International student success story: Financing dental school in the U.S.

Several years ago, Nathalia was an international student from Brazil, pursuing a dental residency at the University of Michigan. All was going well in her studies until she realized she needed additional funds to cover her tuition. It took some time to find a solution, but Nathalia’s determination helped her find the funds to finish her program. Her story is a testament to the strong spirit of international students in pursuit of education. 

 

Navigating financial challenges as an international student

After her first year of dental residency, Nathalia knew she wouldn’t have enough money to continue her education, so she decided to apply for a loan from a U.S. bank. 

Unfortunately, this decision led to a disappointing discovery – international students have limited options when it comes to educational loan financing in the United States. Most of the banks Nathalia approached require a cosigner before granting student loan financing. A cosigner, typically a family member or friend, plays a major role in the loan application process and needs to be a U.S. permanent resident or citizen. Cosigners vouch for the student’s ability to repay the loan and agree to assume financial responsibility if the student faces repayment challenges. 

Finding a qualified cosigner for an educational loan was nearly impossible for Nathalia and added more stress to an already stressful situation.

“I was really sad and frustrated that I would not be able to keep learning and doing the program I enjoyed so much because of money,” Nathalia says.

An unexpected break from her program 

Faced with these financial barriers, Nathalia decided to temporarily pause her studies. She returned to her home in Brazil, determined to work and save enough money to cover her tuition. 

However, she soon realized her savings would be insufficient to fund her entire education. Nathalia was frustrated and afraid she wouldn’t be able to finish the dental program she had started and enjoyed. She started looking for other ways to secure the funds she needed to continue her education. 

Finding a solution to education loan financing

After exhausting every possibility, Nathalia’s story took a remarkable turn. She reached out to a contact in the U.S. Congress who shared a list of 20 institutions known for assisting with educational loan financing. Nearly every company rejected her application for not meeting their eligibility requirements, including not having a cosigner or U.S. residency. Only one out of the 20 lenders offered reassuring support: MPOWER Financing.

MPOWER: Making student loan financing a reality

Nathalia’s experience with MPOWER has had a transformative impact on her life. With MPOWER’s support, Nathalia was able to continue her dental residency at the University of Michigan and gain top-notch skills to treat her future patients. Today, Nathalia is excited to contribute to research on oral diseases, a field in which she aspires to make a significant impact.

Inspiration for other international students

Nathalia heartily recommends MPOWER to other international students facing similar financial challenges: 

“I hope my story can serve as a source of motivation for students all around the world to pursue their dreams. They should know that they can count on MPOWER to turn those dreams into reality.”

Nathalia’s journey exemplifies the spirit of international students who strive to overcome the hurdles in their way. It also highlights the critical role organizations like MPOWER play in helping students worldwide pay for college.  

Applying for an MPOWER loan is an easy and straightforward process. Check if you’re eligible for a loan today! 

Demystifying the Payoff Statement

If you’re contemplating refinancing your international education loan for more favorable terms, your current loan servicer will require a “payoff statement” – also referred to as a “payoff quote,” “payoff letter,” “settlement letter” as well as “foreclosure letter.” 

Let’s unravel the mysteries of the payoff statement and its significance.

What is a payoff statement?

A payoff statement is a document delineating the complete amount necessary to settle your student loan debt in full including:

• • A payoff amount: This is the sum required to entirely settle your student loan debt. It includes the principal balance (the initial amount borrowed plus any accrued interest) and any interest and penalties accumulated since your last payment.
    
  • A good-until date: This is the deadline until which the payoff amount is applicable. Most of the lenders give a table with the daily expected outstanding loan amount. Please ensure that your letter is valid for 15 days from submission date.
    
  • Account details: Your original loan provider should include details of the account to which you or your prospective refinancer should put money in to close the original loan account, i.e. account number, branch, etc. 

When is a payoff statement needed?

There are multiple scenarios where a payoff statement is required:

• • Early student loan repayment: If you intend to settle your student loans ahead of schedule, acquire a payoff statement to ensure the entire payment is made without any residual interest for the subsequent month.
    
  • Student loan refinancing: During the process of refinancing your student loans, your new lender may necessitate a payoff statement from your existing lender to verify the precise amount required to clear the debt.

How to acquire a payoff statement?

To secure a payoff statement, you can either retrieve it from your lender’s online portal or contact your lender to request a copy. We have listed a few lenders and their processes here to help.

Prodigy Finance (US): Here is a quick guide on how to settle/close off your loan with Prodigy Finance. 

Public sector banks (India): For PSBs like State Bank of India (SBI) and Bank of Baroda (BoB), you need to reach out to your home branch for a letter from the branch manager. Typically these banks have a standard template for home loan refinancing which they modify for your education loan.

Private lenders (India): With all Indian private banks as well as Non-Banking Financial Companies (NBFCs), you need to reach out to their central support team asking for “foreclosure statements.” Here’s the contact information for common private lenders in India to help you get started: 

• • IDFC Bank: banker@idfcfirstbank.com
  • HDFC Credila: support@hdfccredila.com
  • Avanse: wecare@avanse.com
  • Auxilo: customercare@auxilo.com
  • InCred: care@incred.com
  • Kuhoo: connect@kuhoo.com
  • Leap Finance: contact@leapfinance.com

For U.S. federal student loans, visit your loan servicer’s website or contact them directly. 

