Student loan options for Indian students in the U.S. and Canada

Financing a college or graduate degree in the United States or Canada can be challenging for many young people. If you’re an Indian student looking to study abroad, you’ll likely face additional hurdles when looking for financial aid and loans. This brief overview explores the challenges Indian students may face and the types of loans that may be most helpful in funding your education.

1. Total number of Indian students in the U.S. (2023-2024):Indian students now form the largest international student group in the U.S., with a record-breaking 331,602 students in 2023-2024. This surge reflects a growing trend of Indian students seeking world-class education and better career opportunities in the U.S.Source: IIE Open Doors 2024 Report
2. Year-over-year growth – Indian students in the U.S. (2022-2023 to 2023-2024):The number of Indian students in the U.S. increased by 23% in just one year, highlighting the strong demand for American education. This is the highest annual growth rate in over a decade, showing a clear shift in global mobility trends.Source: IIE Open Doors 2024 Report
3. The proportion of Indian students among all international students:Indian students now make up 29.4% of the total 1.1 million international students in the U.S. This means that nearly one in three international students in the U.S. is from India, further cementing their dominance in global student mobility.Source: IIE Open Doors 2024 Report

Financial aid is essential for most Indian students because of the high cost of tuition in the U.S. and Canada. Tuition can range from several thousand dollars per year at community colleges to tens of thousands at universities, not including additional expenses like housing, books and fees. When combined, these costs can easily add up to US$70,000 (INR 58,31,000) each year or more, depending on the school you choose.

As an Indian student, you won’t be eligible for student aid offered by the U.S. or Canadian federal governments, which unfortunately limits your access to certain grants, scholarships and low-interest loans. These funding sources are restricted to citizens and certain eligible permanent residents, but international students are excluded from programs like Pell Grants, federal work-study and Direct Subsidized and Unsubsidized Loans in the U.S., or Canada Student Loans in Canada. To fund your education, you’ll need to look for alternative sources, which can be more expensive and harder to obtain.

Despite these challenges, there are options available to help you finance your education.

• University scholarships: Many universities offer scholarships specifically for international students, including those from India. These scholarships may be based on academic merit, financial need, or specific talents. Researching the scholarships available at your target universities is the best place to start when looking for financial aid.
• External scholarships: Various organisations offer scholarships specifically for Indian students studying abroad. Notable examples include the Inlaks Shivdasani Foundation Scholarship, Tata Scholarships, and Fulbright-Nehru Scholarships. Applying for these scholarships can help reduce the amount you need to borrow, but the competition for scholarships can be high.
• Indian government schemes: The Indian government offers some scholarship and loan programmes for students studying abroad. Check with the Ministry of Education and related departments for potential opportunities.
• Private lenders: Private education loan lenders are banks or companies that offer loans, and some of these are available to or tailored specifically for Indian students. You’ll find there are two basic types of private loans: loans that require a cosigner and loans that don’t. A cosigner is a U.S. or Canadian citizen or permanent resident with strong credit and the financial ability to pay back your loan if you cannot. Requiring a cosigner reduces the risk for the lender, but it makes the application more difficult for Indian students who may not have friends or family in North America willing to take on this responsibility. That’s why no-cosigner loans may be one of the most helpful options for Indian students.

No-cosigner student loans are loans that do not require you to have someone else sign the loan with you. Typically, lenders consider an applicant’s credit history and financial status when deciding whether to make a loan. As an Indian student, you may not have a credit history in the U.S. or Canada or the kind of property or assets to offer as collateral in those countries. With a no-cosigner loan, the lender bases its lending decisions on things like your academic performance and your future earning potential rather than your credit history or a cosigner’s guarantee.

No-cosigner private student loans for Indian students offer several benefits.

• Freedom from financial entanglements. With a no-cosigner student loan, you won’t have financial obligations to a friend or family member as a cosigner. You’ll be solely responsible for managing and repaying your loan.
• Broad coverage for educational expenses. No-cosigner loans for Indian students will typically cover all the expenses related to your education in the U.S., including tuition, fees, housing, meal plans, books, transportation and other ancillary expenses. In Canada, loans typically cover tuition and university-invoiced expenses.
• A boost in your credit score. By taking a student loan and making regular, on-time payments, you can build your credit history, taking the first steps in building a stronger financial future in your host country.

MPOWER Financing is an education loan company that specialises in helping international students, including those from India, overcome the financial barriers to education. MPOWER offers no-cosigner student loans from US$2,001 (INR 1,66,700) to US$100,000 (INR 83,33,000), with competitive fixed interest rates and an easy application process, fast approval decisions and no prepayment penalties.

When you become an MPOWER student, you can also take advantage of additional services and offerings such as career assistance and a resume builder. Additionally, Indian students are eligible for a number of international scholarship opportunities offered by MPOWER.