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Refinancing student loans can help students save money and pay back their loan faster. However, for international students without a credit history in the U.S., refinancing options are limited. If you’re considering refinancing your student loans as an international student, it’s important to know how the process works.

This guide on student loan refinance for international students will walk you through it.

How Refinancing Student Loans Works

Student loan refinancing is the process of replacing your current student loans with a new loan that has one monthly payment. You can refinance both private student loans and federal student loans, potentially saving money and time as you pay off your debt.

Student loan refinancing companies like SoFi offer fixed and variable interest rates that may be lower than what you’re currently paying on your student loans.

With student loan refinancing, you can also choose from various student loan repayment options and terms, allowing you to pay off your loans as quickly as your budget allows. The shorter your repayment period, the more you’re likely to save on interest, while a longer repayment term typically means you pay more interest over the life of the loan.

As you consider your strategy for paying off your student loan debt, refinancing can be a crucial element in helping you achieve your goal.

Another term you may hear as you’re exploring the idea of refinancing is “consolidation.” The terms are sometimes used interchangeably, but they are not the same thing. With student loans, consolidation is generally associated with federal loans through the Federal Direct Loan Consolidation Program, while refinancing is typically done through a private lender.

Recommended: Can International Students Get Student Loans?

Where to Refinance Student Loans for International Students

When you’re an international student, it’s not always easy to know where to go to refinance your student loan. Many lenders require you to be a U.S. citizen or permanent resident to be eligible for international student loan refinance, but fortunately, some companies provide more flexibility and may offer such options as student loans for H-1B visa holders.

For instance, SoFi as well as MPOWER offer student loan refinance for international students. SoFi considers U.S. citizens, permanent residents, and people who hold a J-1, H-1B, E-2, E3, O-1, or l-1 visa (as of the date of this article).

If you’re a permanent resident, you’ll need to either have at least two years left until your status expires to refinance student loans for international students. And if you’re a visa holder, you’ll need to have at least two years left before your status expires, or you’ve applied for permanent residency.

That said, qualifying based on your citizenship, resident, or visa status doesn’t necessarily mean you qualify based on all criteria. Student loan refinancing lenders also typically have credit and income requirements.
This means that if you don’t have an established credit history — which is not always the case for international students — you may have a tough time getting approved on your own.

If this is your situation, it might be worth getting a student loan refinancing cosigner, such as a trusted family member or friend who is a U.S. citizen or permanent resident, to apply with you to help strengthen the creditworthiness of your application. This can be helpful because a cosigner acts as a backup for your application, and they are also legally obligated to repay the loan if you can’t. Even if you do qualify to refinance your student loans on your own, a co-signer could help you get a lower interest rate.

To help improve your chances of getting approved for international student loan refinance with more favorable terms, such as a low rate, it’s a good idea to choose a co-signer who has a stellar credit history and a solid income.

Eligibility Requirements for International Students

Refinancing eligibility requirements for international students can vary by lenders. However, there are some specific criteria most lenders look for.

Credit Score and Financial History

To be eligible for student loan refinance, an international student needs to have a solid credit history. Lenders generally perform a credit check on borrowers before deciding whether to give them a loan. They check the borrower’s credit score and credit report to see if they have made loan and credit card payments, which helps them assess whether the borrower can repay a refinance loan.

Most international students don’t have a credit history in the U.S. Yet most forms of borrowing, including credit cards, typically require individuals to be U.S. citizens or permanent residents. That makes it difficult to get credit. That’s why having a creditworthy cosigner on the loan can be helpful.

Lenders may also consider your income when deciding whether to give you a loan. They want to see that you have a steady income that’s high enough to make loan payments. Again, a creditworthy cosigner with a steady and sufficient income may help bolster your chances of getting a refinance loan.

Consigner Requirements and Options

When choosing a cosigner, keep in mind that they, too, will need to meet certain requirements from the lender. This generally includes:

•   Being a U.S. citizen or a permanent resident

•   A Social Security number

•   Good to excellent credit (a good credit score is considered to be above 670)

•   A stable job and a steady income

It’s important for the cosigner to understand that they are taking equal responsibility along with the primary borrower for repaying the loan. Any late or missed payments could harm their credit. Make sure the person you choose as your cosigner is someone you trust, and that they are willing to take on the responsibilities — and possible risk — involved.

