Loans for Canadian Students Studying in the US

While it is true that the educational system in Canada has high standards, there are some Canadian students that choose to conduct their higher education studies in the US. The main downside might be that the cost of higher education in the US is high. Therefore, students might not have access to financing. On that note, today we will talk about loans for Canadian students studying in the US.

Can Canadian Citizens Study in the US?

Yes. As a Canadian student, you can benefit from this opportunity. The good thing is that you don’t need to get a visa in order to study in the US. The same applies if you want to take part in an exchange program.

Nonetheless, there are some requirements you have to address. Firstly, you must get an I-20, also referred to as DS-2019. That is to say, you need a Certificate of Eligibility from the school, university or exchange program you intend to attend.

On the basis of the receipt of the I-20, you will be registered with SEVIS. SEVIS stands for tracking system designated specifically for students. You will also be assigned a SEVIS number. In addition to that, a registration fee is necessary.

When you cross the border to reach the US, you’ll have to provide the following documents at the port of entry:

• Canadian passport
• Proof demonstrating that you have paid the SEVIS fee
• The I-20 certificate in original
• Proof indicating that you are financially capable of paying the school fees and living expenses in the US
• Proof of your ties to Canada

Make sure you have all these documents prior to crossing the border and studying in the US.

Cost of Education in the US

Considering that the cost of education in the US is high, you’ll most likely need a loan. But before we get to that, you should get acquainted with the approximate costs. Something worth noting would be that education is getting more and more expensive.

This poses several difficulties, not only for foreign students that want to pursue a higher education program in the US but also for US citizens. According to official numbers, in the 2017-2018 school year, the average cost of college was estimated at $20,770 – in the case of public schools.

On the other hand, for nonprofit private schools, the costs were estimated to reach $46,950. These costs include all the expenses associated with tuition fees and accommodation costs.

Most students pay somewhere between $6,000 and $15,000 for tuition. And this applies in public and private schools based in the US. By comparison, New England has the highest costs when it comes to education. Note that the high costs apply also in the case of two-year and four-year public schools.

Are there any variations when it comes to the way in which the prices range, depending on the region? For the most part, the discrepancies between different regions in the US aren’t that high. Even so, there are some trends worth noting.

For one thing, New England seems to have the highest in-state and in-district average tuition cost. And this doesn’t include the expenses of room and board, which evidently add up over the course of time. On the other hand, supposedly the lowest public four-year tuition was observed in the South – estimated at $9,290.

In lines with official data, western states feature the highest increase when it comes to two-year and four-year tuition expenses. Over the past 10 years, an increase of 62 percent has been monitored. Meanwhile, things are entirely different in the Midwest.

More specifically, in the Midwest, the increase in the last 10 years has been of roughly 22 percent. We should also point out that some of the very best public schools in the country are located in the West – such as the University of California, among others. And this could explain this trend.

On that account, prior to browsing for loans for Canadian students studying in the US, you should assess the quality and the reputation of the school.

Financial Aid, Scholarships and Grants for Canadians

Getting financial aid in the form of a scholarship or grant might also be an option worth considering. Of course, you might also think about getting a job, as many Canadian citizens choose to work in the US. But this isn’t always a possibility.

With that in mind, there are several websites where you can find information regarding grant opportunities. Such a website would be ScholarshipsCanada.com. Here, you can browse through over 17,000 different scholarships and prizes that are targeted for Canadian students.

Private organizations and schools administer these scholarships and prizes.

You should also know that the Canadian government supplies a range of scholarships and bursaries. These are designated to students who want to study abroad. Depending on the terms of these scholarships, you might be able to apply for them and, in this way, finance your education in the US.

Of course, it is a good idea to contact your school if you’re thinking of studying abroad. Many schools assist students in finding financial aid. And you never know until you ask, don’t you? Plus, some universities have the financial possibility of funding international students.

In case your school does offer this alternative, you might need to gather some evidence. Some of the evidence might be related to your parents’ financial situation.

Are there Student Loans for Canadian Students Studying in the US?

In some scenarios, looking for loans for Canadian students studying in the US might be necessary. Ideally, you should check with the government to see whether there are educational loans available to you or not.

Meanwhile, we should outline that, in the position of a Canadian student, you aren’t eligible to apply for a federal student loan via the US government. These are, oftentimes, more convenient in comparison with other options on the loan marketplace. That’s because the repayment terms are more flexible and convenient for the student.

