How to Find a Cosigner for an International Student Loan for Pakistani Students

One of the ways you can finance your education in the United States as a Pakistani student is to apply for a student loan. While federal financial aid from the U.S. Department of Education is not available for most international students, some private lenders will give student loans to international students.

Most of these lenders require you to have a credit history in the U.S. and a reliable income. Since many Pakistani students don’t have either, lenders often require you to have a cosigner for your loan.

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Key statistics

  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 U.S.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

So, how can you find an international student loan cosigner and are there any other options? Let’s take a look.

What is a cosigner for an international student loan?

A cosigner for an international student loan is a person who signs on to your loan and agrees to take responsibility for paying back the loan if you fail to do so.

A cosigner typically must:

  • Be a U.S. citizen or permanent resident
  • Have a good credit history in the U.S.
  • Have a steady and reliable income
  • Be able to cover the loan payments if necessary

Benefits of having a cosigner for international student loans

Having a cosigner for your international student loan is beneficial in many ways.

A cosigner with a good credit history can:

  • Increase the chances of getting your loan approved
  • Make it more likely that you can reduce the interest rate you will have to pay
  • Help you build your own credit history if you make timely loan payments

Where to find a cosigner for international student loans

As a Pakistani student, finding a cosigner for your student loan can be challenging. You’re at an advantage if you have family (including extended family) or friends living in the U.S.

However, a cosigner doesn’t have to be a family member. You can also apply with a mentor, religious leader, former professor or anyone else who meets a lender’s criteria.

An international student loan cosigner is usually someone you know and trust (and who knows and trusts you to pay back the loan in full and on time).

Risks for a cosigner for international student loans

When you ask someone to be a cosigner on your student loan, you should understand that it’s no small favour. When someone cosigns for you, they are taking a risk.

If you fail to make payments, your cosigner will have to make them for you. Late or skipped payments will also damage their credit score, which could make it difficult for your cosigner to open a credit card, take out a mortgage or get approved for other financial products.

This situation could also put a huge strain on your relationship. Even if you make your student loan payments on time every time, cosigning on your loan will affect their debt-to-income ratio, which can affect their ability to get financing in the future.

How to ask a cosigner to cosign

Since it’s a big decision to be a cosigner on an international student loan, you should be prepared when you ask someone to be your cosigner.

Here are some tips for asking someone to cosign on your student loan:

  • Explain why you need the loan amount you’re asking for and show them a breakdown of your expenses and budget.
  • Create a solid repayment plan that shows your potential cosigner how you’ll manage your monthly student loan payments. This should include your job prospects and anticipated income after graduation
  • Tell them what you would do if you ran into a situation in which you couldn’t make a payment.
  • Let them know if there’s a cosigner release option that will release them from any obligation toward your student loan. Many lenders offer cosigner release after a certain period of on-time payments. It may also be possible to release a cosigner by refinancing the loan in your own name.

What if you don't have a cosigner for your international student loan

If you’ve tried to find a cosigner for your international student loan and have not been successful, there are lenders out there, like MPOWER Financing, that offer no-cosigner loans. These loans are based on different criteria, such as your school and programme of study, your academic performance and your career and income prospects after graduation. MPOWER Financing offers no-cosigner, no-collateral loans.

No cosigner loans may be your best option if you don’t have a cosigner. Ultimately, the goal is to access the money you need for your education in the U.S., so you can turn your educational and professional goals into a reality.

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FAQs


How can Pakistani students approach relatives in the U.S. about cosigning a student loan?

When approaching U.S.-based relatives about cosigning, Pakistani students should first research and prepare a detailed presentation about the specific loan terms, including interest rates, repayment schedules and total cost calculations in both dollars and rupees. Schedule a formal conversation rather than making an impromptu request, and clearly explain your academic plans, career goals, and how your degree will translate to employment opportunities. Prepare a comprehensive postgraduation financial plan showing how you’ll manage loan repayments through on-campus jobs, optional practical training (OPT) employment, and potential H-1B sponsorship. Offering additional security measures, such as having your parents in Pakistan sign a legally binding document promising to reimburse the cosigner if necessary, can also help ease concerns.

What alternative financing options exist for Pakistani students who cannot secure a cosigner for U.S. education?

Pakistani students without access to a U.S. cosigner have several alternatives beyond traditional loans. MPOWER specialises in no-cosigner loans for international students based on future earning potential rather than current credit history. Additionally, many Pakistani students combine multiple funding sources including merit scholarships from U.S. universities, graduate assistantships which provide tuition waivers and stipends, education loans from Pakistani financial institutions like HBL or NBP, and the Fulbright Program specifically available for Pakistani students pursuing master’s and PhD degrees in the United States.

How does having a cosigned U.S. loan impact a Pakistani student’s financial future when returning to Pakistan?

When Pakistani students with cosigned U.S. loans return to Pakistan, it’s helpful to be aware of a few important financial considerations. Repaying in U.S. dollars while earning in Pakistani rupees can increase overall loan costs if the exchange rate shifts unfavorably—but planning ahead can help manage this risk. Some international payments may include transfer fees of around 2–3%, although affordable remittance options are available to help minimize such charges. While U.S. credit history doesn’t directly transfer to Pakistan’s credit system, some premium banking relationships may offer ways to leverage international credit experience. It’s also a good idea to consult a local tax advisor to explore any available benefits on education loan interest under Pakistan’s current tax laws.

What are the specific advantages of MPOWER’s no-cosigner loans for Pakistani engineering and technology students?

MPOWER’s no-cosigner loans offer particular advantages for Pakistani engineering and technology students through their career path underwriting model that recognises the strong earning potential of these degrees. Pakistani students in STEM fields qualify for a three-year optional practical training period in the U.S. after graduation, providing extended income opportunity in dollars to repay loans. MPOWER offers interest rate considerations for students from top Pakistani technical institutions like the National University of Sciences & Technology, Lahore University of Management Sciences and the University of Engineering and Technology, along with other criteria to recognise potential future success. Additionally, MPOWER provides career support services including job placement assistance and interview preparation specifically tailored for international students navigating the U.S. job market, plus networking opportunities with successful Pakistani professionals in the U.S. technology sector.

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.

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