Cosigner or no cosigner? What you really need to know before taking a loan
For international students, getting a student loan is never just about money – it’s about trust, timing and future risk. And one of the biggest questions that comes up during the process is: should you find a cosigner or go without one?
In theory, having a cosigner can improve your loan terms. In practice, it introduces legal, financial and emotional complexities – especially if you’re far from home, don’t have a strong network in the U.S. or Canada or aren’t sure what the future holds.
This article breaks down what you really need to know before deciding whether to apply for a loan with or without a cosigner – and what your options are either way.
What a cosigner actually does (and why lenders want one)
When a lender asks for a cosigner, they’re looking for someone to guarantee that your loan will be repaid – even if you can’t. It’s a way for the lender to reduce risk, especially if:
- You don’t have a U.S. or Canadian credit history.
- You’re new to the country and haven’t held steady employment.
- You’re pursuing a field of study with unclear earning potential.
- You’re borrowing a large amount for tuition and living expenses.
For many domestic students, a parent or close family member steps in. But for international students, finding someone who lives in the country, has strong credit and is willing to take on this responsibility is often unrealistic. This challenge is why no-cosigner private student loans have become increasingly important for international students.
The benefits and tradeoffs of using a cosigner
If you do have access to a qualified cosigner, there are a few potential advantages:
- Lower interest rates
- Higher likelihood of loan approval
- Potential access to a wider range of lenders
But the tradeoffs are significant:
- Your cosigner is legally responsible for the loan if you default.
- Missed payments can damage both your credit and theirs.
- Cosigner relationships can become strained, especially if expectations aren’t clear.
- Cosigner release (removing them later) is rare and difficult.
In short: A cosigner can unlock better terms – but having one also creates shared risk. If you’re not confident in your ability to repay, or if you don’t want to put someone else in a vulnerable position, it may not be the right path.
What if you don’t have a cosigner?
Not having a cosigner used to be a major obstacle. Today, more funding options exist specifically for students in your position. Lenders like MPOWER Financing offer loans for students without a cosigner based on academic merit, school enrollment and future potential – not credit history or collateral.
These international student loans for African students and other global learners make it easier to study abroad without leaning on family or friends back home.
The no-cosigner lending model avoids the cosigner stress altogether while still offering a realistic way to fund your education. Just make sure to:
- Confirm your school and program are eligible.
- Understand your total cost of borrowing, including interest.
- Build a repayment plan that aligns with your postgrad income and visa plans.
- Use the lender’s resources to prepare for internships or optional practical training (OPT) opportunities early.
How to make the smartest decision for your future
There’s no one-size-fits-all answer to the cosigner question. Instead, ask yourself:
- Do I have someone who is both eligible and comfortable cosigning?
- Can I get a private international student loan with reasonable terms without one?
- How confident am I in my ability to repay based on my degree and career plans?
- Will I feel more freedom – or more pressure – if someone else is on the hook for my loan?
Whether you have a cosigner or choose personal student loans without a cosigner, take time to fully understand the long-term implications. Your education is an investment, and how you fund it will shape more than just your finances – it may also shape your relationships and your options after graduation.
A better alternative for international students without a safety net
For students who want to move forward without tying someone else to their loan, MPOWER Financing offers a different kind of solution. Designed specifically for international postgraduate students, MPOWER provides:
- No-cosigner, no-collateral student loans for approved universities in the U.S. and Canada
- Fixed interest inflation-proof rates with flexible amounts (US$2,001 to US$100,000 total)
- A 100% online application focused on your potential, not your credit file
- Access to Path2Success, a career support platform that helps you maximize your job prospects after graduation
For students who can’t – or prefer not to – ask someone to cosign, MPOWER removes that barrier while offering a clear path to fund your postgraduate education.
