Stilt Review: Personal Loans Offered To Immigrant Students

Establishing credit in the United States is incredibly difficult. Often, you need to have a credit score to take out your first line of credit. And, of course, having a credit score requires that you already have a line of credit. 

While many young people feel this frustration, the problem can be even more difficult for immigrants who cannot even apply for most types of credit without a Social Security number.

However, if you’re a legal immigrant in the United States, Stilt may be able to help you establish credit and take out a loan in the United States. While they have loan options for many borrowers, we’ll explain the student loans available for people with student visas.

Who Can Borrow from Stilt?

Stilt is a lender that works specifically with immigrants. You don’t need a Social Security number to apply for a loan from Stilt. However, Stilt has fairly stringent lending criteria.

Before applying for a loan you must meet the following:

• You must physically be in the U.S with an address in one of these states: AZ, IL, FL, TX, PA, CA, MA, MI, NY, NJ, UT, WA, OH, GA, VA and WI.
• You must have a U.S.-based bank account in your name.
• You must have a U.S.-based personal phone number in your name.
• You must have a legal, valid, and eligible visa for at least six months. The types of visas that Stilt specifically advertises for include F-1, OPT, J-1, DACA, H-1B, O-1, L-1, and TN.
• You must attend a Title IV school.
• You must have an I-20 form.

These are great options for international students and students on visa who need a student loan.

Unlike most loans, you don’t need a credit score or even a job to borrow from Stilt. However, you will need to be able to make payments on the loan, so Stilt will probably require proof of income.

What Are The Rates and Terms?

Despite being called a student loan, a loan from Stilt is actually a personal loan. It's a personal loan for students. Note this means that any interest you pay one of these loans is not deductible as student loan interest. Right now, loan amounts range from $1,000 to $35,000. 

Stilt's loan terms are much shorter than most traditional student loans. While student loan repayment terms typically range from 5 to 20 years, with Stilt they range from 6 to 36 months. Interest rates range from 8% to 25%.

What Borrower Protections Are Available?

Most students understand that borrowing from private lenders means receiving fewer borrower protections than are offered with federal student loans. But Stilt's personal loans actually are even less flexible than most private student loans.

Since they aren't student loans, they don't offer special payments or extended deferment while you're in school. Borrowers typically have to make payments right away on their loans. Since many international students cannot work full-time, the payment schedule could be difficult to meet.

You can get up to 6 months of interest-only payments with Stilt. But this deferral option is only made available to students who have a verified job offer. You won't any discussion of a formal forbearance policy on Stilt's website. And there are no mentions of death or disability discharge policies either.

Are There Any Fees?

Like most personal loans, you won’t see a pre-payment penalty associated with your Stilt. However, Stilt does charge an origination fee on their loans which it says "varies by state."

It was disappointing to find that Stilt doesn't even provide an origination fee range or maximum. And while Stilt does admit that it charges late payment and insufficient funds fees, again it does not disclose any specifics. 

We would like to see Stilt become more transparent about the fees it charges. But, in the meantime, we urge readers to carefully comb through their promissory notes before signing on any dotted lines.

How Does Stilt Compare?

Stilt opens the door for internationals student to apply for school funding. However, since their loans are actually personal loans, they have lower loan limits and shorter repayment schedules than most private student loans. 

Ascent and MPower Financing are two lenders that provide student loans to non U.S. citizens. Check out the quick table below to see how the three companies compare:

How Do I Contact Stilt?

You reach Stilt by phone at 415-630-2323 or by email at team@stilt.com. They're customer service hours are Monday - Friday, 8 AM – 6 PM (PT).

Is It Worth It?

Stilt is one of only a few companies that offers financing to international students. However, its high interest rates, low loan amounts, and short repayment schedules will be tough for most students to manage.

If you're an international student or visa holder who can't get a student loan elsewhere, consider Stilt as an option. Otherwise, most borrowers will benefit from applying with a lender that offers actual student loans (rather than personal loans) to non-U.S. citizens.

Compare your international student loan options here >>>

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