No credit? No problem. How Nepali students can qualify for U.S. loans
If you’re a Nepali student planning to study in the U.S. or Canada, you’ve probably run into one frustrating problem – most lenders ask for a U.S. credit history, a cosigner or both. But as someone who hasn’t lived or worked in North America yet, how can you meet those requirements?
The good news is, a growing number of lenders now offer private international student loans that do not require a U.S. credit score. Some even provide no-cosigner loans based on your academic background and future earning potential. This article explains how Nepali students can qualify, what to expect and what to avoid.
Why U.S. credit history matters and why you probably don’t have one
In most traditional lending systems, a credit score tells lenders how trustworthy you are when it comes to paying back debt. These scores are based on your history of borrowing and repayment through credit cards, bank loans or utilities.
As a new international student, you likely:
- Have never lived in the U.S. or Canada
- Have no access to U.S. credit cards
- Cannot legally work full time before or during your program
- Rely on savings, family support or scholarships
Without a credit score, many traditional banks or private lenders will not approve you for a loan. Or they’ll require a cosigner with U.S. citizenship or permanent residency. That’s where alternative options become essential.
How international lenders approve loans without credit history
Some lenders now use nontraditional methods to assess your ability to repay a loan. They focus on your future, not your past.
These lenders evaluate:
- Your university and program: Highly ranked schools and in-demand degrees like engineering or data science often signal strong job prospects.
- Your graduation timeline: Lenders want to know when you’ll finish your degree and start working.
- Your academic background: Strong performance in previous studies or test scores may help.
- Your visa type: For U.S. students, an F-1 visa with optional practical training (OPT) eligibility signals work potential.
- Your repayment plan: Clear repayment terms, grace periods and budgeting tools show you’re serious.
You may still need to provide some documents, such as:
- A valid passport and student visa
- University admission letter
- Estimated cost of attendance
- Proof of current funding or support
But you will not need to provide a U.S. credit score or a financial guarantor if the loan is truly no-cosigner and credit-free.
Nepali students can qualify with no credit history
MPOWER Financing offers no-credit-history, no-cosigner student loans designed specifically for international students from countries like Nepal. That means you don’t need a credit score, collateral or a guarantor to apply.
What MPOWER offers:
- Loans available to students at over 500 U.S. and Canadian universities
- Approval based on your academic potential, not your financial background
- Fixed, inflation-proof interest rates with no hidden fees
- Loan coverage for tuition, living expenses, and health insurance in the U.S.; tuition and university-invoiced expenses in Canada
- Make interest-only payments while in school, then a grace period after graduation before full repayment begins
- Extra support through the Path2Success program, which includes visa guidance, resume support and career prep
You can apply entirely online and receive a decision quickly. If approved, MPOWER sends the funds directly to your university so you can focus on your studies.
For Nepali students who want to invest in their education without depending on family assets or credit history, MPOWER offers a clear and accessible path forward.
What to look for in a no-credit-history student loan
Not all lenders offering loans without a credit score are transparent. Some education loan providers may still ask for a cosigner, charge high hidden fees or start repayment during your studies.
Here’s some guidance on what to consider when comparing lenders:
|
Feature |
What to look for |
|
Collateral or cosigner |
Not required |
|
Approval requirements |
Based on school, program and visa |
|
Interest rate type |
Fixed rates are easier for planning |
|
Loan coverage |
Tuition, housing and insurance (U.S. only) |
|
Repayment start |
Repayment during school: Varies by lender; often deferred, or small, fixed payments or interest-only After graduation: A grace period is common but not guaranteed; confirm length in your offer terms |
|
Transparency |
Clear terms with no surprise charges |
|
Support resources |
Help with budgeting, job search and more |
Why this matters for Nepali applicants
- Financial independence: You can pursue a degree without placing pressure on your family or needing to secure a guarantor from abroad.
- More flexible choices: With funding in place, you can choose internships based on long-term career value, not short-term income.
- Safer for your family: There’s no risk of property loss or intergenerational debt if plans shift or jobs take longer to secure.
No-cosigner student loans are not just about money. They’re about opportunity and peace of mind.
