Best Student Loans for Studying Abroad in 2025

Interest in studying abroad is growing fast. Nearly 50% more U.S. students studied abroad for credit in the 2022-23 academic year compared to the year before, according to NAFSA: Association of International Educators.

If you need help covering the cost of study abroad, student loans can help. Federal student loans are the best place to start, but they typically won't cover your full program expenses. To fill the gap, College Ave and Sallie Mae offer some of the best private student loans for studying abroad, due to their low interest rates and flexible repayment options.

Here's a look at the best student loans for studying abroad and how you can reduce your total borrowing costs.

Current private student loan rates

Best private student loans for international programs

Why you can trust our Credible experts

The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology below.

Methodology

To determine the best student loan lenders for studying abroad, Credible collected more than 1,000 points of data on two dozen companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.

• Repayment options: 30%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 15%
• Customer support: 10%

While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.

Learn more about our methodology.

Can you get student loans to study abroad?

Both federal and private student loans can be used for study abroad programs, but it's usually best to start with federal loans.

“Federal loans offer important borrower protections — like income-driven repayment plans, deferment options, and loan forgiveness programs — that private lenders typically don't match,” says Ohan Kayikchyan, certified financial planner and doctor of economics.

However, federal loans have annual borrowing limits that may fall short of your needs.

“Federal aid may not cover the full cost of studying abroad, especially when factoring in travel, living expenses, and currency fluctuations,” he adds.

That's where private student loans can help. Most private lenders let you borrow as much as the full cost of attendance, including flights, housing, and other expenses. So if you've maxed out your federal aid, a private loan can help cover the gap.

Best federal student loans for studying abroad

You can use federal student loans to fund your study abroad program if your school participates in the federal student aid program. Federal loans come with benefits like lower interest rates than you're likely to get from private lenders, flexible repayment plans, and forgiveness programs.

Here are the main types of federal student loans to consider:

• Direct Subsidized Loans: Direct Subsidized Loans are available to undergraduate students who demonstrate financial need on the FAFSA. The interest rate is 6.53% for loans disbursed between July 1, 2024, and July 1, 2025. The government covers interest while you're in school and during a 6-month grace period after leaving school.
• Direct Unsubsidized Loans: Direct Unsubsidized Loans are available to all eligible undergraduate, graduate, and professional students, regardless of financial need. The interest rate is 6.53% for undergraduates and 8.08% for graduate and professional students for loans disbursed between July 1, 2024, and July 1, 2025. You're responsible for paying all interest that accrues, including while you're in school.
• Direct PLUS loans: Direct PLUS loans are available to parents of dependent undergraduate students and graduate and professional students. The interest rate is 9.08% for loans disbursed between July 1, 2024, and July 1, 2025.

How to compare private international student loans

Here are the most significant factors to consider when comparing private student loans for international study:

• Annual Percentage Rate (APR): APR includes both the interest rate and any fees. Each lender sets its own range, and your rate will depend on your credit. In general, the lower the APR, the less your loan will cost overall.
• Fixed vs. variable rates: Fixed rates stay the same for the life of the loan, so your monthly payments won't change. Variable rates can start lower but may rise over time, making your payments less predictable.
• Repayment terms: Most lenders offer repayment terms between 5 and 15 years, though some go up to 20 years. Shorter terms mean higher monthly payments but less interest paid over time. Longer terms lower your monthly payment but increase the total cost of your loan.
• Cosigner requirements: If you have a poor or limited credit history, you may need to apply with a cosigner. Most lenders allow one, and applying with a cosigner can improve your chances of approval and help you qualify for a better interest rate.

“Look for a lender that offers good rates, flexible repayment terms, and strong customer service,” says Dan Kennedy, chief information officer at College Ave, who has more than 30 years of experience in the financial services industry.

“You can also check out a student loan calculator to estimate your total and monthly loan payments,” he advises.

Tips for reducing study abroad costs

Student loans can help you pay for study abroad, but the less you borrow, the better. Taking on more debt than you need can lead to financial stress and limit your options after graduation.

Start by exploring scholarships and grants, since these don't have to be repaid. Many schools offer funding specifically for study abroad programs. Check with your university's study abroad office to see what's available. You can also search for private scholarships through sites like GoAbroad.com and Scholarships.com.

Once you've exhausted free aid, there are other ways to lower your overall costs.

“Choosing a program sponsored or approved by your home university is key, as it ensures access to federal aid and may allow you to pay your regular tuition rather than international rates,” says Kayikchyan.

It's also important to consider the full cost of your program, not just tuition.

“The country and school a student chooses, distance from home, program length, and local cost of living all influence total cost,” says Kennedy. He recommends shorter programs or choosing destinations with a lower cost of living to save money.

Kayikchyan adds, “Planning is essential — booking flights early and budgeting for local cost-of-living differences can lead to meaningful savings. I also suggest students explore exchange programs where room and board are included or significantly discounted.”