Coming to college in the United States involves a lot of expenses, and you may find yourself turning to a private loan to help you meet the financial burden. While loans can be great, it is important to understand the full financial burden of repaying them. One of the most important factors in picking a loan to help you finance your college education in the United States is understanding interest rates on student loans.
Interest is a fee that a bank requires you pay on top of the base loan amount so it can make money from the loan. Interest rates on student loans are given as yearly percentages. For example, a $1,000 loan with an interest rate of 7.5% APR (annual percentage rate) will mean a total repayment of $1,075 after one year of interest.
Stretch this out across years – even decades – of repayment, and clearly interest rates on student loans can have a huge impact on how much you pay in total. So how can you make sure you lower your interest rates on student loans?
To a certain extent, interest rates on student loans are fixed. Student loan interest rates are based off parameters set by reputable American and international banks and generally vary between about 2% and 9% APR.
But your student loan interest rates will also change based on the creditworthiness of your US cosigner. A cosigner is a financially responsible person who, by cosigning a loan, agrees to cover any costs that the original borrower can’t. Find a cosigner with a solid credit history (as an international student, you’ll need a cosigner in the US anyway) and banks will be more likely to give you a favorable interest rate on the loan.
Another way to lower the overall impact of interest costs is to repay your loan more quickly – thereby accruing less total interest. This can mean anything from paying a little more than the monthly minimum when you have the spare cash to choosing an official repayment plan that features earlier or more substantial regular payments.
Understanding interest rates on student loans is very important part of your college financing, so make sure to look into your best options before you decide on a loan!
A report recently released by NACE, the National Association of College Employers, has detailed the ten highest paying majors in the United States. The study measures these majors with top pay by looking at the average starting salary for a newly hired employee. Here’s the full list:
- Computer Engineering
- Chemical Engineering
- Computer Science
- Aerospace/Aeronautics/Aeronautical Engineering
- Mechanical Engineering
- Electric/Electronics and Communications Engineering
- Civil Engineering
- Construction Science/Management
- Information Sciences Systems
Unsurprisingly, the overwhelming majority of these ten highest paying majors come out of the STEM fields – science, technology, engineering, and mathematics. There are a few major reasons for this.
First off, STEM fields are many of the vital forces that drive our world today – the influx of computer and web technology in day-to-day life, for example, makes jobs in the above categories of Computer Engineering, Computer Science, and Information Sciences Systems significantly more important than they were even a few short years ago.
Another main reason that most of these majors with top pay come from the STEM fields is that relatively few students choose to pursue these majors over the more popular ones in liberal arts, making the actual STEM-field graduates very hot commodities for employers desperate to hire workers with the appropriate expertise.
Does this mean that you should go into one of these fields just because it’s one of the ten highest paying majors in the United States once you snag that first job? Certainly not. But some planning ahead and honest soul-searching in your pre-college and early college years can help you consider what you’d really like to do and see if any of the above majors is in fact something that inspires you.
Also keep in mind that it’s never too late to shift gears into one of these ten highest paying majors if you decide that it is indeed the right thing for you. Even if you’re already finished with your undergraduate education, there are various ways such as grad school and community college that you can use to get you started on a major career change.
If one of the above majors sounds like a good choice for you, make the commitment, study hard, and be ready to land a great job once you join the workforce!
International students who are looking to get a student loan to help pay for college will probably find themselves searching for a student loan cosigner. But finding a cosigner for your student loan can sometimes be a difficult process. Let’s break down who can be a cosigner for your student loan.
If you plan to attend college in the United States, your student loan cosigner will have to either be a U.S. citizen or permanent resident having lived in the US for the past two years, depending on the requirements of the loaning institution. How can you find this type of person if you don’t live in the United States in the first place? Try reaching out to your extended family to see if anyone has the required citizenship status. If you still can’t locate the right match, turn to trusted friends and ask if they know anyone who can help you. It can be daunting to ask someone a little less familiar to you for such a big favor as cosigning a loan, but if you’re having trouble finding the right person it may be a step you have to take.
The other major requirement of a cosigner for your student loan is that they have solid credit themselves. Since the main purpose of a student loan cosigner is to back up the loan’s repayment if the student cannot, having an established and strong credit history is an absolute must for your cosigner. This means a current stable source of income, low amount of other debt, and very few to no bad marks on credit history.
