

  • E-2
  • E-3
  • F-1
  • H-1B
  • J-1
  • L-1
  • O-1
  • OPT
  • TN

Out of this listing, the F-1 and J-1 are most typical for college kids to carry, though it’s potential that some college students may swap to the work visas on the listing after their training.

Debtors with any of those visa sorts are thought of a better threat by lenders as a result of there’s no assure that they’ll set up everlasting residence in the USA. Ought to the borrower voluntarily select (or be compelled) to depart the U.S., implementing cost could be very troublesome.

Associated: Find out how to flee the nation to get away out of your pupil loans

Worldwide college students usually tend to have restricted U.S. credit score histories

With out social safety numbers, it may be harder for non-U.S. residents to get accepted for bank cards or different traces of credit score. Because of this, worldwide college students could have a skinny credit score file for lenders to judge.

Restricted credit score histories make it harder for anybody, no matter citizenship or residency standing, to get accepted for refinancing at the perfect charges. Credit score histories and scores nonetheless play a significant function within the underwriting selections for many lenders immediately.

It must be famous, nevertheless, that not all worldwide college students battle on this space. There are a number of bank card applications immediately which might be particularly focused at U.S. newcomers. And in the event you’ve already begun to make funds in your pupil loans, that constructive credit score historical past will seem in your credit score report as nicely.

Find out how to refinance pupil loans for non-U.S. residents

Many worldwide college students who come to the U.S. for larger training on a visa are pursuing specialised professions as medical physicians or engineers, that require them to take out a number of pupil debt. And plenty of of those debtors could plan to proceed working in the USA after commencement.

But along with most international college students being ineligible for federal pupil mortgage applications, many additionally battle to satisfy U.S. refinancing necessities.

Getting financing generally is a irritating expertise for worldwide debtors, particularly after they’re getting into high-paying fields that will usually qualify them for aggressive charges. But regardless of these obstacles, there are methods to qualify for worldwide pupil mortgage refinancing with U.S. lenders.

Listed here are two sturdy choices:

1. Add a creditworthy U.S. cosigner to your software

Discovering a creditworthy U.S. citizen to cosign your refinance mortgage often is the best approach to qualify for a brand new mortgage at the perfect charges. Most worldwide college students don’t qualify for federal pupil loans. So in the event you’re a non-U.S. citizen with pupil loans that originated in the USA, they’re almost certainly from a non-public lender. And whereas a number of lenders immediately will lend to worldwide college students with out a cosigner, that’s nonetheless the exception slightly than the norm.

Many worldwide pupil debtors could have already got a U.S. cosigner on their loans. If that’s the case for you, it’s possible you’ll need to ask your present cosigner in the event that they’re prepared to cosign a brand new refinancing mortgage with you.

There’s a robust risk that your cosigner could be joyful to cosign your refinance mortgage. In any case, they’re already on the hook in the event you’re unable to repay your present pupil loans. They could as nicely strive that will help you get a decrease rate of interest to alleviate your monetary burden and improve the probability that you just’ll be capable of preserve your loans present.

2. Search for lenders with versatile eligibility necessities

In the event you’d favor to use for refinancing by yourself, there are a number of banks and lenders that may lend to non-U.S. residents. A number of examples embrace CommonBond, Residents Financial institution, and SoFi.

Stilt and Prodigy Finance are two smaller personal pupil mortgage lenders specializing in immigrant lending. Nonetheless, their charges and phrases are usually much less enticing. And it seems that Prodigy Finance has shifted its focus to in-school pupil loans.

Every of those lenders can have their very own set of eligibility necessities. However Commonbond, for instance, says that the next visa sorts are eligible for a pupil mortgage refinance:

  • H1-B
  • J-1
  • L-1
  • E-2
  • E-3

It’s much less widespread to seek out lenders that settle for debtors who nonetheless have a pupil visa standing, comparable to F-1 or OPT. Nonetheless, Prodigy and Stilt are two lenders that don’t have any restrictions on both of those visa sorts.

Find out how to qualify for worldwide pupil mortgage refinancing with out a cosigner

To get accepted for worldwide pupil mortgage refinancing with out a cosigner, be sure that your non permanent visas aren’t set to run out quickly. SoFi, for instance, says that it’s going to require you to have a minimum of two years left till your standing expires otherwise you’ll want to indicate that you just’ve filed for an extension or everlasting residency.

Subsequent, test your credit score rating. In case your rating is “poor” or “honest,” it’s possible you’ll not be capable of decrease your rate of interest by refinancing. However your possibilities of incomes a greater charge are larger in case you have “good” to “glorious” credit score.

Lastly, many lenders need to see proof of sturdy revenue as they’ll need to know that you’ve got the monetary means to make your month-to-month funds. As a basic rule, owe much less federal debt than 1.5 occasions your annual revenue.

Associated: Scholar mortgage refinancing: What is an effective debt-to-income ratio?

Finest lenders for worldwide pupil mortgage refinancing

There are a number of lenders which might be prepared to supply refinancing to worldwide college students. Under, we listing three of your finest choices, together with their key phrases, necessities, and advantages. Word that not one of the refinance lenders under cost origination charges or prepayment penalties.


