Volume No. 1 Issue No. 19
|International Student Loans
May provide students from Dominica and international students in general, with a unique opportunity for a relative or Friend to secure a university Education in the United States
by: Thomson Fontaine
Imagine you live in the United States and you’ve always wanted to assist a family member or friend to secure a university education. You do not have the financial means, and the student is unable to secure a scholarship or a student loan from a Dominica bank because he has no land title, nor do you.
Consider this. The Dominican has discovered that there are several international student loans and loan programs available in the United States at the disposal of overseas students including students from Dominica. All that is required is for the co-borrower to be residing in the United States with a solid credit history.
One such program is the International Student Loan Program of First Union Bank. Under the Educaid program of the bank, education loans are available for undergraduate study to US or foreign graduate students who are enrolled in an approved U.S., Canadian or foreign institution.
Loans are available to cover the full cost of university education with the interest rate determined on the U.S. Prime Rate. A fluctuation in the interest rate generally will be reflected in the length of repayment. In any event, in the recent past rates have been about 7%.
Depending on the total amount borrowed, you can take up to 25 years to repay. Here are the truly attractive options and the reason why the Dominican would recommend such a program to Dominicans. Option 1: Pay principal and interest only immediately: First payment of principal and interest begins 6 months from graduation.
Option 2: Defer payment of principal and pay interest only and Option 3: Defer principal and interest, for up to four consecutive years while enrolled in school. Principal and interest payments become due within 45 days after graduation.
Of course, once the loan is secured, students may receive permission to work on their F1 student visas (usually within the university), which can help reduce the amount of the loan that need to be drawn down.
It is a great system and one that can allow you to make a difference in someone’s life. Like everything else, as a co-signor you bear the ultimate responsibility to repay the loan if the student defaults. You would hope however, that if you provide this opportunity to a student, they would graciously repay their loan over twenty-five years.
You can call 1-800-EDUCAID for more information or visit www.educaid.com.
More information on student loans