Guide to International Student Loan Refinancing

Student loan refinancing is when a private lender pays off your existing loans and gives you a new loan at today’s interest rates. Refinancing student loans can be helpful to borrowers in multiple ways.

First, you might be able to reduce your interest rate or repayment term, which lowers your overall cost over the life of the loan. If lower monthly payments are your main goal, you might be able to extend your repayment term with various refinancing options, too.

One of the downsides of student loan refinancing is that many banks only accept borrowers that are U.S. citizens. It's a requirement that can make refinancing student loans more difficult for immigrant borrowers who aren't permanent residents (green card holders).

But international student loan refinancing isn’t impossible. In fact, you’d be surprised at the number of lenders that might be willing to work with you. In this guide, we’ll lay out the best options for refinancing for international students and how to get started.

Why student loan refinancing for international students can be challenging

As mentioned above, many U.S. banks and lenders will only lend to U.S. citizens, leaving out many international students and non-U.S. citizens. Although this eligibility requirement may seem restrictive, there are two practical reasons that banks don’t conventionally lend to international student borrowers.

International students pose a higher risk of permanently leaving the U.S.

U.S. financial institutions are often leery of lending money to international student loan borrowers who have non-permanent visas. Examples of temporary visas that international student loan borrowers may hold include:

• E-2
• E-3
• F-1
• H-1B
• J-1
• L-1
• O-1
• OPT
• TN

Out of this list, the F-1 and J-1 are the most common for students to hold, although it's possible that some students could switch to the work visas on the list after their education.

Borrowers with any of these visa types are considered a higher risk by lenders because there’s no guarantee that they’ll establish permanent residence in the United States. Should the borrower voluntarily choose (or be forced) to leave the U.S., enforcing student loan repayment for outstanding student loan debt is very difficult. Refinancing lenders want to ensure the loan balance will be paid back.

Related: How to Flee the Country to Get Away From Your Student Loans

International students are more likely to have limited U.S. credit histories

Without social security numbers, non-U.S. citizens face more difficulty getting approved for credit cards or other lines of credit. For this reason, international students may have a thin credit file for lenders to evaluate.

Thin credit files mean limited (or no) credit histories and make it more difficult for anyone, regardless of citizenship or residency status, to get approved for refinancing at the best rates. Credit histories and scores still play a major role in the underwriting decisions of most lenders. They do a credit check and typically have a minimum credit score requirement.

It should be noted, however, that not all international students struggle in this area. There are a few credit card programs specifically targeted at U.S. newcomers. If you’ve already begun to make payments on your student loans, that positive credit history will appear on your credit report as well.

How to refinance student loans for non-U.S. citizens

Many international students who come to the U.S. for higher education on a visa are pursuing specialized professions such as medical physicians or engineers, which require them to take out a lot of student debt. Many of these borrowers may plan to continue working in the United States after graduation.

Yet, in addition to most foreign students being ineligible for federal student loan programs, many also struggle to meet U.S. refinancing requirements.

Getting financing can be a frustrating experience for international borrowers, especially when they’re entering high-paying fields that would normally qualify them for competitive rates. Yet despite these obstacles, there are ways to qualify for international student loan refinancing with U.S. lenders, which can open up loan options and may lead to a lower rate.

Here are two steps to take:

1. Add a creditworthy U.S. cosigner to your application

Finding a creditworthy U.S. citizen to cosign your refinance loan may be the easiest way to qualify for a new loan at the best rates. Most international students don’t qualify for federal student loans. So, if you’re a non-U.S. citizen with student loans that originated in the United States, you likely have private loans from a private lender. A few lenders will lend to international students without a cosigner, but that’s still the exception rather than the norm.

Many international student borrowers may already have a U.S. cosigner on their loans. If that’s the case for you, consider asking your existing cosigner if they're willing to cosign a new refinancing loan with you.

There’s a strong possibility that your cosigner would be happy to cosign your refinance loan. After all, they’re already on the hook if you’re unable to repay your current student loans. They might as well try to help you get a lower interest rate to relieve your financial burden and increase the likelihood that you’ll keep your loans current.

