In 2023/24, the number of international students headed for the UK surpassed  679,970. This significant influx is a testament to the allure of the UK’s standard and quality of education, making its universities a top choice. The UK, home to some of the best universities in the world, offers not just education but also lucrative employment opportunities, as evidenced by the success stories of many international students.

Many students who dream of getting an education in the UK are discouraged by the prohibitive cost of the courses. Student loans for international students in the UK are an important topic that needs much discussion. 

If you are considering pursuing a course in the UK as an international student, we have some good news. Let’s have a closer look.

• Tuition fee for international students
• Funding/ scholarship option
• Loans for international students – Types of loans available, eligibility and repayment, best international student loan providers, how to choose a lender, 
• Grace period and deferral
• Understanding credit score and future borrowing option
• Advantages and disadvantages of a student loan
• International student loan in the home country

Tuition fee for international students

The application brochure’s fee section mentions two types of fees: UK and international students. The costs for undergraduate courses are capped for domestic students. However, an international student is expected to shell out anywhere between £11,000 and £38,000, depending on the course. 

Funding/ Scholarship

Merit-based scholarships are available for outstanding academic achievements. They are highly competitive options awarded to only a handful. Depending on an individual’s personal situation, need-based bursaries, and grants are also available subject to the fulfilment of strict requirements. 

Student Loans for International Students in the UK

The UK government offers loans to anyone who has been domiciled in the country for at least three years, regardless of citizenship. These loans typically have lower interest rates. However, these loans will not be available if you are an international student who has yet to set foot in the country. Your only option will be to opt for private loans. 

Types of loans available

After you have done your careful research and prepared your paperwork, remember to set up your co-signatories with the necessary documents. When you fill out the form, you will be asked if you want a maintenance loan, a tuition fee loan, or both.

The maintenance loan will cover your living expenses while you pursue your course in the UK. Student loans for international students in the UK will also cover tuition fees. 

Eligibility and repayment

The loan amount you receive will depend on your specific needs. Standard eligibility requirements that you must meet are:

1. You must be enrolled in a full-time graduate or undergraduate program.  
2. You cannot hold a UK passport or ILR.
3. You have to meet specific merit requirements.
4. Although you may not have a credit history, your co-signor or guarantor must have a good credit history. 
5. You can be asked to document your financial need. 

As an international student, you will pay higher interest rates between 7% and 15%. You can expect to be offered variable or fixed rates. The fixed-rate difference will give you better protection against unpredictable factors like inflation. Variable rates are best in stable financial conditions. For repayment, carefully consider your options. You can choose from standard repayment to extended repayment. To know which option works best for you, chalk out a plan for how you plan to repay and your desired term period. 

Best international student loan providers

1. Prodigy Finance: Best for international postgraduate students who do not have a co-signer or collateral.
2. Credo student loans: Offers loans to students from eligible countries and flexible repayment options. 
3. Global Education Management Services (GEMS): Loans for international students in the UK from varying nationalities. 
4. MPower Financing: They do not require a co-signer for international students, which makes them a popular choice. 
5. Future Finance: Best repayment options available.
6. Barclays International Student Loan: International students can avail of their loans on meeting their requirements. 
7. HSBC UK Bank: Check your eligibility before applying. 
8. Lloyds Bank International Student Loan: These are the best personal loans available that can be used for education. 
9. NatWest International Student Loan: Ask for their loans to suit your needs. 
10. Sallie Mae International Student Loans: A US-based lender best for students from the USA. 

How to choose a lender?

When choosing a lender, there are specific key points to consider. 

• Interest rate and repayment options – Compare the interest rates and repayment options offered. Choose the one that works best for you.
• Eligibility—Make sure you fulfil all the eligibility requirements. Do not submit your application if you cannot meet the criteria. It may negatively affect your credit score.
• Fees – Always read the fine print and be aware of any late fees and extra charges you might owe.

Grace period and deferral

Your loan may come with a grace period, meaning you can seek a temporary pause on repayment. A deferral option is an extended agreed-upon delay in repayment, typically awarded when a borrower tops up an existing loan with a new one to support further education. 

Understanding credit score and future borrowing option

You must demonstrate a good credit history to apply for a credit card or buy a car or house. As an international student, you will have no credit score. Having a loan you repay on time can show your creditworthiness and build your credit score. It will make future credit applications successful.

Advantages and disadvantages of a student loan

The best advantage of a student loan is that you can fulfil your dream and get the best education you deserve. A loan for international students in the UK will also kickstart your journey to a good credit score.

The disadvantage of an education loan in the UK for international students is long-term debt. If you plan carefully, the situation can stay manageable. 

International student loan in the home country

Many countries support the aspirations of their students wanting to study abroad. In India, SBI offers study-abroad loans. In the USA, you can add to your existing student loan to support coursework in the UK. 

Feel free to raise your concerns if you are still trying to figure it out. Discuss them with relevant authorities, such as your university admission office, financial planner, local council, or government authority. If you plan well and conduct thorough research, you will be surprised to see the numerous opportunities that await you.