Loans for Study Abroad in the U.S. and Canada

Studying abroad in the U.S. or Canada can offer amazing opportunities for international 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 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 international students: what they are, what they cover and the best type of loans for international students.

Loans for study abroad

As an international 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.

Home country loans: You may find student loans for studying abroad from banks, financial institutions or the government in your own country. If you’re eligible, these loans may be a good option if the interest rates and repayment terms are favorable. However, these loans may also require cosigners, which can complicate the process of getting funding.

University loans: Some educational institutions have loan programs designed to help international 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.

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Private student loans without a cosigner

Lending to international students can seem like a higher risk to banks and financial institutions. That’s because most foreign 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.

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 international 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.

How no-cosigner student loans work

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.

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 international 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: No-cosigner loans for study abroad

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 international 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 to US$100,000 with fixed interest rates, ensuring predictability and protects against inflation. Borrowers who enroll 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 students build strong futures beyond graduation.

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

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FAQs

What are no-cosigner loans for study abroad?

No-cosigner student loans are student loans that don’t require a cosigner to qualify. Instead of relying on a cosigner’s credit history, lenders evaluate your academic performance, career potential and future earning prospects. These loans can be a great option for students who don’t have someone to cosign.

Can I get a student loan without collateral?

Yes. Some lenders offer student loans without requiring collateral. Instead of securing the loan with assets, lenders typically look at factors like your academic background, career prospects or a cosigner’s creditworthiness. Study loans without collateral can have higher interest rates, so it’s a good idea to compare different lenders to find the best terms.

Can international students refinance their student loans?

Yes. Some lenders offer refinancing options for international students, especially if they have a solid credit history or a steady income after graduation.

Are interest rates higher for loans without a cosigner?

They can be. Since lenders take on more risk with no-cosigner loans, the interest rates can be higher. That said, rates depend on the lender, your academic background and your future earning potential. It’s always smart to compare offers to find the best deal.

Do I have to start repaying my student loan right away?

Not necessarily. Repayment terms depend on the lender. Some let you defer payments while you’re in school and for a few months after graduation. However, when you defer payments you are still incurring interest on your loan which increases the cost of the loan overall. With MPOWER Financing, you would make interest-only payments while you’re in school and for six months after you graduate. This helps you reduce the overall cost of the loan and it helps you build your credit. Be sure to check your loan agreement to know exactly when full repayment starts.

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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Student loans for study abroad