Why refinance your student loan?

If you have the opportunity to gain better loan terms with a new lender , it can yield several advantages:

• • Interest reduction: You may reduce the amount you pay in the long term by preventing the accumulation of additional interest.
    
  • Monthly budget liberation: You may reduce your monthly loan payment which will  increase your disposable income.
    
  • Selective tax benefits: You may qualify for tax benefits by moving your loan to the country where you work.
  • Building credit history through timely repayment:. Since your credit history does not always move with you across borders, you should plan to build a credit history where you intend to spend a significant part of your career.

Closing thoughts

Actively managing your student loans is a crucial component of your financial journey. Securing a payoff statement is a vital step if you are contemplating early loan repayment, loan refinancing or purchasing a residence. Remember to evaluate multiple lenders if you are considering refinancing your student loans and bear in mind that you may forfeit federal safeguards such as income-based repayment plans and student loan forgiveness programs.

Once again, congratulations, and best wishes on your financial journey!

What’s next?

Apply with MPOWER to refinance your international student loan at refinance.mpowerfinancing.com

If you have already started with your application, track and upload the documents on our dashboard. 

International study programs: Business management

Business management is a popular international study program, offering graduates a long-term return on investment. If you’re considering which course of study to pursue as an international student, here’s what you should know about the benefits and challenges of earning an undergraduate business degree. 

About business management programs

Business management students learn how to plan, manage, and direct processes within a business or organization effectively. The curriculum is generally a blend of theoretical and practical study. You’ll explore subjects in business administration, finance, marketing, management, information systems, accounting and ethics. 

Through this coursework, you’ll sharpen your analytical understanding in a variety of business scenarios and deepen your critical thinking and problem-solving skills. You’ll also strengthen your communication technique and cultivate leadership abilities so you thrive in a team-oriented workplace. 

These personal and professional traits taught through a business management program helps you become an asset to an organization’s or business’s success. 

According to research by Statista, business management was in the top three fields of study during the 2022-23 academic year. Programs are competitive, but they can be an entryway into a variety of industries after graduation.

Completing a major that offers a diverse curriculum and employment versatility can help justify the cost of studying in the U.S.

Demand for business degrees in management

Business is the most sought after field of study among students, both at the bachelor’s and master’s program levels. 

The National Center for Education Statistics found that business degrees, including business management, were the highest-ranking field of study for bachelor’s degrees granted in 2021. In total, 391,400 business degrees were conferred to undergraduate students in the U.S., accounting for 19% of all degrees granted that year.

A bachelor’s degree in business was also among the top two areas of study for nonresident U.S. students who earned their degree, according to NCES data. 

Business management return on investment (ROI)

The return on your higher education investment highly depends on your area of study, school and the post-graduation career and industry you ultimately land in. A 2022 report by Georgetown University’s Center on Education and the Workforce evaluated the median earnings of students with a bachelor’s degree in business administration, management and operations. This data factored in students’ earnings and their debt payments.

It found that two years after earning their degrees, business management students made a median net earning of US$44,400.  

Education data calculated the ROI for business degrees over time. It found that 10 years after obtaining a bachelor’s degree in business, business students saw a -28.3% ROI. Every decade thereafter had exponential ROI growth as professionals advance in seniority within their careers:

• • 20 years: 68% ROI
  • 30 years: 197% ROI
  • 40 years: 371% ROI

Future growth in an industry also matters when choosing a lucrative field of study for long-term ROI. Georgetown University’s Center on Education and the Workforce found that business services is among the top industries expected to grow between 2021 to 2031. This is the second-highest ranked industry in its study with a projected increase of 25.5 million new jobs in the field. This greater demand can lead to competitive wages later as you gain experience in the workplace.

5 jobs you can get with a business management degree

A business management degree provides international students with a multifaceted curriculum and essential professional skills. Thanks to this academic preparation, graduating in business management enhances your adaptability in the job market. 

Below are just a few popular career options that this degree can unlock.

1. Project management specialist

Project managers oversee the details of various projects within an organization. They lead a team through task planning, keeping the unit on schedule and communicating updates and guidance with the organization at large. They act as the quarterback for the organization, supervising projects from their inception through completion.

U.S. Bureau of Labor Statistics (BLS) data reports that the median annual wage for project management specialists was US$95,370. It has a positive job outlook and is expected to grow 6% between 2022 to 2032.

2. Management analyst

A management analyst observes an organization’s processes and provides suggestions on how to optimize them. They interact with personnel at all levels to get a thorough understanding of current practices and procedures. A part of their work is also required to evaluate data reports to see what areas of the organization are, or are not, functioning effectively. 

These roles might operate in-house, though some management analysts function as an independent consultant. The median annual wage for this occupation is US$95,290, according to the BLS, with a projected job growth of 10% through 2032.

3. Market research analyst

A market research analyst examines an organization and its customer needs to help the company reach its sales conversion and retention goals. They research the climate of the industry and competitor performance to determine market trends and forecasts.

With this data, market research analysts develop and present reports to the organization or its stakeholders. They also collaborate cross-departmentally with engineers, sales teams and more, delivering data-based information that informs other areas of the business.

Market research analysts earn a median annual wage of US$68,230. The BLS job outlook forecast projects high demand in this profession as it’s expected to grow 13% percent from 2022 to 2032.  

