Help with summer student loans for an American in Canada.

July 9, 2010 2:16 PM

Asking for a friend: How does my friend get loans from a bank as an American citizen studying at a Canadian university?

Friend:

Canadian banks seem to restrict themselves to citizens and landed immigrants and the US banks don't consider the existence of overseas universities. How much does the lack of credit history beyond taking out previous Stafford and Parent Plus loans affect interest rates/approval? This loan would be for about C$7000. I was not approved for a Stafford Loan for the summer for convoluted reasons that have since been resolved and have loans ready for the fall. I just need (non government) loans to officially enrol in the summer courses I am currently in. My parents are not able to cosign for anything. Thanks!

posted by dustyasymptotes to Education (3 answers total)

You will need a cosigner/guarantor, and a Canadian one.

Until you've established credit in Canada, we wouldn't approve you without one (let alone without Canadian income).

Despite being turned down, you should continue to try with American banks that do recognize Canadian schools. We do loans for Canadian students studying in the US frequently (and almost always with a cosigner/guarantor).
posted by smitt at 2:57 PM on July 9, 2010

Canadian universities want to attract and keep foreign students for financial reasons (in many programmes the foreign student provides the university more income than an equivalent domestic student due to government funding rules), so your friend should be able to get information and pointers to resources from the university's student aid office.
posted by thatdawnperson at 3:17 PM on July 9, 2010

There are some American banks that will do loans for foreign study--it's limited to pretty much the big evil ones though. (Random site with list here) If your friend is a graduate student, they can also take out PLUS loans themselves. You are required to have a credit history for PLUS loans, but I don't know how good your credit score has to be.
posted by calistasm at 6:09 PM on July 9, 2010