Two Things to Consider Before Refinancing Your Student Loans

Refinancing might not be the right option for everyone. Here are three things to think about before you make your decision:

You May Not Qualify for a Lower Rate

Your eligibility and student loan interest rate are based on several factors, including your credit history and income. As such, there’s no guarantee you’ll get approved for a lower interest rate than what you’re currently paying, even with a co-signer.

Also, if you already have a relatively low interest rate with your current lender, you may have a hard time getting an even lower rate.

Fortunately, some lenders, including SoFi, allow you to check your rate before you officially apply to refinance. This is done with a soft credit check, which doesn’t impact your credit score.

Refinancing Is Just One Piece of the Puzzle

As you think through your student loan repayment strategy, keep in mind that refinancing isn’t the end of the line. Once you complete the process of refinancing your loans, it’s important to make sure you’re paying down your debt.

For example, consider creating a budget and looking for ways to put extra cash toward your student loan payments each month. If you get some extra money — a chunk of cash for your birthday, say — you can put that toward your loan payments as well.

Additionally, you could go with a shorter repayment period to save even more time and money on your debt. Just be aware that a shorter repayment period means your monthly payments will be higher.

Pros and Cons of Refinancing as an International Student

Refinancing your student loans as an international student could be a way to help manage your monthly payments. But there are advantages and disadvantages to carefully consider before moving ahead.

Benefits of Refinancing

The pros of refinancing student loans include:

•   A lower interest rate: If they can qualify, a lower interest rate can save borrowers money on the amount of interest they pay over the life of the loan. They could potentially save thousands of dollars.

•   Lower monthly payments: With more flexible loan terms, a borrower could lower monthly payments by extending the loan term. However, with a longer repayment term, they will pay more in interest over the life of the loan.

•   Repayment is easier to manage: With refinancing, a borrower has just one loan to keep track of and pay each month, rather than multiple loans. This can simplify the repayment process.

Potential Drawbacks to Keep in Mind

There are several disadvantages to refinancing, such as:

•   Refinancing as an international student may be challenging: Many lenders don’t offer student loan refinancing to international students. Those that do typically offer refinancing to international borrowers with certain types of visas or those with permanent residency status.

•   A cosigner may be required: Many international students don’t have a credit history in the U.S, which is something lenders look for. In that case, a creditworthy cosigner may be needed to secure refinancing.

•   Refinancing federal student loans makes them ineligible for federal benefits: While both federal and private student loans can be refinanced, refinancing federal loans means that borrowers no longer have access to federal programs and protections, such as income-driven repayment plans and federal deferment. (Although federal student loans are not typically available to international students, some international students who are permanent residents of the U.S. or have certain types of visas may be eligible for them.)

The Takeaway

If you’re considering refinancing student loans as an international student, be sure to check your eligibility requirements with private lenders. If you don’t have a strong credit history, consider adding a co-signer who is a U.S. citizen or permanent resident to strengthen your refinance loan application.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

FAQ

What lenders refinance student loans for international students?

Lenders that refinance student loans for international students include SoFi, MPOWER, Earnest, and PNC among others. Generally, you’ll need to have a certain type of visa or be a permanent resident to be eligible. Check the specific eligibility requirements with each lender.

Do I need a U.S.-based cosigner to refinance my student loans?

A U.S.-based cosigner who is a citizen or permanent resident and has strong credit, a steady job, and a good income may strengthen an international student’s application for student loan refinance. That’s because lenders look at a borrower’s credit history and income when deciding whether to issue a loan. A cosigner takes equal responsibility for the loan and repays it in the event the primary borrower can’t.

What are the alternatives if I can’t refinance my student loans?

If you are unable to refinance your student loans, you could create a budget to save money and then put the money you save toward your loan payments to help pay down your debt faster. You can also pay more toward the principal on your loan each month, which may help you pay off your loans faster.

You can look into student loan consolidation if you have federal student loans and want to simplify the payment process, or income-based repayment plans if you’re trying to lower your federal monthly loan payment.

How does refinancing affect my credit score as an international student?