4. Director of operations

A director of operations is responsible for an array of functions within an organization. This includes managing a key business division of the company and focusing on ways to support the organization’s growth and profits. 

Operations directors do so through budgets, service or product optimizations, hiring and training mid-level leadership, and analyzing performance reports. As a top-level executive, they formulate policies and procedures and aid in business strategy.

According to the BLS, the median wage of top executives in this role earn US$100,090 per year. The projected job growth of this profession is 3% between 2022 to 2032.

5. Financial manager

If you enjoy digging deep into numbers, a career as a financial manager might be for you. In addition to your business management degree, professionals must typically work in a related business or financial role for at least five years.

As a financial manager, you’ll lead an organization’s finances and provide recommendations to keep them aligned with the business’s long-term objectives. The day-to-day responsibilities include reviewing financial reports, business activities, budgets and other financial aspects of the business. You’ll identify cost-cutting opportunities and create reports on how the company can maximize its profits. 

Financial managers earn a median annual wage of US$139,790. The occupation is expected to grow much faster than average at 16% through 2032.

Getting a business management degree

As the leading area of study in the U.S., a degree in business management offers strong long-term ROI. However, that ROI might not come immediately after graduating from school. 

Although it can present lucrative career and earnings opportunities later, studying business management in the U.S. can be expensive. If you need additional funding to pay for school, consider an international student loan through MPOWER Financing.  

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What is an international student loan?

An international student loan is a private loan for students studying in a country other than their own. These loans cover tuition and fees and can also be used toward living expenses, like housing, if you’re studying in the United States. 

If you need financial assistance for studying abroad, here’s what to know about an international student loan.

How does an international student loan work?

Since international students aren’t U.S. citizens and, therefore, aren’t eligible for federal financial aid from the U.S. Department of Education, the next option might be to apply for a private international student loan. You can find this type of loan through private lenders. 

MPOWER Financing and Sallie Mae are lenders that offer international student loans. Your school might also offer institution-sponsored student loans for international students and is a good place to start your search. 

How do I qualify for an international student loan?

Different lenders have different loan requirements. Some lenders require a cosigner who’s a U.S. citizen, or they require a guarantee of payment, like collateral, to get a loan. A cosigner is a person who agrees to take legal and financial responsibility for repaying your loan if you can’t. 

Due to this major responsibility, a cosigner is usually someone you’re close to and with whom you have a trusted relationship, such as a parent or other close relative. Additionally, your cosigner must meet income and credit criteria, which differs between lenders.

Not all lenders require that international students have a cosigner or collateral. For example, MPOWER Financing doesn’t require its applicants to secure a cosigner or provide collateral for its student loans. 

Receiving and using the funds

International student loans are closed-end installment loans. This means you’ll get a fixed lump sum disbursement of the funds upfront. Interest charges accrue on the loan periodically, which is your cost for borrowing the money. 

The loan funds can be used for tuition and fees, textbooks and school supplies. In addition, funds can also be applied toward living expenses, like housing, utilities and food, while you’re studying in the U.S.

Repaying an international student loan

Generally, you must start making payments each month immediately upon disbursement. Some lenders allow you to hold off on making payments while you’re in school. Additionally, lenders might provide a limited grace period after leaving school when payments aren’t due.

Although you’re not required to make a loan payment during these periods, loan interest still accrues. Some lenders, like MPOWER Financing, require you to make interest-only payments while in school and for the first six months after graduation so that interest doesn’t accrue.

How to apply for an international student loan

Each lender has its own application process. Generally, when applying, you’ll fill out the lender’s application form. You will need to provide documents related to your immigration status, enrollment status and income or asset information. For example, you’ll need your student visa, financial documents (e.g., job acceptance letter or bank statements) and school transcripts or acceptance letter.

If you’re applying with a cosigner, they must provide their own income details and current debts they’re repaying. Some lenders require a hard credit check, which can lower your credit score. Lenders perform a credit check to learn about the cosigner’s past borrowing and repayment habits.

The lender might ask for copies of supporting documents confirming the details of your formal application. This might occur before the lender makes its loan decision or shortly afterward, if you’re approved. Submit any requests for these documents as soon as possible to avoid delays. 

If you’re approved, the funds might be disbursed to your school’s financial aid office or sent directly to you.

Alternative financing for international students

International students have other financial aid sources to explore aside from private education loans. Taking advantage of financial opportunities through your institution, third-party entities and employment can help you pay for school.

• • School-sponsored financial aid. Scholarships are financial awards that don’t need to be repaid. Some schools offer scholarships and grants specifically for international students. For example, the University of Alabama offers the International UA Competitive Admissions Scholarship worth US$6,000 up to the cost of tuition. Visit your school’s financial aid office to learn about its scholarship programs.
    
  • Third-party scholarships and grants. You can also find a variety of scholarships and grants through external organizations. These programs can be need or merit based, and they’re available for students with certain academic pursuits, interests and backgrounds. You can also explore MPOWER Financing scholarship opportunities.
    
  • On-campus employment. You might qualify for on-campus, part-time employment, which would help you cover some of your school and living expenses. You can work up to 20 hours per week during the school session and work full time (40 hours/week) during vacation months. Speak to your designated school official to learn more about guidelines and limitations.