However, this doesn’t mean that loans for Canadian students studying in the US are restricted to you altogether. You can still look for alternatives provided by private lenders. Make sure you shop around a bit until choosing a lender.

That’s mainly because the repayment terms tend to vary quite a lot. The reliability of the lender is another element you should account for. Always look for reviews that indicate whether a lender is trustworthy or not. This is a critical thing to do before agreeing to sign an official legal agreement.

If you do choose to finance your education via a loan, you should strive to find the right one for your financial situation and background.

5 Best Personal Loans for Canadian Students in the U.S.

For Canadian citizens pursuing educational opportunities at American universities, financing can be a significant hurdle. While traditional student loans might be the first port of call, personal loans can also be a viable option, especially for covering expenses not typically included in student loan packages. Let’s explore various lenders who offer personal loans that can be utilized for education-related expenses, catering to different credit backgrounds.

AmOne (Best for Okay to Good Credit)

AmOne is an excellent option for Canadian students with okay to good credit scores seeking additional funds for their education in the U.S. They act as a mediator between borrowers and a wide range of lenders, helping to find a loan that fits the borrower’s specific financial situation. Their extensive network can be particularly beneficial for Canadians needing extra support to cover the comprehensive costs of studying abroad.

Check rate on website

on website

AmOne Personal Loans

4.5

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

600

Fixed APR

3.99%-35.99%

Variable APR

N/A

View details

Overview

• Minimum credit score: 600.
• Fixed APR: 3.99%-35.99%.
• Loan amounts: $1,000 to $50,000.
• Repayment: 1 to 7 years.

Qualifications

• Must be at least 18 years old.
• Must be a U.S. citizen or permanent resident.
• While there’s no specific income requirement, a consistent source of income is essential for the applicant.

Pros

• Suitable for individuals with lower credit scores.
• No cost for the matching service.
• Attractive loan rates.

Cons

• Acts as an intermediary, not a direct lender.
• Risk of multiple contacts from prospective lenders.
• Lack of clarity on lender details.

Spring Loans (Best for Bad Credit and No Credit)

Spring Loans offers solutions for Canadian students who have either not established a credit history or have bad credit. Understanding that the journey to higher education often requires more than just tuition fees, Spring Loans extends its services to include those who might struggle to secure funding through traditional channels, making them a solid choice for educational financing.

Check rate on website

on website

Spring Loans Personal Loans

4.2

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

None

Fixed APR

27.00%

Variable APR

N/A

View details

Overview

• Minimum credit score: None.
• Fixed APR: 27.00%
• Loan amounts: $3,000.
• Repayment: 48 months.

Qualifications

• Demonstrate a recurrent income.
• Minimum age prerequisite: 18 years.
• Validate U.S. citizenship status with an SSN.
• Provide a legitimate U.S. driver’s license or a state identity card.
• Establish a functional bank account for incoming deposits.
• Adhere to any specific demands by the loan provider.

Pros

• Open to applicants with any credit background.
• Four-year loan period aids in structured financial management.
• The $3,000 offer addresses several short-term financial challenges.
• Wide-reaching eligibility criteria invite a broad spectrum of applicants.
• The focus on dependable income over job title benefits varied income sources.

Cons

• The set 27% APR is higher than many alternatives.
• Restriction to a $3,000 loan might not cover all financial outlays.
• Possessing specific IDs is mandatory, sidelining some applicants.
• A prerequisite for an ongoing bank account may limit certain users.

First Premier Lending (Best for Bad Credit)

For Canadian citizens facing the challenge of bad credit, First Premier Lending provides an opportunity to secure a personal loan for educational purposes. They specialize in considering the broader financial picture of applicants, beyond just credit scores. This approach can be invaluable for students needing funds to cover living expenses or other costs associated with studying in the U.S.

Check rate on website

on website

First Premier Lending Personal Loan

4.2

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

None

Fixed APR

27.00%

Variable APR

N/A

View details

Overview

• Minimum credit score: None.
• Fixed APR: 27.00%.
• Loan amounts: $3,000.
• Repayment: 48 months.

Qualifications

• Maintain a consistent source of income.
• Must be at least 18 years of age.
• Possess valid U.S. citizenship and a legitimate social security number.
• Hold a current U.S. driver’s license or state-issued ID.
• Keep an active bank account for direct deposit.
• Satisfy any lender-specific criteria, such as credit rating, borrowing history, or place of residence.