2. Look for lenders with flexible eligibility requirements

If you’d prefer to apply for refinancing on your own, look for banks and lenders that will lend to non-U.S. citizens. A few examples of these providers include Citizens and SoFi®.

Stilt is another smaller private student loan lender that specializes in immigrant lending. However, it was acquired by JG Wentworth, a nationwide consumer finance company, in late 2022, and its rates and terms tend to be less attractive.

Each lender has its own set of eligibility requirements. But usually, the following visa types/visa holders are eligible for a student loan refinance:

• H-1B
• J-1
• L-1
• E-2
• E-3

It’s less common to find lenders that accept borrowers who still have a student visa status, such as F-1 or OPT. However, Stilt has no restrictions on either of these visa types.

How to qualify for international student loan refinancing without a cosigner

To get approved for international student loan refinancing without a cosigner, make sure that your temporary visas aren’t set to expire soon. SoFi®, for example, says that qualifying applicants must have at least two years left until their status expires or show that they’ve filed for an extension or permanent residency.

Next, check your credit score. If your score is “poor” or “fair,” you may not qualify for a lower interest rate by refinancing. But your chances of earning a better rate are higher if you have “good” to “excellent” credit.

Finally, many lenders want to see proof of strong income. It shows them that you have the financial means to make your monthly payments.

Related: Student Loan Refinancing: What Is a Good Debt-to-Income Ratio?

Best lenders for international student loan refinancing

A few lenders still exist that are willing to offer refinancing to international students. Below, we list three of your best options, along with their key terms, requirements, benefits and application process. Note that none of the refinance lenders below charge origination fees or prepayment penalties.

Citizens

Citizens will accept student loan refinancing applications from resident aliens that have a valid social security number. However, it's unclear if non-citizens that meet the credit and income eligibility criteria must apply with a U.S. cosigner or if they can apply on their own. Here are the key details of their refinance loan product:

• Loan amounts: $10,000 to $500,000
• Loan terms: Five to 20 years
• Rate type: Fixed rate and variable rate loans
• Autopay discount: 0.25%
• Bonus: Up to $1,250 through this link

In addition to offering a 0.25% interest rate discount to borrowers that sign up for automatic payments, Citizens offers a loyalty discount of 0.25%. Borrowers who qualify for both can reduce their interest rate by up to 0.50%.

Unfortunately, there's no formal forbearance policy to be found for Citizens refinance loans. However, borrowers can apply to have a cosigner released after they've made 36 consecutive on-time payments. Read our full review of Citizens student loan refinancing.

SoFi®

You can apply for international student loan refinancing with SoFi® if you hold a J-1, H-1B, E-2, O-1 or TN visa. You'll also need to have at least two years remaining until your status expires or provide proof that you’ve filed for an extension. Here's what SoFi® student loan refinancing offers:

• Loan amounts: $5,000+
• Loan terms: Five to 20 years
• Rate type: Fixed rate and variable rate loans
• Autopay discount: 0.25%
• Bonus: Up to $500 from Student Loan Planner® through this link

SoFi® offers deferment and forbearance options in addition to reduced student loan payments (as low as $100) for borrowers who are in medical residency or fellowship. But there is a glaring downside to refinancing with SoFi®. The lender doesn't currently offer a cosigner release program. Read our SoFi® refinancing review.

Is international student loan refinancing worth it?

Just because you can refinance your international student loans doesn’t necessarily mean that you should. If your credit score doesn’t qualify you for better rates or terms and you can’t find a creditworthy cosigner, you may be better off sticking with your existing loans.

But since most international students don’t have federal student loans, they also don’t have to worry about losing out on federal benefits like income-driven repayment (IDR) or student loan forgiveness when refinancing. That makes the risk-versus-reward proposition of student loan refinancing much simpler.

If you’re able to qualify for a better loan by refinancing your international student loans, you probably should. That could save you money on interest or put money back in your bank account. Review repayment plans, deferment options, fixed APR vs. variable APR, and any fees before you commit. To learn more about the pros and cons of refinancing, check out our full student loan refinancing guide.