Refinancing Student Loans for International Students

When your student loan payments feel overwhelming – or when you want to secure better payment terms – refinancing your student loans may be an option. However, it can be difficult for international students to refinance their loans without a cosigner, especially if you don’t have a solid credit history in the U.S.

The basics of student loan refinancing

Refinancing a student loan is the process of taking out a new loan to pay off an existing loan. Some international students refinance to pay off loans with high interest rates by taking a new loan at a lower interest rate. Others refinance to lower their monthly payment, giving them more flexibility with their finances after graduation. Refinancing may also let you consolidate multiple loans, so you’re making one payment each month rather than several. Finally, refinancing can help release a cosigner from your original loan and access U.S. employer matching programs, which provide tax-free money to repay student loans.

When refinancing private international student loans, lenders will make decisions based on several factors:

Your credit: Lenders will want to check your credit score and credit history to determine what level of risk a loan represents. If you don’t have much of a credit history or you have been in default on previous loans, it can be harder to get a loan for refinancing.
Your loan balance: Lenders have policies about the minimum and maximum amount of money they’re willing to refinance.
Academic status: Some lenders may want to see that you’ve completed your studies or that the university you graduated from meets their requirements.
Employment status: Lenders will want to know that you’ll have income into the future to pay off a longer-term loan.
Debt-to-income ratio: This leverage ratio is calculated by dividing your monthly debt obligations by your total monthly income. Your debt-to-income ratio helps lenders determine whether they believe you’ll be able to keep up with loan payments.

Refinance Your Student Loan Abroad

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Benefits of refinancing student loans

Refinancing your student loans offers several significant benefits.

Achieve your financial goals

When refinancing student loans, you may be able to get better terms on a loan. This can help you achieve several financial goals.

Lower interest rate: If you refinance at a lower rate, you’ll pay less interest over the life of your loan.
Reduce monthly payments: Refinancing may help you reduce your monthly payments by lowering the interest portion of your payment or by giving you more time to repay your loan.
Pay your loan off faster: A lower interest rate may help you pay back your loan faster, since you’ll be paying less in interest each month.

Qualify for employer matching

Some U.S. companies help employees pay off student loans with a tax-free contribution of up to US$5,250 each year.

Get a fixed-rate loan

If your original student loan had a variable rate that has increased over time, refinancing your loan to a fixed rate can offer more stability and predictability in your loan payments.

The role of cosigners in refinancing

Many education loan providers in the U.S. require international students to have a cosigner to refinance. A cosigner is someone who lives in the U.S. and has a solid credit history and verifiable income. The cosigner agrees to take responsibility for paying off your loan if you’re unable to make payments. With a cosigner, you may qualify for a broad range of refinancing loans.

If you don’t have a cosigner, your options will be more limited. Most education loan financing providers want to lend to people who have a strong credit history in the U.S. – something that’s hard to build quickly in your first few years out of school. However, there are lenders like MPOWER that refinance loans without a cosigner.

Refinancing student loans with MPOWER Financing

MPOWER Financing is a leader in financial aid for international students, supporting students at 400+ universities across the United States and Canada. MPOWER’s mission is to help you reach your academic and financial dreams by offering no-cosigner, no-collateral loans for studying in the U.S. and Canada. MPOWER also offers private education loans for DACA students, refugees and asylum-seekers.

With options for student loans refinancing, you can apply to borrow up to US$100,000 at a fixed interest rate, with a 10-year repayment term and no penalty for prepayment. When you make payments on time each month, MPOWER reports your payment details to the U.S. credit bureaus, helping you to establish your credit history and build your credit score.

MPOWER student loans programs also include free access to the Path2Success program. Designed to help international students achieve their goals, Path2Success provides access to exclusive career, immigration and financial resources to help you build your life and your career in the U.S.

When you refinance your student loans with MPOWER, you may be able to:

Reduce your monthly payments and total interest
Qualify for employer-matching funds
Lock in a fixed interest rate
Release your cosigner and collateral
Build a credit history in the U.S. with timely repayments

MPOWER Student Loan Refinancing

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FAQs

How can you be eligible to refinance with MPOWER Financing?

You may be eligible to refinance your student loans with MPOWER Financing if you:

Live in the U.S. and have worked full time in the U.S. for at least three months after graduation.
Have a valid visa (H1-B and F-1 visa while on OPT) or if you’re a DACA recipient, U.S. citizen, refugee or asylum-seekers and have two or more years of work authorization.

How do I apply for student loan refinancing with MPOWER Financing?

The application for refinancing student loans is simple. After checking to see if you’re eligible, fill out the application online and upload your documents to the MPOWER portal.

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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Refinancing student loans without a cosigner