As beforehand talked about, CommonBond doesn’t supply refinancing to debtors who nonetheless have pupil visas. However it can settle for functions from H1-B, J-1, L-1, E-2, and E-3 visa holders. Listed here are the important thing phrases and limits for his or her refinance loans:

  • Mortgage quantities: $5,000 to $500,000
  • Mortgage phrases: 5 to twenty years
  • Fee kind: Fastened charge, variable charge, and hybrid loans
  • Autopay low cost: 0.25%
  • Bonus: As much as $1,050 by way of this hyperlink

Impressively, CommonBond gives as much as 24 months of forbearance to all of its debtors. Additionally, in the event you added a cosigner to your refinancing software, you’ll be able to apply for co-signer launch after simply 24 months of on-time funds. Take a look at our full CommonBond assessment.

Residents Financial institution

Residents Financial institution will settle for pupil mortgage refinancing functions from resident aliens which have a sound social safety quantity. Nonetheless, it’s unclear if non-citizens that meet the credit score and revenue eligibility standards should apply with a U.S. cosigner or if they’ll apply on their very own. Listed here are the important thing particulars of their refinance mortgage product:

  • Mortgage quantities: $10,000 to $500,000
  • Mortgage phrases: 5 to twenty years
  • Fee kind: Fastened charge and variable charge loans
  • Autopay low cost: 0.25%
  • Bonus: As much as $1,250 by way of this hyperlink

Along with providing a 0.25% rate of interest low cost to debtors that join computerized funds, Residents Financial institution gives a loyalty low cost of 0.25%. So debtors who qualify for each can scale back their rate of interest by as much as 0.50%.

Sadly, there’s no formal forbearance coverage to be discovered for Residents Financial institution refinance loans. Nonetheless, debtors can apply to have a cosigner launched after they’ve made 36 consecutive on-time funds. Learn our full assessment of Residents Financial institution pupil mortgage refinancing.


You’ll be able to apply for worldwide pupil mortgage refinancing with SoFi in the event you maintain a J-1, H-1B, E-2, O-1, or TN visa. You’ll additionally have to have a minimum of two years remaining till your standing expires or present proof that you just’ve filed for an extension. Right here’s what SoFi pupil mortgage refinancing gives:

  • Mortgage quantities: $5,000+
  • Mortgage phrases: 5 to twenty years
  • Fee kind: Fastened charge and variable charge loans
  • Autopay low cost: 0.25%
  • Bonus: As much as $1,000 by way of this hyperlink

SoFi gives as much as 12 months of unemployment safety along with diminished pupil mortgage funds (as little as $100) for debtors who’re in medical residency or fellowship. However there’s a obvious draw back to refinancing with SoFi. The lender doesn’t at the moment supply a cosigner launch program. Learn our SoFi refinancing assessment.

Is worldwide pupil mortgage refinancing value it?

Simply because you’ll be able to refinance your worldwide pupil loans, doesn’t essentially imply that it is best to. In case your credit score rating doesn’t qualify you for higher charges or phrases and you’ll’t discover a creditworthy cosigner, it’s possible you’ll be higher off sticking together with your present loans.

However since most worldwide college students don’t have federal pupil loans, in addition they don’t have to fret about dropping out on federal advantages like income-driven compensation (IDR) or pupil mortgage forgiveness when refinancing. That makes the risk-versus-reward proposition of pupil mortgage refinancing a lot less complicated.

In the event you’re in a position to qualify for a greater mortgage by refinancing your worldwide pupil loans with a lender like CommonBond, you most likely ought to. To study extra concerning the professionals and cons of refinancing, take a look at our full pupil mortgage refinancing information.

Refinance pupil loans, get a bonus in 2021

1 Disclosures
$1,050 BONUS1 For 100k+. $300 bonus for 50k to 99k.1
VISIT LAUREL ROAD Variable 1.64-5.65percent1 Fastened 2.25-5.75percent1

2 Disclosures
$1,050 BONUS2 For 100k+. $300 bonus for 50k to 99k.2
VISIT COMMONBOND Variable 2.49-6.84%%2 Fastened 2.59-6.74percent2

3 Disclosures
$1,000 BONUS3  For 100k or extra. $200 for 50k to $99,9993
VISIT EARNEST Variable 1.88-5.64percent3 Fastened 2.44-5.79percent3

4 Disclosures
$1,000 BONUS4 For 100k+. $300 bonus for 50k to 99k.4
VISIT SPLASH Variable 1.88-6.15percent4 Fastened 2.49-6.31percent4

5 Disclosures
$1,275 BONUS5  For 150k+. Tiered 300 to 575 bonus for 50k to 149k.5
VISIT ELFI Variable 2.39-6.01percent5 Fastened 2.47-5.99percent5

6 Disclosures
$1,000 BONUS6 For $100k or extra. $200 for $50k to $99,9996
VISIT SOFI Variable 2.25-6.59percent6 Fastened 2.49-6.94percent6

7 Disclosures
$1,250 BONUS7  $350 for 50k to 100k7
VISIT CREDIBLE Variable 1.80-8.90percent7 Fastened 2.15-9.15percent7

Unsure what to do together with your pupil loans?

Take our 11 query quiz to get a personalised suggestion of whether or not it is best to pursue PSLF, IDR forgiveness, or refinancing (together with the one lender we predict may provide the finest charge).

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