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Study loans without collateral

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For many international students, private loans can be a game-changer when it comes to financing a postgraduate education in the U.S. or Canada. However, most traditional lenders require borrowers to have a strong credit history or a steady income – two things students typically don’t have. On top of that, many private lenders ask for collateral, like a house or valuable asset, as a guarantee. But for international students, providing collateral isn’t always possible. That’s where study loans without collateral come in – they offer a way to fund your education without the usual financial barriers.

Why international students need no-collateral loans

Studying in the U.S. or Canada can be a life-changing opportunity for international postgraduate students, but it can come with a hefty price tag. Tuition fees for international students are often higher than for domestic students. On top of that, there are housing costs, textbooks, health insurance and everyday expenses to consider. Unlike domestic students, international students don’t qualify for federal financial aid, such as government-backed student loans, leaving fewer options to fund their education. Scholarships and grants can help, but they’re limited, highly competitive and rarely cover all expenses. This makes private student loans a valuable financial tool for many international students.

However, most private lenders require students to offer collateral – such as property, savings or other assets – as a safety net in case the borrower can’t repay the loan. But for international students, providing collateral isn’t always possible. Many don’t have valuable assets they can pledge, and even if their families do, differences in banking systems and regulations can make it difficult to use them. Some lenders offer loans with a cosigner instead of collateral, but this comes with its own challenges. A cosigner needs to be a permanent resident or citizen with strong credit who’s willing to repay the loan if the student can’t. Many international students simply don’t have friends or family in the U.S. or Canada they can ask to do this. That’s why no-collateral, no–cosigner student loans are such a valuable option, offering a way for students to fund their education.

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How study loans without collateral work

No-collateral student loans offer a way for international students to finance their education without putting up valuable assets like property or savings as security. Unlike traditional loans that require collateral, these loans focus on factors like your academic performance and potential for future success. To qualify for study loans without collateral, you typically need to be enrolled in an eligible institution, maintain a solid academic record and have a plan for employment after graduation.

Here’s why study loans without collateral make sense for many international students:

  • No need for assets: Many students don’t own property or have significant savings, making collateral-based loans unrealistic.
  • Focus on your future, not your past: Instead of looking at your financial history, lenders assess your academic record and potential future earnings.
  • Cover essential expenses: An international education loan without collateral can often be used for tuition, housing, books and daily living costs, so you can fully focus on your studies.
  • No risk of losing assets: Unlike collateral-based loans, you don’t have to worry about putting your family’s home or savings at risk if you face repayment challenges.

How to compare study loans without collateral

Choosing the right study loan without collateral requires a bit of research. Here’s what to look for when evaluating your options:

  • Interest rates: One of the most important factors to consider is the interest rate, as it directly affects how much you’ll pay over the life of the loan. Some lenders offer fixed interest rates, which stay the same throughout the repayment period, making them inflation-proof. Other lenders offer variable rates that fluctuate over time. Even a small difference in interest rates can result in thousands of dollars in interest payment savings over the life of a loan, so it’s important to shop around for the lowest and most stable rate possible.
  • Repayment terms: The repayment term determines how long you’ll have to pay back the loan. It affects both your monthly payments and the total interest paid. A shorter repayment term means higher monthly payments but less interest paid overall, while a longer repayment term can mean smaller monthly payments but it increases the total amount of interest you’ll pay.
  • Fees: Beyond interest rates, check for any additional costs associated with the loan. Some lenders charge application fees, origination fees, required insurance, late payment fees or prepayment penalties. These fees can add up quickly, so be sure to read the fine print and choose a loan with minimal extra charges.
  • Eligibility: Lenders have different educational loan requirements for approving study loans without collateral. These may include enrollment in an accredited institution, maintaining a good academic record and demonstrating a strong future earning potential. Some lenders may also have restrictions based on your country of origin, program of study or graduation timeline, so it’s important to check whether you meet the eligibility criteria before applying.
  • Loan amounts: Consider whether the loan amount will cover your actual financial needs. Some lenders provide loans that cover full tuition and living expenses, while others have lower limits that may require you to find additional funding sources. It’s also a good idea to avoid borrowing more than necessary to minimize future debt.
  • Prequalification options: Some lenders offer prequalification tools that let you see your potential loan terms without affecting your credit score. This feature allows you to compare different loan offers and make an informed decision before submitting a formal application. Prequalification can be especially helpful if you’re unsure about your eligibility and want to explore your options without committing yourself right away.
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MPOWER Financing: No-cosigner study loans without collateral

MPOWER Financing is a leading education loan company founded to help international students achieve their dreams of studying in the U.S. and Canada. MPOWER offers no-cosigner, no-collateral loans for international postgraduate students studying at 500+ schools in the U.S. and Canada, as well as loans for DACA students and refugees and asylum seekers.

When choosing MPOWER, students can count on:

  • No-collateral loan options: MPOWER offers fixed-rate student loans ranging from US$2,001-US$100,000 with competitive interest rates and no need for collateral or cosigners.
  • Discounts for automatic payment: Students can reduce their interest rate by 0.25% when setting up automatic payments.
  • Flexible financing: Loans are available even when students have loans from other sources.
  • Fast processes: Students can take advantage of fully digital processes to check eligibility in 30 seconds, apply for a loan quickly or view a conditional loan offer.
  • Extra support: In addition to study loans without collateral, MPOWER offers valuable benefits including visa support, career services, assistance in finding health insurance options, scholarships and more.

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FAQs 

Are study loans without collateral available for international students pursuing postgraduate degrees?

Yes, many lenders offer no-collateral student loans for postgraduate degrees, including Ph.D. and master’s program loans. Eligibility depends on factors like your chosen field of study, future earning potential and the institution you’re attending.

Can I get a no-collateral student loan if I have existing student debt?

Some lenders allow students to take out additional loans even if they have existing student debt. However, they may assess your ability to manage multiple loans before approving your application.

How long does it take to get approved for a no-collateral student loan?

The approval process varies by lender, but many offer prequalification within minutes and full approval within a few weeks. Digital application processes have made it faster to secure loan funding.

Can I use a no-collateral loan to cover expenses beyond tuition?

Yes, most no-collateral student loans can also be used for housing, books, health insurance and other essential living expenses while studying in the U.S. In Canada, loans typically cover tuition and other university-invoiced expenses.

Are there no-collateral loans specifically for students in STEM fields?

Some lenders prioritize students in high-demand fields like STEM, business or health care, as these professions tend to have strong job placement rates and earning potential.


*Rates as low as 9.99% (11.16% APR). This interest rate and APR includes a 0.25% discount for automatic recurring payments.

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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