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Education in India is becoming more expensive than education abroad. While struggling for best grades and career, students and parents are also suffering from economic implications of education. Scholarships and Education Loans are the only two options which help students to pursue their academic ambitions. But finding the best bank for education loan in India is a tough job in itself. Best education loan banks offer additional features like margin fee waiver, processing fee waiver, education loan insurance, etc. Students need to know the full spectrum of education loan services to identify the best options for themselves.

Who Actually Owns Student Loan Debt?

As of late 2021, American students are on the hook for approximately $1.75 trillion in student loans, according to data compiled by the Education Data Initiative. 43.2 million student borrowers owe an average of $39,351, up significantly from past decades.¹ With that much money on the line, it’s reasonable to be curious about who might ultimately receive all those principal and interest payments. While $1.75 trillion may be a significant liability for the borrowers, it can be an even bigger asset for creditors.

The Maze of Student Loan Processing

It is possible for your student loan to have been originated by one institution, be owned by another, guaranteed by yet another, and possibly serviced by a fourth or even fifth agency. This can make it very difficult to track down who owns your debt and how. Much also depends on the type of loan you took out, although it is safe to say the federal government was involved in some way.

Most lenders are huge institutions, such as international banks or the government. After a loan is originated, however, it represents an asset that can be bought and sold on the market. Banks are often incentivized to move loans off the books and sell them to another intermediary because doing so instantly improves their capital ratio and allows them to make even more loans.

Since almost all loans are fully guaranteed by the government, banks can sell them for a higher price, because default risk is not transferred with the asset.

Non-Government Owners

Outside the government, most student loans are held by the lender or a third-party loan servicing company. Originators and third parties can each perform in-house collection services or contract that duty out to a collection agency. Some of the largest private student loan companies include SoFi Technologies, Discover Financial Services, and Navient.

$1.85 Billion Settlement

In January 2022, Navient reached a $1.85 billion settlement with 38 states and the District of Columbia following claims that it had made predatory student loans. The company will cancel the outstanding balance on $1.7 billion in subprime private student loan balances that are owed by about 66,000 borrowers nationwide.²

Many student loans are also owned by quasi-governmental agencies or private companies with beneficial relationships with the Department of Education, such as NelNet Inc. and Sallie Mae. Sallie Mae holds a lot of the loans made under the Federal Family Education Loan Program (FFELP), which was replaced by the federal government.

The Federal Government as Creditor

Outstanding consumer debt in the U.S. reached $4.4 trillion in November 2021. That figure represents an increase of nearly $1.9 trillion since 2010.³ The main culprit is student loans, which the federal government effectively monopolized in a little-known provision of the Affordable Care Act, signed into law in 2010.

Prior to the Affordable Care Act, a majority of student loans originated with a private lender but were guaranteed by the government, meaning taxpayers foot the bill if student borrowers default. In 2010, the Congressional Budget Office (CBO) estimated only 55% of loans fell into this category, compared to about 93% today.

Prior to the administration of Bill Clinton, the federal government owned zero student loans, although it had been in the business of guaranteeing loans since at least 1965. Between the first year of the Clinton presidency and the last year of George W. Bush’s administration, the government slowly accumulated about $670 billion in student debt.

Those figures have exploded since 2009. The U.S. Department of the Treasury revealed in its 2020 annual report that student loans accounted for nearly 20% of all U.S. government assets.⁷

The cost of federal student loan programs is widely debated. The CBO provides different estimates based on low discount rates and “fair value” discount rates.⁸ Some fair value estimates suggest the government loses multi-billions per year, including administrative costs.⁹ But another recent report said that the CBO estimates that when 2021 results are finalized, student loan programs will have generated net receipts of $1.4 billion from loans and guarantees, while also incurring $3.2 billion in administrative costs, suggesting the total result is a small loss.¹⁰ Regardless of how the costs are calculated, the implications are the same: The government does not recoup the value of the loans, putting present and future taxpayers in the position of the guarantor.The Complete Introduction to EconomicsLearning the basics of economics is easier than you think, especially when courses are taught by instructors from all over the world. With Udemy, you’ll be able to understand what economics is all about and the difference between microeconomics and macroeconomics. You’ll also be able to take courses that span over 65 languages and have a 30-day money-back guarantee. Learn more about Udemy and get started today.

