We’ve funded 20,000+ educational dreams — act now and fund yours with loans up to US$100,000! We’ve funded 20,000+ educational dreams — act now and fund yours!

7 ways for Bangladeshi students to repay student loans faster

While student loans can be a useful tool for paying for postgraduate studies in the United States, they can become a major financial burden after you graduate. If you’re a Bangladeshi student ready to get that monthly student loan payment out of your life, there are ways to pay off student loans faster.

Accelerating your debt repayment might not be easy, but it could be worth the sacrifices in the end if you’re able to get rid of your student loans ahead of schedule.

Experience financial empowerment

Get the financial information you need to take charge of your future

Read More

Key statistics

  1. Types of U.S. scholarships for Bangladeshi studentsFor Bangladeshi students seeking to study in the U.S., scholarships like the Fulbright Foreign Student Program offer full funding for Master’s or doctoral programs, while the Humphrey Fellowship Program focuses on professional development for mid-career professionals. U.S. universities, such as Harvard and Stanford, also offer various scholarships, including needs-based and leadership-focused awards.Source: Masters Portal – Scholarships for Bangladeshi Students
  2. Total number of Bangladeshi students in the U.S. (2023/2024):In 2023-2024, more than 17,000 Bangladeshi students were enrolled in US institutions, which is an all-time high. This is a 26% increase from the previous academic year.Source: opendoorsdata.org
  3. Proportion of Bangladeshi students among all international students:The total number of international students in the United States for the 2023/24 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

How to pay off student loans fast

If you’re wondering how to pay off student loans fast as a Bangladesh student, here are some strategies that could help:

  1. Refinance for a lower interest rate
  2. Pay more than the minimum payment
  3. Find a job with student loan assistance
  4. Make biweekly payments
  5. Ask for a raise or work a side hustle
  6. Reduce your living expenses
  7. Put a cash windfall toward your loans

1. Refinance for a lower interest rate

If you’re looking to pay off your student loans faster, you might consider refinancing your international student loans with a lender based in the United States. If you refinance student loan debt, you could score a lower interest rate.

Since less of your money will be going to interest, you might be able to afford extra payments on your refinanced loan. Many refinancing lenders in the U.S. don’t charge a prepayment penalty, so you probably won’t have to worry about racking up any prepayment fees either.

Some lenders also offer an additional rate discount in specific instances. MPOWER Financing, for example, offers a 0.25% rate cut if you put your refinanced student loan on auto pay.

Taking these steps to reduce your interest rate as much as possible could help make your loan more affordable as you work to pay it off faster.

2. Pay more than the minimum payment

When you borrow a student loan, you usually agree to pay it back with fixed monthly payments over a certain number of years. But if you pay more than the minimum amount due each month, you can shave months or even years off your repayment term.

For example, let’s say you took a US$35,000 (BDT 3,894,450) loan at a 10.00% rate. If you pay US$463 (BDT 51,518) per month, you’ll get rid of that debt in 10 years. But if you can bump your monthly payment up to US$513 (BDT 57,082) ($50 more per month), you’ll get out of debt a year and a half faster and save nearly US$3,500 (BDT 389,445) in interest. If you can pay US$563 (BDT 62,645) per month, you’ll get rid of your debt two years and eight months faster and save nearly US$6,000 (BDT 667,620) in interest charges.

Before setting up your increased payments, it could be worth reaching out to your loan servicer to make sure it’s applying the payments correctly. You want to make sure your payments are going toward your principal balance rather than being saved for future bills.

3. Find a job with student loan assistance

Some companies offer student loan assistance benefits to their employees. Google, for example, will match up to US$2,500 (BDT 278,175) in student loan payments annually for its employees. And technology company Nvidia will pay up to US$6,000 (BDT 667,620) per year in student loan assistance with a lifetime limit of US$30,000 (BDT 3,338,100).

If you’re looking for a new job, consider prioritising a company that will help you pay back your student loans. Note that international student loans are not always eligible for this benefit – you might need to refinance your student loans with a U.S.-based lender to qualify for employer-sponsored student loan assistance.

4. Make biweekly payments

If you’re making monthly student loan payments, consider switching to biweekly payments. In other words, split your monthly bill in half and pay that amount every two weeks. Instead of paying US$200 (BDT 22,254) once per month, for example, you’d pay US$100 (BDT 11,127) every two weeks.

You’ll still pay the same amount every month, but because of how the calendar works out, you’ll end up making a full extra payment every year. Making biweekly payments on your student loans is an easy way to pay off your debt faster without much extra effort on your part.

5. Ask for a raise or work a side hustle

Making extra payments on your student loans will be difficult if you don’t have any room in your budget. If you’re committed to getting rid of your debt ahead of schedule, search for ways to increase your income.