Financing your education with an international student loan

Although you likely don’t qualify for federal loans as an international student, private international student loans can help make studying in the U.S. possible. Some lenders require a qualified cosigner who’s a U.S. citizen, but some, like MPOWER Financing, do not require cosigners at all. Compare international student lenders to find an offer that suits your needs.

Conversely, if an international student loan isn’t right for you, consider the alternatives, including a combination of scholarships, grants and part-time empoyment. Extra funds – no matter how small in amount – go a long way to paying for school fees, books, supplies and day-to-day living costs.

FAQs: International student loans

How do international students pay for college?

International students can pay for college through private student loans, scholarships and grants. Certain students who are approved to work on campus can also use their earnings toward education costs.

Who gives loans to international students?

Private financial institutions, like banks, credit unions and online lenders, offer loans to qualified international students. Students can also ask their school about available institution loans that are available to international students.

Why can’t international students get federal financial aid?

Federal financial aid through the U.S. Department of Education is available only to U.S. citizens and eligible noncitizens. Generally, international students studying in the U.S. don’t qualify for federal aid. However, they might have access to international student loans through private lenders. 

Understanding student visa regulations: A step-by-step guide

To study in a foreign country, international students need a visa. This  allows them to not only enter the country but to  stay for a specific period of time to study. That’s why it’s important to know how to navigate country-specific visa regulations.

This step-by-step guide provides detailed information on the steps required for visa applications.

1. Research your destination country:

Start by researching the specific student visa regulations of your intended destination country. Visit the official website of the country’s embassy or consulate to access the most recent and accurate information. Understand the various visa categories, application procedures and eligibility requirements that apply to international students.

2. Choose the right courses and school:

Ensure the courses and college or university you select are recognized and accredited. Research universities and colleges thoroughly, considering factors such as academic reputation, available scholarships  and alumni success stories. This research will not only enhance your educational experience but also contribute significantly to your visa application’s credibility.

3. Gather necessary documents:

Here’s a list of documents you may be required to submit for your visa application:

• • Acceptance letter: A formal acceptance letter from the school you plan to attend.
    
  • Financial documentation: Bank statements, affidavits of support or sponsorship letters demonstrating financial capability to cover tuition and living expenses.
    
  • Academic records: Comprehensive academic transcripts and certificates.
    
  • Language proficiency: Scores from standardized language proficiency tests like IELTS or TOEFL.
    
  • Valid passport: Passport with a validity period exceeding six months beyond the intended period of stay.
    
  • Passport photos: Recent passport-size photographs adhering to prescribed specifications.
    
  • Health insurance: Documentation proving health insurance coverage that meets host country standards. Note: When studying in the U.S. there is not currently a federal insurance regulation for the F-1 visa, but for visas like the J-1 you will need insurance that meets certain requirements.
    
  • Travel itinerary: Detailed travel plans, including flight bookings.
    
  • Completed visa application form: The visa application form can be found on the official embassy website of your destination country.

Guidelines can change, so stay up to date on any additional immigration documents or requirements.

4. Understand financial requirements:

Many countries require international students to prove they’ll have sufficient funds to cover tuition fees, living expenses and health care. Stay informed about the specific financial requirements of your destination country and plan your finances accordingly. Investigate scholarship opportunities and financial aid options to ease the financial burden. 

MPOWER Financing offers a loan program tailored to the needs of international students, including loans for tuition, housing and living expenses when studying in the U.S. 

5. Health insurance and medical checkups:

Some countries mandate health insurance coverage for international students during their stay, especially while in university. Additionally, a medical examination might be necessary to meet the host country’s health standards. Secure comprehensive health insurance and schedule the required medical checkups well in advance.

6. Complete the visa application:

Fill out the visa application form accurately and thoroughly. Pay attention to every detail, as any errors or incomplete information could lead to delays in processing your application. Stay updated on the visa processing times and guidelines provided by the embassy or consulate.

7. Prepare for your interview (if required):

Certain countries conduct visa interviews to assess applicants’ intentions and eligibility. Practice common interview questions related to your study plans, financial status and ties to your home country. Approach the interview with confidence and honesty, as immigration officers appreciate genuine and straightforward responses.

8. Be aware of visa regulations during your stay:

Once you obtain the student visa, familiarize yourself with the regulations governing your stay. Stay updated on visa renewal procedures, work limitations and any other legal obligations. Compliance with these regulations is essential for maintaining your legal status and ensuring a smooth academic journey.

Navigating U.S. entry rules for international students

If you plan to study in the U.S., it’s crucial to grasp the complexities of the entry process. Having a visa doesn’t guarantee entry; it merely grants access to a U.S. port of entry, where U.S. Customs and Border Protection officials decide on admission.

Upon arrival, a CBP official will inspect your passport, visa and Form I-20. If granted admission, you receive an admission stamp or Form I-94. Learn about arrival procedures for students on the CBP website, including entry requirements and restrictions on items such as food and agricultural products.

Extending your stay

Students on F visas have a 60-day window after the program end date (as listed on Form I-20) to depart, unless authorized for practical training. Extensions can be requested through the U.S. Citizenship and Immigration Services website. Failing to leave on time puts you out of status and voids your visa, which can lead to a permanent bar in the U.S.