U.S. International Student Loans Without Cosigner in 2022

Getting a loan without a cosigner may seem impossible, but there are options. Some private lenders offer no cosigner student loans — and our loan comparison tool can help you find one.

In this guide:

Information on Cosigners

As an international student in the United States, or coming to the US, you will be required to have a cosigner most of the time when applying for a loan. Cosigners must be a US citizen or permanent resident who has lived in the US for the past two years and has good credit history.

Since most international students in the US do not have credit history, a cosigner joins the standard application process. Approval and rates are based off the credit score of the cosigner and they are legally bound to repay the loan if you (the borrower) are unable to pay.

If you don’t have a credit-worthy cosigner, you won’t qualify for most international student loans. However, there are still a few options available to international students, and on this page, we’ll give you the information you need on private international student loans that don’t require a cosigner.

No-cosigner loans

Although a cosigner is typically required by most lenders, international students attending certain colleges and universities in the US and Canada are able to apply without one. If you’re not able to find a cosigner then this type of loan could be a good option for you.

With no-cosigner loans, instead of looking at credit history, the lender will look at your academic success and career path. A few factors they will take into consideration include your home country, graduation date and what school you attend.

Private international student loans are offered through non-government lenders. There are a number of private lenders that offer loans for international students, each with their own eligibility requirements. However, only select lenders offer loans to international students that don’t require a cosigner.

Before choosing a lender, it’s important to do your research and find a lender that will offer you a loan that meets your needs. You can use our international student loan comparison tool to get information from the student loan companies that work with international students in just a few clicks.

How To Find And Compare No-Cosigner Loans

If you’re an international student and would like to explore the option of a loan that doesn’t require a cosigner, you’re able to use our loan comparison tool to see if your school has one available. If so, you can then research the terms and conditions of the loan and apply directly through the lender. When researching a loan a few items you will want to take note of include:

• How much you can borrow
• The interest rate (including if it’s fixed or variable)
• The repayment period
• When and how your funds will be disbursed

Once your loan application has been reviewed you will receive details on your loan including your interest rate and how much you can borrow, these items will vary by lender and your situation. For example, no-cosigner loans through one of our partners have a fixed interest rate of 11.99%-13.99% and allow you to borrow up to $25,000 per academic period, or $50,000 total. On your application you must state how much you would like to borrow. The approved amount along with your designated interest rate will be assigned to you by the lender after your application has been reviewed. If you are approved for a loan, the funds are disbursed directly to your college or university. The entire process usually takes about 6 weeks, so you will need to plan accordingly.

To see if there are loans available at your school, including no cosigner loans, use the international student loan comparison tool to get started.

Loans for International Students in Canada

International students in Canada may now apply for this type of loan at select Canadian schools. US, Canadian and international students may be eligible for a student loan to cover the cost of their education including tuition, housing, food, insurance and educational supplies such as books.

Discover Student Loans Review

Discover offers student loans for both undergraduate and graduate students, as well as a loan to refinance and consolidate existing loans. Discover Student Loans have competitive rates, unique benefits, and may be a good choice for you depending on your situation.

Many or all of the companies featured provide compensation to LendEDU. These commissions are how we maintain our free service for consumers. Compensation, along with hours of in-depth editorial research, determines where & how companies appear on our site.

Key points:

• Discover offers student loans to both undergraduate and graduate students as well as student loan refinancing.
• Both cosigned and non-cosigned loans are available (if you qualify), but cosigner release is not an option.

In recent years, the skyrocketing cost of higher education has prompted more students to take out private student loans to help cover college expenses.

Discover Student Loans is one option among many when it comes to private student loans, but it offers competitive rates, terms, and benefits that borrowers will want to consider.

Below we’ll take a look at the interest rates, loan terms, and limits Discover Student Loans has to offer for undergraduate students, graduate students, and those looking to refinance existing student loans.

What types of loans does Discover offer?

While most of us know Discover for its credit cards, Discover Student Loans is quietly one of the biggest private student loan lenders in the market.

