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

Vladimir Vladimirov / Getty Images Outside of certain eligible noncitizens, international students can't get federal student loans.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.Key TakeawaysIn most cases, international students are ineligible for U.S. federal student loans.The amount of federal student debt held by international students is probably trivial.International students can typically rely on private loans, scholarships, or financial aid from their home countries.Eligibility for Federal Student LoansTo 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-151Individuals 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 statusBattered-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 1794NoteCitizens of the Federated States of Micronesia, the Republic of the Marshall Islands, or the Republic of Palau can qualify for certain forms of federal student aid, but not education loans.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 StudentsWhile 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 LineInternational 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.
Real Estate Agents May Be Dodging New Commission Rules — Here’s How It Could Cost You

Hispanolistic / Getty ImagesIn March 2024, after the National Association of Realtors (NAR) agreed to a landmark $418 million class action settlement, home sellers expected they would soon pay far less in real estate commissions. However, since the new rules went into effect in August 2024, reports suggest that real estate agents have found ways around them, effectively thwarting that from happening.Key Takeaways Historically, home sellers have had to pay both their agent and the buyer's agent.New rules starting in August 2024 were to have made buyers responsible for paying their agent, theoretically lowering costs for sellers.However, evidence to date shows that little has changed. How the Rules on Commissions ChangedUnder the old rules, home sellers were responsible for paying both their real estate agent and any agent the buyer brought into the deal. Often, that meant paying 5% or 6% in total, typically split 50-50 between the two agents, with each getting 2.5% or 3%. On a $500,000 sale with a 6% commission, for example, the seller would have to fork over $30,000, with $15,000 going to each agent.Under the new rules, sellers will still have to pay their agent, typically as a percentage of the sale price. But buyers will be largely responsible for compensating their own agents, in the form of a percentage, an hourly rate, or a flat fee. Using the example above, a seller who negotiated a 3% commission with their agent and paid the buyer's agent nothing would save $15,000. (In some cases, sellers might still want to help a buyer cover at least a portion of the cost as an incentive, but doing so would be voluntary.)ImportantReal estate commissions aren't tax deductible, but sellers can include them as "selling expenses" in their cost basis to reduce any taxable capital gain on the sale.Why the New Rules Haven't Delivered the Expected SavingsA key change in the new rules prohibited sellers' agents from offering to split their commissions with buyers' agents via multiple listing services (MLS), the exclusive databases of available homes run by local agent groups. But agents soon found a workaround, communicating instead by phone, email, and other means, The New York Times reported in March 2025."Many agents, now banned from making offers of commission to each other on private Realtor-only databases, are not adapting to the intent of the settlement," the Times reported. "Rather than encouraging buyers to now negotiate rates on their own, they continue to press sellers to offer commissions of 5% or 6%, and then discuss commission splits among themselves."As a possible result, sellers' commissions appear to have barely budged, dropping from 5.64% to 4.96% on average after new rules went into effect, according to a RISMedia survey cited by the Times. A study for the real estate listing site Redfin found that many sellers continue to pay all or part of the buyer's agent's commission, although negotiations over that issue have also become more frequent.TipIf, after selling your home, you need a new mortgage, it can be a good idea to shop around to get the best rate.The Bottom Line The new rules on real estate agent commissions have had far less effect than originally predicted, possibly because many sellers and buyers are unaware of them or the leverage they provide."The class action settlement, for the first time, effectively allows buyers to negotiate their agent's compensation," the Consumer Federation of America has noted. "Buyers should take the opportunity to do so, setting a goal in dollar terms of two percent (of home sale price) or less. And so should sellers, who have had the same opportunity but frequently have decided not to pursue it."
Dollar-Cost Averaging Into the S&P 500: Does It Really Work?

