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International education loan without collateral

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Studying in the U.S. or Canada can open doors to incredible opportunities, but for international postgraduate students, financing that education isn’t always easy. International students typically aren’t eligible for government financial aid and many private lenders won’t approve a loan without a cosigner or collateral such as property or savings. Fortunately, international education loans without collateral offer a solution for postgraduate students trying to study abroad on a budget. These loans are designed to make funding your education more accessible by focusing on your academic potential and future earnings instead of your current financial picture.

What’s collateral?

Many private student loans require collateral, which is an asset such as property, savings or investments that a borrower pledges as security for the loan. If the borrower fails to repay, the lender can seize the collateral to recover their losses. This requirement helps lenders reduce their financial risk, allowing them to offer lower interest rates and better loan terms. While this works for domestic students with financial ties in the U.S. or Canada, it’s often a major hurdle for international students. Most international students don’t own property or have significant financial assets in the country where they’re studying, making it nearly impossible to meet the requirements for collateral. Even if their families have assets in their home country, cross-border banking regulations and differences in legal systems often prevent those assets from being used as collateral for a loan abroad.

When international students can’t provide collateral, lenders may offer an alternative: cosigner loans. A cosigner is a financially stable individual who’s a U.S. or Canadian citizen or permanent resident. The cosigner agrees to take legal responsibility for the loan if the borrower can’t make payments. However, finding a cosigner can be just as hard as providing collateral. Many international students don’t have family members or close connections in the U.S. or Canada who meet the lender’s requirements. Even when they do, asking someone to take on financial responsibility for a large student loan can be a big ask. These challenges leave many international students without traditional financing options, making no-cosigner, no-collateral loans a valuable alternative.

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International education loans without collateral or cosigners

No-cosigner, no-collateral student loans allow you to finance your education without needing to pledge valuable assets or find someone to guarantee the loan. Instead of relying on a cosigner’s credit history or collateral, lenders base their decisions on factors like your academic record, field of study, the reputation of your university and your future earning potential. While these foreign education loans may have slightly higher interest rates compared to traditional loans, they provide a way to overcome the traditional barriers to financing an education.

Benefits of no-cosigner, no-collateral student loans:

  • More accessibility: These student loans open up financing options when you don’t have a cosigner or assets to pledge.
  • Independence: You can secure funding on your own, without relying on family members or friends to take financial responsibility.
  • Simpler application process: There’s no need to verify a cosigner’s credit or go through the complexities of securing collateral, making the process faster and more straightforward.
  • Funds for more than just tuition: Loan funds may cover housing, books, health insurance and other necessary living expenses while studying.
  • A step toward building credit: Making loan payments on time can help you establish a credit history in the U.S. or Canada, which can be beneficial for future financial needs.

How to compare no-collateral, no-signer loans

When you start to look for international education loans without collateral, you’ll find a variety of different products. Consider these factors to find the best loan:

  • Student loan interest rates: The interest rate determines how much you’ll pay over the life of your loan. Compare fixed rate student loans, which remain the same throughout the repayment period, to variable rates, which fluctuate based on market conditions and may increase over time. Even a small difference in interest rates can significantly impact your total repayment amount. Some lenders also offer discounts for setting up automatic payments, so be sure to check for any rate-reduction programs.
  • Repayment terms: Different lenders offer different repayment structures. Look at how many years you’ll have to repay the loan and whether there are flexible options, such as deferred repayment (which lets you start paying after graduation) or interest-only payments while you’re still in school.
  • Student loan amounts: Consider whether the loan covers the full cost of your education or only a portion. Some lenders provide funding for tuition only, while others allow you to borrow additional money for housing, books, health insurance and living expenses.
  • Eligibility requirements: Each lender has different requirements. Some focus on specific schools or programs, while others may consider your country of origin, academic record or future earning potential when determining eligibility.
  • Fees and hidden costs: Beyond interest rates, some loans come with extra charges that increase the overall cost. Look for application fees, required insurance, origination fees, late payment penalties and prepayment fees (if you pay off your loan early). Look at the annual percentage rate (APR) – a broader measure of the cost of borrowing money than the interest rate alone. It includes the interest rate and all fees, expressed as an annual percentage.  The APR provides a way to conduct an apples-to-apples comparison of loans (and their cost) available to you.
  • Customer support: A good lender should provide clear communication and support throughout the borrowing process. Look for reviews from other international students to see if the lender is responsive and helpful when students have questions or run into repayment challenges.
  • Extra benefits: Some lenders offer perks beyond just funding. Look for added benefits like career support, internship/job placement resources, financial literacy tools or visa assistance. These services can make a big difference in helping you succeed both during and after your studies.
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MPOWER Financing: Loans without collateral or cosigners

MPOWER Financing is an international student loan company that provides study loans without collateral or cosigners for global citizens pursuing a postgraduate degree in the U.S. or Canada. Founded by two international students who understand the challenges of financing an education, MPOWER offers financial assistance for postgraduate students, along with loans for DACA students and refugees/asylees.

MPOWER offers:

  • Competitive interest rates: MPOWER fixed-rate student loans are inflation-proof and are available at competitive 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. For loans in Canada, funds can typically be used for tuition and university-invoiced expenses.
  • Fast 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.

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FAQs 

What’s an international education loan without collateral?

A no-collateral loan allows international students to borrow money for their education without pledging assets like property or savings as security. Instead of looking at how much wealth a student has, lenders evaluate factors such as academic performance, field of study and future earning potential to determine eligibility.

Is there financial aid for international students in master’s or doctoral programs?

Always explore scholarships and grants first, but if you still have a financing gap, many lenders offer no-collateral loans for postgraduate programs such as master’s, MBA and Ph.D. degrees. These doctoral or master’s program loans help cover tuition, living expenses and other costs without requiring collateral or a cosigner.

Do no-collateral loans have higher interest rates than traditional loans?

Possibly. Since lenders take on more risk by not requiring collateral or a cosigner, interest rates may be slightly higher. However, some lenders offer discounts for automatic payments, which can help reduce costs.

Can I apply for a no-collateral loan before being accepted to a university?

Some lenders allow you to check your eligibility before formal acceptance, but most require proof of admission before they approve and disburse the loan.

What happens if I have trouble repaying my no-collateral loan after graduation?

Many lenders offer flexible repayment options, but if you anticipate difficulty making payments, reach out to your lender as soon as possible to discuss available options.


*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.

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