Student loan programmes for Bangladeshi students

For Bangladeshi students, student loan programmes offer a practical solution to cover expenses, but navigating the various options can be challenging. This article breaks down key loan programmes for Bangladeshi students, student loan refinancing, and other financial aid opportunities, helping you make informed decisions about financing your studies.

1. Total number of Bangladeshi students in the U.S. (2023-2024):In 2023–2024, more than 17,000 Bangladeshi students were enrolled in U.S. institutions, which is an all-time high. This is a 26% increase from the previous academic year.Source: opendoorsdata.org
2. Year-over-year growth – Bangladeshi students in the U.S. and Canada (2022-2023 to 2023-2024):Canada’s popularity as a study destination for Bangladeshi students has grown significantly. In 2023, over 15,800 Bangladeshi students chose Canada, a 150% increase since 2018. Meanwhile, the number of Bangladeshi students studying in the United States reached an all-time high, with more than 17,000 currently enrolled in U.S. institutions.Source: opendoorsdata.org, Government of Canada
3. The proportion of Bangladeshi 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. Bangladeshi students accounted for 1.5% of this total, with 17,099 Bangladeshi students enrolled.Source: IIE Open Doors 2024 Report

Bangladeshi students typically don’t qualify for government loans, such as U.S. federal student aid, so private loans and loans from Bangladesh are the most common options. The two primary student loan types available to Bangladeshi students are:

1. Private international student loans

Private student loans are issued by banks, credit unions and specialised lenders. These loans often come with strict eligibility requirements, including a cosigner, typically a U.S. or Canadian citizen or permanent resident. If you can find a cosigner, private loans can offer favourable terms, but without one, your options might be more limited.

Some education loan providers also issue no-cosigner student loans, evaluating your academic performance and potential future income rather than requiring a credit history or guarantor. These are becoming increasingly popular among Bangladeshi students, especially in fields like STEM or business, where earning potential is higher.

2. Loans from Bangladesh

There are several student loan programmes available specifically for Bangladeshi students studying abroad. Many major Bangladeshi banks and financial institutions offer education loans for overseas education. These loans can offer better interest rates or repayment terms but may come with currency exchange risks affecting the overall cost of the loan. Some Bangladeshi lenders may require collateral for larger loan amounts.

While student loan programmes are an essential part of many Bangladeshi students’ funding strategies, it’s important to explore other financial aid options to reduce the amount you need to borrow.

1. Scholarships and grants

Unlike loans, merit-based scholarships and grants don’t need to be repaid, though you may need to meet and maintain certain criteria. Many universities and private organisations offer scholarships specifically for Bangladeshi students. The Bangladesh government also has several scholarship programmes for citizens studying abroad. Applying for these awards can significantly reduce your financial burden.

2. Assistantships and work-study programmes

Many graduate students can supplement their income through assistantships or work-study programmes, which allow you to work part time while studying. These positions are often tied to academic departments and can cover part of your tuition or provide a stipend for living expenses.

3. Employer sponsorship

For students already working or those with employment lined up postgraduation, some companies offer sponsorships or loan repayment assistance programmes as part of their employment package. This is more common in STEM fields like engineering, technology and healthcare. Several multinational corporations with operations in Bangladesh may sponsor promising employees for advanced education abroad.

MPOWER Financing offers student loan programmes specifically for Bangladeshi students pursuing their education in the U.S. or Canada. Founded by international students, MPOWER understands the unique challenges faced by those studying abroad. That’s why MPOWER provides more than just flexible loan options. MPOWER also offers additional support services like career guidance, immigration assistance and financial services to help students succeed before, during and after graduation.

Here’s how MPOWER’s student loan programmes stand out:

• Flexible loan options: MPOWER provides a wide range of fixed-rate student loans, from US$2,001 (BDT 220,110) to US$100,000 (BDT 11,005,500), designed to fit the varied needs of Bangladeshi students. A 0.25% interest rate discount is available for those who opt for automatic payments.
• No cosigner or collateral required: MPOWER’s loan programmes do away with the need for cosigners or collateral, making it easier for students to secure funding. MPOWER believes in each student’s future potential and offers loans based on an applicant’s career prospects, among other criteria. Plus, timely payments help borrowers build their U.S. credit history — and there are no prepayment penalties.
• Fast, digital process: MPOWER’s student loan application process is fully online and accessible from anywhere in Bangladesh. With quick approvals, seamless disbursement, and an eligibility check that takes just 30 seconds, MPOWER helps students focus on their studies, not paperwork.
• International scholarships and holistic support: MPOWER goes beyond loans, offering international scholarships and services that cater to the specific needs of graduate students. Whether through financial services, career resources or visa support, MPOWER ensures students have the tools they need to thrive.

Once you’ve completed your studies and begun repayment, refinancing your student loan could be a smart financial move. Refinancing allows you to replace your current loan with a new one — ideally with better terms, such as a lower interest rate or longer repayment period. However, not all Bangladeshi students are eligible for refinancing, so it’s crucial to understand when and where it makes sense.

When should you consider refinancing?

• You have a strong credit history: If you’ve built a solid credit history while studying in the U.S. or Canada, refinancing can help you secure a lower interest rate, reducing your monthly payments and total loan cost.
• Your income has increased: Refinancing may make sense if you’ve secured a job with a steady income postgraduation. Lenders may offer more favourable terms based on your current financial situation compared to when you were a student.
• Your current loan has a high interest rate: If your current loan has a high variable or fixed interest rate, refinancing could help lower it. Even a small decrease in your interest rate can reduce the amount you pay in interest by thousands over the life of the loan.

Where to refinance your loan

Many private lenders offer refinancing options for Bangladeshi graduates, but it’s essential to compare lenders and terms before making a decision. Some lenders specialise in refinancing loans for international graduates, often requiring proof of income and a strong credit history in the U.S. or Canada.