Change of status

If your plans change (e.g., marriage to a U.S. citizen), a status change is possible through USCIS. While in the U.S., a change doesn’t necessitate a new visa. However, for re-entry, acquiring a new visa is essential.

Additional considerations

• • No visa is a guarantee, so don’t finalize travel plans until you have one.
  • Work guidelines for students can be found on the USCIS website.
  • Temporary study breaks are discussed on the SEVP website.
  • Spouses and children can apply for F-2, J-2 or M-2 visas with proper documentation.
  • Valid U.S. visas in expired passports remain valid; use both your old and new valid passport for travel and entry.

Next steps in understanding visa regulations

The regulations needed to obtain a visa might seem overwhelming, but by following this comprehensive step-by-step guide, you’re well on your way to securing your visa successfully. Remember, you’re not alone in this journey. For further assistance, watch our  Visa 101 video featuring an immigration expert to help address any lingering questions you might have during your visa application process. 

New Study: International Education Financing Spurs Campus Diversity and Global Economic Growth

Study surveyed students from 163 countries and analyzed the broad societal benefits of international education

WASHINGTON, D.C., December 5, 2023 – MPOWER Financing, a mission-driven fintech firm and the leading provider of scholarships and no-cosigner loans to promising students from around the world, today released its third annual Social Impact Report. The report analyzes the role that financing plays in democratizing access to education for high-potential students worldwide. 

Drawing upon data from over 20,000 MPOWER no-cosigner loans made to international and refugee students over the past decade and an accompanying survey, the 2023 social impact report reveals the impact that innovative financing models can have on individuals, educational institutions, host country and country of origin, and the global community more broadly. 

Key findings include:

• 93% of all surveyed students and 96% of women say the availability of an MPOWER educational loan has been instrumental to their ability to study abroad. 
• 70% of students report belonging to families with an annual household income of US$12,000 or less, placing them at or below the world median.
• 48% are first-generation college students.
• While MPOWER students hail from 163 countries, 85% come from Global South nations including India, Nigeria, Ghana, China, and Brazil.

In addition to driving socio-economic and global diversity on U.S. and Canadian campuses,  MPOWER loans help boost the economies of host countries. Along with other international students in the U.S. during the 2022-23 academic year, MPOWER students contribute toward the $40.1 billion financial impact that all international students have on the U.S. economy, as indicated by NAFSA’s calculations. MPOWER estimates that international student impact in Canada was C$35.7 billion for the same period.

The economic impact of international students in the U.S. and Canada extends once they graduate and become alumni and either remain in their host country, becoming skilled immigrants contributing to local economies or return home to build long-term collaborations and partnerships. While the benefits of skilled immigration to host countries is clear, graduates often influence businesses in their new home to do more deals with businesses in their country of origin (Brain Gain), or move back to their origin countries, bringing foreign expertise and global best-practices with them –  a phenomenon called Brain Circulation. 

The report highlights that nearly half of all world leaders were educated abroad (with the United States as the top destination), allowing them to serve as bridges between nations and making them more likely to embrace democratic values.

The report concludes with a call to action for higher education institutions, policymakers, the private sector, and donors and philanthropists to take action to boost overseas study opportunities for students:

• For higher education institutions: Colleges and universities should promote a comprehensive range of financial options, including government and private scholarships, institutional aid, and global student loans, to support and attract international students. This inclusive financial strategy is essential to promote diversity among schools’ international student populations, along with reducing or eliminating deposits for students from low-income countries and backgrounds.
• For policymakers: Immigration reform is urgently needed in the U.S. to establish a clear pathway between higher education and skilled immigration to maximize the economic impact that international students can make. The U.S. should increase staff and streamline processes in overloaded consular offices, like those across sub-Saharan Africa, to eliminate months-long waiting times for visa appointments. The U.S. Department of State should additionally increase training and guidance for improved visa adjudication and work to remedy posts experiencing high visa decline rates.
• For the private sector: Investing the asset class of global student loans helps build the global talent pool, grow and diversify the workforce, and spurs innovation and entrepreneurship. This is especially critical as both the U.S. and Canada face a demographic decline and a shrinking domestic workforce that will increasingly rely on global talent. Additionally, firms with a global client base should recognize the value that international students bring to their workforce and actively pursue hiring international students and sponsoring visas.
• For donors and philanthropists: More scholarships and private philanthropic efforts focused on different groups of underprivileged students are needed to increase educational access and prevent “brain waste” or the loss of human capital. Displaced and refugee college students are particularly vulnerable.

The full report is available for download on MPOWER’s website.

About MPOWER Financing

MPOWER Financing, headquartered in Washington, D.C., and with employees worldwide, is a mission-driven fintech company and the leading provider of global education loans. Its proprietary algorithm analyzes overseas and domestic credit data as well as future earning potential to serve promising international students. MPOWER works with over 500 top universities across the U.S. and Canada to provide financing to students from over 200 countries. The MPOWER team consists of former international students and provides students with personal financial education and career support to prepare them for their professional careers after graduation.

MPOWER recently announced that it exceeded $300 million in finding capacity to support international students’ education. MPOWER is a Certified B-Corp and Great Place To Work, one of the best fintechs to work for, and the best tech workplace for diversity. The company is hiring for various positions worldwide.

International student success story: Financing an MBA in the U.S.

