Student loan options for Nepali students in the U.S. and Canada

Financing a graduate degree in the United States or Canada can be challenging for many young people. If you’re a Nepali student looking to study abroad, you’ll likely face additional hurdles when looking for financial aid and loans. This brief overview explores the challenges Nepali students may face and the types of loans that may be most helpful in funding your education.

1. Total number of Nepali students in the U.S. (2024):Nepali students now form a significant international student group in the U.S., with a record-breaking 32,788 students in 2024. This surge reflects a growing trend of Nepali students seeking world-class education and better career opportunities in the U.S.Source: U.S. Department of Homeland Security, SEVIS by the Numbers
2. Year-over-year growth – Nepali students in the U.S. (2023-2024):The number of Nepali students in the U.S. increased by 42% in just one year, from 23,043 to 32,788 students. This is one of the highest annual growth rates among all countries, showing a clear shift in global mobility trends for Nepali students.Source: U.S. Department of Homeland Security, SEVIS by the Numbers
3. The proportion of Nepali students among all international students:Nepali students now make up 1.5% of the total international student population in the U.S., with Nepal ranking as the 10th largest sender of international students globally. This represents a significant achievement for Nepal in international education.Source: Institute of International Education, Open Doors 2024 Report

Financial aid is essential for most Nepali students because of the high cost of tuition in the U.S. and Canada. Tuition can range from several thousand dollars per year at community colleges to tens of thousands at universities, not including additional expenses like housing, books and fees. When combined, these costs can easily add up to US$70,000 (NPR 95,90,000) each year or more, depending on the school you choose.

As a Nepali student, you won’t be eligible for student aid offered by the U.S. or Canadian federal governments, which unfortunately limits your access to certain grants, scholarships and low-interest loans. These funding sources are restricted to citizens and certain eligible permanent residents, but international students are excluded from programs like Pell Grants, federal work-study and Direct Subsidized and Unsubsidized Loans in the U.S. or Canada Student Loans in Canada. To fund your education, you’ll need to look for alternative sources, which can be more expensive and harder to obtain.

Despite these challenges, there are options available to help you finance your education.

• University scholarships: Many universities offer scholarships specifically for international students, including those from Nepal. These scholarships may be based on academic merit, financial need or specific talents. Researching the scholarships available at your target universities is the best place to start when looking for financial aid.
• External scholarships: Various organisations offer scholarships specifically for Nepali students studying abroad. Notable examples include scholarships from the University Grants Commission Nepal, Nepal Education Foundation and various international programmes. Applying for these scholarships can help reduce the amount you need to borrow, but the competition for scholarships can be high.
• Nepali government schemes: The Nepali government offers some scholarship and loan programmes for students studying abroad. Check with the Ministry of Education, Science and Technology and related departments for potential opportunities.
• Private lenders: Private education loan lenders are banks or companies that offer loans, and some of these are available to or tailored specifically for Nepali students. You’ll find there are two basic types of private loans: loans that require a cosigner and loans that don’t. A cosigner is a U.S. or Canadian citizen or permanent resident with strong credit and the financial ability to pay back your loan if you cannot. Requiring a cosigner reduces the risk for the lender, but it makes the application more difficult for Nepali students who may not have friends or family in North America willing to take on this responsibility. That’s why no-cosigner loans may be one of the most helpful options for Nepali students.

No-cosigner student loans are loans that do not require you to have someone else sign the loan with you. Typically, lenders consider an applicant’s credit history and financial status when deciding whether to make a loan. As a Nepali student, you may not have a credit history in the U.S. or Canada or the kind of property or assets to offer as collateral in those countries. With a no-cosigner loan, the lender bases its lending decisions on things like your academic performance and your future earning potential rather than your credit history or a cosigner’s guarantee.

No-cosigner private student loans for Nepali students offer several benefits.

• Freedom from financial entanglements. With a no-cosigner student loan, you won’t have financial obligations to a friend or family member as a cosigner. You’ll be solely responsible for managing and repaying your loan.
• Broad coverage for educational expenses. No-cosigner loans for Nepali students will typically cover all the expenses related to your education in the U.S., including tuition, fees, housing, meal plans, books, transportation and other ancillary expenses. In Canada, loans typically cover tuition and university-invoiced expenses.
• A boost in your credit score. By taking a student loan and making regular, on-time payments, you can build your credit history, taking the first steps in building a stronger financial future in your host country.

MPOWER Financing is an education loan company that specialises in helping international students, including those from Nepal, overcome the financial barriers to education. MPOWER offers no-cosigner student loans from US$2,001 (NPR 2,74,000) to US$100,000 (NPR 1,37,00,000), with competitive fixed interest rates and an easy application process, fast approval decisions and no prepayment penalties.

When you become an MPOWER student, you can also take advantage of additional services and offerings such as career assistance and a resume builder. Additionally, Nepali students are eligible for a number of international scholarship opportunities offered by MPOWER.