Getting an I-20 and a US visa interview date is only half the battle. The bigger question for most Nepali families is simpler and harder: how do you actually pay for a US degree without a cosigner who has US credit history, and what does health insurance add on top of tuition? Here is what the real numbers look like in 2026, lender by lender.
MPower Financing: The Main Option, But Currently Capacity-Limited
MPower Financing runs a dedicated loan program for Nepali students heading to the US or Canada, and it is built specifically for applicants with no US credit history, no US cosigner, and no collateral. Loans are fixed-rate over a 10-year term, with interest rate discounts of up to 1.50 percent available depending on your program and school.
The important catch for 2026: MPower has reached its current funding capacity and is temporarily unable to offer new loans this cycle, though it maintains a waitlist. If you are planning to rely on MPower, join the waitlist as early as possible and check back regularly rather than assuming a slot will be available when you need it.
Prodigy Finance: Not Currently an Option for Nepal
Prodigy Finance is another well-known no-cosigner lender, but as of the 2026 application cycles, it is not a realistic option for Nepali applicants. For Spring 2026 intake, Prodigy is only supporting students from India. Its Fall 2026 window opened to a short list of selected countries, and Nepal is not currently on that list. Prodigy does expand eligibility over time, so it is worth checking their site before you apply anywhere else, but do not build your financing plan around it for this cycle.
What Interest Rates Actually Look Like
Across the lenders that do serve international students without a cosigner, annual percentage rates typically fall in the 9 percent to 14 percent APR range. Rather than requiring a US-based guarantor, these lenders instead weigh your school's reputation, your specific program, and your career trajectory after graduation. That means the school you choose and the program you apply to can directly affect the interest rate you are offered, not just your admission odds.
Comparing Your Financing Options
- MPower Financing: Built for Nepali applicants specifically, no cosigner or collateral needed, fixed 10-year term, but currently waitlisted for new 2026 loans.
- Prodigy Finance: No cosigner needed where available, but Nepal is not currently on its eligible-country list for 2026.
- A US-based cosigner (family friend or relative with US credit history): Often unlocks lower rates and more lenders, but requires someone willing to take on legal financial responsibility for your loan.
- Nepali bank education loans: Backed by collateral in Nepal rather than US credit history, worth comparing directly against MPower's rate once you have an actual offer letter in hand.
Health Insurance: The Cost Line Students Forget to Budget For
There is no federal law requiring F-1 students to carry health insurance, but that does not mean it is optional in practice. Almost every US university makes health insurance a condition of enrollment, and most auto-enroll you in their own Student Health Insurance Plan (SHIP) unless you actively opt out with proof of comparable private coverage.
Here is where the real cost gap shows up:
- University SHIP plans typically run $1,500 to $3,500 per year, billed directly onto your tuition invoice.
- Private international student insurance plans can start from roughly $30 a month, which works out to well under $500 a year for a basic plan, though coverage depth varies a lot at that price point.
That gap, potentially $1,000 to $3,000 a year, is real money on top of tuition and living costs. If your university allows a waiver with proof of comparable private coverage, it is worth comparing plans before your enrollment deadline rather than defaulting into the SHIP charge without checking.
Step by Step: Building Your First-Year Budget
- Get your official I-20 cost breakdown from your school's international office. This is the number lenders and consulates will actually check your funding against, not a rough estimate.
- Join the MPower waitlist immediately if you are relying on a no-cosigner loan, given current capacity limits, earlier applicants are better positioned when new lending capacity opens up.
- Ask your school whether it accepts a private insurance waiver, and get the exact deadline. Missing a waiver deadline can mean paying for SHIP anyway even if you have separate coverage.
- Compare a Nepali bank loan quote against MPower's actual offered rate once you have both in hand. Do not assume one is automatically cheaper, collateral-backed Nepali loans and no-cosigner US loans solve different problems and the better deal depends on your family's situation.
- Build a full first-year number: tuition plus insurance plus living costs plus the SEVIS fee, not tuition alone, before you finalize how much you need to borrow.
Frequently Asked Questions
Can I get a US student loan with absolutely no cosigner?
Yes, MPower Financing is built for exactly this, but it is currently waitlisted for new 2026 loans due to funding capacity. Join the waitlist early and have a backup plan (a Nepali bank loan or a willing cosigner) in case a slot does not open in time for your intake.
Is health insurance actually mandatory for F-1 students?
Not by federal law, but in practice yes, because nearly every US university requires proof of coverage to enroll, and most will auto-bill you for their own SHIP plan unless you submit a qualifying waiver by their deadline.
Is a private insurance plan actually cheaper than my university's SHIP plan?
Often yes on price, private plans can start around $30 a month versus $1,500 to $3,500 a year for SHIP, but compare the actual coverage limits, not just the premium. A cheaper plan that does not meet your university's minimum coverage requirement will get rejected at the waiver stage.
Will Prodigy Finance ever open up to Nepali applicants?
Prodigy Finance does expand its eligible-country list over time as funding allows, so it is worth checking their site periodically. As of the 2026 cycles, though, Nepal is not on their supported list, so do not delay your financing plan waiting for that to change.
For the visa policy changes affecting the same September 2026 intake, see our guide to the US F-1 visa rule changes, or browse more study abroad guides for other destinations.