Can You Get Student Loans for International Schools?

You can get student loans for international schools, and for many borrowers the federal government is the first place to look. The U.S. Department of Education’s Direct Loan Program is open to U.S. citizens and eligible noncitizens attending roughly 337 approved foreign institutions worldwide.¹ If your school isn’t on that list, private student loans are the fallback, though they almost always require a U.S.-based co-signer and carry less favorable terms.

Is Your Foreign School Approved for Federal Loans?

A foreign institution can take part in the Direct Loan Program only if the Department of Education has reviewed and approved it. The school has to offer degree programs comparable to a U.S. associate, bachelor’s, graduate, or professional degree, and it must meet the same administrative and financial responsibility standards as domestic schools.²³ Certificate and non-degree diploma programs at foreign locations generally don’t qualify.

The quickest check is the Department of Education’s Federal School Code List, which assigns a unique six-digit code to every participating institution.⁴ You’ll need that code for the FAFSA anyway. If your school doesn’t show up, it almost certainly doesn’t participate, and private lending is where you’ll need to turn.

One rule catches many students off guard: at foreign schools, any program delivered through online courses, correspondence, or direct assessment is not eligible for federal loans.⁵ Supplementary video or online tools are fine, but the core teaching has to happen face-to-face in the country where the school sits. Before enrolling in a hybrid program, confirm with the financial aid office that the online portion won’t disqualify you.

Who Qualifies to Borrow

You must be a U.S. citizen, U.S. national, or an eligible noncitizen. Eligible noncitizens include lawful permanent residents holding a Form I-551 (the green card) and certain other immigration categories.⁶ Citizens of the Freely Associated States — the Federated States of Micronesia, the Republic of Palau, and the Republic of the Marshall Islands — qualify for some federal student aid programs but not all.

You also have to be enrolled at least half-time in a degree-granting program. The school defines what half-time means on its academic calendar, so ask the registrar before trimming your course load. Dropping below the threshold can end your loan eligibility and start your repayment clock.

What Federal Loans You Can Get

Foreign schools participate only in the William D. Ford Federal Direct Loan Program. No other federal aid — including Pell Grants — is available when you enroll directly at a foreign institution.⁷ The one grant exception is a study-abroad program run through a U.S.-based school, where the domestic school handles the aid. For a full degree abroad, plan around loans only.

Three Direct Loan types are available:

Direct Subsidized Loans for undergraduates with demonstrated financial need. The government pays the interest while you’re enrolled at least half-time and during your grace period.
Direct Unsubsidized Loans for undergraduate and graduate students regardless of need. Interest accrues from the day the loan is disbursed.
Direct PLUS Loans for graduate students and parents of dependent undergraduates. These require a credit check and carry a higher rate.

For loans first disbursed between July 1, 2025, and June 30, 2026, the fixed rate is 6.39% for undergraduate Subsidized and Unsubsidized Loans, 7.94% for graduate Unsubsidized Loans, and 8.94% for PLUS Loans.⁸ Rates reset each year based on the May 10-year Treasury note auction, so loans disbursed after July 1, 2026, will carry different rates.

Borrowing Limits

Federal limits are the same whether you attend in Ohio or Oxford. Dependent undergraduates can borrow between $5,500 (first year) and $7,500 (third year and beyond) per year in combined Subsidized and Unsubsidized loans. Independent undergraduates, and dependents whose parents are denied a PLUS Loan, can borrow from $9,500 to $12,500 per year. Graduate and professional students have a $20,500 annual Unsubsidized cap, with PLUS Loans available for anything else within the cost of attendance.⁹

Lifetime aggregate caps also apply: $31,000 for dependent undergraduates (no more than $23,000 of it subsidized), $57,500 for independent undergraduates, and $138,500 for graduate students, including any undergraduate borrowing.⁹ For a full degree abroad, especially at the graduate level, those limits can run out well before the tuition bill does.

Extra Rules for Medical, Nursing, and Veterinary Schools

Foreign programs leading to a health profession license face tougher scrutiny than other degree programs.

A foreign medical school must offer at least 32 months of combined classroom and clinical instruction, hold formal affiliation agreements with every hospital or clinic used for core clinical rotations, and limit third-country electives to no more than two totaling eight weeks per student. At least 75% of a school’s students and recent graduates who sat each step of the USMLE for the first time must have passed. Canadian schools and certain pre-1992 state-approved clinical programs are exempt from the USMLE pass-rate test.¹⁰

Foreign nursing schools must have an agreement with a U.S.-based accredited nursing school, run clinical training in the United States, and award a degree from both institutions. At least 75% of the school’s U.S.-citizen test-takers must pass the NCLEX-RN. For-profit foreign veterinary schools must require clinical training at an approved U.S. veterinary school; public and nonprofit ones have more flexibility on clinical site locations. Since July 2015, every foreign veterinary school must also hold accreditation from an organization the Department of Education accepts.¹¹

Private Loans When Federal Isn’t an Option

When the school isn’t on the federal list, or your federal cap falls short of the real cost, private student loans fill the gap. Private lenders are credit-based and set their own terms. Most keep their own list of approved international schools, which doesn’t always match the Department of Education’s.

Almost every student borrowing privately for a foreign school will need a U.S.-based co-signer. The co-signer carries equal legal responsibility for the debt and can be pursued by the lender or a debt collector if payments stop.¹² Interest rates reflect the co-signer’s credit and can be fixed or variable. Grace periods, deferment, and repayment terms vary from lender to lender.

Before signing, read the Truth in Lending Act disclosures each lender is required to provide. They show the rate range, estimated total cost over the life of the loan, and the fees for late payment or default. Comparing those disclosures side by side is the most reliable way to find the cheapest option.

