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Getting a student loan as an international student

Getting a student loan requires research and understanding the different types of loans, such as private international student loans, and important features of student loans such as collateral and cosigners. Each type of loan offers distinct advantages and challenges.

Whether it’s an education loan in the U.S. or Canada, the right financial support can significantly impact your educational experience as an international student and help set you up for success. This guide will help you make an informed choice for study abroad funding.

The process of getting a student loan for international students

Getting a student loan as an international student requires several steps:

  • Research and compare: Begin by exploring various loan options. For many international students, this means looking at private international student loans. Focus on the specifics of uncollateralized loans, which don’t require collateral, and education loans in the U.S. which might have different requirements and benefits.
  • Determine your eligibility: Eligibility can vary greatly. For instance, international student loans might have particular conditions based on the field of study or school selected.
  • Fixed-rate versus variable-rate student loans: These two loan types have big implications on your repayment terms. Make sure you understand the difference.
        • Fixed-rate student loans: These loans have an interest rate that remains constant throughout the life of the loan. This predictability makes budgeting easier, as your monthly payments won’t change over time.
        • Variable-rate student loans: The interest rate on these loans can fluctuate over time based on market conditions. While variable-rate loans may start off lower than fixed-rate loans, they can increase, potentially making the total loan more expensive over time.
  • Application and approval process: Getting a student loan typically involves submitting academic records, proof of admission and financial documents. Each lender will have their own approval process, with some offering quicker decision times than others.
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Experience Financial Empowerment

Have questions about financing your education? Want to know more about topics like fixed-rate private international student loans?

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Challenges in getting student loans for international students

International students may encounter several obstacles when getting a student loan:

  • Navigating varied loan types: Understanding the differences between loan types, such as student loans for studying overseas and choosing the right one can be challenging.
  • Credit history and cosigner requirements: Lack of a U.S. credit history and the need for a cosigner are common barriers. Finding lenders that offer private international student loans without collateral and cosigner requirements is key.
  • Legal and visa implications: Ensure your loan choice complies with your visa status.

Create a financial plan for your international studies

Although student loans can fund a majority of your international education, it pays off to have a broader financial plan. Make sure you consider these factors:

  • Assess total education costs: Start by calculating the full cost of your education journey, including tuition fees, accommodation, textbook, and living expenses, along with potential travel and insurance costs.
  • Explore scholarship opportunities: Research and apply for scholarships aimed at international students within your specific field of study. These can significantly reduce the need for loans and lighten your financial load.
  • Evaluate personal and family contributions: Determine the amount you and your family can realistically contribute towards your education. Savings from these sources can be an important part of covering a portion of your educational expenses.
  • Budget for living expenses: Draft a monthly budget that accounts for your living costs, including accommodations, food, transport and leisure. Sticking to a budget is essential for financial management and avoiding unnecessary debt.
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Working with MPOWER Financing

MPOWER Financing is more than just a student loan provider. It’s a mission-driven fintech firm with an objective of eliminating financial barriers to higher education. While getting a student loan is one aspect of their services, MPOWER also extends its support to other essential needs, such as visa and career services. Here’s how MPOWER sets itself apart from other student loan lenders.

Flexible funding: MPOWER’s student loans aren’t limited solely to covering tuition fees. In the U.S. funds can be used for a wide range of expenses, including international health insurance, textbooks, meal plans and housing.

No cosigner or collateral required: What truly sets MPOWER apart from many private student loan lenders is the approach to loan decisions: evaluating your future potential as a student rather than your past financial history. As a result, MPOWER doesn’t demand a cosigner or collateral, making the process more accessible and less burdensome for aspiring scholars.

Understanding your needs: Founded by individuals who were once international students, the MPOWER team has a deep appreciation of the challenges students face when studying abroad. 

Comprehensive support for international students: MPOWER Financing believes funding a student’s education is only the first step to success – not the last. That’s why every MPOWER student gains access to exclusive career, immigration and financial resources through its Path2Success program.

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FAQs

What are the primary considerations for international students when getting a student loan?

Key considerations include understanding the types of loans available, eligibility criteria, interest rates, repayment terms and the impact on credit history.

How can international students overcome the challenge of needing a cosigner?

There are some student loan lenders that offer private international student loans without requiring a cosigner. Students looking to study overseas should also look for lenders that offer no collateral loan, as this can also be a significant burden and risk when looking to study abroad in the U.S. or Canada.

What are the benefits of choosing an uncollateralized loan for studying overseas?

Uncollateralized loans eliminate the need for collateral, making them more accessible for students who may not have significant assets or family funding.

Can international students apply for education loans in the U.S. for online or part-time programs?

Student loan eligibility for online or part-time programs can vary by lender. It’s important to check with individual lenders about their policies regarding these types of programs.

DISCLAIMER – Subject to credit approval, loans are made by Bank of Lake Mills or MPOWER Financing, PBC. Bank of Lake Mills does not have an ownership interest in MPOWER Financing. Neither MPOWER Financing nor Bank of Lake Mills is affiliated with the school you attended or are attending. Bank of Lake Mills is Member FDIC. None of the information contained in this website constitutes a recommendation, solicitation or offer by MPOWER Financing or its affiliates to buy or sell any securities or other financial instruments or other assets or provide any investment advice or service.

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