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Student loans for studying overseas

Learning about student loans for studying overseas is pivotal for international students, like you, who wish to study in the U.S. and Canada. This article will help you review the options, along with some of the benefits and drawbacks.

Types of student loans for studying overseas

Acknowledging the different options for student loans is the first step in making an informed decision. These loans vary based on factors like the source, terms and eligibility criteria.

  • Private international student loans: For many international students, private loans are the primary means to fund their studies abroad. These loans are specifically tailored to meet the needs of students from various countries, offering the financial support necessary to cover tuition and often living expenses.
  • Loans from home countries: Some students may find loan options available in their home countries. These loans can sometimes be used for studying overseas, providing an alternative or supplementary funding source.
  • Federal student loans: Federal student loans in the U.S. are generally not available to international students because they’re not citizens. Alternative funding optionsApart from student loans for studying overseas, scholarships, such as STEM scholarships, grants and work-study programs can provide additional financial support. These options can help lessen the reliance on loans and reduce the overall financial burden.

Alternative funding options

Apart from student loans for studying overseas, scholarships, such as  STEM scholarships, grants and work-study programs can provide additional financial support. These options can help lessen the reliance on loans and reduce the overall financial burden.

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Diving deeper into student loans for studying overseas

To properly evaluate the right international student loan for studying overseas one must assess a number of factors such as interest rates, cosigner requirements and collateral.

  • Interest rates: Fixed-rate student loans have a steady interest rate for the life of the loan, offering predictability in repayments. Variable rates can fluctuate, impacting the overall cost of the loan and introduce uncertainty in the overall cost of the loan.
  • Cosigners: Many lenders require students to have a cosigner, someone who commits to paying off a loan if a student is unable to make payments. The requirement for a cosigner can be a significant hurdle for international students. However, some lenders offer student loans for studying overseas without this requirement.
  • Collateral: Providing property as collateral as a requirement for the loan can be challenging for students without substantial assets. Uncollateralized loans are advantageous as they do not require such security, making them more accessible.

Understanding the terms of student loans for studying overseas

To make well-informed financial decisions, it’s important to understand the terms and conditions of an international student loan:

  • Repayment options: Repayment plans vary between lenders. Find out when repayment begins – some start immediately, while others may start after graduation.
  • Grace periods: Many student loans come with a grace period – the time frame after finishing or leaving school, during which you’re not required to make full principal and interest payments.
  • Fees and penalties: Be aware of any origination fees, late payment fees or penalties for early repayment. These can add to the cost of your student loan and should be considered when comparing loan options.
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Why MPOWER Financing?

MPOWER Financing differentiates itself as a comprehensive support system for international students, going beyond traditional loan services:

  • Empathetic understanding of student needs: Built by former international students, MPOWER understands the challenges of studying abroad, one example beyond funding includes learning about the U.S. healthcare system. MPOWER offers tailored guidance to help students secure international health insurance plans that meet both personal and educational institution requirements.
  • Versatile use of loan funds: MPOWER’s student loans are designed for flexibility. In the U.S., they extend beyond tuition fees, covering various educational expenses such as housing, books, international health insurance and meal plans. This flexibility ensures students have the financial support needed for all aspects of their education.
  • Approachable loan requirements: Unlike many other lenders, MPOWER focuses on a student’s future potential rather than their financial history. This eliminates the need for a cosigner or collateral, making education loans more accessible for aspiring students globally.
  • Comprehensive student support: Studying abroad encompasses more than academics. MPOWER offers holistic support to international students, helping with the diverse aspects of studying abroad, from financial planning to adapting to new cultures.

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FAQs

What are the main types of student loans available for studying overseas?

The primary types include – private international student loans and loans from home countries. Private international student loans are designed for international students and often cover a wide range of expenses. Loans from home countries vary by country and offer different terms for students studying abroad.

Can international students apply for federal student loans in the U.S.?

Generally, international students are not eligible for federal student loans in the U.S. These loans are reserved for U.S. citizens or eligible noncitizens.

What should I consider when choosing a student loan for studying overseas?

Key considerations include the interest rate type, cosigner and collateral requirements, repayment terms and the lender’s reputation. Understanding how the loan will impact your finances during and after your studies is also important.

Are there alternatives to student loans for funding overseas education?

Yes, alternatives include international scholarships, grants and work-study programs. These options can help lessen the reliance on loans and reduce the overall financial burden.

Do all student loans for studying overseas require a cosigner?

Not all student loans require a cosigner. Some private lenders offer loans to international students without the need for a cosigner, and these may have different terms and conditions compared to loans with a cosigner.

*Rates as low as 9.99% (10.89% APR) available only for the fall 2025 semester and you must submit your application by December 31, 2024. 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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