Pros

• No minimum credit score requirement allows accessibility for those with varied credit histories.
• 48-month term provides clarity and allows for long-term financial planning.
• Specific loan amount of $3,000 can meet many short-term financial needs.
• Broad set of qualifications make the loan accessible to a wide range of people.
• Emphasis on consistent income, not necessarily employment type, allows flexibility for borrowers.

Cons

• A fixed APR of 27% is relatively high.
• Loan amount is capped at $3,000, which might not cater to larger financial requirements.
• Requirement of a U.S. driver’s license or state-issued ID could exclude some individuals.
• Mandatory active bank account could be limiting for those who are unbanked.

Upgrade (Best for Good to Great Credit)

Upgrade is a top-tier lender for Canadian students with good to excellent credit. Known for their competitive rates and transparent loan terms, Upgrade is an ideal choice for students who have maintained a strong credit profile and require additional funds to manage their educational expenses in an American university.

Check rate on website

on website

Upgrade Personal Loan

5.0

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

560

Fixed APR

8.49% - 35.99%

Variable APR

N/A

View details

Overview

• Minimum credit score: 560
• Fixed APR: 8.49% – 35.99%
• Loan amounts: $1,000 to $50,000
• Repayment: 3 to 5 years (7 years on some larger loans)

Qualifications

• Possess an active bank account.
• Able to provide a legitimate email address.
• Minimum age requirement: 18 years (19 for Alabama residents).
• Credit score of 600 or higher.
• Annual income of $25,000 or more.

Pros

• Willing to accommodate borrowers with a credit score as low as 560.
• Offers flexibility with a range of loan amounts from $1,000 to $50,000. This can be suitable for both small and large financial needs.
• Provides options for repayment, allowing borrowers to choose a timeline that best suits their financial situation.
• Once approved, borrowers can access funds in just one day, which is useful for urgent financial needs.

Cons

• Origination fees can go as high as 9.99%, which might add a significant cost to the loan.
• Apart from the origination fee, there are fees for late payments and failed payments, which can add up if one is not careful.
• While there is an option to extend repayment for larger loans up to 7 years, it’s not standard for all loan amounts.

BestEgg (Best for Good Credit)

BestEgg caters to Canadian students with good credit, offering an efficient way to access additional funds for education-related expenses. Their straightforward application process and competitive interest rates make them an attractive option for those looking to supplement their educational funding. With BestEgg, students can expect a smooth loan process, allowing them to focus more on their academic pursuits.

Check rate on website

on website

BestEgg Personal Loan

4.5

Stilt’s lender ratings reflect the findings and opinions of our editorial staff. Our scoring methodologies consider a wide array of factors and data points for every lender, offering, and financial solution.

Min. credit score

600

Fixed APR

8.99-35.99%

Variable APR

N/A

View details

Overview

• Minimum credit score: 600.
• Fixed APR: 8.99-35.99%.
• Loan amounts: $2,000-$50,000.
• Repayment: 3 to 5 years.

Qualifications

• Targets borrowers with good to excellent credit; fair credit may qualify.
• Minimum credit score of 600.
• At least two years of credit history.
• Minimum annual income: $3,500 from various sources like employment, alimony, and more.
• Debt-to-income ratio: 40%, or 65% when including a mortgage.
• Must be a U.S. citizen.

Pros

• Soft credit check available for pre-qualification.
• Offers a diverse spectrum of loan amounts.
• Provides options for secured loans.
• Direct payments can be made to creditors for debt consolidation.
• Late fees are not charged.

Cons

• Charges an origination fee.
• Doesn’t offer rate discounts.
• Initial payment date isn’t customizable.
• Lacks a dedicated mobile app for loan management.

Read More

• International Student Loans with No Cosigner
• How International Students Can Get a Car Loan
• Top 3 Personal Loans for F-1 Visa Holders
• Student Loan Forgiveness for Professors
• International Student Loans: The Complete Guide

Conclusion

After reading this guide, your knowledge regarding loans for Canadian students studying in the US should be wider. As with any other topic, it’s best to start by doing some research. In this way, you can determine the right approach. The good thing is that, regardless of the challenges, as a Canadian student, you have the opportunity to study in the US.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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