Federal Student Debt: How Much Is Held by International Students?

International students typically cannot qualify for federal student loans or other forms of federal student aid. As such, although the exact amount isn’t public, the percentage of federal student debt held by international students is most likely inconsequential. Fortunately, an international student can still finance a higher education in the United States through private student loans and other types of financial aid, either from the U.S. government, their school, or their country of origin.

Eligibility for Federal Student Loans

To understand federal student loan eligibility, it’s worth clarifying that these loans are considered financial aid. However, while some federal student loans are subsidized for those who demonstrate financial need, there are no income restrictions for unsubsidized federal loans.

That aside, two of the basic requirements for receiving federal student aid are that, outside of a few exceptions, you must be a U.S. citizen and have a valid Social Security number (SSN). However, the following types of eligible noncitizens can qualify for federal student loans:

• U.S. nationals and permanent residents with a Form I-551 or I-151
• Individuals with an Arrival-Departure Record (I-94) from the U.S. Citizen and Immigration Services (USCIS) showing they belong to one of several categories (e.g., refugees, conditional permanent residents, etc.)
• Victims of human trafficking with a T-visa or a parent holding a T-1 nonimmigrant status
• Battered-immigrant qualified aliens who are victims of abuse by their citizen or permanent resident spouse, or the children of those designated as such under the Violence Against Women Act (may require proof from the USCIS that they’re in the U.S. for other than a temporary purpose with the intention of becoming a U.S. citizen or permanent resident)
• Certain Native Americans born in Canada with a status under the Jay Treaty of 1794

Given these restrictions, it’s reasonable to presume the percentage of federal student debt that international students are responsible for is almost certainly negligible when compared to the amount held by U.S. citizens.

Financing Options for International Students

While international students typically can’t get federal student loans, there are other ways you can finance a U.S. education.

First, consider filling out the Free Application for Federal Student Aid (FAFSA). International students can still receive certain state or institutional grants and scholarships, but you can’t qualify without submitting a FAFSA application. Other federal departments have resources that you can take advantage of, including the U.S. Department of Labor’s free online scholarship search tool and the Department of State’s Education USA website.

Additionally, check with your country’s U.S. embassy, U.S. consulate, or relevant government office to see if it offers any kind of education funding. Your school may also offer financial aid specifically for international students.

Finally, international students can take out private loans to finance their studies, though eligibility criteria vary by lender.

The Bottom Line

International students typically don’t hold any federal student debt, as qualifying for a federal education loan usually requires being a U.S. citizen. That said, international students may be eligible for certain grants or scholarships through public or private organizations. Once all free forms of financial aid have been exhausted, international students can turn to private lenders to fill any funding gaps that they may have left.