So enough with all the limitations – let’s look at the good news. Who CAN be your student loan cosigner? Well, as long as they fit the above criteria, pretty much anyone who is willing. Your cosigner doesn’t necessarily have to be a family member or even a close friend, doesn’t have to have any previous affiliation with the lender or your prospective college, and so on. So just make sure the cosigner for your student loan meets certain citizenship and credit history requirements, and you’ll be on your way to getting your loan approved!
With spring break just around the corner, now is the time for international students to be planning their budget for their upcoming spring break trip. Follow a few key tips and you’ll find you can have a great time without needing a massive spring break budget!
It’s no secret that airline fares and hotel rates rise steeply the longer you wait before you book; this is even truer for a notoriously high-traffic time like spring break. Yet with the hectic start of a new semester getting in the way of talking with friends and finalizing plans, many students wait too long and pay an arm and a leg for their trip. Get on your game a few months ahead of time and reduce your overall spring break budget.
Many schools have organizations that will plan their own spring break trips, whether they involve the organization’s interest (an archaeology club trip to Rome, say) or whether it’s just a fun outing. These trips often come at a discount, especially when they are only open to the members of the sponsoring organization. See if you can find any enticing options like this to help you budget for spring break trip.
Get it all together
You can cut down your spring break budget a lot by booking as many parts of your trip as possible together. Get a flight paired with a hotel with a side serving of shuttle service to and from the airport, and you might save yourself a significant chunk of change.
Reduce incidental expenses
There are a lot of little costs that come with spring break that many students forget to include in their budget for spring break: meals, baggage fees, tips, and so on. Do your best to reduce these costs! Pack your things in fewer bags to avoid exorbitant baggage fees, or pay more for a hotel with a kitchenette and save on going out to eat for every meal. If you don’t include these expenses in your budget they can be an unwelcome surprise, but if you consider them you can curb your spring break spending by quite a bit.
Spring break is a time to explore and have fun, so don’t let a budget issue stop you. Follow the above tips to make sure you can do something great!
As international students prepare to head to college inside the US, one of the decisions they will have to make is whether or not to enroll in a school meal plan. It’s not as simple as deciding how much you’d like to eat! Choosing a meal plan at your school will depend on a lot of different factors.
What Are Meal Plans?
A school meal plan can come in two basic forms: a plan that will allot a certain amount of meals and a plan that will allot a certain amount of money. A meal plan at your school with limited meals has the advantage of being cheaper, but is usually limited to your school’s cafeteria-style offerings and not specialty restaurants (including fast-food locations on campus). Meal plans that charge money from an account can generally be used at any restaurant on campus (and sometimes even at on-campus stores and off-campus restaurants), but you will need to keep close track of your budget so you don’t run out and wind up paying for food out of pocket!
When do I Need a Meal Plan?
Getting a meal plan at your school is almost always a good choice if you fit a certain few criteria. First, a school meal plan will be most useful if you live on or very near campus, allowing you to make it to participating cafeterias/restaurants regularly and get the full benefit of your school’s meal plan. Second, look at the lifestyle you’ll be living in the coming school year. Will you be in a tiny dorm room with just a microwave and mini-fridge? Will you be so busy that cooking your own food is out of the question? If getting a meal plan at your school would positively complement your lifestyle for the semester it can be a great option.
When Don’t I Need a Meal Plan?
If you have specific dietary restrictions, contact your school to find out if any of their participating options available are acceptable to you. Many larger schools will work to accommodate a variety of dietary choices, but if you don’t think you would be happy with what your school offers then skip the meal plan and prepare your own meals. Also, if you’re far away from campus and unable to fully benefit from a meal plan or if you would simply rather prepare your own food, a meal plan certainly isn’t a necessity!
A school meal plan can be a great way to make life easier and to manage your budget. Look into what your school offers and get ready to eat!
For international students who don’t receive significant financial aid and need some extra help funding their education in the USA, finding a job is one of the best ways to make ends meet. But, just like with financial aid, on-campus jobs can be hard to come by for international students due to legal red tape. Here are a couple tips to help you go about finding a job to facilitate your education:
- Know your student visa limitations
Student visas, such as the F-1 visa, restrict international students’ legal right to work in the United States, even if they need a financial boost during college. Students on a F-1 visa can only work in certain capacities, the most freely offered one is on-campus employment. For on-campus work, an F-1 student is subject to the following rules:
- You must maintain valid F-1 status
- You can work up to 20 hours per week while school is in session
- You can work full-time on campus during holidays and vacation periods if you intend to register for the next academic semester.
