International students and students from India may find studying in the United States to be incredibly expensive. Not all students can get family resources, scholarships, or grants to help them pay for their studies at American universities. In these situations, student loans USA are a fantastic option to bridge the gap and overcome the financial barrier. In this blog, we will discuss the various options for education loans in the USA for Indians and international students.
Education Loan for Abroad Studies by Indian Government
This Blog Includes:
- Education Loan in USA for International Students
- Student Loan for International Students in USA without Cosigner
- Education Loan for MS in USA
- Factors to keep in mind before applying for an education loan
- Student Loan Requirements for USA
- Education Loan Interest Rate in USA
- Education Loan Sanction Letter Format
- Average Debt Student Loans USA
Education Loan in USA for International Students
As per data from the Consumer Financial Protection Bureau (CFPB), 90% of new private student loans required a consigner. But here you can review the education loan in the USA for international students.
- Discover: It offers private student loans without a cosigner and in this case, candidates need to have good credit to get approved.
- Earnest: Earnest’s borrower protections are more liberal than those offered by some of the other lenders on this list. Earnest will cover the entire tuition fee, up to a maximum of $250,000 (INR 1.88 Cr).
- Funding U: It offers private students loans without a cosigner. You can borrow up to $1,50,000 (INR 1.13 Cr) per school year, up to a lifetime maximum of $75,000 (INR 56K approx).
- Common Bond: It offers private student loans up to 6 figures. Medical, dental, and law school are all quite costly. A cosigner might be hesitant to take on a 6-figure debt. As a result, common bonds no cosigner private graduate program loan choice fills a market gap.
- Sallie Mae: It is one of the best private student loan lenders. They offer loans specifically to graduate students. This is because private loans for college students without cosigners have a significantly greater chance of being approved.
- Citizens Bank: It offers student loans without a cosigner to borrowers with good credit. No application or origination fees are charged.
- Ascent: Ascent is one of the few best private student loans without cosigner organisations that particularly caters to juniors and seniors in college, as well as graduate students, with non-cosigned loans. For tuition and qualified living expenses, you can borrow up to $20,000 (INR 15,10,265) per year.
Learn more about the Prodigy Finance Education Loan
Student Loan for International Students in USA without Cosigner
International students who cannot find a cosigner should not be disappointed. There are other possibilities for international student loans that do not require cosigners. Students can look at education loans for Indian students in the USA without Cosigner.
|Particulars||HDFC Bank Education Loan||SBI Student Loan Scheme||Oriental Bank of Commerce Education Loan for Study|
|Amount||INR 20 lakhs||More than INR 20 lakhs (100% of educational expense)||INR 10 lakh without collateral entry|
|Expenses Covered||Colleges, Fees, Books/Equipment, Travel, Examination Fee||Tuition Fee, Living Expenses, Laptops and more||Tuition Fee, Accomodation, Travel, Books, Equipment, Projects Expenses|
|Basic Eligibility||Students from India pursuing higher education abroad||Students from India with 16 – 35 years of age||Students from Indian admitted to recognized board|
|Repayment Period||15 years||Varies||15 years|
Education Loan for MS in USA
A secured loan or an unsecured loan can be used to fund your education in the United States. One advantage of pursuing MS in the United States is that lenders are more willing to finance cases there.
- Public Banks: Education Loan for MS in the USA for international and Indian students can get a secured loan like SBI, BOB, etc. You can get up to 1.5 crores depending on the collateral value and it also provides a total loan requirement with an interest rate of 8.9%.
- Private Lenders: Private banks like Axis Bank, and ICICI Bank, can fund an unsecured education loan for MS in the USA. They can fund up to 40 lakhs – 60 lakhs at an interest rate of 10% – 12.5%.
- Foreign Lenders: Foreign lenders like MPower financing, Prodigy Finance, etc also provide unsecured loans. They can fund up to INR 50 lakhs – INR 75 lakhs at an interest rate of 12% – 15%.
Factors to keep in mind before applying for an education loan
One should always know exactly how much money they need and how much they can afford to pay out of pocket before applying for a student loan. Before requesting a loan, you should also take into account the following:
- Choose and finalise the right course of study
- Estimation of fees and cost of living
- A checklist of documents
- Check the eligibility of a co-applicant
- You should apply for a loan before 3 months of the visa process
- Confirm the time period of disbursement
Student Loan Requirements for USA
When applying for an International Student Loan, each applicant must provide a set of required documents along with the Loan Application Form. The following is a list of these documents
- Official academic transcripts; Marksheet of class 10th, 12th, graduation, postgraduate); Certificate copies of ICWA, CA, CPA, etc
- Government-issued ID (Aadhar Card, Voter ID, Passport)
- Proof of residence (Driving License, Aadhar Card, Electricity Bill)
- Birth Certificate
- Letter of acceptance, or offer letter, conditional letter
- Statement of cost of attendance
- Scores of English proficiency language (IELTS, TOEFL, GMAT, GRE, SAT/ACT)
- Passport-size photographs
Education Loan Interest Rate in USA
When a student obtains an international education loan from a lender, he or she is responsible for repaying the principal amount as well as any additional fees charged by the lender. This sum is referred to as interest. The interest rates on international student loans are determined by a variety of factors, including the loan size, the repayment period, the trustworthiness of a cosigner, the lender’s rate range, and so on.
Here are the 5 Things to Keep in Mind to Apply for Education Loan
Education Loan Sanction Letter Format
Check out the format of the education loan sanction in the PDG given below:
Average Debt Student Loans USA
As per educationdata.org, the average debt of student loans in the USA totals 17.3 million and grows 6 times faster than the nation’s economy.
- Each of the 43.2 million student borrowers owes $39,351 (INR 29,71,521) on average.
- Over $1.59 trillion in federal loans are outstanding.
- Approximately 42.9 million Americans have federal student loan debt, with each owning an average of $37,105 (28,01,919).
- Under the CARES Act of 2020, more than 35 million of these debtors were eligible for general student debt relief.
- To obtain a bachelor’s degree, the average public university student borrows $30,030 (22,67,662).
We hope that this blog provides you with the important features of the education loan in the USA. If you want to know about more such loan schemes both in India and abroad then you can give a call to our experts at Leverage Edu on 1800572000 and we’ll help you in making an informed step to choose the right education loan.