Government Student Loans

Studying abroad may be costly, but government student loans have come to the rescue. Many nations offer loan programs for foreign students, usually with low-interest rates and flexibility in repayments.

In this guide, you’ll read all about student loans backed by the government for international students — including eligibility requirements, how to apply, and the best global loan programs.

What Are Federal Student Loans?

What are government student loans? Government student loans are student loans that are funded or guaranteed by national governments. They are typically known for:

• Lower interest rates
• Flexible repayment terms
• No payments required until after graduation
• Options for forgiveness (in some cases)

However, the process is streamlined when it comes to international students, too, with loans created to make education accessible.

Best International Student Government Loans

🇺🇸 United States: Federal Student Loans.

• Eligibility: Available only to U.S. citizens, although certain international students can qualify with a U.S. co-signer.
• Loan Types:
• Direct Subsidized Loans (for undergrads with financial need)
• Direct Unsubsidized Loans (for all students)
• Federal PLUS Loans (Graduate Student & Parent)
• Interest Rates (2024): 5.50% — 8.05%
• Repayment: Begins six months after graduation.

🇬🇧 United Kingdom: Finance for Students England (SFE)

• Eligibility: International except for UK/EU students; some exemptions.
• Loan Types:
• Tuition Fee Loans (to pay course fees)
• Maintenance Loans (for living expenses)
• When to Repay: Once you earn over £25,000/year.

🇨🇦 Canada: Canada Student Financial Assistance CSFA

• Who is Eligible: Most provinces you are a Canadian citizen but you can also get loans as an international student in some provinces.
• Loan Amount: CAD 15,000/year max
• Repayment: Up to 6 months after you graduate.

🇦🇺 Australia: HELP Loans (Citizens/PR Only)

Can not be offered to students outside of the USA

Common & Required Documents for Government Student Loans

Step 1: Check Eligibility

Citizenship/residency requirements

You have close to a decade’s worth of legal work — at least you can ‘marry’ at least 10 — so please note that there is no way to ‘withdraw’ from this process.

Step 2: Gather Documents

✔ Proof of admission

✔ Financial statements

✔ Co-signer information (if needed)

Step 3: Submit Application

USA: Complete the FAFSA form.

United Kingdom: Apply though Student Finance England.

Canada: Apply via provincial loan services

Step 4: Accept Loan Terms

Review the interest rates & repayment conditions.

Everything has its own pros and cons — so do government student loans.

✅ Advantages

• Interest rates lower than private loans
• Income-driven repayment plans
• Potential to have your loans forgiven (e.g., if you work in public service jobs)

❌ Disadvantages

• Restricted source for global students
• Strict eligibility criteria
• May require a co-signer

What to Do if You Don’t Qualify

If government loans aren’t available, think about:

• University Scholarships
• Private Student Loans (e.g., Prodigy Finance, MPOWER)
• Part-Time Work (Check visa rules)

Q&As (Questions and Answers)

❓ Are U.S. federal loans available to international students?

→ Only with a U.S. citizen co-signer (exceptions infrequent).

❓ What extreme government loans for foreigners exist?

→ The easiest are Germany (KfW) and Canada (certain provincial loans).

❓ When do repayments start?

→ Normally about 6 months after graduation

❓ Can loans be forgiven?

→ Public service forgiveness (the worker must stay in education, health care, etc.)

Country-Specific Loan Details

🇳🇴 Norway: Lånekassen (State Educational Loan Fund)

• Eligibility: Open to international students from EEA countries studying in Norway.
• Loan Amount: Up to NOK 126,000/year (tuition + living costs).
• Repayment: Starts 6 months after graduation, low interest (~2%).

🇸🇪 Sweden: CSN Loans

• Eligibility: Only for EU/EEA students studying in Sweden.
• Loan Amount: Up to SEK 10,645/month (partial grants available).
• Repayment: Begins when income exceeds SEK 220,000/year.

🇯🇵 Japan: JASSO Student Loans

• Eligibility: International students enrolled in Japanese universities.
• Loan Types:
  • Interest-Free Loans (for top-performing students)
  • Low-Interest Loans (~0.5% APR)
• Repayment: Starts after graduation (flexible terms).

How to Increase the Likelihood of Getting Approval for a Loan

Loan Repayment Strategies

🔹 Income-Driven Repayment Plans (USAUK)

Paying 10-15% of account income (where account income is based on earnings).

🔹 Loan Forgiveness Programs

USA: 10. Public Service Loan Forgiveness (PSLF).

UK: Loans cancelled after 30 years.

🔹 Early Repayment Discounts

Some lenders (for example, Germany’s KfW) offer discounts for early payoff.

Common Mistakes to Avoid

❌ Borrowing More Than Needed

Determining finite tuition + living costs = no debt overload

❌ Missing Repayment Deadlines

Late payments damage credit scores (might ruin future visas).

❌ Not Considering Compounding Interest

Unsubsidized loans accrue interest while students are in school.

Conclusion

Government student loans are one of the safest and most affordable ways to fund international education. While options for non-citizens are limited, countries like Germany, Canada, and the UK offer some opportunities.

Next Steps:

Check your eligibility for government loans
Explore scholarships if loans aren’t available
Compare private loan options as a backup

LEARN MORE: 5 Ways Students’ Rental Agreements Abroad Can Prevent Expensive Errors