Education loans without a cosigner

Many lenders require a U.S. or Canadian cosigner, but finding one can be a big roadblock for international students. That’s where education loans without cosigners come in – and they can make all the difference. Understanding your graduate student loan options and the pros and cons of no-cosigner student loans is key to financing your education. Let’s break down the types of loans available, why cosigners are often required and how no-cosigner loans can simplify your path to studying in the U.S. or Canada.

Types of education loans for international students

Before diving into the specifics of cosigners, you should understand the options for student loans available to international students. Your funding options typically include:

1. Private international student loans

Private lenders, such as banks, credit unions or specialized financial institutions, offer loans to international students, but these usually come with strict eligibility requirements like a cosigner or credit history. However, there are some specialized lenders offering private student loans without cosigners.

2. Government and institutional loans

Some U.S. and Canadian universities provide loans directly to students, including international students. These loans may have favorable terms, but they’re not widely available at many schools and often require supplementary funding sources. Additionally, these are generally not available to international students.

3. Home country loans

Some international students choose to borrow from lenders in their home countries to fund their education abroad. These loans might offer more favorable interest rates or terms, but they can also introduce risks related to fluctuating exchange rates.

While these loans can provide the necessary funds to pursue your degree, private lenders often require cosigners, which can complicate the process for international students.

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What’s a cosigner and why is it required?

A cosigner is someone who agrees to take responsibility for your loan if you’re unable to repay it. Usually, your cosigner must reside in the country you plan on studying in and where your loan originates. For international students, many private lenders require a cosigner because:

  • Lack of U.S./Canadian credit history: International students often don’t have an established credit score in the host country, which lenders rely on to assess creditworthiness. Without this information, lenders see the student as a higher financial risk.
  • Increased lending risk: Lenders may view international students as riskier borrowers due to potential issues with visa status, employment prospects, and the possibility of returning to their home country after graduation.

A cosigner reduces this risk by agreeing to cover your loan payments if you’re unable to meet the obligations, providing the lender with a level of security.

Why cosigners are a drawback for international students

While having a cosigner can increase your chances of securing a loan and getting better interest rates, it’s not always feasible for international students. Here’s why cosigners can be a major drawback:

  • Difficulty finding a cosigner: Most international students don’t have family members or close friends in the U.S. or Canada who meet the requirements to cosign a loan. Asking someone to cosign is a significant request because the cosigner is financially responsible for the loan if the student defaults.
  • Strain on personal relationships: Even if you find someone willing to cosign, this agreement can put a strain on your relationship. Any missed payments or loan defaults could impact their credit score and financial standing, leading to tension or complications.

Is an education loan without a cosigner right for you?

Whether or not a no-cosigner student loan is the right choice depends on your individual circumstances. Here are some factors to consider:

  • Your field of study: If you’re pursuing a degree in a field with strong employment prospects (such as engineering, technology or healthcare), no-cosigner loans may be more accessible since lenders are more confident in your future earning potential.
  • Your financial need: If your loan amount is large or you have high tuition costs, you may need to explore all loan options, including cosigner loans, to secure enough funding. However, if your funding needs are moderate, a no-cosigner loan could cover your expenses without additional complications.
  • Your ability to repay: It’s essential to consider your long-term ability to repay the loan. No-cosigner loans may have higher interest rates due to the increased risk for lenders. Make sure you understand the total cost of the loan, including interest and fees, and create a realistic repayment plan.
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Why choose MPOWER Financing for an education loan

MPOWER Financing understands the unique challenges international students face when it comes to securing education funding. That’s why MPOWER offers international education loans specifically designed for students who don’t have access to a cosigner or collateral, making it easier for them to achieve their academic goals.

Here’s why MPOWER’s no-cosigner loans are a smart choice for students:

  • No cosigner, no collateral required: Unlike many traditional loan options, MPOWER does not require students to provide a cosigner or any form of collateral. This makes the loan process far more accessible, especially for international students who may not have U.S.-based financial backing.
  • Fixed interest rates and flexible amounts: MPOWER offers loans from US$2001 to US$100,000’s with fixed student loan interest rates, allowing students to plan for predictable, manageable monthly payments. In addition, students can enjoy a 0.25% interest rate discount if they set up auto pay, making the repayment process even more flexible and affordable.
  • Full coverage of education costs: MPOWER loans in the U.S. cover a wide range of educational expenses, from tuition and housing to books, meal plans, and even international health insurance. International students in Canada can cover their tuition with an MPOWER student loan. This ensures students have the financial support they need for academics and their overall well-being.
  • Fast, digital application process: MPOWER’s online application process is streamlined and convenient, making it easy for students to apply for funding. With a quick eligibility check and rapid approval, students can secure their loans without the hassle of lengthy paperwork.
  • Support beyond loans: MPOWER offers more than just financial assistance. Students also gain access to career resources, visa support and exclusive discounts on essentials like textbooks and travel, helping them thrive both academically and personally.

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FAQs


What’s the main benefit of a no-cosigner loan?

An education loan without cosigner allows international students to secure funding without relying on a U.S. or Canadian resident to guarantee the loan. This provides financial independence and simplifies the loan application process.

Are no-cosigner loans available to all international students?

No, not all international students are eligible for no-cosigner loans. These loans are typically available to students in fields with strong earning potential, such as STEM, business and healthcare.

Do no-cosigner loans have higher interest rates?

Interest rates for no-cosigner loans can be higher than those for loans with a cosigner. However, a no-cosigner loan frees you from dependence on anyone and allows you to pay the loan independently. The specific rate depends on the lender and your individual situation. This is why you should research education loan providers to find as many options as possible.

Can I use a no-cosigner loan to cover both tuition and living expenses?

Yes, most no-cosigner loans cover not only tuition but also living expenses, such as housing, food and transportation in the U.S. In Canada, you need to check with your school. Be sure to confirm the total loan amount with the lender to ensure it covers all your expenses.

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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