- The employment may not displace (take a job away from) a U.S. resident
Some exceptions can be made such as if a student is approved for severe financial hardship or an off-campus job on OPT or CPT status. Make sure you check the specific details of your own student visa so you know if you are eligible to work in the United States.
- Check for jobs off campus
Part of the federal aid that is unavailable to international students is work study, which helps US citizens get on-campus jobs to fund their education. Plenty of on-campus jobs are not officially limited to work study applicants, but work study employees are legally allowed to be paid with federal funds. If you’re an international student worried about finding a job on-campus, check with your advisor to see what options are available and try widening your search to unaffiliated employers in the immediate area where your ineligibility for work study won’t be a disadvantage.
- Start early
With all the obstacles international students face in finding a job, don’t add getting a late start to your personal list of difficulties! If you are eligible to work in the U.S., start your job hunt before you actually need the money from a job. It may be hard to focus on the job hunt while adjusting to college life, but keep in mind that it is for other students too – so starting on it right away will give you a big head start!
* Photo of paying money courtesy of Shutterstock
One of the most important decisions international students will face is what school they choose to pursue their degree program. This is one of the most critical decisions since it will financially determine the costs over the next few years. The school you choose can determine whether you are set up for financial success – or failure.
Think about it. If you are an international student planning to study in the US, there are over 2,000 universities that you can go to that accept international students. Your primary purpose is to enroll, get an education, and translate that into the opportunity to have a good job that will allow you to earn even more money (not to mention, a rewarding career!). College costs money, especially for international students, and the costs can vary greatly. You don’t just have to worry about tuition, but there is the cost of textbooks, housing, food, other educational fees, health insurance, electronics and more.
To help you out, here are 5 financial considerations when choosing a school:
- Evaluate the tuition costs
If you’ve done your research, then you know that US public colleges tend to be more affordable than private universities. Even though international students can expect to pay the out-of-state tuition at a public institution, this tends to still be more affordable than a private school. If you have a list of schools you plan to apply to, create a cost comparison chart and see what makes financial sense to you!
- Find out what financial assistance is available
No matter if you are looking at private or public university, financial aid for international students is limited. That being said, however, schools have different budgets allowing some schools to provide more financial assistance to international students than others. Check with your potential schools to see what financial aid is available. Ask questions like, do they offer need based aid? Is there an opportunity to get on-campus employment (and if so, what’s the likelihood of being able to do so?)? What is the likelihood of getting financial aid, even if it is not need base? If so, how much can be expected?
- Check to see what employment opportunities exist
Some colleges and universities have a budget that allows them to hire international students part time. US students have what’s called “work study” which allows federal funds to pay for student employees. While this is not available for international students, some schools allocate funds to allow their international students to work in compliance with their visa employment restrictions. Check with your school(s) to see whether this is an option, but keep in mind that the amount you’ll make will be small and only cover miscellaneous expenses.
- Consider the cost of living in the area
New York City, San Francisco, and Washington DC are some of the key cities international students dream of living. Did you also know that these are some of the most expensive cities to live in as well? New York City is ranked #1, San Francisco #2, and DC is ranked #7 as the most expensive cities to live in throughout the US, according to Kiplinger. If you are looking for a high quality education but don’t have a lot of funds to support your education, be sure to consider the cost of living of the town in which your school is located. This will also affect what you’ll be able to do off campus, because the less expensive the town, the farther your money will go.
- Compare your projected income to your total degree cost
If you have your heart set on a top, ivy-league school, do a cost-benefit analysis to see what the costs will be – and then see how it compares to your projected income According to Mark Kantrowitz, founder of FinAid.org, “if your total student loan debt is less than your annual income, you’ll be able to repay that debt in about 10 years.” While it may be difficult to forecast your projected income, it’s worth the research to ensure a good investment. Check out Salary.com to see what your projected income would be if you land a job in the US after graduation. It would also be advantageous to evaluate your projected income in your home country as you will still be responsible for paying back any money borrowed.