For international students pursuing higher education in the United States, the dream of acquiring a world-class education can often come with a host of financial barriers. Neha Purohit, an international student from India, found herself in this predicament when she aspired to pursue an MBA in the U.S. The process seemed financially daunting, and she’d almost lost hope.  

Fortunately, after an exhaustive search, she found the funds to pay for tuition and expenses. Neha earned her MBA and launched a career she loves in the U.S., and today Neha is a principal product manager at McAfee.

Neha’s financial struggles mirror those of other international students seeking a degree abroad, and her success inspires hope.

 

 

Challenges in financing an international education 

Like other international students, Neha faced considerable challenges finding the money to pay for college. American students often have access to federal loans and loans from private institutions such as banks or other lenders to cover costs. However, international students aren’t eligible for federal loans because they’re not U.S. citizens. This means international students often rely on scholarships and private loans, in addition to family support, as their main financing option.

Unfortunately, most private lenders also require students to be permanent U.S. residents or citizens, which makes finding financing even harder. This was the case for Neha. 

Private lenders often demand a cosigner, typically a family member or friend, to support the loan application. The cosigner plays a crucial role by vouching for the student’s ability to repay the loan. A cosigner also agrees to take financial responsibility if the student is unable to pay back. 

Further compounding the issue, these private lenders frequently require the cosigner to be a U.S. permanent resident or citizen. This can be a considerable hurdle for international students who may not have close ties with eligible individuals in the United States.  

Neha’s struggle ends after discovering MPOWER Financing

Neha was rejected 10 times as she navigated the world of educational loan financing. Her aspirations of earning an MBA in the U.S. seemed to be dimming, but then she discovered MPOWER Financing. 

MPOWER is a fintech company empowering a diverse range of individuals, including international students, DACA recipients and refugees, by providing comprehensive financial solutions such as loans, scholarships and career development resources. It was founded by former international students to help students from around the world pay for college in the U.S. and Canada. Neha reached out to MPOWER, and the experience turned out to be a game-changer. A representative from MPOWER assured her she could apply for a loan and receive the necessary funds to pursue an MBA.

Neha’s educational loan journey

Fortunately, Neha’s experience with MPOWER was enabled by three items that significantly helped her pursue an MBA in the United States:

• Rapid loan approval: One of the remarkable features of an MPOWER loan is the swift approval process. MPOWER approved Neha’s loan application within 24 hours. This rapid response gave her the financial support she needed without unnecessary delays.
• Direct disbursement to her university: MPOWER sends funds directly to the student’s university. This direct disbursement method eliminates the stress associated with managing and allocating funds, including students not having to worry about international transaction or conversion fees. Neha’s educational expenses were covered without any hassle.
• User-friendly application: Neha also praised the straightforward and user-friendly loan application process. The online application makes it easy to provide the necessary information, eliminating complexities that can be hard for international students.

MPOWER approved Neha for a US$50,000 loan, finally making her MBA studies possible. MPOWER offers international education loans between US$2,001 and US$100,000.  

Neha’s story is particularly unique because she needed an additional loan for the second year of her MBA program. Fortunately, the process was as smooth and straightforward as her first loan application. She was able to finish her MBA program without any disruption thanks to MPOWER’s continued support: “I was able to complete my education and move ahead in my career because MPOWER was able to support me financially.”

Why Neha recommends MPOWER Financing

Neha recommends MPOWER to anyone seeking financial support for college. She says the simplicity and ease of the loan application process, coupled with the support of MPOWER’s skilled professionals, make the company a go-to resource: “They helped me by creating financial strength for me, which was my dream, and made my dreams come true.”

International students planning to study in the U.S. can visit the MPOWER Financing website to explore funding for college.

What is the difference between CPT and OPT?

As an international student in the United States, you have the option of gaining practical work experience through Curricular Practical Training (CPT) or Optional Practical Training (OPT). Both CPT and OPT allow international students to engage in meaningful work in a variety of fields and industries. 

CPT is primarily for internships before you graduate, whereas, OPT lets you seek employment before or after you complete your degree. Here’s a closer look at each and the difference between CPT and OPT.

What is CPT?

CPT allows international students to gain practical experience through internships or cooperative education. You can only take part in CPT if the work opportunity is required by your academic program. 

Your employer will have an agreement with your school and may offer part-time or full-time work. If you choose to work full time for 12 months on CPT, you’ll lose your eligibility for OPT. However, working part time on CPT won’t disqualify you from OPT. 

CPT requirements

To be eligible for CPT, you must have studied as an F-1 visa student for at least one year and be enrolled at a SEVP-certified college or university. You also must take part in training that relates directly to your major area of study and is required for graduation. 

You’ll have to secure the training opportunity before you get CPT authorization. Try to apply at least two weeks before you wish to start working, as the authorization process might take seven to 10 days. 

What is OPT?

OPT also lets you gain practical work experience related to your major of study, but your academic program doesn’t need to require this training. You can work under OPT for up to 12 months before or after you graduate. If you work while school is in session, you can take on up to 20 hours per week. Otherwise, you can work full time. 

Using OPT prior to graduation is known as Pre-Completion OPT, whereas working after is Post-Completion OPT. STEM majors may also be eligible for a STEM OPT extension, allowing them to extend their Post-Completion OPT for up to 24 months. 

OPT requirements

To be eligible for OPT, you must have been a full-time student for a minimum of one year and seek a job that relates to your major of study. To get work authorization, you must receive an I-20 form with a recommendation for OPT from a school official. 

