Lock in rates as low as 9.99% (10.89% APR)* for the fall 2025 semester! Act Now!

What’s the cost of a student loan?

For international students, understanding the cost of student loan is a crucial step in planning their educational journey. Student loans are a lifeline for many students, enabling them to pursue higher education and broaden their horizons. They’re designed to cover a multitude of expenses, from tuition fees and accommodations to textbooks and other living expenses.

The cost of student loans is more than just the initial amount you borrow, known as the principal. It also includes the interest that accumulates over the life of the loan. Interest is the primary cost of borrowing money, and it can significantly increase the total amount you end up repaying through the life of the loan. Additionally, there may be fees associated with the student loan, such as origination fees or late payment fees. As an international student, it’s also important to consider currency exchange rates, which could affect the total cost of your loan.

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What does an MPOWER Financing student loan cost?

An international student loan from MPOWER Financing is an easy and affordable way to finance education costs on your own. MPOWER loans help support your independence since a cosigner or collateral is not required. That means you can obtain the funding you need for your degree on your own and avoid putting any of your family’s assets at risk. From start to finish, the MPOWER loan process is fully digital. This means ease of access around the globe – regardless of your location.

MPOWER offers loans ranging from US$2,001 to US$100,000 with fixed and competitive interest rates. Student loans come with a fixed rate starting at 9.99% (10.89% APR)* for the fall 2025 semester if you apply by December 31, 2024.  If you qualify for auto pay, you’ll receive a 0.25% discount.

Those eligible for an MPOWER student loan are:

    • Graduate students about to begin a one-year or two-year program
    • An undergraduate or graduate student within two years of graduating
    • An international student, DACA recipient, U.S. citizen, refugee or asylum-seeker
    • Admitted to or attending one of our 400+ eligible schools in the U.S. or Canada

MPOWER helps you determine the ideal student loan amount by asking you to list your funding sources during the application process. This includes your school’s cost of attendance, minus other funding you already have, to help you choose the best loan amount.

When you fill out your international student loan application, MPOWER will ask about your personal accounts, scholarships, sponsor funding and any other sources of funding. By examining these different funding sources, you’ll have a clear sense of how much more you need to cover your expenses.

You can apply for a loan a maximum of 12 months before you need the money for school. When completing your loan application, make sure you have your passport ready as well as information about other sources of funding you’ll be using to pay for school.

Check out our loan payment calculator to estimate the cost of your student loan payments.

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Why MPOWER Financing?

MPOWER Financing aims to reduce the financial challenges international students often face when studying abroad. Its team has been there and wants to be there for you. To help you fund your academic journey, MPOWER offers fixed-rate student loans and a variety of student scholarships. 

MPOWER is not just expanding access to higher education. It’s creating globally-minded, multilingual, culturally competent graduates poised to take on the world’s most pressing problems in science, technology, business and public policy. 

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Understanding how much student loans cost

Navigating the world of student loans can be daunting, especially for international students studying in unfamiliar territories like the U.S. or Canada. Traditional banks often overlook international students due to their lack of credit history or a cosigner, making it difficult for them to secure the necessary funds for their education.

When considering a private international student loan, it’s essential to understand the real cost. This includes the principal amount, the interest rate, applicable fees and the loan term, which combined are the Annual Percentage Rate (APR). An APR provides an “apples-to-apples” comparison across available loan products and providers.

The interest rate is the primary cost of borrowing money and is either fixed or variable. A fixed-rate student loan remains the same throughout the life of the loan, providing predictable monthly payments. A variable rate, on the other hand, changes based on market conditions, meaning your repayments could increase or decrease over time. Most of the indexed rates on which these loans are based have risen more than 5% over the last few years.  

The loan term is the time you have to repay the loan. While a longer term might mean smaller monthly payments, it also means you’ll pay more in interest over the life of the loan. Conversely, a shorter term means larger monthly payments but less interest paid overall.

Another factor to consider for international student loan funding is the impact of currency exchange rates. If you’re repaying your loan in a different currency than the one you borrowed in, fluctuations in exchange rates could affect the total amount you repay.  MPOWER’s loans are in $US, so a currency’s relative strength against the $US is a key factor in exchange rates.  

Understanding these factors can help you make an informed decision about the cost of student loans and ensure you’re prepared for the true cost of borrowing.

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FAQs

What’s a student loan?

A student loan is a form of financial aid to help fund college expenses (i.e., tuition, room and board, books). Student loans come with fixed or variable interest rates. The advantage of having a fixed rate loan is that you have a predetermined monthly payment that will not change until you finish paying off the loan. Loans with variable interest rates have fluctuating payment amounts based on the market.

What can student loans be used for?

Depending on where you’re studying, student loans can be used for a variety of education-related expenses. Students studying in the U.S. can use international student loans to cover tuition, room and board, books and living expenses. However, students pursuing a degree in Canada can use their loan to cover tuition only.

What’s the cost of a student loan?

The cost of a student loan, or rather, the payments you’ll make on a student loan depends on the total amount of the loan, the interest rate, applicable fees and the repayment term.

For the early planning promotion, APRs and discounts are calculated using the following assumptions: A loan is approved in the amount of US$10,000 with a 5% origination fee of US$500. The student will start making payments 45 days after loan disbursement. The student is eligible for the 0.75% early planner rate reduction because the student has submitted their application by 12/31/2024 for an eligible program/school that is two years in length and the loan is for the Fall/Academic Year 2025. The borrower signs up for automatic debit immediately after the loan is disbursed and remains on it for the life of the loan, which further reduces the rate by 0.25%. If your interest rate is 9.99%, which equates to an APR of 10.89%, the monthly payment amount is US$87.41 for the first 30 months. For the next 120 months, the monthly payment amount is about US$138.70.

What’s the average interest rate for private student loans for international students?

The interest rate for private student loans can vary widely depending on the lender, fixed versus variable,  and the student’s circumstances. Rates can range, so it’s important to shop around and compare options and APRs from different lenders before making a decision.

How does MPOWER support international students?

MPOWER provides education loans to international students without requiring a cosigner or collateral. It also offers access to career, visa and financial services and works with universities to provide scholarships and financial education.

*Rates as low as 9.99% (10.89% APR) available only for the fall 2025 semester and you must submit your application by December 31, 2024. This interest rate and APR includes a 0.25% discount for automatic recurring payments and a 0.75% discount from our limited-time early planner promotion.

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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