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What is the cost of student loans?

For international students, understanding the cost of student loans 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 are 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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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.

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.

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.

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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What do MPOWER student loans 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 interest rate starting at 12.99% (13.98% APR). If you qualify for auto pay, you’ll receive a 0.25% discount.

Those eligible for an MPOWER student loan are:

    • An undergraduate or graduate student within two years of graduating
    • Graduate students about to begin a one-year or two-year program
    • An international student, DACA recipient, U.S. citizen, refugee or asylum-seeker
    • Admitted to or attending one of our 400+ approved 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 money you need to cover your expenses.

You can apply for a loan a maximum of 12 months prior to when 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?

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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FAQs

What is a student loan?

A student loan is a form of financial aid to help fund college expenses (i.e., tuition, room and board, books). MPOWER loans can be used for university-related expenses, including but not limited to tuition, books, meal plans, housing and health insurance at most schools when studying in the U.S. MPOWER suggests reaching out to your school with any concerns about how your funds may be allocated.

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, including tuition, room and board, books and living expenses.

What is the cost of a student loan?

The cost of a student loan, or rather, the payments you will make on a student loan depends on the total amount of the loan, the interest rate applicable fees and the repayment term.
Here’s one example you can follow: 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 borrower signs up for automatic debit immediately after the loan is disbursed and continues with it for the life of the loan, which reduces the rate by 0.25%. A forbearance is never utilized, and there is no prepayment of any principal.
At an APR of 13.72%, the monthly payment is US$111.47 for the first 30 payments. For the next 120 payments, the monthly amount is US$155.17.

What is 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 and the student’s individual circumstances. Rates can range, so it’s important to shop around and compare rates from different lenders before making a decision.

How does MPOWER Financing support international students?

MPOWER Financing provides education loans to international students without requiring a co-signer or collateral. It also offers career strategy services and works with universities to provide scholarships and financial education.

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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