Three things to know before picking an education lender in 2025
With the rise of tuition costs, loans have become necessary for most students studying in the U.S. If you’ve decided to pursue an international study program and need an education lender, it’s important to familiarize yourself with your options, find loan terms that work for you and borrow from a provider you trust.
So what criteria should you look for when choosing an education lender? Here are some important things to know before taking out a student loan for study abroad in 2025 and how a no-cosigner international student loan from MPOWER compares to other loan options.
What to know before getting a student loan for studying abroad?
Choosing a student loan for studying abroad is a personal decision; the loan type and terms that work for somebody else might not be right for you. Before picking an education lender in 2025, Here are three things to consider:
1. Public vs. private loans
Most U.S. citizens start the loan application process by applying for public federal loans. However, public loans are not available to international students studying in the U.S. Luckily, select private lenders like MPOWER offer student loans for studying abroad to international students.
U.S. applicants tend to prefer public loans because they don’t require a credit check. MPOWER differs from other private loan providers because MPOWER does not require its applicants to have a U.S. credit history or credit score. MPOWER grants loans based on your future earning potential rather than your financial history.
2. Loan terms
Every loan will have different terms. It’s best to prequalify with multiple lenders, compare their terms, and select the best option for you. Some factors to consider are:
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- Interest rates: Your loan’s interest rate will determine how much you’ll pay in the future, so the lower the rate, the better. Interest rates can be fixed or variable. Fixed rates are predictable and inflation-proof, enabling you to budget and plan more easily. Variable rates may start lower than fixed rates, but variable rates are unpredictable and you may pay more in interest over the life of the loan.
- Repayment period: Most private student loans for study abroad, like MPOWER, have standard 10-year repayment plans. The shorter your repayment period, the less you’ll pay in the long run. Look for loans where there is no prepayment penalty, so you can pay off your loan when it’s convenient for you.
- Fees and penalties: Check whether your loan options have an application fee, required insurance, origination fee or prepayment penalty.
- Cosigner requirement: Most U.S. private education lenders require a U.S. cosigner. Unlike other loan providers, MPOWER offers no-collateral, no-cosigner international student loans. That means you won’t have to find a U.S. citizen to sign off on your loan, nor will you have to put any personal assets up for collateral.
3. Lender reputation
You’ll be entering a financial relationship with your lender for the next decade or more, so choosing a lender with a good reputation is important.
Several publications, including NerdWallet, have voted MPOWER the best education lender for international students. Drawn to MPOWER’s competitive interest rates and flexible application process, students across the globe choose study abroad loans from MPOWER, borrowing up to US$100,000 to cover the costs at any of MPOWER’s 500+ eligible schools in the U.S. and Canada.
MPOWER aims to provide its customers with the best education and career outcomes possible. That’s why MPOWER provides visa and career support through its Path2Success program.
To understand why so many students across the globe trust MPOWER, explore loan options today.
What’s the most important financial consideration when deciding whether to take out an education loan to study abroad?
The most important thing to remember before taking out a study abroad loan is to borrow responsibly. You should never borrow unnecessary funds, because your loan will compound with interest over time. Make sure to:
- Research your chosen course of study, career options and average starting salary. Whether you choose to study finance, data science or art will make a difference in your future earnings. Don’t borrow any money you won’t be able to repay later.
- Compare tuition prices at your preferred universities. Choose a school that fits realistically within your budget.
- Determine exactly how much you need to borrow. Some lenders, like MPOWER, will have you list your funding during the application process so you don’t accidentally overborrow.
Final thoughts: Choosing an education lender for study abroad loans in 2025
Student loans for studying abroad can make your dream of studying in the U.S. a reality. By considering all your options and making an informed decision, you set yourself up for a lifetime of academic and financial success.
When choosing an education lender in 2025, consider a no-cosigner international student loan from MPOWER endorsed by thousands of positive Trustpilot reviews. Find out why many consider it the best loan option for international students studying in the U.S.
