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

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

1. Total number of Pakistani students in the U.S. (2023-2024):In the 2023–2024 academic year, over 11,000 Pakistani students were enrolled in the United States – a record high and a steady increase from the previous year. This placed Pakistan 16th globally for student enrolment in the US.Source: Tribune Pakistan
2. Year-over-year growth – Pakistani students in the U.S. and Canada (2022-2023 to 2023-2024):Leading study destinations are witnessing significant increases in Pakistani student enrolments, with particularly high demand for postgraduate studies. In the United States, there were 10,165 Pakistani students in 2022-2023, marking a 16% increase from the previous year, while in Canada, the number surged to 4,750 students in 2023, reflecting a 101% increase from the previous year.Source: ICEF Monitor
3. The proportion of Pakistani 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. Pakistani students accounted for 1.0% of this total, with 10,988 Pakistani students enrolled.Source: IEE Open Doors 2024

Financial aid is essential for most Pakistani 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 (PKR 19,600,000) each year or more, depending on the school you choose.

As a Pakistani 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 Pakistan. 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 Pakistani students studying abroad. Notable examples include Fulbright Scholarships, the HEC Overseas Scholarship Programme, and scholarships from the British Council. Applying for these scholarships can help reduce the amount you need to borrow, but the competition for scholarships can be high.
• Pakistani government schemes: The Pakistani government offers some scholarship and loan programmes for students studying abroad. Check with the Higher Education Commission (HEC) 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 Pakistani 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 Pakistani 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 Pakistani 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 Pakistani 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 Pakistani 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 Pakistani 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 Pakistan, overcome the financial barriers to education. MPOWER offers no-cosigner student loans from US$2,001 (PKR 560,000) to US$100,000 (PKR 28,000,000), 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 CV builder. Additionally, Pakistani students are eligible for a number of international scholarship opportunities offered by MPOWER.