An offer letter from a US university is only half the battle. For most Pakistani and other international students, the real question is how to pay for it: a year at a private US university now costs roughly $70,000 to $100,000 before scholarships. This guide explains the student-loan options that are actually open to international students in 2027, what they cost, and how a loan fits into the F-1 visa process.
First, the hard truth about federal aid
International students cannot borrow from the US federal student-loan programme. Federal loans, and the FAFSA form that unlocks them, are for US citizens and eligible non-citizens only. If you are studying on an F-1 visa, your funding must come from your family, a scholarship, a university aid package, or a private lender. That is why the private lenders below matter so much — and why their interest rates, which are far higher than federal rates, have to be understood before you sign anything.
Option 1: No-cosigner loans — MPOWER Financing
MPOWER Financing is the best-known lender that lends to international students without a US cosigner and without collateral. Its decision is based mainly on your university and your future earning potential, not on your family's income or assets.
| MPOWER at a glance (2026, confirm before applying) | Figure |
|---|---|
| Loan amount | $2,001 to $100,000 in total; no more than $50,000 per academic period |
| Fixed interest rate | From 9.99% (10.89% APR), including a 0.25% discount for automatic payments |
| Repayment term | 10 years |
| Payments while studying | Interest-only while in school and for six months after graduation (capped at 30 months from disbursement) |
| Cosigner or collateral | Never required |
| Origination fee | A one-time fee starting at 5% of the loan, added to the balance (reported) |
| Schools covered | 500+ supported universities in the US and Canada |
Two warnings. First, MPOWER only lends for study at its list of supported schools, so check that your university is on the list before you plan around it. Second, one lender-review source reported in November 2026 that MPOWER had reached funding capacity and was temporarily unable to offer new loans for 2026, with a waitlist open. Confirm current availability on MPOWER's own website before you rely on this route. Rates and terms change, and the sanction letter — not a comparison site — is the final word.
Option 2: No-cosigner loans — Prodigy Finance
Prodigy Finance is the other major no-cosigner lender. It lends mainly for postgraduate study (master's and MBA) at 150+ universities, and it also judges you on future earning potential rather than on collateral. Rates are set per programme and per borrower, so there is no single published rate to quote here — get a quote for your exact programme and compare it with MPOWER's before you choose. Prodigy typically disburses directly to the university, and repayment usually starts six months after classes end.
Option 3: Cosigner loans — cheaper, but you need a US connection
Most traditional US private lenders will only lend to an international student if a US citizen or permanent resident cosigns the loan. With a creditworthy cosigner, rates are usually lower than no-cosigner loans, and the borrowing limit can be higher. Without one, this route is closed. If a relative or family friend in the US is willing to cosign, understand what that means for them: they become fully responsible for the debt if you cannot pay, and the loan appears on their credit record. Never ask someone to cosign casually, and never cosign for someone else without the same thought.
Option 4: Loans from banks in Pakistan
Pakistani banks do offer education loans, but they usually require collateral — property, a deposit, or a guarantor — and the amount is often capped well below a full US degree. They can still be useful for covering the first semester, the visa fee, or the gap between a partial scholarship and the full bill. Ask your bank for its education-loan terms in writing, including the interest rate, the repayment start date, and whether the loan is disbursed in rupees or dollars, because currency movement changes the real cost.
How a loan fits the F-1 visa
Your I-20 must show funding for at least the first year of study. A loan sanction letter from a recognised lender counts as proof of funds at the visa interview, alongside bank statements and scholarship letters. Budget for the visa costs too: the F-1 visa (MRV) fee is $185, the SEVIS fee is $350, and a Visa Integrity Fee of at least $250 is charged at issuance — confirm the exact figure with your consulate, as it can change. Bring the loan documents to the interview in original form, and be ready to explain your repayment plan in plain words: what you will earn after graduation, and how the loan gets repaid.
A worked example
Suppose your first year costs $80,000 and you have a $20,000 scholarship. You still need $60,000. A no-cosigner loan of $50,000 (the per-period MPOWER maximum) leaves $10,000 to cover from family savings. At a 10.89% APR over 10 years, the monthly payment after the interest-only period is roughly $800–$850 — check the lender's own calculator for the exact figure, because the origination fee and the interest-only months change it. Multiply that by the full degree: four years of borrowing at this level is a very large debt. That is why the cheapest loan is usually the one you never take — a bigger scholarship, a cheaper university, or a funded master's place beats any loan.
Checklist before you borrow
- Apply for scholarships and university aid first — every dollar of grant is a dollar you never repay.
- Get written quotes from at least two lenders and compare the APR, not just the headline rate.
- Check whether your university is on the lender's supported list.
- Read the repayment terms: when do payments start, is there a prepayment penalty, and what happens if you return home?
- Confirm the lender is still accepting new applications for your intake year.
- Keep the sanction letter safe — you will need it for the I-20 and the visa interview.
Frequently asked questions
Can I get a US student loan without a cosigner? Yes — MPOWER and Prodigy Finance both lend without one, at supported schools. Rates are higher than cosigner loans.
Can I use a loan for the visa interview? Yes. A sanction letter from a recognised lender is accepted as proof of funds for the I-20 and the F-1 interview.
How much can I borrow? MPOWER allows up to $100,000 in total, with no more than $50,000 per academic period. Other lenders set their own limits.
Do I pay while I study? With MPOWER you pay interest only while in school and for six months after graduation. Other lenders have different rules — check before you sign.
Is a loan better than a cheaper university? Usually not. A lower-fee university or a funded place saves more than any loan product ever will.
Related guides on Pakunii
FAFSA 2027-28 Guide · US Full Scholarships 2027 · Study in the USA 2027 · How to Apply to US Universities 2027
Sources and verification: MPOWER Financing official loan terms page and 2026 lender reviews (rates from 9.99% fixed / 10.89% APR, $2,001–$100,000, checked November 2026); US Department of State F-1 visa fees ($185 MRV, $350 SEVIS). Lender availability and rates change — confirm on the lender's own site before applying.