Student Loans for Studying in the USA 2026

A four-year US degree now runs $100,000 to $250,000 once you add tuition, housing, and insurance. Few families pay that in cash. Loans cover the gap. Your options depend on one thing: your immigration status. US citizens and permanent residents file the FAFSA and tap federal loans at 8.25% fixed for 2026-27. International students on an F-1 visa cannot touch federal aid at all. Instead, they borrow from private lenders, either with a US cosigner (rates from roughly 4% to 16% APR) or without one through specialists like MPOWER and Prodigy Finance (around 10% to 16% APR). This guide shows exactly what you qualify for, what it costs, and how to apply.

Borrow last, not first. Exhaust free money before you sign anything. Start with our USA costs and funding overview, run the numbers in the cost of study calculator, and read the global student loan guide for studying abroad if your destination isn't fixed yet.

First Question: Are You Eligible for Federal Aid?

This is the fork in the road. Everything else follows from it.

US citizens and eligible non-citizens file the FAFSA (Free Application for Federal Student Aid) and access the cheapest, most flexible money available. "Eligible non-citizens" means permanent residents (green-card holders), refugees, asylees, and a few humanitarian categories. If that's you, federal loans should be your first stop.

International students on F-1 or J-1 visas are present "for a temporary purpose" under federal rules. That single phrase locks you out of FAFSA, Pell Grants, federal loans, and work-study. No exceptions. Do not waste time filing FAFSA if you hold an F-1 visa. Skip to the private-lender section below.

Federal Loans (Citizens and Permanent Residents)

Federal loans beat private loans on almost every measure: fixed rates set by Congress, a six-month grace period after you leave school, income-driven repayment plans, and access to forgiveness programs. You apply once a year through the FAFSA.

Direct Subsidized and Unsubsidized Loans

For loans first disbursed between July 1, 2026 and June 30, 2027, the undergraduate rate is 8.25% fixed. Subsidized loans go to undergraduates with demonstrated financial need; the government pays the interest while you're enrolled at least half-time. Unsubsidized loans are open to all federal-eligible students regardless of need, but interest accrues from day one, including during the grace period.

Annual borrowing is capped. A first-year dependent undergraduate can borrow up to $5,500; the limit rises by year of study. Aggregate caps are $31,000 for dependent undergraduates and $57,500 for independent undergraduates. A graduate student studying public health, for example, can borrow up to $20,500 per year in unsubsidized loans.

What Federal Loans Don't Cover

Annual caps mean federal loans rarely fund a private university outright. A student at a $60,000-a-year college will hit the federal ceiling fast and need to fill the rest with savings, scholarships, or private loans. Federal money is the foundation, not the whole house.

They also cover only direct education costs and living expenses up to the official cost of attendance. They do not stretch to cover a car, credit-card debt, or a lifestyle upgrade. If you need more than the federal cap, the next dollars come from private lenders at higher rates, so plan your full four years up front rather than scrambling each fall.

Grad PLUS and Parent PLUS Loans

When the standard unsubsidized cap isn't enough, federal-eligible borrowers can turn to PLUS loans. Grad PLUS lets graduate students borrow up to the full cost of attendance minus other aid; Parent PLUS lets a parent borrow on an undergraduate's behalf. Both carry higher fixed rates than Direct loans and require a basic credit check that screens for adverse events like recent bankruptcy. They still beat most private options on flexibility and repayment protections, so weigh them before signing a private contract.

Private Loans With a US Cosigner

Most US private lenders will fund an international student, but only if a US citizen or permanent resident cosigns. The cosigner's credit and income carry the application; you'll also need an SSN or ITIN and a US address. Because the cosigner takes legal responsibility for the debt, rates can drop well below the no-cosigner options, sometimes into the low single digits for the strongest applicants.

Treat the headline "rates as low as" numbers with caution. Those go to borrowers with excellent-credit cosigners on a variable rate. Your offer depends on the cosigner's profile, the loan term, and whether you pick a fixed or variable rate. Below is a realistic snapshot for 2026.

Lender	Best for	Typical APR (2026)	Cosigner needed?
Sallie Mae	Undergrad and grad, broad eligibility	From ~3% APR	Yes (for international students)
College Ave	Flexible terms, low starting rates	From ~3% APR	Yes (for international students)
Ascent	Early cosigner release (12 months)	From ~3% APR	Yes (some non-cosigner paths)
Earnest	No fees, customizable payments	From ~4% APR	Yes (for international students)
SoFi	Grad degrees, refinancing later	From ~4% APR	Usually (SSN/ITIN required)
MPOWER Financing	International, no US ties	~10–16% APR	No
Prodigy Finance	International grad students	~11–15% APR	No

Look for two features when you compare cosigned lenders. First, cosigner release: Ascent allows it after just 12 months of on-time payments, which frees your cosigner from the debt early. Second, fees. Earnest and SoFi advertise no origination or late fees, which lowers the true cost beyond the headline rate.

