Student loans for study abroad for Pakistani students

Studying abroad in the U.S. or Canada can offer amazing opportunities for Pakistani students. The educational institutions are top-notch and you’ll gain invaluable experience while immersing yourself in a new culture. However, the cost of studying abroad in North America can be as high as US$70,000 (PKR 19,600,000) per year. If your personal savings and family contribution won’t cover this expense, finding loans for study abroad degrees is probably your best bet since you likely won’t qualify for financial aid from the government. This guide offers a brief overview of foreign education loans for Pakistani students: what they are, what they cover and the best type of loans for Pakistani students.

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

As a Pakistani student in the U.S. or Canada, you likely won’t be eligible for public loans or federal financial aid. However, you may be able to take advantage of three types of loans for study abroad.

• Private international student loans: These are the most common and most popular option for an overseas education loan. Private student loans are offered by banks and other financial institutions rather than by the government. They typically offer flexible amounts that can cover all aspects of your education, from tuition and fees to living expenses and transportation. Many private education loan providers require collateral, or they may require a cosigner – a U.S. or Canadian citizen who promises to repay the loan if you cannot. However, several companies offer study loans without collateral or cosigners.
• Loans from Pakistan: You may find student loans for studying abroad from banks, financial institutions or the government in Pakistan. If you’re eligible, these loans may be a good option if the interest rates and repayment terms are favourable. However, these loans may also require collateral such as property or fixed deposits, which can complicate the process of getting funding. Some Pakistani banks offer education loans for studying abroad.
• University loans: Some educational institutions have loan programmes designed to help Pakistani students. However, these typically won’t cover the full cost of your education and you may need to combine them with other loans.

In addition to loans for study abroad, be sure to ask the admissions and financial aid office at your university about work-study opportunities, grants, scholarships and other financial aid that won’t need to be paid back.

Lending to Pakistani students can seem like a higher risk to banks and financial institutions. That’s because most Pakistani students don’t have a strong credit history in the U.S. or property and assets in the U.S. to put up as collateral. Because students are still in school, their future income level isn’t clear. That’s why many private lenders require a cosigner for any loans for study abroad.

However, some student loan companies are willing to make no-cosigner loans. These lending decisions are based on your academic history and future earning potential rather than your current financial situation. Lenders may also consider your university’s reputation and your area of study.

No-cosigner loans for study abroad offer several advantages for Pakistani students.

• Financial independence: With a no-cosigner student loan, you won’t be financially tied to family or friends as you work to pay for your education. Instead, you’ll be able to make decisions knowing you’re in control of your financial future.
• Complete coverage: No-cosigner loans for Pakistani students in the U.S. can cover all your education costs, including tuition, books, fees, transportation and living expenses.
• Building your credit history: Taking a loan in the U.S. or Canada and making timely payments will help you build a reputable credit history and good credit score, contributing to a stronger financial future.
• Avoiding risk for a cosigner: With a no-cosigner loan, you bear the risk of taking a loan, not a family member or close friend. Should a difficult financial situation arise in the future, you won’t harm a cosigner’s credit score or risk damaging a relationship.

To apply for a no-cosigner student loan, you’ll need to research companies and compare their offerings. You should consider several things as you do your education loan comparison.

• Visa requirements: Be sure any loans for study abroad are allowable under the terms of your visa. For Pakistani students, this usually means having documentation that proves you have sufficient funds to cover your expenses.
• Student loan interest rates: There are two basic types of interest rates: fixed and variable. With a fixed-rate loan, the interest rate and your payments will stay the same throughout the life of the loan which protects you against inflation. With a variable-rate loan, the interest rate and the monthly repayment amount each month may change each year as the economic markets rise and fall. A variable-rate loan may offer lower payments initially, but payments could go up if economic conditions change.
• Terms of the student loan: These include the amount of time you have to repay the loan and when payments will start. Some lenders will allow you to defer payments or to make interest-only payments until after graduation.
• Reputation of the student loan provider: Be sure to look for lenders with a strong reputation and solid customer reviews since not every lender is as reputable as you think. Some lenders offer benefits beyond funding for Pakistani students, such as help in applying for visas or finding internships and jobs. These value-added services can really boost your success early in your career.

MPOWER Financing is an international student loan company that simplifies the process of getting loans for study abroad. MPOWER offers international student loans based on a student’s future potential rather than their financial past, and MPOWER has a streamlined application and approval process.

• No cosigner? No problem. Unlike traditional lenders, MPOWER does not require a cosigner or collateral. This means Pakistani students can apply independently and avoid placing financial stress on their families.
• Flexible and transparent financing: MPOWER offers student loans ranging from US$2,001 (PKR 560,000) to US$100,000 (PKR 28,000,000) with fixed interest rates, ensuring predictability and protects against inflation. Borrowers who enrol in automatic payments receive a 0.25% discount on their interest rate, helping to reduce the overall cost of their loans.
• Fast and efficient digital process: MPOWER’s loan application process is entirely online, allowing students to check their eligibility in just 30 seconds. Once approved, MPOWER works directly with students’ schools to ensure timely disbursement of funds.
• Benefits beyond funding: MPOWER is dedicated to student success. Their Path2Success program provides career support, visa assistance and financial resources, helping Pakistani students build strong futures beyond graduation.

MPOWER’s student-first approach makes it a standout choice for Pakistani students seeking a reliable, flexible and supportive financing partner.