Accessing higher education in the United States can be expensive, especially for international students and domestic applicants who lack strong financial backing. Fortunately, it is entirely possible to get student loans without collateral in the US. Many borrowers—both citizens and international students—fund their education through unsecured loans that do not require property, assets, or guarantors as security. This comprehensive guide explains how to obtain such loans, the available options, eligibility requirements, application steps, best lenders, and helpful contextual links to official resources for clarity and accuracy.
Understanding Student Loans Without Collateral
Student loans without collateral—also called unsecured student loans—are financial products that do not require borrowers to pledge property or assets. Instead of depending on collateral, lenders assess your ability to repay based on academic performance, credit history, expected future income, or the creditworthiness of a cosigner. These loans are available to both domestic students and, under specific conditions, international students.
Federal Student Aid Programs – https://studentaid.gov/
Federal vs. Private Student Loans (Without Collateral)
The US offers two major categories of student loans: federal loans and private loans. Most federal loans require no collateral, while some private lenders also provide unsecured loans based on alternative requirements.
Federal Student Loans
Federal student loans are the easiest and safest option because they require no collateral, no cosigner, and often no credit history. These loans are available only to US citizens and eligible permanent residents.
Types include:
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans (may require credit check but not collateral)
- Direct Consolidation Loans
Apply for Federal Loans – FAFSA: https://studentaid.gov/h/apply-for-aid/fafsa
Private Student Loans (No Collateral Required)
Private lenders do not ask for collateral, but they may require:
- A good credit score
- A cosigner
- Proof of income
- Enrollment in an eligible institution
Many lenders specialize in loans for students without collateral, especially international borrowers studying STEM, healthcare, or business programs.
Popular lenders include:
- Sallie Mae
- MPOWER Financing
- Ascent Funding
- Prodigy Finance
- Earnest
- Discover Student Loans
Consumer Financial Protection Bureau – Student Loans: https://www.consumerfinance.gov/paying-for-college/
How Domestic Students Can Secure Loans Without Collateral
Domestic students—US citizens and permanent residents—have the broadest options.
1. Complete the FAFSA
The FAFSA (Free Application for Federal Student Aid) determines eligibility for federal loans, grants, and work-study programs. Almost all domestic students qualify for federal loans without collateral.
FAFSA link: https://studentaid.gov/h/apply-for-aid/fafsa
2. Use Federal Direct Loans
Federal Direct Loans are unsecured and offer benefits such as:
- Fixed interest rates
- Income-driven repayment plans
- Loan forgiveness programs
- Deferment and forbearance options
These loans do not need collateral and are considered safer than private alternatives.
3. Apply for Private Loans Without Collateral
If federal aid is insufficient, domestic students can apply for private unsecured loans. Requirements may include:
- Minimum credit score (typically 620+)
- Stable income
- A cosigner, if credit is limited
However, some lenders allow undergraduate and graduate students to borrow without a cosigner.
4. Leverage School-Based Lending Programs
Many universities offer institutional loans that require no collateral and sometimes no credit check. These loans have flexible terms and are tailored to specific programs.
How International Students Can Secure Loans Without Collateral
International students face more significant challenges, but many lenders now offer loans with no collateral and no US-based cosigner.
1. MPOWER Financing
MPOWER provides student loans specifically for international and DACA students in US and Canadian institutions. No collateral or cosigner is required.
https://www.mpowerfinancing.com/
2. Prodigy Finance
Prodigy Finance focuses on graduate students primarily in business, engineering, law, public policy, and health programs. Loans require no collateral, no cosigner, and no credit history.
3. Ascent Funding (Non-Cosigned Loans)
Ascent offers non-cosigned loans for juniors, seniors, and graduate students based on academic potential rather than financial history.
https://www.ascentfunding.com/
4. Discover and Sallie Mae (With Possible Cosigner-Free Options)
Some private lenders offer non-cosigned loans for graduate-level students in specific programs like medicine, business, or law.
