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:
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:
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:
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:
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FAQs
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.
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.
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.
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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