Once you have this form, you’ll need to apply via Form I-765 with the United States Citizenship and Immigration Services (USCIS) to get work authorization. You can start working after USCIS issues your Employment Authorization Document (EAD).

Apply for your EAD at least three months before you want to start your job, since USCIS can take 90 days or longer to process your application. You’ll need to pay taxes on income you make through your OPT employment and will fill out a W-4 tax form with your employer before you get your first paycheck. 

What is the difference between CPT and OPT?

While both CPT and OPT allow international students to engage in meaningful work experiences related to their course of study, these programs have some key differences. Here’s how they compare. 

• Academic requirements: You can only work on CPT if the internship or other training opportunity is required by your academic program. Work through OPT, on the other hand, will be related to your course of study, but it’s not required to earn your degree.
  

• Employment timing: CPT must be completed before you graduate, whereas OPT can be before or after you leave school. As mentioned, working 12 months full-time for CPT will mean you lose eligibility for OPT.
  

• Authorization requirements: The OPT program requires you to apply for employment authorization through USCIS. CPT does not have this requirement.
  

• Application fees: CPT does not have additional fees outside of your student visa requirements and tuition, whereas submitting an application to USCIS for OPT requires a fee of US$410. 

Final thoughts on working in the U.S.

The CPT and OPT programs give international students the opportunity to gain real-world experience working in their chosen field. CPT involves working an internship or gaining training that’s required by your major to graduate, whereas OPT lets you work in your chosen field before or after you graduate with your degree. 

Besides CPT and OPT, students with a F-1 visa are allowed to work on-campus starting 30 days after their program starts. Your visa permits you to work up to 20 hours per week while school is in session in roles at your library, bookstore, cafeteria or other campus locations. This type of work is meant to be a supplemental form of funding (when relevant) and to gain practical experience. Those who need more comprehensive forms of financing will want to further explore scholarships and loans for international students.  

Apply Now

If you have questions about working in the U.S., your school’s international student services office should be able to point you in the right direction. Exploring your options early will help you meet any CPT or OPT requirements and land an internship or job in your chosen field. 

This information was gathered in November 2023. Please confirm any changes since this period from the CPT and OPT sources above. For more information, check out our guide to working in the U.S. as an international student. 

Where can international students find last-minute funds to study in the U.S.?

Paying for college in the U.S. can be challenging due to high tuition rates and costs of living. If your financial situation has changed unexpectedly, you may be looking for last-minute funds to study in the U.S. Fortunately, there are options for finding funding year-round, including scholarship awards with late or rolling deadlines and international student loans. 

Here’s a closer look at your avenues for financial assistance, whether you need help paying for your bachelor’s or financing a graduate degree. 

1. Reach out to your school’s financial aid office

Your school’s financial aid department is a great resource for last-minute funds to study in the U.S. A financial aid administrator can help you find scholarship opportunities, as well as let you know if any institutional aid is still available.

Although international students are not eligible for federal financial aid from the U.S. government, they may qualify for grants, fellowships or student loans from their university. If your university already offered you some aid, you might try asking for more, especially if your financial situation has changed since you applied. 

Some schools also offer tuition payment plans, allowing you to spread out tuition payments over the year rather than paying the full amount upfront. Keep in mind, though, tuition payment plans may cost a little more overall due to an enrollment fee or interest charges. 

2. Apply for scholarship awards

Although some scholarship organizations set early deadlines, others have late deadlines or accept applications on a rolling basis. That means you can apply for scholarships right up until your semester starts and even after you’ve already started attending classes. 

Along with asking your financial aid administrator about opportunities, use scholarship search engines to find awards that could be a good fit. Some leading search engines include International Student’s scholarship search, College Board, FastWeb, Scholarships.com, and Peterson’s. 

MPOWER Financing also offers a number of scholarships to international students. You might also check with local or religious organizations, a place you’ve volunteered or a neighborhood association. If you have a part-time or full-time job or your parents work for a company, find out if the employer offers any scholarship opportunities for higher education, too. 

Gather all your application materials so you can apply to scholarships quickly and easily. These may include your transcript, resume and a personal essay about your educational and personal goals. 

3. Look for funding opportunities from your home country

Your home country may also be able to offer last-minute funds to study in the U.S., whether from scholarship organizations, companies or your government. Check out your government’s website (likely a department of education) for scholarship opportunities. Keep in mind that some of these opportunities may have conditions attached, such as the expectation you’ll return and work in your home country after you graduate with your degree. 

4. Apply for a part-time job

While your work options in the U.S. may be limited, an F-1 visa lets full-time international students work up to 20 hours per week on campus. Some students may also be able to work as a teaching or research assistant. Check your school’s job board for opportunities so you can earn some income while you work toward your degree. 

You may also be able to start your own side hustle to earn some extra cash, as long as it fits within your visa work regulations. Some students earn money through blogging or making YouTube videos, for example. 

5. Consider borrowing a private student loan

Borrowing an international student loan can also help you with financing your education. You can generally apply for a private student loan at any point throughout the year, though loan approval and disbursement will vary by lender. 

There are various lenders in the U.S. that offer student loans to international students, but most require that you apply with a cosigner who’s a U.S. citizen or permanent resident. Your cosigner also must have good credit and a source of income, as well as be willing to pay your loan if you are unable to. 

