Education student loans for Pakistani students studying abroad

Attending a college or university in the U.S. or Canada is an exciting prospect for many Pakistani students. However, the high cost of education in these countries can be a big obstacle to getting a degree. Most Pakistani students aren’t eligible to receive financial aid or loans from the U.S. or Canadian governments. That means higher education student loans are often the best option for financing your education. This guide offers a brief overview of the challenges you may encounter when applying for loans, the types of college education student loans available, and the benefits of no-cosigner loans.

Key statistics

1. Total number of Pakistani students in the U.S. (2023-2024):In the 2023–2024 academic year, over 11,000 Pakistani students were enrolled in the United States – a record high and an increase from the previous year. This placed Pakistan 16th globally for student enrolment in the U.S.Source: Tribune Pakistan
2. Year-over-year growth – Pakistani students in the U.S. and Canada (2022-2023 to 2023-2024):Leading study destinations are witnessing significant increases in Pakistani student enrolments, with particularly high demand for postgraduate studies. In the United States, there were 10,165 Pakistani students in 2022-2023, marking a 16% increase from the previous year, while in Canada, the number surged to 4,750 students in 2023, reflecting a 101% increase from the previous year..Source: ICEF Monitor
3. The proportion of Pakistani students among all international students:The total number of international students in the United States for the 2023-2024 academic year was 1,126,690. Pakistani students accounted for 1.0% of this total, with 10,988 Pakistani students enrolled..Source: IEE Open Doors 2024

As a Pakistani student in the U.S. or Canada, you’re likely to face several hurdles when you apply for financial aid or loans:

• Limited eligibility: Many loan programmes backed by federal governments are available only to domestic students, which means Pakistani students have fewer options. There are some scholarships and grants available for Pakistani students, but these are often limited and highly competitive.
• Higher interest rates: Lending institutions often consider international students to be a higher risk, so they often charge higher interest rates when lending money. Interest rates for Pakistani students may also be affected by the lack of a credit history and the lender’s uncertainty about their prospects for employment after graduation.
• Lack of a cosigner: Most lenders require you to have a cosigner. This must be a citizen of the U.S. or Canada with a good credit history and the financial ability to pay back your loan if you cannot. If you don’t have relatives or family friends who live in the country where you want to study, this can be a major obstacle to qualifying for higher education student loans.

Despite the challenges of finding financial aid or loans, you’ll likely have several good options for education student loans.

• Private student loans: These are loans offered by private lenders and banks that specialise in helping Pakistani students finance their education. You can usually use a private loan to pay for all aspects of your education in the U.S., including tuition, living expenses and other academic costs. In Canada, a private student loan can be used to pay for tuition and other expenses invoiced by your school. The terms, interest rates, fees and educational loan requirements vary widely, so it’s important to closely compare offers from different lenders. While most private lenders require a cosigner when lending to Pakistani students, some lenders make it possible to finance your education without a cosigner.
• University-sponsored loans: Some universities offer loan programmes designed specifically for Pakistani students. These loans may have more favourable terms, like lower interest rates or flexible repayment options, and they may not always require a cosigner.
• Home country loans: If a loan from a U.S. or Canadian lender is not an option, you might look for loans from banks in Pakistan. If you have an established credit history or financial relationships at home, you may qualify for loans with lower interest rates and better terms than products from lenders in another country. Be sure to check whether the lender in Pakistan will allow you to defer payment until you have completed your studies abroad.

If you don’t have relatives or close family friends in the U.S. or Canada who are willing to cosign your loan, no-cosigner loans can be a great option. Companies that offer no-cosigner loans base their lending decisions on your academic history and career prospects rather than your financial status or credit history.

No-cosigner international student loans offer several benefits over other financial options.

• Financial independence: With a no-cosigner loan, you won’t need to ask friends and family in the U.S. or Canada to take a financial risk by cosigning your loan. No-cosigner products allow you to get financing based on your own potential and future career earnings.
• Establishing a credit history: Making timely payments on your no-cosigner loan can help you establish a credit history and strong credit score in the country where you’re studying.

MPOWER Financing is an education loan company that provides no-cosigner loans and a variety of visa, career and financial services for Pakistani students. MPOWER helps promising students who find it difficult to get financing from traditional lenders because they don’t require you to have a cosigner, credit history or collateral when taking a loan. MPOWER bases lending decisions on your academic success and career path, using innovative, forward-looking credit models.

Loans from MPOWER can be as low as US$2,001 (PKR 572,886) and as high as US$100,000 (PKR 28,630,000) total. With an easy application process, fast approval decisions and interest-only payments while you’re in school, you can use your loan funds to pay all your education costs, including living expenses in the U.S.

Along with financial assistance for postgraduate students, MPOWER offers scholarships, visa support, career services and other student loan services designed to help you succeed in your studies and in your transition to the workplace.