According to Emmanuel Smadja, Covid-19, MPOWER’s Chief Executive Officer, has created financial stress for many families around the world.
“We have seen a massive increase in loan financing for international students”
He explained that people have less liquidity to pay for their (or their child’s) education abroad and therefore need to borrow more.
“The demand for international student loans has definitely increased worldwide, especially for digital platforms like MPOWER, ”said Smadja The PIE news.
“At a time when many families are locked up around the world and bank branches are still closed, digital lenders like MPOWER, which you can use to apply from the comfort of your home on your smartphone, have seen even greater demand. “
Smadja said that fThe financial stress for families due to Covid has resulted in many prospective students taking out loans under their name without a co-signer or a home as collateral.
In this way, the students can be independent and not burden their families financially.
According to Akshay Chaturvedi, founder and CEO of., Credit companies are now increasing their supply for students to meet the increasing demand Use Edu.
“We have seen a massive increase in loan financing for international students. On our platform, we act as an aggregator, offering students the most suitable options from over a dozen education financiers.
“Lately, not only have more students opted for flexible loan programs, but we are also seeing financial companies launching interesting student-friendly products that we as a student platform are very happy and enthusiastic about.”
Prodigy Finance has seen the average total loan amount applied for grows by more than 7%. This number was higher for MBA and engineering students, where there was an increase of 9% and 10%, respectively.
“These changes are due to reduced personal savings, possible changes in school funding and the impact of the current global pandemic on many currencies,” said Joel Frisch, Head of Prodigy Finance.
While Covid-19 has contributed to the surge in demand, Smadja noted that an ever-increasing number of international students who want to travel abroad to study was still one of the main reasons for the increase.
“The number of international students has almost doubled worldwide in the last ten years; Canada, in particular, took a leap in wooing international students with good quality education, affordable tuition and immigration-friendly policies.” he said.
Smadja explained that in the past, international education was only affordable for the affluent population of certain emerging countries.
“Today, more and more bright minds who come from more modest backgrounds want the same opportunity, and financing platforms like MPOWER enable them to tap their educational potential.
“This helps create the market,” he added.