If you don’t have a cosigner or prefer to apply on your own, consider borrowing an international student loan from MPOWER Financing. MPOWER designs student loans specifically for international students and doesn’t require you to have a cosigner or put up collateral.

Keep in mind that you’ll have to pay a loan back, usually for several years to come. Along with paying back the amount you borrow, you’ll also have to pay interest charges and any associated loan fees.  

If you’re interested in learning about  student loans check out MPOWER’s fixed-rate student loans for undergraduate and graduate students. 

Financial planning for international study programs: Navigating university acceptance

Before you embark on your academic journey abroad, remember that financial planning is key, especially if you’re exploring ways to pay for college in the U.S. In this article, we’ll share costs, tools and options to help international students, like you, prepare to finance your education.

Understanding tuition costs for international study programs

When considering costs, it’s crucial to first understand your tuition expenses. Tuition costs can vary widely depending on the type of school you attend. At public universities, in-state students typically pay lower tuition rates, while out-of-state and international students pay higher tuition fees. A private university education tends to come with a higher price tag for all incoming students. Whether public or private, it’s important to research your university’s specific costs. 

Public and private universities also tend to differ in class sizes, resources and admission criteria. Public universities often have larger classes and extensive facilities. Private universities offer smaller classes and may provide more holistic admission processes. Both offer financial aid options, with private universities sometimes offering generous aid packages.

Remember, costs listed on your university website typically cover one year or one semester of education, and most students require several years to earn an undergraduate or graduate degree. Plus, you’ll need to factor in living and other educational expenses.

Additional university costs beyond tuition to consider

Besides tuition, there are additional costs to take into account in your financial planning for college, including:

• • Housing: Renting an apartment or living on campus often involves monthly or semester-based payments.
  • Meals and dining: Budget for groceries and dining out that is not covered in the meal plan.
  • Books and supplies: Factor in the cost of textbooks and academic supplies, which can be significant.
  • Transportation: Consider expenses for commuting, public transport or owning a vehicle if needed.
  • Health insurance: Keep in mind that many universities require students to have health insurance, either through the university or a private plan.
  • Technology and gadgets: Budget for a laptop, software and other devices necessary for your coursework.
  • Personal expenses: Factor in clothing, toiletries, entertainment and other personal items.
  • Extracurricular activities: Remember that clubs, sports and other activities might have participation fees.
  • Travel and visas: Consider travel costs to and from your home country as well as visa application fees.
  • Emergency fund: Set aside money for unexpected expenses or emergencies.

Tools for financing your education

Navigating the financial aspects of university life in the U.S. requires careful planning. Here are some valuable tools to assist you in your educational journey.

Cost calculators

Several online tools and websites can help you estimate the total cost of your education in the United States. These calculators take into account tuition, fees, housing and other related expenses, providing a comprehensive overview of your financial needs. Many university websites have these, and it’s a great place to start if you already know where you want to study. 

Budgeting apps

Use budgeting apps to track your expenses and manage your finances effectively. Apps like Mint, YNAB (You Need a Budget) and PocketGuard are popular choices, helping you stay on top of your spending.

Financial aid counselors

Financial aid counselors at your university can provide personalized guidance on financing your education. Reach out to them for assistance and advice tailored to your specific situation.

Financial assistance options: student loan eligibility

Once you’ve tapped all of your personal financing options, including scholarships and grants, consider exploring additional financial assistance options, such as student loans. Private lenders, such as MPOWER Financing, offer no-cosigner, no-collateral loans to international students studying in the United States and Canada.

These loans come with competitive fixed interest rates and transparent terms, ensuring your financial burden remains manageable while you pursue your degree. By making timely payments on your loan, you’ll also build a U.S. credit history, a valuable asset for your  future.

Financial planning for graduates: refinancing your loan

For students entering their final year of university and considering refinancing options, it’s helpful to understand your options and evaluate your financial situation. 

Here are some tips and things to know:

Loan repayment: Assess your current loan repayment plan. Understand the interest rates, monthly payments and the total amount you’ll pay over the life of the loan.

Credit score: Check your credit score. A good credit score can help you qualify for a better interest rate when refinancing. If your credit score has improved since you initially took out your loan, and the lender you’re exploring takes your score into consideration, refinancing can be a strategic move.

Interest rates: Research current interest rates. Compare them to the rate on your existing loan. If market rates have decreased, refinancing can lead to lower interest costs.

Loan terms: Consider the loan terms. You may have the option to choose a shorter or longer repayment term when refinancing. Selecting the best term for you can impact your monthly payments and overall financial stability.

Cosigner requirements: If you have a cosigner on your loan, often a family member, refinancing may allow you to release them from their obligations, reducing their financial burden while giving you financial independence.

An option to consider when refinancing is MPOWER Financing. Refinancing your loan with MPOWER can provide several advantages, including a fixed interest rate, cosigner release and predictable monthly payments.  

Wrapping up – Financial planning for international study

Being accepted to a U.S. university as an international student is a remarkable achievement, and financial planning is the next step. Whether you’re researching tuition costs, exploring financial planning tools or seeking financial assistance, remember you have options to support your financial goals throughout your university experience. Explore available financial options and make informed decisions to turn your academic aspirations into a reality.