Many international students struggle to find an eligible cosigner when applying for student loans. Cosigners have to meet specific financial and legal requirements to ensure that the loan will be repaid if the student borrower cannot pay back. Due to this, many people are not willing to be the cosigner on a loan. It's a big responsibility to be willing to potentially pay off someone's loan!

The general eligibility criteria to be a cosigner are as follows:

• Credit score of 670 or higher
• Steady and sufficient income - a DTI (debt-to-income) ratio of 40% or less
• Proof of identification
• 18 years or older
• Willingness to legally commit to repaying the loan if the student cannot

Many cosigners are parents or relatives of the student, but this is not a requirement.

If you're struggling to find someone eligible and willing to be your cosigner, don't worry! There are many student loan options that do not mandatorily require a cosigner. Passage provides international students education loan to help them study in Canada. The education loans are provided for specific education programs that fill labor shortage in Canada.

With Passage, cosigners are optional. While having a cosigner may help your loan application process, not having one won't disqualify you from applying. See if you're eligible for a student loan by using our loan eligibility checker tool.

Understanding student loan basics

Simply defined, a student loan is money a student borrows specifically to help pay for their education. This loan typically covers tuition fees, books, living expenses, and other related school costs. Unlike financial aid, scholarships, or grants, student loans must be paid back.

Different student loans have different requirements. Usually, to apply for a student loan, you must be able to demonstrate acceptance into an educational program and your eligibility to travel to that country (if applicable). A student loan application may ask for your credit history and income to determine if you're able to repay the loan.

The loan amount will be determined based on the cost of education program. Undergraduate students, graduate students, and postgraduate students will all have different financial needs.

What is a cosigned student loan?

A cosigned student loan is a loan that a student takes out with the help of another person called a cosigner. This person agrees to be legally responsible for the loan amount if the borrower fails to pay it back. Students who don't meet the minimum credit score or don't have a strong income can get lower interest rates if they have a cosigner.

The risk for the cosigner is having to take responsibility for the payment of the loan should the student fail to pay on time. The borrower has the responsibility of keeping up with their monthly payments.

Most private student loans require a cosigner because students typically do not have a strong credit history or income to prove they can afford the monthly payments.

Non-cosigned loans are loans that don't require a cosigner. You can apply for and receive this type of loan based solely on your history, income, and school details alone. 

Also, no one is legally responsible for helping you pay back this loan. Federal student loans are the most common type of non-cosigned loans.

No cosigner student loans: Are they possible?

No cosigner student loans are possible with Passage! With Passage, having a cosigner is not an eligibility requirement! Having a cosigner can make it easier to secure a loan, but it isn't required. Additionally, students can apply without a cosigner and then add one later if they find one.

Passage also offers a fixed interest rate of 11.95%, so not having a cosigner won't cause you to have a higher interest rate.

Best federal student loans that require no cosigner

In Canada, cosigners are not a requirement to apply for a federal student loan. It's not necessary to have good credit or a specific GPA to apply.

However, federal student loans are only offered to Canadian citizens, permanent residents, and protected persons. Most foreign students looking to study in Canada would not meet the eligibility requirements for a federal student loan.

Private student loans with no cosigner: Loan options and lenders

Private loans are the most common student loan option for international students looking to study abroad. Most financial institutions that offer private student loans require a cosigner, but not all of them.

Requiring a cosigner is the way that private financial institutions protect themselves should a student not be able to follow their loan's repayment terms. Students are historically a low-credit group with low income as well. While they're studying either full-time or part-time, it can be difficult to maintain a consistent income.

Although finding a qualified cosigner can be difficult, especially for a foreign student, it can benefit the student borrower in the long term. Having a cosigner gives the financial institution more confidence in the student's ability to pay back the loan. This means the lender could provide a loan offer with more favorable loan repayment plans, such as a grace period or deferment options, and lower interest rates.