If you are able to refinance your loan as an international student, it could help build your credit over time as long as you consistently make your monthly payments by the due date. When you refinance and make on-time payments, you are helping to build a credit history for yourself, which could make it easier to be approved for loans or credit cards in the future.

Is refinancing worth it if I plan to return to my home country?

You will still be responsible for paying off your student loans if you return to your home country. So if refinancing gets you a lower rate or more favorable loan terms, it may be worth doing.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SOSLR-Q225-026

Finishing a master’s degree is a big deal and deserves a huge congratulations. Countless hours spent tackling reading lists, group projects, and thesis research have finally come to an end. And after all that, you’re probably wondering what comes next after getting your master’s degree.

On one hand, an end to tuition payments and assignments is a relief. On the other hand, figuring out what to do after grad school can be daunting. Compared to navigating life after college, master’s students may be faced with more debt and responsibilities than when they finished their undergraduate degree.

Whether starting a new and exciting role, embarking on the job hunt, or making plans for an alternative path, the transition may take time adjusting to.

To help you make the next step, check out these tips for what to do after grad school.

Utilize University Career Resources and Networking

Many graduate programs promote their job placement rates to attract future students and stay competitive in college rankings.

To help ensure master’s students have a plan for navigating life after college, many universities offer career resources and services. Possible programs include career planning, interview and resume workshops, job fairs, and networking events with employers and alumni.

If you find your university’s career services to be limited or you’ve already graduated, you can reach out to your former professors for advice on entering the job market or pursuing a PhD.

Some universities may have official alumni groups or organizations to tap into. Connecting with alumni, professors, and classmates on LinkedIn is another way to broaden your network and find jobs in your desired field.

Entering the Workforce

A master’s degree can be an asset in the job market and for long-term career growth. In 2024, employed individuals with a master’s degree earned median weekly earnings of $1,840, compared to median weekly earnings of $1,543 for those with bachelor’s degrees, according to the Bureau of Labor Statistics.

Still, landing a job that reflects your credentials immediately after graduate school can be difficult. Sometimes, factors like geographic location or an economic recession could pose challenges to gainful employment.

If you have limited work experience or changed careers after graduate school, it may be helpful to cast a wider net with job applications in your desired sector.

Not everyone’s career is a straightforward path. Finding a position that balances passion and professional development can be a good place to start.

Recommended: How to Financially Manage a Job Transition

Continuing Education

Depending on your career goals, a doctorate degree (Ph.D.) could be a way to develop specialized knowledge and stand out from the pack. As of 2023, the number of Americans whose highest degree was a master’s degree reached 25.5 million, compared to just 8.5 million for a Ph.D., according to the Education Data Initiative.

Besides working as a college professor, a PhD can be applicable for a variety of careers, such as researcher, scientist, psychologist, and high-level positions in government agencies.

Whereas completing a master’s degree generally takes one to three years, a PhD program can take between five and six years, possibly longer.

Given this considerable time commitment, it is worth considering the return on education for different doctoral programs. Even if you receive tuition reimbursement and stipend for a Ph.D., you may want to calculate the ratio of foregone earnings from studying to the income a doctorate will help you receive upon graduation.

Recommended: The Highest Paying Jobs in Every State

Teach College Courses

After earning a master’s degree, there may be opportunities to stay involved in academia without pursuing a doctoral degree. Some graduates utilize their master’s credentials to teach college courses as a full-time or adjunct lecturer.

Many community colleges only require their instructors to have a master’s degree. Usually, these positions are geared towards instruction more than research and writing. Thus, preference may be given to candidates with previous college teaching experience and to those with master’s degrees.

Pay for lecturer positions varies between community colleges, four-year institutions, and graduate schools. The average salary of an adjunct professor, though, is currently $78,476 per year.

You may choose to teach college courses full-time at your local community college or university or teach classes part-time as your schedule allows. Either way, teaching college courses can be a fantastic way to utilize your master’s degree.

National Service

Are you interested in applying knowledge and skills from your master’s degree to make a difference? National service programs, such as the Peace Corps and Americorps, let you do just that.

Peace Corps operates in over 60 countries, with volunteers working on programs related to agriculture, environment, health, community and economic development, education, and youth development.

The bulk of Peace Corps assignments are for two-year durations, preceded by two or three months of language and cultural training. However, candidates with more experience and advanced degrees can apply to Peace Corps Response to serve in more specialized roles for 3-12 months.

