Student loan programs for international students

For international students, student loan programs offer a practical solution to cover expenses, but navigating the various options can be challenging. This article breaks down key loan programs for international students, student loan refinancing, and other financial aid opportunities, helping you make informed decisions about financing your studies.

Understanding international student loan programs

International students typically don’t qualify for government loans, such as U.S. federal student aid, so private loans and home country loans are the most common options. The two primary student loan types available to international students are:

1. Private international student loans

Private student loans are issued by banks, credit unions and specialized lenders. These loans often come with strict eligibility requirements, including a cosigner, typically a U.S. or Canadian citizen or permanent resident. If you can find a cosigner, private loans can offer favorable terms, but without one, your options might be more limited.

Some education loan providers also issue no-cosigner student loans, evaluating your academic performance and potential future income rather than requiring a credit history or guarantor. These are becoming increasingly popular among international students, especially in fields like STEM or business, where earning potential is higher.

2. Home country loans

Depending on your home country, there may be student loan programs available specifically for students studying abroad. These loans can offer better interest rates or repayment terms but may come with currency exchange risks affecting the overall cost of the loan.

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International student aid: Additional financial support

While student loan programs are an essential part of many international students’ funding strategies, it’s important to explore other financial aid options to reduce the amount you need to borrow.

1. International scholarships and grants

Unlike loans, merit-based scholarships and grants don’t need to be repaid, though you may need to meet and maintain certain criteria. Many universities and private organizations offer scholarships specifically for international students. Applying for these awards can significantly reduce your financial burden.

2. Assistantships and work-study programs

Many graduate students can supplement their income through assistantships or work-study programs, which allow you to work part time while studying. These positions are often tied to academic departments and can cover part of your tuition or provide a stipend for living expenses.

3. Employer sponsorship

For students already working or those with employment lined up postgraduation, some companies offer sponsorships or loan repayment assistance programs as part of their employment package. This is more common in STEM fields like engineering, technology and healthcare.

Why choose MPOWER Financing for a student loan

MPOWER Financing offers student loan programs specifically for international students pursuing their education in the U.S. or Canada. Founded by international students, MPOWER understands the unique challenges faced by those studying abroad. That’s why MPOWER provides more than just flexible loan options. MPOWER also offers additional support services like career guidance, immigration assistance and financial services to help students succeed before, during and after graduation.

Here’s how MPOWER’s student loan programs stand out:

  • Flexible loan options: MPOWER provides a wide range of fixed-rate student loans, from US$2,001 to US$100,000, designed to fit the varied needs of international students. A 0.25% interest rate discount is available for those who opt for automatic payments.
  • No cosigner or collateral required: MPOWER’s loan programs do away with the need for cosigners or collateral, making it easier for students to secure funding. MPOWER believes in each student’s future potential and offers loans based on an applicant’s career prospects, among other criteria. Plus, timely payments help borrowers build their U.S. credit history – and there are no prepayment penalties.
  • Fast, digital process: MPOWER’s student loan application process is fully online and accessible from anywhere in the world. With quick approvals, seamless disbursement, and an eligibility check that takes just 30 seconds, MPOWER helps students focus on their studies, not paperwork.
  • International scholarships and holistic support: MPOWER goes beyond loans, offering international scholarships and services that cater to the specific needs of graduate students. Whether through financial services, career resources or visa support, MPOWER ensures students have the tools they need to thrive.
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Student loan refinancing: Is it right for you?

Once you’ve completed your studies and begun repayment, refinancing your student loan could be a smart financial move. Refinancing allows you to replace your current loan with a new one – ideally with better terms, such as a lower interest rate or longer repayment period. However, not all international students are eligible for refinancing, so it’s crucial to understand when and where it makes sense.

When should you consider refinancing?

  • You have a strong credit history: If you’ve built a solid credit history while studying in the U.S. or Canada, refinancing can help you secure a lower interest rate, reducing your monthly payments and total loan cost.
  • Your income has increased: Refinancing may make sense if you’ve secured a job with a steady income postgraduation. Lenders may offer more favorable terms based on your current financial situation compared to when you were a student.
  • Your current loan has a high interest rate: If your current loan has a high variable or fixed interest rate, refinancing could help lower it. Even a small decrease in your interest rate can reduce the amount you pay in interest by thousands over the life of the loan.

Where to refinance your loan

Many private lenders offer refinancing options for international graduates, but it’s essential to compare lenders and terms before making a decision. Some lenders specialize in refinancing loans for international graduates, often requiring proof of income and a strong credit history in the U.S. or Canada.

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FAQs


Can international students refinance their student loans?

Yes, some lenders offer refinancing options for international students, especially those with strong credit histories or steady post-graduation incomes. However, eligibility requirements vary by lender.

What’s the difference between private and university loans?

Private loans are offered by banks, credit unions and other financial institutions, often requiring a cosigner or an established credit history. University loans are offered directly by some schools and may have more flexible terms but are limited in availability.

Can scholarships and loans be combined?

Absolutely. In fact, combining scholarships, grants and loans is one of the best ways to fully fund your education without taking on unnecessary debt. Always aim to secure scholarships first, then use loans to cover any remaining costs.

What happens if I can’t find a cosigner for my loan?

Many lenders now offer private student loans without a cosigner for international students, especially for those studying in high-demand fields. These loans evaluate your future earning potential rather than relying on a cosigner’s credit history.

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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