I am an American who will be going to school in Australia next year. I have already been approved for Federal Stafford Loans but may need to borrow just a little extra from a private bank loan to be secure. If I leave for Australia early and begin working will that be sufficient enough for a bank? I am 24 and have an ok credit record, I've been paying on my federal undergraduate loans for two years now. Thank you :)
Financial Aid - 2 Answers
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1 :
Policies vary from lender to lender. While one lender might say your credit report and history are okay, another might say no way since you're studying outside of the US. I suggest finding a lender that does international student loans like IEFC (http://www.iefc.com/ (not an endorsement, just an example)) and see what specific information they need to process a loan for you.
2 :
I can't speak for Australian banking laws, but I will tell you this general rule of thumb: A lender will only lend to a borrower against whom the lender has "recourse" - meaning, simply, that there's something they can do about it if you refuse to repay the loan. If you are an American citizen with no assets in Australia, there is not much a lender can do if you refuse to pay. Australian courts can not place a lien against your American assets, so the lender would be forced to sue you in a US court - obviously, a significant investment of time and money. Because of this situation, chances are that a foreign bank will not lend money to a non-citizen with no "local" assets. If you owned a home or a business in Australia, the banks would be far more likely to make that loan. I hope that makes sense - and I hope that helps.
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