Although the organization refers to participants as volunteers, it does provide financial compensation and other benefits. Volunteers receive a living allowance structured according to the host country’s cost of living. Other benefits include healthcare, federal student loan assistance, and vacation time.

Taking Time to Travel

For many recent or soon-to-be master’s graduates, long-term recreational travel may not seem financially feasible for life after grad school. However, the transition from graduation to the workforce can be a good time to travel frugally before professional obligations and life’s responsibilities begin adding up.

To make the most of your travel budget, you can take advantage of free accommodation via couch surfing or work remotely part-time while you’re traveling to bring in some extra funds.

Recommended: How to Save for a Vacation: Creating a Travel Fund

Budgeting for Life After Grad School

Graduate students are no strangers to living on a shoestring budget. During the transition from student discounts and bargain hunting to full-time jobs and steady income, it can be easy to lose track of these money-conscious habits. Creating a budget can help keep you on track to save for things like retirement, a mortgage, and paying off student loans.

One way to possibly save money each month is to refinance your student loans into one new loan with one monthly payment. If you have a strong credit profile and are bringing in a decent income each month, you may qualify for the lowest rates. A lower rate will lower your monthly payment if you keep the term the same. If you want to pay off your loan quicker, though, you can shorten your loan term and reduce the amount you pay in interest overall. Note: You may pay more interest over the life of the loan if you refinance with an extended term.

It’s important to note that if you plan on using federal benefits, such as student loan forgiveness or income-driven repayment plans, you will lose access to these if you refinance. Make sure you won’t need to take advantage of federal benefits now or at any point in the future before deciding to refinance federal student loans.

The Takeaway

Your post-master’s degree path will vary depending on your career goals, industry, and personal interests. Options may include entering the workforce, continuing your education, teaching college courses, or taking time to travel. Whatever option you decide to pursue, you’ll need to do so with a budget in mind in order to make the most of your financial future.

If you are paying off student loans from your undergraduate and graduate degrees, you have options. Refinancing your student loans could give you more favorable loan terms with lower interest rates and flexible repayment plans.
As stated above, however, graduates refinancing federal student loans with a private lender will lose out on benefits like income-driven repayment and loan forgiveness.

If you’re interested in refinancing, consider SoFi. SoFi makes it easy to get pre-qualified online for student loan refinancing in minutes.

FAQ

What comes after a master’s degree?

There are a number of things you may decide you do after getting a master’s degree, depending on your career goals, financial situation, and personal interests. For example, you might decide to enter the workforce to take advantage of your higher earning potential (individuals with a masters earn approximately $300 more weekly on average than those with a bachelor’s degree), continue your education to pursue a Ph.D., teach at a local college, work in national service for an organization like the Peace Corps, or travel.

How many years is a Ph.D. after a master’s?

It typically takes four to seven years to earn a Ph.D. after getting a master’s degree. Many Ph.D. programs are designed to be finished in four to five years, but it usually takes additional time to research and write a dissertation, which is required. In addition, some doctoral students may also be working while earning their Ph.D., so it can take them longer to finish their program.

What is the highest-paying job with a master’s degree?

The highest-paying job for those with a master’s degree is computer engineering, which has an average starting salary of $86,804, according to the National Association of Colleges and Employers (NACE). The next highest paying jobs are computer science, with a starting salary of $86,359; marketing at $85,919; and information sciences and systems at $84,316.

SoFi Student Loan Refinance
Terms and conditions apply. SoFi Refinance Student Loans are private loans. When you refinance federal loans with a SoFi loan, YOU FORFEIT YOUR ELIGIBILITY FOR ALL FEDERAL LOAN BENEFITS, including all flexible federal repayment and forgiveness options that are or may become available to federal student loan borrowers including, but not limited to: Public Service Loan Forgiveness (PSLF), Income-Based Repayment, Income-Contingent Repayment, extended repayment plans, PAYE or SAVE. Lowest rates reserved for the most creditworthy borrowers. Learn more at SoFi.com/eligibility. SoFi Refinance Student Loans are originated by SoFi Bank, N.A. Member FDIC. NMLS #696891 (www.nmlsconsumeraccess.org).

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.