5. University-Based Loans or Aid
International students can apply for:
- Institutional loans without collateral
- Departmental scholarships
- Assistantships (teaching/research)
- Tuition installment plans
These programs often reduce the need for additional borrowing.
Eligibility Requirements for Collateral-Free Student Loans
Although requirements differ by lender, typical eligibility criteria include:
For US Citizens and Permanent Residents
- Valid Social Security Number
- Enrollment in an accredited institution
- Satisfactory academic progress
- FAFSA completion (for federal loans)
- Credit assessment for private loans
For International Students
- Valid student visa (F-1 or J-1)
- Admission to a degree-granting US institution
- Proof of identity and academic background
- Cosigner requirements waived for Prodigy and MPOWER
- Strong academic or career potential
Documents Required for Loans Without Collateral
Documents may include:
- Passport or government ID
- Acceptance/enrollment letter
- Proof of residency (if domestic student)
- Student visa (if international student)
- Academic transcripts
- Bank statements (for affordability checks)
- Cosigner details (if applicable)
- Expected graduation date
- Proof of income (for private lenders)
Steps to Apply for a Student Loan Without Collateral in the US
Step 1: Determine Your Eligibility
Check if you qualify for federal loans (for domestic students) or specialized unsecured private loans (for international students).
Step 2: Complete FAFSA (Domestic Students Only)
This unlocks access to federal grants and loans without collateral.
Step 3: Compare Private Lenders
Review interest rates, repayment terms, and benefits to ensure you select the best lender.
Useful comparison tool: https://www.consumerfinance.gov/paying-for-college/compare-financial-aid-and-loan-offers/
Step 4: Prepare Required Documents
Organize all identity, academic, and financial records to speed up approval.
Step 5: Apply Online
Most lenders allow digital applications. Decisions may take minutes to weeks depending on the lender.
Step 6: Receive Loan Approval
If approved, lenders typically send funds directly to your school.
Step 7: Begin Repayment After Graduation
Most loans have grace periods of 6 months after completing studies.
Best Lenders for Students Without Collateral
1. MPOWER Financing
Best for international students needing no collateral, no cosigner, and competitive interest rates.
2. Prodigy Finance
Ideal for graduate students in high-earning fields.
3. Ascent Funding
Great for juniors, seniors, and graduate students with strong academic standing.
4. Earnest
Suitable for domestic students with good credit profiles.
5. Sallie Mae
Offers flexible options for professional degree programs without requiring collateral.
6. Discover Student Loans
Provides unsecured loans with flexible repayment assistance.
Tips to Improve Approval Chances Without Collateral
- Maintain good academic records
- Build your credit score early
- Choose high-demand programs like STEM, business, or healthcare
- Provide honest and complete documentation
- Secure a creditworthy cosigner if possible
- Apply early to avoid funding delays
Common Mistakes to Avoid
- Applying to lenders that require collateral
- Submitting incomplete or inaccurate documents
- Ignoring federal loan options first
- Borrowing from unlicensed or unreliable lenders
- Missing deadlines for FAFSA or school payments
Frequently Asked Questions
Can international students get loans without collateral?
Yes. Lenders like MPOWER and Prodigy specialize in collateral-free loans for international students.
Do federal loans require collateral?
No. Federal student loans never require collateral or cosigners.
Can I apply without a credit score?
Yes. Some lenders assess academic potential instead of credit history.
Is collateral needed for loan refinancing?
Most refinancing loans are also unsecured, so collateral is rarely required.
Conclusion
Securing student loans without collateral in the US is entirely possible—even for international students with no credit history or US-based cosigner. By using federal loans, reputable private lenders, university-based aid, and financial planning, students can access high-quality education without pledging assets. Understanding eligibility requirements, comparing lenders, preparing proper documents, and applying early will significantly increase your approval chances and help you fund your academic journey confidently and responsibly.