You could ask for a raise from your employer or work a side hustle, such as driving for a ride-sharing service or offering freelance services online. For Bangladesh students in the U.S. on F-1 visas, remember that you can work up to 20 hours per week on campus during term time, which can provide additional income for loan repayment. If you can increase your income, you can apply that extra money toward paying down your student loan debt.

6. Reduce your living expenses

Along with increasing your income, consider ways to decrease your expenses. Freeing up more room in your budget will help you afford extra payments on your student loans.

Consider downsizing to a cheaper apartment or moving in with a roommate or two. If you often eat out at restaurants, try meal planning and cooking at home. And if your car payment is a stretch, consider trading in your car for a less expensive vehicle.

Take a look at your monthly expenses to identify areas where you can cut back. Even an extra US$50 (BDT 5,564) or US$100 (BDT 11,127) per month could help you pay off your student loans faster.

Budgeting your money is a lot easier when you have a bank account in the country where you study. That way, you can access your money without excess foreign transaction fees and keep an eye on your spending. Approved MPOWER customers can get a U.S. bank account and a credit card prior to their arrival in the country. Canadian students can check out TD Bank’s Student Package*, a bank account designed specifically for your needs.

*TD is a partner of MPOWER Financing

7. Put a cash windfall toward your loans

If you receive an unexpected windfall of cash, such as a bonus at work or an inheritance, it might be tempting to spend it on something fun. But if you’re committed to getting rid of your student debt as fast as possible, consider putting that windfall toward your student loans.

If you need a boost of motivation, use a student loan calculator to see how much an extra payment would save you. By seeing how much you could save in interest, along with the time you could shave off your debt, you might feel inspired to stick to your debt repayment goals.

MPOWER Financing student loan

A loan based on your future earnings

Apply Now

FAQs

How can Bangladeshi students manage loan repayments if they return home after graduation?

Bangladesh students returning home should establish a reliable international payment method before leaving the U.S. to avoid missing payments due to transfer complications. Consider maintaining a U.S. bank account with sufficient funds for several months of payments while you establish your career in Bangladesh. Be mindful of Bangladesh’s foreign exchange regulations, which limit personal outward remittances to US$12,000 (BDT 1,335,240) annually, and work with your loan servicer to create a payment plan that accommodates these constraints while avoiding default.

What are the most effective budgeting strategies for Bangladesh students repaying loans?

Bangladesh students should adopt the 50/30/20 budgeting approach, allocating 50% of income to necessities, 30% to discretionary spending, and 20% to debt repayment and savings. Use budgeting apps to track expenses in both dollars and taka, which helps identify opportunities to redirect funds toward loan repayment. Create a realistic food budget by cooking traditional Bangladesh meals at home rather than eating out, potentially saving US$300-400 (BDT 33,381-44,508) monthly that can be applied directly to loan payments.

How can Bangladeshi students balance loan repayment with sending money to their families back home?

Prioritize loan repayment first to avoid damaging your credit score and future financial opportunities, while maintaining open communication with family about your financial obligations. Consider setting up a smaller, consistent monthly remittance to family in Bangladesh rather than larger irregular amounts, which helps with budgeting for both loan payments and family support. Utilize cost-effective money transfer services that offer favorable exchange rates and lower fees than traditional banks, saving approximately 2-3% on each transfer that can instead go toward loan repayment.

What visa considerations should Bangladesh students be aware of when focusing on loan repayment?

Bangladesh students should fully utilize optional practical training (OPT) after graduation to maximize earning potential in dollars, as salaries in the U.S. typically far exceed what you would earn in similar positions in Bangladesh. Understand how visa status affects employment options – F-1 visa holders can work on-campus or through authorized CPT/OPT, while H-1B status allows full-time employment with sponsoring companies.

What specific tax benefits can Bangladesh students claim for student loan interest?

Bangladesh students working in the U.S. may deduct up to US$2,500 (BDT 278,175) in student loan interest annually on their U.S. tax returns if they meet income requirements and have eligible loans. Those who return to Bangladesh should consult with a tax professional about potential deductions under Bangladesh’s Income Tax Ordinance, which may allow for certain educational expense deductions depending on your employment situation. Keep detailed records of all loan payments and interest statements, as documentation requirements differ between U.S. and Bangladesh tax systems, and improper claims could result in penalties from either tax authority.


*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.

2025 © MPOWER Financing, Public Benefit Corporation NMLS ID #1233542

U.S. office India office
1101 Connecticut Ave. NW Suite 900, Washington, DC 20036 The Cube at Karle Town Center, 9th Floor, 100 Ft, Nada Prabhu Kempe Gowda Main Road, Next to Nagavara, Bengaluru, Karnataka 560045, India

Apply Now