Most private student loans in the US and Canada require a local cosigner with good credit, which rules out the majority of international students. A small group of specialist lenders fills that gap by lending based on your future earning potential rather than a cosigner or collateral. These loans can make study abroad possible, but they are expensive, so understanding the true cost is essential before you sign.
How No-Cosigner International Student Loans Work
Specialist lenders assess your admission to an eligible school, your programme of study, and your expected career earnings. They usually lend only to students at approved universities and in certain programmes, often favouring graduate degrees in fields with strong job prospects. Instead of a cosigner, they rely on your likely post-graduation income to judge whether you can repay.
MPOWER vs Prodigy Finance at a Glance
MPOWER Financing and Prodigy Finance are the two largest no-cosigner lenders for international students. This table compares their main features, based on information published in 2026:
| Feature | MPOWER Financing | Prodigy Finance |
| Cosigner or collateral | Not required | Not required |
| Interest rate type | Fixed | Variable (tied to SOFR) |
| Advertised starting rate | From 9.99% (10.89% APR with autopay discount) | Fixed spread plus SOFR, plus an admin fee |
| Study levels | Undergraduate and graduate | Mainly graduate |
| Destinations | Partner schools in the US and Canada | Over 1,700 schools in many countries |
| Repayment start | After programme ends (interest-only payments may apply while studying) | After programme ends, with a grace period |
Your actual rate depends on your profile, school, and programme. Advertised starting rates go to the strongest applicants, so expect to receive a personalised quote that may be higher.
MPOWER Financing: Fixed Rates for the US and Canada
MPOWER lends to international students at partner schools in the US and Canada, covering both undergraduate and graduate study, without a cosigner or collateral. Its fixed rates start at 9.99%, or 10.89% APR with an autopay discount, and the rate does not change over the life of the loan. Timely repayments can also help build a US credit history, which is useful if you plan to stay and work after graduating.
Eligibility depends on your school being on MPOWER’s list and on your programme, academic record, and expected earnings. Students usually need to be within about two years of graduating, although this varies by programme and loan type. Check MPOWER’s eligibility tool for your specific school before relying on it.
Prodigy Finance: Variable Rates for Graduate Study Worldwide
Prodigy Finance focuses on graduate students at more than 1,700 schools in many countries, including the US, UK, Canada, and Europe. Its rates are variable, calculated as a fixed spread plus SOFR (a benchmark US interest rate), so your payments can rise or fall over time. An administration fee, recently around 4.2%, is added to the loan amount, which increases the total cost.
Prodigy assesses your eligibility based on your school, programme, and predicted future earnings, rather than on a local cosigner. It is often used by MBA and other professional master’s students at highly ranked schools. Request a personalised quote and compare the full APR, not just the headline spread.
Other Ways to Fund Study Without a Cosigner
Specialist lenders are not the only option, and some alternatives cost far less. Consider these before taking an expensive loan:
- Scholarships and assistantships:Funded places, RA and TA roles, and tuition waivers reduce or remove the need to borrow.
- Home-country education loans:Banks in your home country may offer secured loans at lower rates if you have collateral.
- University loans and payment plans:Some universities offer short-term loans or instalment plans for international students.
- Employer sponsorship:Some employers fund degrees in exchange for a commitment to return.
- Lenders for specific countries:Some lenders focus on students from particular countries, such as India, so check options in your region.
The True Cost and Risks of No-Cosigner Loans
Interest rates around 10% or more add up quickly over a 10-year repayment period. A $50,000 loan at about 11% APR repaid over 10 years would cost roughly $82,000 in total, so you would pay back around $32,000 in interest alone. Always calculate the full repayment amount before borrowing.
These are the main risks to weigh before signing:
- Currency risk:Loans are usually in US dollars or the host country’s currency, so a weaker home currency makes repayment harder if you return home.
- Variable rates:With a variable loan, rising benchmark rates increase your monthly payments.
- Fees:Origination or admin fees add to the amount you owe from day one.
- Job uncertainty:If you cannot find well-paid work after graduating, repayment can become a heavy burden.
- Visa and work rules:Changes to post-study work rights can affect your ability to earn in the host country.
How to Compare Lenders Properly
Comparing headline rates alone can be misleading. Use these points to compare offers on equal terms:
- APR, not just the interest rate:APR includes fees and gives a truer picture of cost.
- Fixed versus variable:Decide whether you prefer predictable payments or are comfortable with rate changes.
- Total repayment amount:Ask each lender for the total you will repay over the full term.
- Repayment start and grace period:Check when payments begin and whether interest builds while you study.
- Prepayment rules:Confirm you can pay off the loan early without penalties.
Final Thoughts: Borrow Only What You Need
No-cosigner loans from lenders like MPOWER and Prodigy Finance open doors for students who would otherwise be shut out, but they are among the most expensive ways to fund a degree. Exhaust scholarships, assistantships, and cheaper home-country options first, then borrow only the gap you cannot cover. Compare APRs and total repayment amounts carefully before choosing a lender.
Treat a study loan like any major financial decision: run the numbers, consider your realistic post-graduation salary, and plan how you will repay. Careful borrowing can make study abroad a strong investment rather than a long-term burden.
Frequently Asked Questions
Can international students get a student loan without a cosigner?
Yes, specialist lenders such as MPOWER Financing and Prodigy Finance offer loans to international students without a cosigner or collateral. Eligibility depends on your school, programme, and expected earnings.
What is the interest rate on MPOWER loans?
MPOWER advertises fixed rates starting at 9.99%, or 10.89% APR with an autopay discount. Your actual rate depends on your profile and programme.
Is Prodigy Finance a fixed or variable rate loan?
Prodigy Finance uses variable rates made up of a fixed spread plus SOFR, a US benchmark rate. An administration fee is also added to the loan amount.
Which is better, MPOWER or Prodigy Finance?
It depends on your school, destination, and preference for fixed or variable rates. Get personalised quotes from both and compare the APR and total repayment amount.
Can I get a no-cosigner loan for undergraduate study?
MPOWER lends to some undergraduate students at partner schools in the US and Canada. Prodigy Finance focuses mainly on graduate programmes.
Do no-cosigner loans affect my visa application?
An approved loan can serve as proof of funds for many student visa applications. Check that the loan letter meets your destination country’s documentation requirements.
