No-cosigner international student loans for Indian students

When you’re an Indian student in the U.S. or Canada, financing the cost of your education can be a big concern. Schools in North America can be expensive and, as an Indian student, you won’t have access to the same kinds of federal financial aid as your U.S. or Canadian classmates.

The good news is there are plenty of options for overseas education loans. The not-so-good news is most lenders require a U.S.-based or Canadian-based cosigner to qualify. However, you can find lenders that offer international student loans without a cosigner, making it easier to cover the cost of studying abroad.

This brief overview provides a guide to no-cosigner international student loans, their benefits and how to find and apply for one as an Indian student.

1. Total number of Indian students in the U.S. (2023-2024):Indian students now form the largest international student group in the U.S., with a record-breaking 331,602 students in 2023-2024. This surge reflects a growing trend of Indian students seeking world-class education and better career opportunities in the U.S.Source: IIE Open Doors 2024 Report
2. Year-over-year growth – Indian students in the U.S. (2022-2023 to 2023-2024):The number of Indian students in the U.S. increased by 23% in just one year, highlighting the strong demand for American education. This is the highest annual growth rate in over a decade, showing a clear shift in global mobility trends.Source: IIE Open Doors 2024 Report
3. The proportion of Indian students among all international students:Indian students now make up 29.4% of the total 1.1 million international students in the U.S. This means that nearly one in three international students in the U.S. is from India, further cementing their dominance in global student mobility.Source: IIE Open Doors 2024 Report

Indian students in the U.S. and Canada don’t qualify for federal student loans, so they have to look for other options like private loans from banks or financial companies. However, many private lenders will only loan money to borrowers with a solid credit history, which most Indian students don’t have yet.

Alternatively, to reduce their risk, lenders can ask for a cosigner who is typically a U.S. or Canadian citizen who agrees to share responsibility for the loan. That means if you can’t make your payments, they’ll have to pay back the loan for you. As an Indian student, finding a cosigner can be tough, especially if you don’t have close family or friends in the country willing to take on that risk.

That’s where no-cosigner international student loans come in. Some lenders offer loans without a cosigner. These companies base their lending decisions on your academic history and future job prospects rather than your financial situation or credit history. This means they trust you’ll be able to pay back the loan after you finish school and start working.

No-cosigner international student loans offer several advantages over loans that require a cosigner for Indian students.

• You can stay financially independent: Taking a loan without a cosigner allows you to manage your loan independently. You won’t need to rely on friends or family to guarantee your loan.
• You won’t jeopardise relationships: If repayment of your loan becomes difficult at some point, no-cosigner loans will let you avoid jeopardising relationships with friends or family or affecting their credit score.
• The loan will cover most or all educational expenses: You can typically use a no-cosigner loan to pay for any aspect of your education in the U.S. – tuition, books, fees, living expenses, meal plans, and even transportation. In Canada, a loan typically covers tuition and any other university-invoiced expense.
• You’ll start building a credit history: By taking a loan in the U.S. or Canada and making timely monthly payments, you can start building a strong credit history that will give you more financial flexibility in the future, which may be beneficial if you plan to work internationally after graduation.

Here are the steps involved in applying for no-cosigner international student loans as an Indian student.

• Research and compare lenders: You can find options for no-cosigner loans online. Along with the terms and interest rate of each loan, be sure and research the lender’s reputation and read customer reviews. Some lenders are easier to work with and may offer special assistance for Indian students. Also, check if the lender has experience working with students from India specifically.
• Make sure you’re eligible: Before applying, be sure to closely review the eligibility requirements for the lender to make sure you qualify. Some no-cosigner private student loans have certain conditions based on the school you’ve selected or your field of study.
• Lock down an interest rate: The interest rate on your loan determines the amount you’ll have to pay on top of the original loan amount. The higher the interest rate, the more the loan will cost over time. Fixed-rate loans have an interest rate that stays the same throughout the life of the loan and are inflation-proof, while the interest on variable-rate loans will change as economic market conditions fluctuate. Variable-rate loans may start off lower than fixed-rate loans, but they may increase over time and become more expensive.
• Gather your documents: Most lenders will want to see your academic records, proof of admission and financial documents. As an Indian student, you may also need to provide additional documentation such as your passport, visa, and proof of previous academic qualifications from Indian institutions.
• Apply for the loan: Each lender has their own application process, and many will allow you to submit your application online.
• Review and sign your loan agreement: If your loan is approved, you should carefully review the documents and make sure you understand all the terms before signing, especially the interest rate and repayment obligations. Consider how repayments will be made from abroad and what currency conversion fees might apply.

MPOWER Financing is a leading provider of no-cosigner international student loans for Indian students. Founded by two former international students who understand the challenges international students face, MPOWER offers a simple, accessible and transparent process that takes the stress out of applying for student loans for studying abroad.

When you work with MPOWER, you can count on:

• No barriers to funding: MPOWER removes the common obstacles Indian students face, making it easy to apply for loans without a cosigner or collateral. This gives students financial independence and ensures their families’ assets remain secure.
• Fair and predictable loan terms: MPOWER offers fixed-rate loans ranging from US$2,001 (INR 1,66,700) to US$100,000 (INR 83,33,000), providing support for students seeking to study abroad on a budget.
• A streamlined online process: MPOWER’s fully digital application process makes it easy to check eligibility, apply for a loan and receive funds. Students can check their eligibility in 30 seconds and complete the entire process from anywhere in India.
• More than just financing: Along with no-cosigner international student loans, MPOWER provides visa assistance, career coaching and financial resources to help Indian students succeed after graduation. Their Path2Success program includes services like resume reviews and job search guidance.

With MPOWER, Indian students don’t just get a loan – they get the support they need to reach their educational and career goals.