One of the recurring themes in our discussions with international students is family. Students tell us that they want to make their families proud. They also tell us they want to improve their prospects with a U.S. degree so that they can help support their families financially.
But that’s in the long term, of course. In the short term, we hear concerns about the potential financial burden on family members – especially since studying in North America can be expensive!
The great news is that MPOWER’s international student loan does not require collateral, which can place a huge financial burden on your family.
In case you’re not familiar with that term, collateral is something of value—such as land, a home, jewelry, or other assets—that is pledged to support a loan. If the borrower consistently fails to make payments and the loan is declared in default, the lender may seize the collateral and sell it in order to repay the loan. For more background on collateralized loans, check out this blog post on our partner Edupass.org !
A typical MPOWER customer borrows $30,000 over the course of their degree program. In countries where the value of land and homes are low in dollar terms, or where property values cannot be easily verified or appraised, it may be difficult to find a relative able (not to mention willing!) to pledge assets worth that much.
Any asset used as collateral for your student loan cannot be used as collateral for any other loan. So, if your family’s home is currently used as collateral for a loan for their business and your family now uses the home as collateral for your student loan, they will lose access to the loan facility for their business.
An MPOWER no-collateral international student loan allows you to avoid all this—and keep your family’s assets free for other uses.
When others provide help, the help sometimes comes with certain expectations. That also applies to asking relatives for help with funding — in return for their help, they may have expectations that they have some say in what or where you study, or what you will do after you graduate.
Getting an MPOWER non-collateralized international student loan to study in the USA or Canada allows you to maintain a certain level of independence from your family—making them proud but not giving them a veto over your future path.
If you later run into financial difficulties and are unable to pay your loan for 90 days or more, the lender could seize the collateral your family pledged.
With an MPOWER unsecured loan, you don’t have to worry about any of that. First of all, we never require collateral or a cosigner, so your relatives’ assets can never be seized if you fail to make payments.
Second, we’re a friendly lender with the attitude “if the borrower succeeds, we succeed!” We make every effort to assist any borrowers who face financial difficulties through our Path2Success program, which includes a free résumé review and a free 30-minute career consultation for every borrower upon request, as well as access to live and pre-recorded webinars on a wide variety of topics related to employment, immigration, and work authorization.
Any lender offering a collateralized student loan will require proof of the value of the collateral pledged. U.S. lenders often rely on property appraisals, while in your home country, lenders may insist on personally inspecting your family’s assets. This may require a visit to your family’s home, with the lender rifling through your family’s jewelry and other personal items!
You can avoid all this with an MPOWER no-collateral loan. We will ask you to provide documentation of any funds your family is contributing to support your education. That’s so we can be sure you have all the funds you need to meet the full cost of your degree, and that you are not faced with any shortfall after we disburse our loan.
However, if you can meet any financing gap between the cost of attendance and our loan amount without recourse to funds from your family, we won’t ask you anything about your family’s financial circumstances! And even if we ask for proof of your family’s financial contribution, we will never ask for an appraisal of their home or assets, nor will we require them to pledge any collateral against your student loan.
That’s our promise to you.
So, don’t wait – check your eligibility for a no-collateral, no-cosigner loan from MPOWER today!
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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