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Postgraduate education loan options for international students

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Postgraduate education loans can help international students finance their master’s, Ph.D., or other advanced degrees in the U.S. or Canada. These loans cover tuition, and in the U.S. living expenses and other costs associated with higher education. This article will help you understand postgraduate student loan options for international students, including eligibility requirements and strategies for effective debt management. We also discuss key considerations to help you make informed decisions about financing your postgraduate studies.

Types of postgraduate education loans

Private postgraduate student loans

Private student loans are typically the most common option for international students pursuing postgraduate education in the U.S. or Canada. These postgraduate student loans are provided by banks, credit unions and specialized financial institutions and can be tailored to cover tuition, living expenses and additional fees. Private lenders often require a cosigner, especially for international students, but no-cosigner loans are increasingly available from specialized lenders.

  • Cosigner loans: These loans require a U.S. or Canadian citizen or permanent resident to cosign, meaning they’ll be responsible for repayment if you default. A cosigner can help you secure better loan terms, such as lower interest rates.
  • No-cosigner student loans: Some lenders offer loans that don’t require a cosigner, focusing instead on your academic potential and future earning prospects. These loans often come with slightly higher interest rates but can be more accessible for students without local financial support.

Home country loans

Another option for international students to explore postgraduate loans is offered by financial institutions in their home country. These postgraduate international student loans are designed for students studying abroad and can sometimes offer better rates or more favorable terms. However, students should be aware of any currency exchange risks and differences in repayment terms.

Currency exchange risk: If the loan is provided in your home currency, fluctuations in exchange rates can affect the total cost of repayment. Consider this risk when choosing between home country loans and local loans.

Institutional loans

Some universities in the U.S. and Canada offer institutional loans directly to their students, including international students. These loans are typically need-based and may offer more favorable terms than private loans. However, availability is often limited, and you may need to combine institutional loans with other funding sources to cover all your costs.

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4 factors to help pick the right postgraduate education loan

1. Interest rates

When applying for postgraduate loans, check whether the loan offers a fixed or variable interest rate. Fixed rates remain constant throughout the repayment period, providing stability, while variable rates can fluctuate with market conditions, potentially increasing your repayment costs.

2. Repayment terms

Different lenders offer various repayment options, including deferred payments until after graduation or interest-only payments during your studies. Understanding the repayment terms is important, as they directly impact your financial obligations before and after graduation.

3. Loan amounts and coverage

Postgraduate education loans can cover a wide range of expenses, from tuition and fees to living expenses, health insurance and textbooks. However, the loan amount may be capped based on your needs or the lender’s criteria, so you should calculate the total cost of your education and ensure you’re borrowing enough to cover all your expenses.

4. Credit history and cosigner requirements

For international students, securing a postgraduate loan may depend on having a cosigner with a strong credit history in the U.S. or Canada. However, some lenders, particularly those specializing in loans for international students, offer no-cosigner options based on your future earning potential.

Repaying your postgraduate loan debt

Borrow only what you need

While it can be tempting to borrow the maximum loan amount available, it’s a good idea to only borrow what you need to cover your educational and living expenses. Over-borrowing can lead to larger debts and more financial strain after graduation.

Create a repayment plan

Once you secure your loan, it’s important to start planning for repayment. Look at your loan’s interest rate and repayment schedule to determine how much you will need to pay each month after graduation. You can also explore refinancing options if you secure a stable income and want to reduce your interest rates. Remember that postgraduate scholarships are awards that don’t need to be repaid.

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Why MPOWER Financing?

MPOWER Financing is committed to providing tailored loan solutions for postgraduate students, ensuring that higher education is accessible to students across the globe. By offering flexible financing and targeted support, MPOWER empowers postgraduate students to focus on their studies without financial barriers.

Here’s how MPOWER supports postgraduate education:

  • Flexible postgraduate loan options: MPOWER provides no-cosigner, no-collateral loans specifically for international postgraduate students studying in the U.S. and Canada. Loans range from US$2,001 to US$100,000, with fixed interest rates and an additional 0.25% discount for auto pay enrollees. These loans cater to the unique needs of postgraduate students, allowing them to pursue advanced education without additional financial stress.
  • Simplified loan application process: MPOWER’s all-digital loan process ensures an easy, transparent path from application to disbursement, saving time for postgraduate students who need their financing quickly and efficiently.
  • Focus on postgraduate potential: MPOWER looks beyond financial history and instead evaluates postgraduate students’ future potential, making it easier for them to access funds. Additionally, MPOWER’s U.S.-based funding helps students who make on-time payments establish a U.S. credit history, setting them up for long-term financial success.
  • Comprehensive support beyond loans: MPOWER Financing believes funding your education is only the first step to success – not the last. That’s why every MPOWER student gains access to exclusive career, visa and financial resources through its Path2Success program.
  • Scholarships for postgraduate students: MPOWER offers regular scholarships that align with postgraduate students’ goals, including the Women in STEM scholarship, which promotes diversity in critical fields like science, technology, engineering and mathematics. On the other hand, the Global Citizen Scholarship recognizes postgraduate students who demonstrate leadership and a commitment to global issues.

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FAQs

What are the main types of loans available for international students?

The main types of postgraduate loans for international students include private loans, home country loans, and institutional loans. Each has its own eligibility criteria, interest rates and repayment terms. Comparing all your options with these factors in mind can help you decide which loan is right for you.

Can I get a postgraduate loan without a cosigner?

Yes, some lenders specialize in offering no-cosigner loans to international students. These loans are often based on your academic performance and future earning potential rather than credit history.

What should I consider when choosing a postgraduate loan?

When choosing a loan, consider the interest rate, repayment terms, loan amount and whether you’ll need a cosigner. Think about the full cost of the loan, including any fees and currency exchange risks if you’re using a home country loan.

Are postgraduate loans available to cover living expenses?

Yes, most postgraduate loans are designed to cover not only tuition and fees but also living expenses (though you should always double check or ask). Be sure to calculate your total cost of attendance to ensure your loan covers all necessary expenses. Creating a study abroad budgeting plan can be a big help in managing living expenses that may not be covered by your loan.

*Rates as low as 9.99% (10.89% APR) available only for the fall 2025 semester, and you must submit your application by January 31, 2025. This interest rate and APR includes a 0.25% discount for automatic recurring payments and a 0.75% discount from our limited-time early planner promotion.

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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