Private education loan lenders for Bangladeshi students

Studying in the U.S. or Canada is a dream for many Bangladeshi students. However, the cost of studying in these countries can make it difficult to afford an education, especially since Bangladeshi students don’t have access to the same types of federal financial aid as U.S. or Canadian students. That’s where private education loan lenders can make a difference. These lenders can be banks, credit unions and other financial institutions that offer a variety of loans that can help when your personal savings and family contribution won’t cover the cost of education.

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

There are two types of private education loan lenders in the U.S. and Canada: lenders that provide loans with a cosigner and lenders that offer no-cosigner loans.

Student loans with a cosigner

Since most Bangladeshi students don’t have an established credit history in the U.S. or Canada, they represent a greater risk for private lenders. Because of this, many lenders require Bangladeshi students to have a cosigner. A cosigner is a U.S. or Canadian resident with good credit, a reliable source of income and who’s willing to make payments for a time or to repay the loan in full if you cannot. While some Bangladeshi students have relatives or family friends who are willing to be a cosigner, the cosigner requirement can be a barrier for many students.

Student loans without a cosigner

Some financial companies offer no-cosigner loans. These private education loan lenders are willing to take your previous academic success and your future income potential into account when deciding whether to loan you money. They may also look at your field of study, the reputation of your university and other factors that aren’t related to your financial status. When you get an education student loan without a cosigner, you can manage your loan independently, avoid jeopardising the credit scores of your friends or family and begin building your own credit history in the country where you’re studying.

Follow these tips to identify lenders willing to offer loans with or without a cosigner to Bangladeshi students.

• Search the web: The internet is a great resource when seeking lenders for Bangladeshi student loans services. Here are a few sites to check out: IEFA.org, Internationalstudentloan.com, Internationalstudent.com.
• Colleges and universities: Be sure to check with the schools where you hope to study. Many will have resources dedicated to helping Bangladeshi students find help to finance their education.
• Consult your network: A great place to start looking for private education loan lenders is to ask your friends and family who’ve taken out loans. Be sure to ask what they liked or disliked about each lender, how convenient the application process was and how helpful the lender was during the repayment process. Connecting with other Bangladeshi students who have successfully secured loans can provide valuable insights.
• Look for loans in Bangladesh: The Bangladeshi government or Bangladeshi financial institutions may offer loans for students who wish to study overseas. Check with major Bangladeshi banks that have special education loan programmes for studying abroad.
• Read reviews: Once you’ve narrowed your choices to several lenders, read reviews to get the opinions and experience of previous customers. Look specifically for reviews from Bangladeshi students to understand their experiences.

As you search for a private education loan lender, you’ll find a wide variety of companies offering different types of loan products. Here are the things you want to consider as you decide which lender is right for you.

• Interest rates: Private education loan rates vary widely. The interest rate and repayment terms are two critical elements to review. Fixed interest-rate loans offer predictable payments that will be the same from start to finish and are inflation-proof, while variable-rate loans will adjust the interest rate as market conditions change. That may allow you to pay less now, though future payments may rise causing you to pay more over the life of the loan. When comparing rates, consider how they compare to education loan rates offered by Bangladeshi banks.
• Term of the student loan: This is how long you have to pay it back. A standard repayment term is 10 years, but different lenders offer different terms. A shorter term will make your payments higher, but you’ll get out of debt sooner and save on overall interest. A longer term means smaller payments, but a higher total cost for your loan.
• Repayment options: Some lenders will require that you begin making payments immediately, while others will allow you to defer payments or make interest-only payments until you’ve graduated. It is important to note that interest will continue to accrue even if you defer payments, so you will pay more over the life of the loan.
• Fees: Private education loan lenders charge a variety of fees such as origination fees, application fees, insurance fees and may have prepayment penalties. Be sure you understand the reason for each fee and add it to the total cost of the loan as you compare options. Also consider currency conversion fees that may apply when transferring money from Bangladesh for repayments.

MPOWER Financing is an education loan company that’s transforming the way Bangladeshi students secure funding for postgraduate education. Unlike traditional lenders that require cosigners collateral or a U.S. credit history, MPOWER evaluates students based on their future potential, making education financing more inclusive and accessible.

Here’s what you get when you choose MPOWER for an international student loan without a cosigner.

• Fixed interest rates with discounts: MPOWER loans come with transparent, fixed interest rates on loans ranging from US$2,001 (BDT 220,110) to US$100,000 (BDT 11,005,500), helping you plan your budget with confidence. When you enrol in automatic payments, you can qualify for a 0.25% interest rate discount, lowering your total repayment costs. Plus, you’ll never have a prepayment penalty for repaying your loan early.
• A fast and easy process: MPOWER offers a digital process that makes applying for a loan fast and easy. If you qualify, you’ll get a conditional loan offer quickly, too.
• Loans at hundreds of top-ranked schools: MPOWER offers loans for studies at 500+ U.S. and Canadian schools.
• Benefits beyond financing: MPOWER is committed to your long-term success. Their Path2Success programme offers career development resources, including resume-building workshops, job search assistance and networking opportunities. Additionally, MPOWER provides visa guidance and scholarships, ensuring Bangladeshi students receive support at every stage of their journey.