* Photo of girl in library courtesy of Shutterstock
It is no secret that going to college in the US can be expensive. Not only is the cost of living higher here than many other countries, but college tuition has also increased more than inflation every year for over a decade. Unfortunately, the US tuition increase is a trend that does not seem to be going away anytime soon. So what does this mean for you as an international student?
Most US universities require that prospective international students prove they have enough money to pay for classes and living expenses before accepting them as students. With tuition increasing, the amount you will have to raise will be higher, making it harder for many students to attend school. Fortunately, there are things you can do to mitigate the effects of US tuition increase.
Scholarships are a great way to ease the financial burden of school. To apply for scholarships you typically need to write an essay explaining why you are a good candidate and fill out some basic paperwork stating who you are and where you’re from. If you are in need of financial assistance, scholarships can really make the difference between having enough money and not having enough money to attend your school of choice.
Another way to help ease the increasing financial burden of studying in the US is to apply for student loans. Unlike scholarships, you will have to pay these back after you graduate, but luckily you’ll be much more likely to land a well paying job at that point.
Because the cost of US tuition increases each year, scholarships and loans are now more important than ever. Thanks to these two options, people who would otherwise be unable to attend college in the US now have a chance to go to any school in the US!
* School tuition rising picture provided by Shutterstock.
The value of a US education is immense, and found both inside and outside the classroom. After all, when you are not in class and learning from your professors, you will be in a new country learning about its people and culture.
A big part of the value of a US education comes from the thousands of accredited schools for international students to choose from. These schools are some of the best in the world, and with so many to choose from you will be able to find the one that best suits your needs.
After your classes are out for the day, you can choose from one of the many extracurricular activities offered by your college. There are all sorts of athletic programs offered, like football, American football, basketball, baseball, and tennis. There are also academic programs available to join like student government and various arts programs. For the international student who is interested helping others, there are also many volunteer programs available which will allow you help the local community. Example volunteer activities include passing out food to the hungry as well as cleaning up parks and roadways.
When you are finished with your extracurricular activities, your learning still doesn’t end! Simply being in a foreign country is a learning experience in and of itself. You will be eating new and different types of food, meeting new people with very different backgrounds from your own, and seeing new places every day!
As you can see, the value of a US education is nearly limitless. If you really apply yourself and make the most of what is offered, you can make this trip into something that will change your life forever. Your time in the US will make you prepared for whatever life throws at you, and help you get the career you’ve always wanted.
* Volunteer photograph courtesy of Shutterstock
Applying to study in the US can be pretty confusing if you don’t know what you’re doing. There are all kinds of forms and applications which need to be filled out, and a specific order that they all need to be filled out in. Before you are able to get your student visa, for example, you have to first get what is called an I-20 form. And to get your I-20 form, you have to prove that you can finance your time studying in the US. This is because it is required by US law that you prove that you can afford to study in the US, the proof of funds to get your I-20 is how the US determines that you are financially secure enough.
Because of the high cost of living and tuition, many international students rely on at least one sponsor who will help out financially. You are allowed to have as many sponsors as you want, and each one that plans on being a sponsor will need to fill out an affidavit of annual cash support stating that they promise to send you a certain amount of money, as well as a proof of income. The proof of income can be a letter from your sponsor’s employer, income tax returns, an income estimate by a bank, or a bank statement showing that there is enough money to cover the promised amount. If you have sponsors who plan on providing you with a free room and board, they will also need to show a proof of income as well as copies of their lease, deed, rent receipts and/or any other documentation that the university can use to verify ownership of the property.
It is also important that your sponsors do not exaggerate how much money they are able to cover when providing the university with a proof of funds to get your I-20. While your sponsors may think they are helping you by exaggerating, they are actually putting you in danger of having your I-20 form rejected. The reason that you are required to show a proof of funds to get your I-20 is because it is far too risky to move to the US without a guaranteed source of income. If a sponsor backs out and you don’t have enough money to continue living in the US, you would have to move home and stop pursuing your education.
Once you have your I-20 form, you have completed one of the first steps to studying in the US. You will then be eligible to get your F-1 student visa, which will allow you to legally stay in the country and study in a US university full time!
*Visa application photo thanks to Shutterstock