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Student loans in Pakistan for studying abroad

As a Pakistani student aspiring to pursue higher education in the U.S. or Canada, navigating the world of student loans is a crucial yet complex part of your journey. Understanding the various loan options and specific considerations unique to you as a Pakistani student is key to successfully funding your overseas education.

Exploring international student loan options in Pakistan

As you begin to explore your funding options, it’s important to first know the different types of funding options available and how they cater to your needs as a Pakistani student looking to study overseas.

  • Private international student loans: Private loans, offered by global lenders, are tailored for international students and can cover a wide range of expenses. Typically, most international students turn to private student loans to fund most of their international education. Private loans often require a credit assessment and may need a cosigner or collateral. Some lenders, like MPOWER Financing, do not require a cosigner or collateral.
  • Local bank loans in Pakistan: Some Pakistani banks offer educational loans for studying abroad. These loans might have specific requirements, like collateral, and could be influenced by your family’s financial background.
  • Scholarships and grants: While not loans, scholarships and grants can significantly reduce your financial burden. They are often merit-based, need-based or even based on your chosen area of study (like STEM Scholarships). Scholarships and grants do not require repayment.
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Key considerations for student loans in Pakistan

When evaluating your options for student loans, several factors specific to Pakistani students need consideration.

  • Eligibility and requirements: It’s important to understand eligibility criteria, which could range from academic qualifications to financial guarantors.
  • Interest rates and repayment terms: The cost of your student loan in Pakistan is greatly influenced by interest rates and repayment terms. Understanding the difference between fixed and variable interest rates is important. Fixed interest rates remain the same throughout the loan period, offering predictability, while variable rates can fluctuate, potentially affecting your monthly repayment amounts.
  • Impact of currency exchange rates: Fluctuations in exchange rates can affect both the loan amount you receive and your repayment amounts. Be sure to factor in these potential changes, especially if you plan to earn and repay in Pakistani rupees.
  • Disbursement and repayment: Know how and when the loan will be disbursed and familiarize yourself with the repayment schedule and methods.

Common issues for Pakistani students studying abroad

Pakistani students may encounter specific hurdles in securing funding for overseas education. It’s possible to secure a student loan in Pakistan and study in the U.S. or Canada with careful planning and a deep understanding of various financial aspects. Here are some suggestions.

  • Securing a cosigner: Finding a cosigner in the U.S. or Canada can be a major challenge. Look for loan options that do not require one.
  • Dealing with financial regulations: Be aware of Pakistan’s regulations regarding foreign currency exchange and international fund transfers.
  • Planning repayment: If you plan to return to Pakistan after your studies, consider how you’ll manage repayments, especially in the context of varying exchange rates.
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Getting international student loans in Pakistan with MPOWER

MPOWER Financing offers student loans catered to Pakistani students aspiring to study in the U.S. or Canada through a seamless and supportive loan application experience:

Diverse loan offerings for Pakistani students: MPOWER addresses the varied financial requirements of Pakistani students by offering fixed-rate private student loans ranging from US$2,001 to US$100,000. These loans come with competitive interest rates, and students benefit from a 0.25% interest rate discount when they choose automatic payments. This option is also available to students who may already have other loans.

Streamlined loan process: MPOWER Financing does not require a cosigner or collateral.

Digital and efficient application system: The entire MPOWER loan application process is conducted online, beginning with an easy, 30-second eligibility check and ending with a smooth disbursement process, with funds sent directly to a student’s school.

Comprehensive support for educational success: MPOWER’s commitment extends beyond just providing loans to also include visa services and career guidance through the Path2Success program. Free visa services include providing visa support letters and a visa preparation course. Career services include internship and job search guidance for OPT and H-1B visa sponsored roles, a resume builder and a directory of F-1 eligible job roles for STEM and non-STEM degrees.

Additional support: MPOWER also offers scholarships to help Pakistani students fill in funding gaps.

Overall, MPOWER Financing provides Pakistani students with a holistic support system designed to facilitate a smooth and successful international educational experience. This tailored approach and ongoing assistance make MPOWER a valuable partner for Pakistani students navigating the intricacies of financing their overseas education.

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FAQs

What are the main types of student loans available for Pakistani students studying abroad?

Pakistani students typically have access to private international student loans offered by global lenders and educational loans from local banks in Pakistan. Each type comes with its own set of terms and eligibility criteria.

How important is having a cosigner for Pakistani students applying for student loans?

For many private international student loans, having a cosigner with a strong credit history, usually based in the U.S. or Canada, is crucial. However, some lenders offer loans without the need for a cosigner, which can be a viable option for students who cannot meet this requirement.

Why do currency exchange rates matter when considering a student loan?

Currency exchange rates can significantly impact the amount you borrow and repay. Fluctuations in these rates can affect the cost of tuition and living expenses in foreign currency and the repayment amount in Pakistani rupees. A loan in U.S. or Canadian dollars disbursed directly to your school helps to avoid exchange rate fluctuations.

Can Pakistani students apply for student loans to cover living expenses abroad?

Yes, many student loans for international students are designed to cover not only tuition fees but also living expenses, including accommodations, books and other day-to-day costs.

What should Pakistani students look out for when choosing a student loan?

Students should carefully consider the interest rate (fixed vs. variable), repayment terms, eligibility criteria and any additional fees. It’s also important to research the lender’s reputation and the flexibility of their repayment options.

*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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