Getting an international student loan without a cosigner for Indian students

Embarking on an educational journey abroad is an exciting endeavour. Yet, as an Indian student in the U.S. or Canada, securing the necessary funds can be a significant challenge. Federal funding is typically not available for foreign students, and scholarships are highly competitive. There are plenty of private lenders willing to loan you money, but they usually require a cosigner – someone who’ll be responsible to pay if you cannot. That leaves no-cosigner international student loans as one of your better options. This brief overview looks at the various financing possibilities for Indian students, covers the details of an international student loan without a cosigner and explores ways to get one.

1. Total number of Indian students in the U.S. (2023-2024):Indian students now form the largest international student group in the U.S., with a record-breaking 331,602 students in 2023-2024. This surge reflects a growing trend of Indian students seeking world-class education and better career opportunities in the U.S.Source: IIE Open Doors 2024 Report
2. Year-over-year growth – Indian students in the U.S. (2022-2023 to 2023-2024):The number of Indian students in the U.S. increased by 23% in just one year, highlighting the strong demand for American education. This is the highest annual growth rate in over a decade, showing a clear shift in global mobility trends.Source: IIE Open Doors 2024 Report
3. The proportion of Indian students among all international students:Indian students now make up 29.4% of the total 1.1 million international students in the U.S. This means that nearly one in three international students in the U.S. is from India, further cementing their dominance in global student mobility.Source: IIE Open Doors 2024 Report

As an Indian student trying to study abroad on a budget, you have several financial assistance options in the U.S. or Canada:

• Private loans: Offered by banks, credit unions and specialised lenders, these loans can cover expenses such as tuition, housing and books. However, many private lenders require some kind of collateral or a cosigner – typically a U.S. or Canadian citizen or permanent resident – to mitigate their risk. These educational loan requirements can be a significant barrier if you don’t have a qualified cosigner in North America.
• Institutional loans: Some universities offer loans directly to students. These loans often come with favourable terms but may have limited availability and specific eligibility criteria. It’s essential to check with your university’s financial aid office to see if such loans are available for Indian students.
• Loans from India: Financial institutions in India might offer foreign education loans for studying abroad. When considering these loans, it’s crucial to compare currency exchange rates, transaction fees and repayment plans to ensure they align with your financial situation. Many major Indian banks offer education loans for studying abroad, though they may require collateral in the form of property or fixed deposits.

Given the challenges associated with finding a cosigner, international student loans without a cosigner have become vital resources for many Indian students.

International student loans without a cosigner provide financial assistance without the need for a U.S.- or Canada-based cosigner. These loans assess your eligibility based on factors such as academic success, career path and possible future earnings. This approach allows lenders to focus on your potential rather than your current financial status.

When considering applying for an international student loan without a cosigner, consider the following factors:

• Loan term: Understand the length of the student loan and how it aligns with your financial plans.
• Repayment options: Look at the repayment requirements such as interest-only payments while in school or grace periods before payment begins after graduation.
• Fees: Be aware of any origination fees, late payment penalties or prepayment penalties.
• Lender reputation: Research the lender’s history, customer reviews and support services to ensure they are reputable and supportive.

No-cosigner private student loans can cover a variety of educational expenses in the U.S., including tuition, fees, housing, books, meal plans, transportation and other related costs. In Canada, loans typically cover tuition and any other university-invoiced expenses.

Securing an international student loan without a cosigner involves several steps for Indian students:

1. Research lenders: Identify student loan lenders that offer international student loans without a cosigner. Pay attention to their eligibility criteria, loan terms and interest rates. Look for lenders who have experience working with Indian students.
2. Compare student loan products: Evaluate different loan options to find the one that best fits your needs. Compare factors such as student loan interest rates, repayment terms and additional benefits. Also compare these options with the interest rates offered by banks in India.
3. Complete the application: Gather the necessary documents, which may include proof of enrolment, academic transcripts and identification. Indian students will typically also need to provide passport details, visa information, and documented proof of previous education in India. Fill out the application accurately and thoroughly.
4. Await approval: After submission, the lender will review your application. If approved, you’ll receive a loan offer detailing the terms and conditions.
5. Accept the loan: Review the loan offer carefully. If it meets your needs, accept the terms to proceed with disbursement.

Throughout this process, maintain open communication with the lender and promptly provide any additional information they may require. It’s also important to consider how currency conversion might affect your repayment when planning your finances.

MPOWER Financing specialises in providing student loans to international students, including those from India, without requiring a cosigner or collateral. MPOWER offers flexible student loan amounts, competitive fixed interest rates and an easy application process. With over 500 eligible U.S. and Canadian schools, MPOWER is dedicated to helping Indian students achieve their educational goals.

Benefits of working with MPOWER include:

• Tailored loan amounts: Borrow from US$2,001 (INR 1,66,700) to US$100,000 (INR 83,33,000) to cover your educational expenses in the U.S. including tuition, housing, books, computer and other education-related costs. In Canada, loans can only be used towards tuition and any other university-invoiced expenses.
• Competitive fixed interest rates: Enjoy the stability of fixed rates that are inflation proof and will never increase.
• Easy application process: Experience a quick and straightforward application with no need for a cosigner and no upfront costs.
• Quick conditional offer: Receive a conditional loan offer in a matter of days.
• 500+ eligible schools: Access funding for a wide range of institutions across the U.S. and Canada.
• Additional benefits and services: Take advantage of free visa support letters, career services and the opportunity to build your U.S. credit history through on-time payments.

By focusing on your future potential, MPOWER helps Indian students to pursue their educational dreams without the need for a cosigner.