Education Loans for Overseas Education: Frequently Asked Questions
What is the best education loan for studying abroad?
There is no single loan that is best for every student. The appropriate option depends on your destination, school, degree, citizenship, borrowing requirement, credit situation, interest rate, fees and repayment capacity.
What is the current interest rate for international student loans?
Rates vary by lender and borrower. As of September 2026, MPOWER advertises rates starting at 9.99%, while Prodigy Finance advertises master’s loans starting around 10.74%. These are advertised starting rates and are subject to eligibility and other conditions.
Can international students get education loans without a cosigner?
Yes. Some specialist lenders offer loans without a cosigner or collateral for eligible international students. MPOWER and Prodigy Finance are examples, although eligibility varies by school, program, destination and applicant.
Can an education loan cover living expenses abroad?
Some loans can cover approved living expenses in addition to tuition. However, the amount and eligible expenses depend on the lender and destination. MPOWER currently states that its eligible U.S. school loans can fund education costs including living expenses, subject to applicable limits.
Is a fixed interest rate better than a variable rate?
They work differently. A fixed rate provides greater payment predictability, while a variable rate can rise or fall over time. The right choice depends on the loan terms and your ability to manage potential changes in repayment.
Should I take the maximum education loan available?
Not necessarily. Borrowing more increases the amount you eventually have to repay. Calculate your actual funding gap after scholarships, savings, grants and other assistance before deciding how much to borrow.
Final Thoughts
Studying abroad can be a major investment in your future, but the excitement of receiving an admission letter can make it easy to focus on getting the money rather than understanding the debt.
Take a step back.
Compare the interest rate, but also compare the fees. Look at the repayment period. Check whether the rate is fixed or variable. Understand the currency. Confirm that your university and program qualify.
Most importantly, calculate what repayment will look like after graduation, not just what the loan looks like while you are still in school.
An education loan can help make an overseas degree financially possible, but it should be treated as a long-term financial commitment, not simply another step in the admission process.