Fact checked by Jen Hubley LuckwaldtInvestopedia / Michela Buttignol Dollar-cost averaging involves investing a set amount of money at regular intervals, which can mitigate emotional decision-making and risk.Dollar-cost averaging (DCA) attempts to mitigate the emotional aspect of investing by taking some of the choice of when and how much to invest in a particular security out of the hands of the investor. With DCA, investors pick a target security and invest a fixed amount of money at regular intervals, regardless of what the price of that security is at any given time. DCA is a tool to limit risk.While DCA can work for any security, many investors apply this technique to an investment in the S&P 500 Index, a broad collection of around 500 large-cap U.S. companies collectively representing about 80% of total market capitalization.Key TakeawaysDollar-cost averaging (DCA) helps mitigate risk by spreading investments over time.DCA can reduce emotional decision-making and lower average purchase prices.Historical data shows varied performance of DCA versus lump-sum investing.DCA is particularly beneficial in volatile markets but may underperform in rising markets.Setting up a DCA plan involves choosing between manual and automatic investment setups.Understanding Dollar-Cost AveragingThe function of DCA as an investment strategy is that it ensures investors do not try to “time the market” by investing at times that seem opportune (such as when the price of a security is low, or in the midst of a rally). Investors may specify a particular target security and a total amount of money that they would like to invest; they then divide that sum into equal portions to be invested at regular intervals.Even the most experienced investors are subject to psychological traps such as the disposition effect, in which an investor tends to hold on to losing investments too long and sell winning investments too soon.ImportantDCA eliminates the possibility of investing based on emotional or psychological cues. With DCA, investors can avoid trying to time the market and reduce their overall investment risk.Implementing Dollar-Cost Averaging Into the S&P 500Because it is not possible to invest in the S&P 500 Index directly, an investor looking to apply DCA to the S&P 500 must first select an index or exchange-traded fund (ETF) tracking this collection of stocks. Fortunately, these funds are plentiful and often quite inexpensive and include major players like the SPDR S&P 500 ETF Trust (SPY) or the Fidelity 500 Index Fund (FXAIX).To implement a DCA strategy with one of these funds, an investor may first want to decide how much to invest in total, what the total timeframe for the investment will be, and how often to contribute to the investment. Say you wish to invest $10,000 in the SPY over a period of 10 months, with one investment on the first day of each month. You would then invest $1,000 each month, regardless of the price of SPY on that day.An advantage of using a broad-based S&P 500 fund like SPY is that it captures a wide swath of the market. Because it is already diversified, it limits the risks associated with investments in individual stocks. DCA further helps to reduce these concerns.Historical Performance AnalysisNuveen, the asset management company, completed an assessment of the historical performance of a hypothetical DCA approach to investing in U.S. stocks. If an investor put $500 each month into this investment from 2000 to 2020—an investment of $120,000 total over a 20-year span—they would achieve a total accumulation of $280,801 during that time.By contrast, consider a lump-sum investment of the same principal. An investor buying $120,000 worth of the SPY at the beginning of 2000, at a price of $94.20 per share, would have ended up with about 1,273 shares. Based on a closing price of $352.05 on December 31, 2020, those shares would be worth $448,159.65. However, this does not account for management fees accrued over the 20-year period, nor does it include dividend reinvestments.NoteWhile it seems that a lump-sum investment wins out in this case, keep in mind that fluctuations in the market leave such an investment particularly exposed.For example, cashing out on March 27, 2020, not quite a full 20 years into the lump-sum investment, would yield around $305,847, again not counting management fees or dividends.Advantages of Dollar-Cost AveragingOne of the key benefits of DCA is mitigating the price risk associated with attempting to time the market. Historically speaking, investors trying to time the market tend to miss some rallies. DCA ensures that you can capture those gains. It may also help to reduce emotional decision-making and to lower average purchase prices for a particular security.Because the best days of the market often come at times of significant volatility—when investors may be cautious—dollar-cost averaging helps reluctant investors to still benefit during those periods.Beyond that, DCA can be helpful for investors lacking a sizable amount of capital to put toward an investment up front. By spreading an investment out across multiple contributions, they may make the process of investing more accessible.Potential Drawbacks and ConsiderationsThat said, DCA does have some limitations alongside its benefits. Investors using DCA may forfeit higher returns, particularly in times when the market is consistently rising. Think of it this way: with DCA, an investor is holding a higher percentage of an investment as cash for a longer time. This reduces risk, but also means they can miss out during an extended rally.Keep in mind that it’s also crucially important to select quality investment targets in order for your principal to grow over time.Beyond that, fees may be a factor as well—a dollar-cost averaging strategy that invests a small amount of money in a security every day, for example, might lose a sizable portion of its capital to transaction fees.Setting Up a Dollar-Cost Averaging PlanSetting up a DCA plan with your brokerage account is fairly straightforward. Follow these steps to do so:Set up and fund a brokerage account if you do not already have one.Determine the security or securities you wish to target. While DCA can work for many different securities, a common approach is an S&P 500-focused fund as described above.Decide the parameters of your investment: how much money do you wish to invest in total? How often and when will you contribute? Keep in mind, of course, that more contributions may mean more fees.If your brokerage allows automatic investment setups, you may be able to specify the upcoming portional investments ahead of time and let the system take care of the rest. If not, set yourself a reminder for each installment to be sure that you contribute regularly.There is not necessarily a benefit to using an automatic or a manual contribution strategy, though some investors may find that setting automatic contributions makes them less likely to accidentally forget to make an investment when the time has come.How Does DCA Compare To Other Investment Strategies in Terms of Long-Term Growth?Lump-sum investing may outperform dollar-cost averaging over the long term, as more of an investor’s money is exposed to market growth for a longer period of time. Of course, this is only the case if the target investment generally trends upward. Lump-sum investing also increases the risk of loss of capital if prices trend downward.Can DCA Be Effectively Combined With Other Investment Strategies?DCA can be combined with a variety of other investment strategies. For example, DCA can help to stabilize a value or growth approach to avoid emotional decisions about when to enter a position or to minimize the impact of volatility. DCA could also be combined with an asset allocation focus to gradually build up investments in stocks, bonds, commodities, and other vehicles over time.What Are the Best Practices for Adjusting a DCA Plan Over Time?There is no single approach to DCA, but some best practices include periodically re-evaluating your investment goals to ensure that your target investment and the amount and timing of each contribution is appropriate. If you’re taking a long-term approach to DCA, you may find that an increase in your income over time allows you to periodically increase the contribution amount. You can also use DCA to help rebalance a portfolio over time by gradually shifting the focus of your investments.The Bottom LineDollar-cost averaging spaces an investment out over time, re-allocating it into smaller portions made at regular intervals. Many investors find that DCA helps them to avoid trying to time the market and allows them to capture gains from rallies that take place during volatile periods in which they may otherwise be disinclined to invest. A DCA approach with a fund linked to the S&P 500 may be suitable, given that the market trends upward over time. DCA may also be more accessible for many investors who lack the capital available to make lump-sum investment payments.On the other hand, lump-sum investments in funds that tend to grow fairly steadily may outperform DCA strategies over time because a larger portion of the investment principal is exposed to market growth conditions for longer. This approach also consolidates the number of transactions, potentially helping to reduce fees.If you’re an investor who tends to react emotionally to market news—or even if you don’t suspect that you do—or someone wishing to take the timing element out of consideration when you approach your investments, DCA may be a good option for you.