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International student loan refinancing: What to know and how it works

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For many, taking out graduate student loans for international students is a necessity to finance a postgraduate education in the U.S. or Canada. But once you’re out of school, your financial landscape changes – and so should your loan.

That’s where international student loan refinancing comes in. Refinancing can help you lower your interest rates, reduce monthly payments or release your cosigner. But it’s not as widely available – or as straightforward – as refinancing options for U.S. citizens.

Here’s how it works and what to watch for.

What is student loan refinancing?

Refinancing replaces your existing student loan(s) with a new loan that has different terms – usually a lower interest rate or a longer repayment period.

For international graduates, refinancing can:

  • Lower your interest rate, especially if your credit or income has improved since graduation
  • Reduce monthly payments, making it easier to manage cash flow while you’re job searching or starting out in your career
  • Release your cosigner, allowing your parent or family member to use their credit for another family member or retirement
  • Shorten your repayment timeline, helping you pay off debt faster and free up income for other priorities

Refinancing doesn’t erase private student loans for non U.S. citizens – it restructures them to better fit your current circumstances.

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Challenges of refinancing for international graduates

Unlike domestic borrowers, international graduates face unique hurdles:

  • Limited access to lenders: Many refinancing lenders in the U.S. require U.S. citizenship or permanent residency.
  • Cosigner requirements: Even lenders that serve international student loans in the U.S. may expect a U.S.-based cosigner.
  • Visa-related income uncertainty: Some lenders worry about job stability for graduates on optional practical training (OPT), STEM OPT or H-1B visas.
  • Credit history gaps: Without a long U.S. credit history, some lenders hesitate to offer lower rates.

These challenges mean that not every international graduate will find refinancing immediately available. But that doesn’t mean it’s impossible.

Options for refinancing as an international borrower

If you’re exploring refinancing, start by:

  • Building your credit profile: If you’ve been working in the U.S. or Canada after graduation, consistent payments on any loans or credit cards can boost your creditworthiness.
  • Researching lenders who specialize in international student loans: Some lenders and private student loan providers understand the unique challenges of international graduates and offer flexible terms.
  • Being prepared with documents: Visa status, employment history and proof of graduation all strengthen your application.

For many graduates, refinancing is easier after securing a job in the U.S. or Canada – especially in high-demand fields like STEM or business.

Insert Image alt text hereGraduate and advisor discussing loan repayment graph in a modern office

Where MPOWER Financing fits in

MPOWER Financing recognizes that refinancing isn’t just about better interest rates – it’s about unlocking your next chapter as an international graduate.

For refinancing options, MPOWER offers no-cosigner student loans. These loans:

  • Don’t require a cosigner or collateral – removing major barriers from day one
  • Offer fixed rate student loans with clear, transparent terms, so there are no surprises
  • Allow you to release your cosigner, which can really help your family use their credit for a sibling or retirement
  • Include access to Path2Success, a support platform with job search tools, visa guidance and budgeting resources

For many international graduates, starting with a flexible, transparent personal student loan without cosignerfrom MPOWER can help reduce payment costs.

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FAQs

Can international graduates refinance their student loans in the U.S.?

Some lenders offer refinancing for international graduates, but many still require a U.S.-based cosigner or permanent residency.

Why might refinancing be a challenge for international students?

Limited U.S. credit history, cosigner requirements  and lender rules around citizenship often make it harder to qualify for refinancing.

What’s the difference between refinancing and consolidation?

Refinancing means replacing one or more loans with a new one with better terms. Consolidation combines loans into one, but may not lower rates.

Is refinancing always a good idea for international graduates?

Not always. It can lower payments or interest, but if your visa status is still temporary or your job is new, refinancing might be harder to secure with a student loan for non-citizens.

What should I do if I’m not eligible for refinancing?

Focus on consistent payments to build credit, track visa transitions and compare lenders that consider your field and future earning potential.


*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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