If you don't have a cosigner, you can still submit your application on Passage. If you find one after submitting your application, we can add them to your application!

Interest rates, credit scores and loan terms: What you need to know

As a foreign student looking to study abroad in a country like Canada, it can be overwhelming to hear the complicated vocabulary associated with student loans. Let's break down some of the most common terms associated with student loans to give you more confidence when applying to study abroad.

Interest rates:

An interest rate is essentially a fee you spend for borrowing money. It is a percentage value that shows the amount of money you will owe on top of the value of the loan. Interest rates can also be fixed or variable. A fixed interest rate will remain the same for the length of the loan. A variable interest rate may increase or decrease during the length of the loan. Passage offers a fixed interest of 11.95% for all student loans.

Given below is an example using the Loan Calculator.

For the Autism and Behavioural Science (Postgraduate) program at George Brown College, the tuition-only loan option covers the full tuition of CAD 18,324, which Passage pays directly to the school.

To qualify for this option, students must provide proof that they can cover their living expenses independently.

Here is a clear breakdown of your upfront and monthly payments. In this case, the student will need to pay a CAD 4,500 collateral after the loan is approved. Repayment begins in October 2025—one month after the program starts—with fixed monthly payments of CAD 388.35 for 48 months.

Credit score:

A credit score is basically just a number that shows how trustworthy you have historically been with money. This number is determined by how well you have paid loans, credit cards, and bills in the past. A high credit score means that you pay your bills on time, you don't borrow too much, and you have used your credit responsibly. A low credit score would indicate that you pay back late or borrow more than you can afford to pay. Not all countries use credit scores. Instead, they may check your employment history, bank statements, or income to determine your trustworthiness.

Loan terms:

Loan terms are the loan's rules. Every loan will include different loan terms specific to the borrower. Loan terms include the loan amount, interest rate, repayment period, monthly payment, start date, fees, etc.

Education loan options for international students with no cosigner

If you're an international student looking to study abroad in Canada but don't have a cosigner, Passage has education loan options for you.

Passage connects ambitous international students with top educational programs in Canada. We want to offer life-changing opportunities to students all around the world.

Our student loans are "cosigner optional." That means that if you have a cosigner, that would be great! If not, that's fine too. You can still apply for a student loan to attend your dream educational program.

Get started by using our loan eligibility tool. This will help you to understand what type of educational loan you are eligible for and you will also get program recommendation if don't have admission already.

FAQs

What is a variable interest rate?

This is an interest rate that changes over time dependent on market conditions. The rate may increase or decrease with time.

How do I prequalify for a loan?

Use our eligibility checker tool to determine what type of loan you may qualify for before you apply.

How does my graduation date affect my student loan?

Some loans don't require you to start paying back until after you graduate. For other loans, use this graduation date to determine your grace period for payments.

Can I pay my student loan with a credit card?

No, you typically cannot pay a student loan with a credit card.

What is an origination fee?

An origination fee is a one-time fee for taking out a loan. It's like a service fee for processing and approving the loan. Passage does not charge an origination fee to take out a student loan.

What does the disbursement of a loan mean?

A loan is disbursed when the funds are released to the borrower after being approved. For student loans, the tuition fee portion will be directly deposited to the school. The money for living expenses (food, living costs, transportation) will be directly deposited to you.

What does it mean to be "credit worthy"?

Being creditworthy means that a financial institution trusts you enough to lend you money. To be creditworthy, someone must have a good credit history, a stable income, and a good record of paying back debt on time.

What does APR stand for?

APR stands for "Annual Percentage Rate". In terms of a student loan, it refers to the total yearly cost of borrowing the money.

Are loan repayment options worse without a cosigner?

Loan repayment options are not necessarily worse if you don't have a cosigner. Since Passage offers a fixed interest rate of 11.95% for all loans, your interest rate won't change if you have a cosigner or not. A cosigner may open the door for you to receive a higher loan amount.