How to Apply

Filing the FAFSA

Start with the Free Application for Federal Student Aid. You’ll need your Social Security number and your federal tax information from two years prior, so for the 2026–2027 academic year that means your 2024 return.¹³ The FAFSA calculates your Student Aid Index, which drives how much you can borrow and whether you qualify for subsidized loans.

In the school selection section, enter the foreign school’s six-digit federal school code. This is not the OPEID number; the FAFSA requires the federal school code specifically.¹⁴ Look it up on the Federal School Code List before you begin.⁴ If you only file foreign tax returns, you can’t use the IRS data transfer tool and will need to convert foreign income to U.S. dollars by hand.

After You Submit

Once your FAFSA is processed, you’ll get a FAFSA Submission Summary (the replacement for the older Student Aid Report). The foreign school’s financial aid office receives your data electronically and uses it to certify your loan against your enrollment status and cost of attendance.¹³

Before any money moves, you sign a Master Promissory Note, which is a legally binding agreement to repay the debt with accrued interest and fees. The MPN sets out your rate, repayment schedule, and the consequences of default, which include wage garnishment and seizure of federal tax refunds.

Getting a Loan Letter for Your Student Visa

Many countries want proof of financial support before issuing a student visa. The foreign school’s financial aid office can issue an Estimated Direct Loan Information Letter on school letterhead showing your loan types, amounts, and disbursement dates.¹⁵ Ask for it as soon as your loan is certified. Visa timelines won’t wait for a financial aid office to catch up.

How the Money Reaches You Abroad

The U.S. Treasury sends federal loan funds to the foreign school in U.S. dollars, usually in two or more installments tied to the academic calendar. The school applies the money to tuition and fees first, then pays any remainder to you for living expenses.

The school’s bank converts the dollars to local currency, and that introduces two costs most students don’t budget for: the bank’s transaction fee and the exchange rate shift between loan certification and actual arrival of funds. A 3% to 5% swing over a few weeks is routine, and nothing on the federal side lets you lock in a rate.

You have to maintain satisfactory academic progress, as the school defines it, to receive future disbursements. If you withdraw partway through a term, the school must return a portion of the federal funds to the Department of Education based on how much of the enrollment period you completed.⁷ That returned amount becomes your debt, and you may also owe the school the difference between what it charged and what the return covered.

Repayment When You Live Overseas

Income-driven repayment plans, which cap your monthly payment at a share of your discretionary income, stay available to borrowers living abroad. Certifying your income every year gets more complicated when you earn in a foreign currency and file using the Foreign Earned Income Exclusion.

Public Service Loan Forgiveness is where many graduates get a hard surprise. Working for a foreign government or an international intergovernmental organization such as the United Nations does not qualify for PSLF; only U.S.-based federal, state, local, or tribal government employers and qualifying U.S. nonprofits count. If your plan is to work abroad for a non-U.S. employer, assume you’ll pay the full balance back.

Federal loan servicers accept payments from foreign bank accounts, but international wire fees stack up across a 10- to 25-year repayment period. Opening a U.S. bank account with online bill pay before you leave avoids that cost entirely.

Student Loan Interest Deduction

If your foreign school participates in the Department of Education’s student aid program, it counts as an eligible educational institution for the student loan interest deduction. You can deduct up to $2,500 per year in student loan interest, subject to income limits, whether the school is in the U.S. or abroad.¹⁶ You still need to file a U.S. tax return to claim it. Foreign-earned income you exclude under the Foreign Earned Income Exclusion lowers your adjusted gross income, which can also help if you’re on an income-driven repayment plan.

GI Bill Benefits at Foreign Schools

Veterans with Post-9/11 GI Bill benefits can use them at approved foreign schools, but VA approval runs on its own track separate from the Department of Education’s. The VA only approves programs that award a college degree; language programs, diplomas, and certificates are not eligible for VA education benefits at foreign institutions.¹⁷

For the period starting August 1, 2026, the monthly housing allowance for veterans at a foreign school is up to $2,522, based on the national average rather than local cost of living.¹⁸ Partial eligibility or less-than-full-time enrollment prorates the payment. You can use GI Bill benefits and federal Direct Loans at the same foreign school at the same time, as long as the VA and the Department of Education have each approved the institution.

1
U.S. Department of Education. International Schools Participating in the Federal Student Loan Programs
2
eCFR. 34 CFR Part 600 – Institutional Eligibility Under the Higher Education Act of 1965, as Amended
3
U.S. Department of Education – FSA Knowledge Center. Chapter 1 – General Eligibility and Participation Requirements
4
FSA Partner Connect. Federal School Code Lists
5
eCFR. 34 CFR 600.51 – Purpose and Scope
6
Federal Student Aid Handbook. Chapter 2 – U.S. Citizenship and Eligible Noncitizens
7
Federal Student Aid. Foreign School Frequently Asked Questions – Schools
8
U.S. Department of Education. Interest Rates for Direct Loans First Disbursed Between July 1, 2025 and June 30, 2026
9
Federal Student Aid. Annual and Aggregate Loan Limits
10
FSA Partners Knowledge Center. Foreign Graduate Medical Schools
11
eCFR. 34 CFR Part 600 Subpart E – Eligibility of Foreign Institutions
12
Consumer Financial Protection Bureau. What Is a Co-signer for a Student Loan?
13
Federal Student Aid. FAFSA Checklist: What Students Need
14
Federal Student Aid. Chapter 2 – Filling Out the FAFSA Form
15
FSA Partners. Sample Estimated Direct Loan Information Letter for Student Visa Applications
16
Internal Revenue Service. Publication 970 (2025), Tax Benefits for Education
17
U.S. Department of Veterans Affairs. Foreign Program Approval Information for Schools
18
Veterans Affairs. Future Rates for Post-9/11 GI Bill