Earnest and Nova Credit partner for international private student loans.
Earnest and Nova Credit partner for international private student loans.
Earnest and Nova Credit Launch International Private Student Loans
Earnest, a low-interest student loan provider, and Nova Credit, a cross-border consumer credit bureau, have joined forces to introduce International Private Student Loans for students relocating to the United States to pursue higher education. This innovative loan program aims to assist international students enrolled in select U.S. schools by covering various education-related costs, including tuition, housing, living expenses, and more.
The loan program specifically targets eligible international students from India, Mexico, Canada, and South Korea who are pursuing a juris doctorate or master’s degrees in business administration, law, or science and engineering at specific institutions. One of the unique features of this program is the utilization of Nova Credit’s Credit Passport technology, which allows borrowers to share their credit information from their home country. This enables Earnest to generate an equivalent credit score and extend loans to international students without the need for a co-signer.
Meeting the Growing Demand for Private Student Loans
For the 2021-2022 academic year, there were nearly 950,000 foreign-born students enrolled at U.S. colleges and universities, constituting approximately 4.7% of the total student population in the country, according to OpenDoors, a market research organization. While a significant proportion of these students finance their education through personal savings, family funds, or work-study programs, the demand for private student loans has been steadily rising.
Prior to this partnership, access to private student loans for international students was limited. Earnest recognized this gap in the market and sought to address it by collaborating with Nova Credit. By leveraging Nova Credit’s expertise as a cross-border consumer credit bureau, this collaboration provides access to financing options for international students who may not have a credit history established within the United States.
Nova Credit’s Expanding Impact
The collaboration between Earnest and Nova Credit is not the only initiative undertaken by Nova Credit to improve access to credit for immigrants. Recently, they entered into a partnership with American Express, expanding credit access to consumers who have relocated to the U.S. from Brazil, the Dominican Republic, Kenya, and Nigeria. Nova Credit has also partnered with HSBC, enabling the global bank to access its cross-border credit data.
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This demonstrates Nova Credit’s commitment to bridging the gap in credit access for individuals moving to the United States. By leveraging its expansive credit data network, Nova Credit empowers financial institutions and lenders to make informed credit decisions based on an individual’s credit history from their home country.
Conclusion
The collaboration between Earnest and Nova Credit to launch International Private Student Loans is a significant development in the field of student financing. This partnership not only alleviates the financial burden for international students pursuing higher education in the U.S. but also expands the availability of credit options in a previously underserved market.
With the number of foreign-born students in the U.S. steadily increasing, the demand for private student loans is expected to grow even further. The use of Nova Credit’s Credit Passport technology enables Earnest to assess creditworthiness without the need for a co-signer, further facilitating the loan application process for international students.
As Nova Credit continues to establish partnerships with leading financial institutions, it is clear that their mission to enhance credit access for immigrants is gaining momentum. These efforts have the potential to positively impact the lives of countless individuals who strive to achieve their educational and career goals in the United States.