We’ve funded 20,000+ educational dreams — act now and fund yours with loans up to US$100,000! We’ve funded 20,000+ educational dreams — act now and fund yours!

Private education loan rates

Learn more

For international students who want to study in the U.S. or Canada, private student loans are often the key to financing the cost of education. One year at an American university, for example, can cost as much as US$70,000 or more. Since international students aren’t eligible for financial aid from the U.S. or Canadian governments, private loans are typically the best financial option. However, it’s important to research private education loan rates carefully and to choose the international student loan that works best for your financial and educational goals.

What are private education loans?

Private education loans are loans made by banks, credit unions and other financial companies rather than by a government or university. Private education loan rates vary widely among lenders, and rates are typically slightly higher than loans subsidized by the government. Consequently, it’s important to carefully research your education student loan, understand the terms and calculate the total cost before making your decision.

There are two types of private education loans: loans with a cosigner and loans without. A cosigner is someone who agrees to repay the loan if you’re unable to make payments at any point. Usually, lenders require a cosigner to be a citizen or resident of the U.S. or Canada. They must have good credit and stable income. Cosigners for international students are typically relatives or family friends who live in the country and who are invested in the student’s success. For students that don’t have this kind of financial support, no-cosigner loans are a better option.

With a no-cosigner loan, private education loan lenders base their decision on a student’s academic history and future earning potential, rather than their current financial status. Lenders may also take the student’s field of study and the reputation of the university into account, as well as the student’s academic standing. With a no-cosigner loan, international students can remain financially independent and avoid putting a cosigner’s finances and credit score at risk.

SEO image

Experience financial empowerment

Get the financial information you need to take charge of your future

Read More

Calculating the total cost of your international student loan

Whether you choose a loan with or without a cosigner, finding the best private education loan rates is the key to minimizing the cost of borrowing money. The interest rate and terms on your loan determines how much you’ll need to repay in addition to the original amount you borrowed. Here are some things to keep in mind as you compare private education loan rates and loan offers:

  • Type of student loan interest rate: Fixed-rate student loans mean your payment will be the same month to month, since the interest rate never changes. With variable-rate loans, the interest rate is tied to the financial markets and your payments may fluctuate as the cost of borrowing money changes. Fixed-rate loans offer inflation-proof predictability, while variable-rate loans offer potential savings but potentially higher costs as well.
  • Length of the term: The term of your loan is the amount of time you have to repay it. Ten years is standard, but some lenders offer loans with shorter or longer terms. A shorter term means your payments will be higher but you’ll pay your loan off faster and save money on interest. A longer term means smaller monthly payments, but the total cost of your loan will be higher.
  • Fees: It’s important to understand the fees associated with your loan and to add them to the total cost when comparing offers. These may include origination fees, application fees, insurance, prepayment penalties and other fees charged by lenders. Understanding and adding these fees will help you calculate the annual percentage rate (APR) or the total cost of your loan. Knowing the APR will help you compare loans.
  • Repayment options: Another variable that may affect private education loan rates is when repayment begins. Some lenders ask you to begin payments immediately while you’re in school. This can help to reduce the total cost of the loan by paying it off faster. Other lenders may allow you to wait until graduation or even offer a grace period after graduation before you must start monthly payments. This can ease your financial situation while you’re in school, but it will also add to the total cost of the loan.

Choosing a private lender

Follow these steps to find the right lender with the best private education loan rates.

  • Decide on a cosigner or no-cosigner loan. Your first step in choosing an education loan provider is to decide whether you want a loan with a cosigner or whether you’ll want a no-cosigner loan that enables your independence.
  • Compile a list of lenders: The internet is a great resource for finding lenders. Your friends, family and social media network can also provide referrals to lenders they’ve used to finance their studies. Check with the admissions department of the school you wish to attend, as they may have suggestions as well.
  • Review eligibility requirements: Each lender may have slightly different requirements, so it’s important to be clear about which loans you’re eligible for before you put in the time to prepare an application.
  • Compare rates and terms: Review the private education loan rates of each lender as well as the fees, terms and repayment options. Compare the annual percentage rates (APR) of loans, which is the interest rate plus any other fees. The APR provides a way to conduct an apples-to-apples comparison of loans (and their cost) available to you.
  • Consider the extras: While private education loan rates are important, they’re not the entire story. Some lenders offer more student loans services and benefits for international students, including things like scholarships, visa support and career services. These benefits can be valuable and worth a slightly higher interest rate.
SEO image

MPOWER Financing: Making international education possible

MPOWER Financing provides no-cosigner international student loans for global citizens pursuing a degree in the U.S. or Canada. Founded by international students, MPOWER offers financial assistance for postgraduate students, along with loans for DACA students and refugees/asylees.

As a leading lender for international students, MPOWER offers:

  • Competitive private education loan rates: MPOWER fixed-rate loans are available at competitive interest rates and students can earn a 0.25% interest rate reduction through automatic payments. Loans may help pay for all the costs of education in the U.S., from tuition, books and fees to housing, meals and transportation.
  • Streamlined application and approvals: With MPOWER, you can check eligibility in 30 seconds, file an application easily and get a quick conditional loan offer as well.
  • Services to support student success: Students who choose MPOWER have access to a wide range of scholarships, visa support services, career services and more.

MPOWER Financing student loan

A loan based on your future earnings

Apply Now

FAQs

Can international students refinance their student loans?

Some lenders offer refinancing options for international students, especially if they have a solid credit history and a steady income after graduation. Just keep in mind that eligibility requirements vary by lender.

Are interest rates higher for loans without a cosigner?

Since lenders take on more risk with no-cosigner loans, the interest rates can be higher for no cosigner options. That said, rates depend on the lender, your academic background and your future earning potential. It’s always smart to compare offers to find the best deal.

Do I have to start repaying my student loan right away?

Repayment terms depend on the lender. Some lenders let you defer payments while you’re in school and for a few months after graduation, but when you defer payments you’ll end up paying more interest over the life of the loan. With MPOWER Financing, you’ll make interest-only payments while you’re in school and for six months after you graduate. This helps you reduce the overall cost of the loan and  also helps you build your credit. Be sure to check your loan agreement to know exactly when full repayment starts.

Can no-cosigner loans cover both tuition and living expenses?

Most no-cosigner loans in the U.S. can be used for tuition as well as housing, food, transportation and healthcare. Just double-check with your lender to make sure your loan amount covers everything you need. In Canada, loans typically cover tuition and other university-invoiced expenses.

What are MPOWER’s student loan interest rates?

MPOWER loans have a range of interest rates based on your future earning potential, academic history and intended program of study.  Check the website for your eligibility and the latest details and next steps.


*Rates as low as 9.99% (11.16% APR). This interest rate and APR includes a 0.25% discount for automatic recurring payments.

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.

2025 © MPOWER Financing, Public Benefit Corporation NMLS ID #1233542

U.S. office India office
1101 Connecticut Ave. NW Suite 900, Washington, DC 20036 The Cube at Karle Town Center, 9th Floor, 100 Ft, Nada Prabhu Kempe Gowda Main Road, Next to Nagavara, Bengaluru, Karnataka 560045, India

Apply Now