Discover offers private student loan options for students in undergraduate, graduate, MBA, Law, Residency, Health Professions, and Bar Exam programs. It also offers to refinance student loans. We’ll take a closer look at your options below.

Discover in-school student loans

Check Rateson Discover’s website4.3Editorial Rating

What we like:

Cash rewards for good grades²

Fixed APR	3.99% – 11.59%3
Variable APR	1.29% – 10.59%3
Loan Terms	15 years
Loan Amounts	$1,000 to 100% of school-certified costs1

See how Discover’s private student loan product stacks up with other optionsCompare Private Student Loans

Lowest rates shown include an interest-only repayment discount and a 0.25% interest rate reduction while enrolled in automatic payments

	Discover Undergraduate Student Loan	Discover Graduate Student Loan	Discover Health Professions Student Loan	Discover Bar Exam Loan
Loan amount	$1,000 – 100% of school-certified costs	$1,000 – 100% of school-certified costs	$1,000 – 100% of school-certified costs	$1,000 – $16,000
Loan terms	15 years	20 years	20 years	Up to 20 years
Fixed APR	3.99% – 11.59%	4.49% – 11.99%	4.99% – 9.74%	7.74% – 12.74%
Variable APR	1.29% – 10.59%	1.99% – 11.49%	3.74% – 9.37%	6.37% – 11.37%
Fees	Origination: $0 Prepayment: $0 Late payment: $0	Origination: $0 Prepayment: $0 Late payment: $0	Origination: $0 Prepayment: $0 Late payment: $0	Monthly fee: $0 Origination: $0 Prepayment: $0 Late payment: $0
Grace period	6 months	9 months	9 months	9 months

Lowest rates shown include an interest-only repayment discount and a 0.25% interest rate reduction while enrolled in automatic payments

Pros of Discover private student loans

• Discover may cover up to 100% of your school-certified costs. Aggregate loan limits apply.
• Discover’s undergraduate student loans have a repayment term of 15 years. This is longer than many lenders offer and graduate students get even more time to repay their loans.
• Discover borrowers won’t pay origination, application, late payment, or prepayment fees.
• Graduate students and those studying for the bar exam enjoy an extended grace period.
• You can qualify for an interest rate reduction by setting up automatic payments. You can also get a rate reduction if you sign up for interest-only payments.
• Borrowers can get a one-time cash reward on each new Discover undergraduate and graduate student loan if they get a 3.0 or better GPA (or equivalent) in any academic term covered by the loan. The reward redemption period is limited.

Cons of Discover private student loans

• Qualifying for a Discover student loan may be difficult for borrowers who have a low credit score, low income, or no cosigner. If you are in this situation, you may want to consider a student loan without a cosigner.
• Many student loan lenders allow borrowers to release cosigners from their loans after a certain amount of on-time payments have been made. Discover does not currently offer this option.
• Discover only makes approval decisions based on a hard credit check which will likely temporarily ding your score a few points.
• Borrowers won’t enjoy any of the borrower protections provided by federal student loans, such as the potential for student loan forgiveness. So, you should always exhaust your federal options before turning to private student loans.

Eligibility

Private student loans from Discover are offered to students enrolled at least half-time in an eligible, accredited college or university. You can see if your school is eligible during the application process.

How to apply

You can apply for a loan easily on Discover’s website. To apply, you’ll need to provide the following information:

• Social Security number (if applicable)
• School information, including field of study and academic period of enrollment
• Loan amount requested, as well as any financial aid you expect to receive
• Financial information, including income, monthly mortgage/rent payments (if applicable)
• Permanent address and temporary/in-school address

Additionally, if you’re applying with a cosigner, your cosigner will need to provide their:

• Social Security number
• Loan amount requested
• Employment information
• Financial information, including monthly mortgage/rent payments
• Permanent address

Discover will review that information and send you a letter accepting or denying your application. If you’re accepted, it will also detail your total allowable loan amount and the repayment stipulations set forth in your agreement.

Discover Student Loan repayment options

Discover student loans have three repayment options:

• Fixed payment plan, which requires a $25 loan payment while in school and during the grace period, then full principal and interest payments after school ends.
• Deferred payment option in which payments are not required until six months after the borrower leaves at least part-time attendance status or graduates. For graduate loans, payments are deferred until nine months.
• Interest-only repayment plan that allows borrowers to pay any interest charges as soon as the loan is funded, while they attend school.

