Understanding student loan costs for Bangladeshi students studying abroad

For Bangladeshi students planning to study abroad, understanding the cost of international student loans is a crucial step in planning their educational journey. With the rising number of Bangladeshi students choosing to study in the U.S. and Canada, student loans have become a vital lifeline, enabling them to pursue higher education and broaden their horizons. These loans are designed to cover various expenses that Bangladeshi students face abroad, from tuition fees and accommodations to textbooks and other living expenses.

The cost of student loans is more than just the initial amount you borrow, known as the principal. It also includes the interest that accumulates over the life of the loan. Interest is the primary cost of borrowing money, and it can significantly increase the total amount you end up repaying through the life of the loan. Additionally, there may be fees associated with the student loan, such as origination fees, insurance or late payment fees. As a Bangladeshi student, it’s also important to consider BDT-USD exchange rates, which could affect the total cost of your loan.

Recent data highlights the growing importance of education loans for Bangladeshi students studying abroad:

• Average cost of a master’s degree in U.S.: According to the Education Data Initiative, as of November 2024, the cost of a master’s degree typically ranges between US$44,640 (BDT 4,668,000) and US$71,140 (BDT 7,528,000), depending on the school, major and program length. On average, the cost is around US$62,820 (BDT 6,582,000). Source: Education Data Initiative – Average Cost of a Master’s Degree
• Median living expenses in popular international student cities:International students from Bangladesh looking for affordable options in the U.S. often consider cities like Raleigh, North Carolina; Pittsburgh, Pennsylvania; Houston, Texas; St. Louis, Missouri; and Atlanta, Georgia. Raleigh offers a low average tuition fee of around US$19,500 (BDT 1,900,000) and a monthly cost of living of US$1,150 (BDT 114,000), making it an attractive choice for those seeking quality education at a lower cost.Source: 8 Most Affordable Cities for Studying in the US – Shiksha

Note: Currency conversions are based on an approximate exchange rate of US$1 = 110 BDT and may vary with fluctuations in the exchange rate.

An international student loan from  MPOWER Financing offers Bangladeshi students an easy and affordable way to finance education costs independently. MPOWER loans are particularly beneficial for Bangladeshi students as they don’t require a cosigner or collateral – a common challenge with traditional Bangladeshi bank loans. This means you can obtain the funding you need for your degree on your own and avoid putting any of your family’s assets at risk. From start to finish, the MPOWER loan process is fully digital, making it convenient for Bangladeshi applicants to apply from anywhere in Bangladesh.

MPOWER offers loans ranging from US$2,001 (BDT 2.20 lakhs) to US$100,000 (BDT 1.10 crore) with fixed and competitive interest rates. Student loans come with a fixed rate starting as low as 9.99% (11.16% APR). Our lowest rate includes a 0.25% auto pay discount.

Those eligible for an MPOWER student loan are:

• Graduate students about to begin a one-year or two-year program
• An undergraduate or graduate student within two years of graduating
• An international student, DACA recipient, U.S. citizen, refugee or asylum-seeker
• Admitted to or attending one of our 500+ eligible schools in the U.S. or Canada

Navigating the world of student loans can be daunting, especially for Bangladeshi students studying in unfamiliar territories like the U.S. or Canada. Traditional Bangladeshi banks often require extensive collateral or a cosigner, making it difficult for students to secure the necessary funds for their education.

When considering a private international student loan, it’s essential to understand the real cost. This includes the principal amount, the interest rate, applicable fees (application and insurance) and the loan term, which combined are expressed as the annual percentage rate (APR). An APR provides a useful “apples-to-apples” metric of total loan costs, expressed as an annual percentage, that can be compared across available loan products and providers.

The interest rate is the primary cost of borrowing money and is either fixed or variable. A fixed-rate student loan remains the same throughout the life of the loan, providing predictable monthly payments. A variable rate, on the other hand, changes based on market conditions, meaning your repayments could increase or decrease over time. Most of the indexed rates on which these loans are based have risen more than 5% over the last few years.

For Bangladeshi students, the stability of fixed-rate loans can be particularly valuable given the historical volatility of the BDT against major currencies.