Getting an Education Loan in the USA as an Indian Student
As an Indian student looking to earn your degree in the United States, you might be wondering if you have enough money to fund your education abroad. Maybe you have some of your own money saved up, or perhaps you have some financial support from family, but studying in the U.S. as an international student can be expensive, and you might not have enough funding on hand to cover your full cost of attendance. In this case, it’s worth exploring your options for an education loan in the U.S. as an Indian student.
Where to Get a U.S. Education Loan for Indian Students
As an Indian student, you have two main options for student loans: a bank in India or a lender in the U.S.
Option 1: A Bank in India
You could consider borrowing an education loan from a bank in India to fund your U.S. education. However, some banks in India don’t give education loans to students who plan to study in other countries, like the U.S. Additionally, there are other hurdles with this option to consider – such as inflation and exchange rates.
That said, there are a few lenders in India that will provide USA education loans. These include:
- HDFC Bank Education Loan for Foreign Students
- SBI Student Loan Scheme
- SBI Global ED-VANTAGE Scheme
- Bank of Baroda Scholar Loan
- Union Bank of India Education Loan
- PNB Udaan
- Canara Bank
- BOI Star Education Loan
- CENT Vidyarthi
Note that some of these lenders have strict eligibility criteria, which could make it difficult to qualify for a loan.
Option 2: A Lender in the U.S.
Your other option is to borrow from a private U.S. lender.
Indian students may face more hurdles than domestic students when applying for a private student loan. To qualify, you usually need to meet the following criteria:
- Have a good credit history that shows you’re reliable and likely to pay back the loan
- Apply with a cosigner who’s a U.S. citizen or permanent resident and has a good credit history
- Put up collateral (assets) that have an equivalent value to the amount of the loan
If you have none of these, don’t panic — you still have options. MPOWER Financing understands that many international students don’t have a credit history in the U.S. or a U.S.-based cosigner. That’s why they offer international student loans for Indian students studying in the U.S. and Canada — no cosigner or collateral required.
Finding a No-Cosigner Education Loan Lender in the U.S.
When shopping around for a U.S education loan, you will find that most banks require a cosigner to also be included. However, there are no-cosigner international student loans available from some lenders, like MPOWER.
Getting a no-cosigner loan may depend on:
- The school you plan to attend
- Your program of study
- Your intended career path
- Your academic success
- Your home country
If you have a U.S.-based cosigner, here are two other lenders to consider:
- Ascent – Offers loans to undergraduate and graduate students with a creditworthy cosigner.
- Citizens Bank – Offers loans to undergraduate and graduate students with a cosigner.
How to Choose Your USA Education Loan
It’s wise to do your research and compare multiple lenders to find out which one will give you the best loan amount and terms. When you’re shopping around, compare loan features such as:
- Loan amount: Make sure the loan will cover all the costs you need taken care of.
- Interest rate: A lower interest rate will cost you less in interest charges over time.
- Interest rate type: Consider whether your rate is fixed, meaning it will stay the same over the life of your loan, or variable, meaning it could increase over time.
- Repayment period and terms: Find out how long you have to pay back the loan.
- Fees associated with applying for the loan: Keep an eye out for fees that could add to your costs of borrowing, such as an application, origination, or disbursement fee.
- Annual Percentage Rate (APR): An annualized rate that considers both the interest and fees you pay over the lifetime of the loan, creating an “apples-to-apples” cost comparison between different loan products.
- Timing and method of funds disbursement: Make sure your loan will arrive in time to pay your tuition bill. Also, find out if the lender will disburse the loan to your financial aid office or directly to you.
Final Thoughts on Education Loans for Indian Students
As an Indian student with the goal of studying in the U.S., it’s up to you to ensure you have enough funding to pay for your studies and living expenses. Getting an education loan in the USA can help you cover costs. For many students, taking a student loan is the only way to afford the cost of attendance.
As you search for U.S. education loans for international students, don’t forget to check with your school’s financial aid office. Financial aid officers can be a great source of information on student loans, as well as grants and scholarships for international students. Once you get your funding in place, you can turn your focus to your studies and to getting the most out of your time in the U.S.
For more information on getting an education loan in the USA as an Indian student, connect with a representative of MPOWER Financing today.
