Can Indian students get an education loan without a cosigner?

If you’re one of the hundreds of thousands of Indian students studying in the U.S., you might be worried about how to finance your education.

Schools in the U.S. can be expensive, depending on the type of school and whether you are an in-state or out-of-state student, and Indian students don’t have access to the same kind of U.S. federal financial aid as their U.S. counterparts.

Although student loans are an option, most lenders require Indian students to have a U.S.-based cosigner to qualify for a loan. Don’t be discouraged! Some lenders, like MPOWER Financing, offer Indian students loans without a cosigner.

Education loans in the U.S. are typically no-collateral loans, meaning you don’t have to provide anything of value – such as a house or property – to the lender to secure the loan. This is quite different from traditional Indian education loans, which often require property collateral. However, loans from around the world will vary on this requirement, meaning they could require a cosigner or collateral.

Meeting lenders’ eligibility requirements can be tough for postgraduate students, especially for Indian students. You’re unlikely to have an established credit history or a substantial source of income in the U.S. Based on these factors, it can be difficult to qualify for a student loan on your own.

Lenders understand that college students find it difficult to meet their criteria, so many offer a workaround: You can qualify for a student loan if you add a cosigner – someone with good credit and a reliable source of income who applies for the loan with you.

A cosigner essentially agrees to take on responsibility for repaying the loan if you can’t (or don’t) make your payments. That way, the lender is more likely to approve your loan application because they have a safety net in place.

Most international students will need a cosigner to qualify for a private student loan.

1. Most lenders in the U.S. only offer loans to citizens or permanent residents, or they require a cosigner with a strong U.S. credit score.
2. International students (like Indian students) often don’t have Social Security numbers or any U.S. credit history.
3. Income requirements can be high, and many Indian students rely on part-time jobs, scholarships, or family sponsorship for living expenses.

Without a cosigner, it’s usually hard to qualify for a private student loan. But no-cosigner lenders do exist, MPOWER Financing does not require a cosigner, making it one of the best options for Indian students.

Adding a cosigner to your international student loan application can improve your chances of loan approval, but there are some major drawbacks:

1. Not everyone can find a cosigner

Finding a creditworthy cosigner in the U.S. can be particularly challenging for Indian students. Unlike taking loans from Indian banks where family members can be guarantors, U.S. loans require a U.S.-based cosigner. If you don’t have family members or close friends in the United States, there may not be anyone you can ask to cosign a loan with you. Without a cosigner, you won’t qualify for international student loans from lenders that require students to have one.

2. Being a cosigner is a lot to ask of someone

Asking someone to cosign a loan is a big favour, and not everyone will be willing to do it. That’s because cosigners take on a lot of risk when cosigning a loan. If you don’t make the payments, the cosigner is responsible for making them instead, potentially putting a strain on their finances. For Indian students, this can be particularly sensitive when asking distant relatives or family friends in the U.S.

3. Being a cosigner can affect the cosigner’s credit

When someone cosigns a loan, the loan appears on their credit report as well as yours. Because the loan shows up as an active account on their credit report, it can affect their eligibility for other forms of credit, such as a mortgage to buy a home or an auto loan to purchase a new car. And if you’re late with your payments, those late payments can cause significant damage to the cosigner’s credit score.

4. Asking someone to cosign your loan can hurt your relationship

You may have the best intentions of making all your loan payments on time, but life can get in the way. If you lose your job or experience another financial hardship, you may have trouble making your loan payments. And if that happens, the cosigner is legally responsible for making the payments instead. This could put a serious strain on your relationship with your U.S.-based relatives or friends, with long-lasting consequences.

5. Not all lenders offer cosigner releases

Some cosigners agree to cosign a loan because they assume they can be removed from the loan at a later date. Unfortunately, that’s not always the case. Some lenders will allow a cosigner to be released from the loan if the borrower meets certain criteria, such as making a certain number of on-time payments or refinancing the loan into their name. But other lenders refuse to release cosigners from the loan, no matter what; the cosigner is responsible for the loan until you pay it off in full.

If you’re an Indian student planning to study abroad and don’t have access to a cosigner – or don’t want to burden family members with the responsibility – you may be wondering how to secure an education loan on your own. While most Indian banks and private lenders require a cosigner or collateral for study abroad loans, there are exceptions where students can qualify for loans without one.

MPOWER Financing is a leader in no-cosigner international student loans, offering a streamlined process for students from India. To qualify for an MPOWER no-cosigner loan, you must:

• Be a graduate student within two years of completing your program or about to start a one-year or two-year program at a qualifying international school
• Borrow up to US$100,000 (INR 83,00,000) to cover tuition fees and living expenses
• Repay the loan in full 10 years after graduation

Unlike traditional Indian education loans, MPOWER does not require a co-applicant, collateral, or credit history, making it a strong option for Indian students who do not have access to a U.S. or Canada-based guarantor.

You can begin the MPOWER loan application process online, ensuring a smooth and transparent experience for Indian students looking to finance their education abroad.