About the Episode
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About the Episode:
International students face unique financial challenges when pursuing education abroad, from securing loans without cosigners to navigating shifting immigration policies. In this episode, Ray sits down with Arbaaz Hashmy, Director of Business Development at Sallie Mae, to unpack the evolving landscape of international student financing. They explore how universities, lenders, and financial institutions are working together to create sustainable funding solutions, how technology is transforming underwriting and loan approvals, and why students today are thinking more about ROI than ever before.
Join us as we discuss:
- [2:10] How universities and lenders can create win-win situations for students
- [11:55] The role of technology in modernizing student loan approval
- [22:16] The future of international student financing, trends, and predictions
To hear this interview and many more like it, subscribe on Apple Podcasts, Spotify, or our website, or search for “Mastering the Next” in your favorite podcast player.
How has international student financing evolved in the last decade?
Arbaaz Hashmy highlighted a significant evolution: a decade ago, international students needed both collateral and a co-signer to secure loans. Five years ago, that shifted to needing just a co-signer. Today, leading lenders are offering loans without any co-signer, instead relying on predictive models based on behavioral and academic data. This new, student-focused underwriting approach increases access for students who otherwise couldn’t meet traditional loan security requirements—an essential development for expanding global enrollment.
What role do universities play in facilitating funding for international students?
Traditionally, universities have distanced themselves from endorsing specific lenders due to regulatory concerns. However, today, more institutions are hosting neutral informational sessions featuring multiple lenders to help admitted students understand their financing options. Universities are increasingly aware that funding barriers can derail their enrollment goals, and collaboration—while remaining impartial—is becoming a strategic necessity. These partnerships often kick in around deposit deadlines and focus on providing clear, non-preferential options to help students bridge financial gaps.
How has technology transformed the student lending process?
Technology is a game-changer in two critical areas: underwriting and go-to-market strategy. Arbaaz pointed to innovations like lenders accessing home-country credit histories and using thin US credit files built through specialized bank accounts and credit cards tailored to international students. These developments allow lenders to offer lower interest rates to students with strong financial behavior, and enable more students to qualify for loans once they arrive in the U.S. Tech-driven underwriting is closing historical gaps and making the dream of studying abroad more attainable.
How are policy shifts and economic uncertainty affecting student behavior?
Prospective international students today are more cautious and ROI-driven than ever. Arbaaz shared how conversations have shifted dramatically—from academic quality to career outcomes—as students assess whether their investment will pay off. Political and immigration uncertainties are causing students to delay decisions, apply later, and focus even more heavily on securing strong employment prospects post-graduation. Lenders and institutions must meet this new reality head-on by providing transparent ROI data and career support services.
What future trends will shape international student financing?
Using his "crystal ball," Arbaaz predicted two major trends. First, a growing divide between students pursuing an education for career ROI versus those seeking immigration pathways. As immigration policies tighten globally, ROI-focused students will dominate future cohorts. Second, new study destinations—such as Estonia, Belgium, and other parts of Europe and Asia—will rise in popularity as students seek more affordable and migration-friendly options. U.S. institutions will need to double down on proving their ROI to stay competitive in international recruitment.
Connect With Our Host:
About The Enrollify Podcast Network: Mastering the Next is a part of the Enrollify Podcast Network. If you like this podcast, chances are you’ll like other Enrollify shows too!
Some of our favorites include The EduData Podcast and Generation AI.
Enrollify is produced by Element451 — the next-generation AI student engagement platform helping institutions create meaningful and personalized interactions with students. Learn more at element451.com.
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