No-Cosigner Loans for International Students

If you have no US cosigner, two lenders dominate this niche. They underwrite on your future earning potential, your school, and your program rather than on a US credit score you don't have yet.

MPOWER Financing

MPOWER lends to students from over 190 countries with no cosigner and no collateral. Fixed-rate loans range from $2,001 to $100,000 total, with a 10-year repayment term. Interest rates run from roughly 10% to 16% APR, including a 0.25% discount for automatic payments. The catch: an origination fee of nearly 5%, added to the loan rather than paid upfront. A real plus is that on-time payments build US credit history, which helps you refinance to a cheaper rate later.

Prodigy Finance

Prodigy targets international graduate students, especially in business, engineering, and public policy at top schools. Rates are variable: a fixed margin plus a benchmark, landing around 11% to 15% APR for most borrowers. Repayment terms run 7, 10, or 20 years. Prodigy charges a 4% administration fee on the loan and asks for roughly $500 out of pocket when you accept the offer. It's often the only viable option for a master's student with no US contacts.

What These Loans Actually Cost

Headline rates hide the real number. Borrow $50,000 from a no-cosigner lender at 13% over 10 years and you'll repay roughly $90,000 once interest and the near-5% origination fee are baked in. The same $50,000 cosigned at 6% repays closer to $66,000. The lesson: a US cosigner, if you can find one, often saves tens of thousands of dollars over the life of the loan. Refinancing later, once you've built US credit and a salary, can claw back some of that gap too.

How to Apply, Step by Step

1. Confirm your eligibility track. Citizen or permanent resident? File the FAFSA at studentaid.gov. F-1 visa? Go straight to private lenders.
2. Get your admission and cost figures. Lenders cap your loan at the cost of attendance minus other aid. Your university's financial aid office issues this number.
3. Line up a cosigner early if you want the lowest private rates. Their credit score and income drive your approval.
4. Pre-qualify with two or three lenders. Soft credit checks let you compare real offers without denting your score. Never accept the first quote.
5. Read the fee print. Origination fees of 4–5% on MPOWER and Prodigy add real cost. A "low" rate with a fat fee can beat a "high" rate with none.
6. Borrow only what you need. Loan limits are ceilings, not targets. Every dollar you skip is a dollar you don't repay with interest.

Cheaper Alternatives to Explore First

Debt is the last resort, not the first. Three sources can shrink or erase your borrowing.

Scholarships and grants. US universities award billions in institutional aid, and many fund international students. Our guide to scholarships for studying in the USA lists named awards, deadlines, and application tactics. Even a $10,000 award means $10,000 less to borrow.

Graduate assistantships. Master's and PhD students should chase teaching (TA) and research (RA) assistantships. These often waive tuition entirely and pay a monthly stipend in exchange for 10–20 hours of work a week. For funded PhD programs, a full ride plus stipend is the norm, not the exception.

On-campus work. F-1 students can work up to 20 hours a week on campus during term. It won't pay tuition, but it covers groceries and reduces how much you borrow for living costs.

Frequently Asked Questions

Can international students get US federal student loans?

No. Federal aid, including FAFSA-based loans, Pell Grants, and work-study, is limited to US citizens and eligible non-citizens such as permanent residents, refugees, and asylees. F-1 and J-1 visa holders are excluded because they're in the country temporarily.

Can I get a US student loan without a cosigner?

Yes, but your choices narrow. MPOWER Financing and Prodigy Finance lend to international students with no US cosigner and no collateral, judging you on future earnings and your program. Expect APRs around 10–16% and an origination fee of 4–5%.

What credit score does a cosigner need?

There's no universal cutoff, but the best rates go to cosigners with scores in the high 600s and above plus steady income. A weaker cosigner can still get you approved, just at a higher rate. The cosigner must be a US citizen or permanent resident.

How much can I borrow for a US degree?

Private lenders typically cap loans at your full cost of attendance minus other aid. MPOWER tops out at $100,000 total. Federal undergraduate borrowing is capped much lower, with aggregate limits of $31,000 (dependent) or $57,500 (independent) undergraduates.

When do I start repaying, and is there a grace period?

Federal loans give a six-month grace period after you graduate or drop below half-time. Private terms vary: some require interest-only payments while you study, others defer fully until after graduation. Always confirm the grace period before signing.

Do student loan payments build US credit history?

Yes, with the right lender. MPOWER reports on-time payments to US credit bureaus, helping international students build a credit file from scratch. That score later lets you refinance to a lower rate, often through a lender like SoFi.

Are fixed or variable rates better in 2026?

Fixed rates lock your payment for the life of the loan, which protects you if benchmark rates rise. Variable rates often start lower but can climb. If you value certainty, choose fixed. If you plan to repay fast and can absorb swings, variable may cost less overall.

Should I borrow before applying for scholarships?

No. Apply for every scholarship and assistantship you qualify for first, then borrow only the remaining gap. Check the study in the USA hub and our costs and funding page to map out free money before you sign any loan.