Postgraduate student loans: What international students should know

Q: Are there loans that cover both tuition and living expenses?

Yes, many postgraduate loans for international students in the U.S. are designed to cover not only tuition as well as living expenses, such as housing, food and transportation. Make sure the loan amount is sufficient to cover all your expenses while studying.

Postgraduate student loans, similar to undergraduate loans, provide financial assistance to cover tuition fees, living expenses, and other related costs. However, while the technical aspects of these loans may not differ significantly from undergraduate loans, the circumstances and considerations for postgraduate students are unique.

How postgraduate loans differ from undergraduate loans

In terms of structure, postgraduate loans are similar to undergraduate loans. Both student loan types typically offer fixed or variable interest rates, require repayment after graduation and can be obtained through a variety of programs, with private loans being the most popular. However, certain key differences are important for postgraduate students to consider:

Higher loan amounts

Graduate programs, especially in fields like business, medicine and law, often have significantly higher tuition fees than undergraduate programs. As a result, postgraduate loans generally allow for larger loan amounts to cover these increased costs.

Cosigner requirements

Similar to undergraduate loans, postgraduate loans for international students often require a cosigner who’s a U.S. or Canadian citizen or permanent resident. However, some specialized lenders offer no-cosigner loans, particularly for postgraduate students pursuing high-demand fields like STEM, where future earning potential is used to assess creditworthiness.

Different financial aid options

While undergraduate students may rely more heavily on grants, scholarships and parental financial support, postgraduate students often rely more on loans and grants only. Postgraduate students have opportunities for research or teaching assistantships, which can reduce reliance on loans for master’s degree funding by offering stipends or tuition waivers.

Career-focused loans

Since postgraduate students are typically more career-focused, loans for this group may come with features reflecting this. Some student loan lenders provide career services and internship opportunities with the loan, particularly for international students transitioning from study to work in the U.S. or Canada. This differs from the undergraduate focus, which is often on covering basic education costs.

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3 major considerations when applying for postgraduate student loans

When looking into postgraduate education loans, consider several important factors that may not have been as relevant during your undergraduate studies:

1. Career outlook and future earnings

One of the key considerations for postgraduate students is how the loan will impact your financial future. Since postgraduate degrees are often pursued to advance in a specific career, it’s important to consider your future earning potential when borrowing. Some lenders may take this into account when offering no-cosigner loans.

2. Loan repayment options

Postgraduate students should also carefully evaluate the repayment terms of any loan. Many lenders offer grace periods allowing you to delay repayment until after graduation. If you make interest only payments while in school, your total cost of the loan will be less. Additionally, if you are in the U.S. and make on-time payments you can build your U.S. credit history, which is helpful when starting your career in the U.S.

3. Flexible loan terms

Unlike undergraduate loans, which may have more rigid terms, postgraduate student loans often offer greater flexibility. This includes options like interest-only payments during your studies, deferring payments until after graduation, or even consolidating multiple loans into one manageable payment plan. Evaluate these features to find a loan structure that fits your financial goals.

Common mistakes and how to avoid them

When looking for postgraduate student loans, international students often make the following mistakes:

Over-borrowing: Some students take out larger loans than necessary, underestimating the impact of future repayments. To avoid this, carefully calculate the actual cost of tuition, fees and living expenses, and avoid borrowing more than needed.
Not understanding repayment terms: Before accepting a loan, make sure you fully understand the repayment terms. Postgraduate loans often offer deferment options, but interest may continue to accrue during this period. Clarify whether repayment begins immediately or after graduation and what penalties exist for late or missed payments.
Failing to research alternative funding: Relying solely on loans can lead to high debt levels after graduation. International students should explore postgraduate scholarships, assistantships and grants that can help reduce the amount borrowed.

Postgraduate student loans with MPOWER Financing

As an international student pursuing a postgraduate degree, managing the costs of tuition, housing and other living expenses can feel overwhelming. That’s where MPOWER Financing comes in. MPOWER provides flexible, no-cosigner loans designed specifically for international students like you, so you can focus on your studies, not your financial worries. Here’s how MPOWER empowers postgraduate students:

Flexible loan coverage: MPOWER’s postgraduate loans cover more than just tuition. In the U.S. student loan funds can be used for housing, textbooks, meal plans and even health insurance, ensuring students have the financial support they need throughout their academic journey. However, MPOWER loans for students in Canada cover mostly tuition. Check with your school.
No cosigner, no collateral required: MPOWER’s loans are tailored to international students, eliminating the need for a cosigner or collateral. This makes it easier to access funding, regardless of financial background or existing obligations.
Loans focused on future potential: Unlike many traditional lenders, MPOWER evaluates students based on their future potential rather than their past financial history. This approach makes postgraduate loans more accessible, empowering students to invest in their education and career.
Seamless digital process: MPOWER offers a fully online loan application process, from quick eligibility checks to fast approval and disbursement. This streamlined approach ensures postgraduate students can secure the financial support they need without delays or complicated paperwork.
Scholarships and holistic support: In addition to loans, MPOWER provides scholarships specifically for postgraduate students, including the Women in STEM scholarship and Global Citizen scholarships. 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, visa and financial resources through its Path2Success program.

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FAQs

Do postgraduate loans differ from undergraduate loans?

While the basic structure is similar, postgraduate student loans often have higher borrowing limits, flexible repayment options, and may be linked to career services. Additionally, postgraduate students have fewer grant options, making loans a larger part of their funding strategy.

Can I get a postgraduate loan without a cosigner?

Yes, some lenders offer no-cosigner loans to international students based on future earning potential.

How do I repay my postgraduate student loan?

Although some lenders allow full deferment until after graduation, you will pay less overall if you make interest only payments while in school and then interest and principal payments after you graduate. It’s better to choose fixed-rate loans because they offer predictability for future payments. Additionally, with U.S.-based student loans, you don’t have to worry about any foreign exchange fees when repaying.

Are there loans that cover both tuition and living expenses?

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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