Discover refinance & consolidation loans

Check Rateson Discover’s websiteN/AEditorial Rating

What we like:

Zero fees

Fixed APR	3.49% – 6.99%5
Variable APR	1.87% – 5.87%5
Loan Terms	10 or 20 years
Loan Amounts	$5,000 – $150,000

See how Discover’s student loan refinancing product stacks up with other optionsStudent Loan Refinancing Options

Discover also offers consolidation or student loan refinancing for qualified borrowers. You can refinance and consolidate both federal and private student loans together into one new private loan.

Refinancing can be a smart move for those looking to make only one payment on their student loans and for those looking save on their loans through a lower interest rate.

Borrowers are more likely to get approved after they have started working a full-time job, as they likely have established credit scores and a history of income and payments on other debt.

Discover Refinance Student Loan
Loan amount	$5,000 – $150,000
Loan terms	10 or 20 years
Fixed APR	3.49% – 6.99%
Variable APR	1.87% – 5.87%
Fees	Origination: $0 Prepayment: $0 Late payment: $0

Pros of Discover Refinance Student Loans

• Borrowers can extend their current loan repayment term up to 20 years.
• You’ll pay no origination, late payment, or prepayment penalties.
• You can consolidate all of your current federal and private loans into one, simple payment.
• You can qualify for an interest rate reduction by setting up automatic payments.
• Discover has a great reputation for excellent customer service.
• While not available with all private lenders, Discover offers forbearance and loan forgiveness in the event of the primary borrower’s death or permanent disability.

Cons of Discover Refinance Student Loans

• Refinancing federal student loans with a private lender forfeits your eligibility for the borrower protections federal loans enjoy, such as income-driven repayment plans and the potential for student loan forgiveness.

Repayment Options

Students can choose to refinance while still in school, during the grace period or after the grace period expires.

If you refinance while you are still in school or during your grace period, you will lose any remaining grace period on the loans, and you will begin making principal and interest payments according to your repayment term approximately 30 to 45 days after your loan is disbursed.

Eligibility

As with Discover’s private student loans, borrowers will need good credit for a refinance student loan.

You may be able to qualify with a lower credit score. However, the main benefit of refinancing is securing a more competitive interest rate, which may not be possible if aren’t able to demonstrate to Discover that you’ll keep up with payments on your new loan.

Applying for a Discover Refinance Student Loan

As with its private student loans, Discover allows you to easily apply on its website in a matter of minutes. You simply need to provide basic information about yourself, such as:

• your name, address, and birth date
• Your Social Security number
• Details about your current loans that you want to consolidate
• Your current status of employment and income

If you’re applying with a cosigner, they’ll need to provide the same information as well.

Alternatives to Discover’s college loan products

See what federal aid you qualify for

The first step to paying for college is seeing what kind of financial aid you are eligible for by submitting the Free Application for Federal Student Aid (FAFSA). It is free to file the FAFSA and the majority of students may qualify for some type of financial aid, including Pell Grants, work-study programs, and federal student loans.

Look for scholarships & grants

The next step is to look for scholarships and grants from nonprofits and other organizations. Organizations typically give scholarships and grants for academic merit, financial need, or outstanding performance in sports or an art.

Consider other private student loan & refinancing options

After you have exhausted all federal and state financial aid options, scholarships and grants, and college savings, the next step is to look for other private student loans.

You can compare Discover to other top lenders in our guide to the best private student loan lenders. Or if you’d like to refinance an existing loan, check out our guide to the best places to refinance student loans.

You can also check out our comparisons of Discover vs. Earnest or Discover vs. College Ave.

Lastly, you can also check out our resource with a list of student loan companies.

KEY TAKEAWAYS

• Student loan debt in the United States totals $1.75 trillion, with the average borrower owing $39,351.
• Most student loan lenders are large institutions, such as international banks or the government. 
• Aside from federal loans, most student loans are held by the lender, a quasi-governmental agency like Sallie Mae, or a third-party loan servicing company.
• The federal government fully guarantees almost all student loans.