Study abroad financial aid for Indian students: Funding education in the U.S. or Canada

Studying overseas can be a dream come true, but it often comes with a hefty price tag. For Indian students aiming to study in the U.S. or Canada, securing the right financial aid is essential to make that dream a reality. From international scholarships and grants to loans and work-study opportunities, understanding the financial aid landscape can help you fully fund your international education without overwhelming debt. In this article, we’ll dive into the most viable financial aid options, how to combine them, and give tips for ensuring your education is well-funded.

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

International scholarships

International scholarships are one of the best forms of financial aid because they don’t need to be repaid. They’re awarded based on merit, talent or specific criteria like your field of study or nationality. Here are some common types of scholarships for international students:

• Merit-based scholarships: These are awarded to students who demonstrate academic or extracurricular excellence.
• Need-based scholarships: Financial need is the primary criterion for these scholarships, and many institutions and organisations offer them to Indian students.
• Field-specific scholarships: Certain industries and academic fields offer scholarships to attract top talent, especially in STEM, business and the arts.
• India-specific scholarships: Some universities and organisations offer scholarships specifically for Indian students, recognising the strong academic background and potential of students from India.

Tip: Research and apply early! Many scholarships have deadlines months in advance of your study abroad start date.

Grants

Grants, like scholarships, don’t require repayment and are usually based on need or special circumstances, though you may need to meet and maintain certain criteria. While U.S. or Canadian government grants are often unavailable to Indian students, you can find options through universities or international organisations.

• University grants: Some universities offer grants specifically for Indian students, which are worth exploring during your application process.
• Private and nonprofit grants: Various international organisations and foundations offer grants for students from India or for those studying particular fields.
• Indian government grants: The Indian government offers some grants and scholarship programmes for students pursuing education abroad. Check with the Ministry of Education or related departments for opportunities.

Private international student loans

Private student loans are another option, but they come with repayment obligations and interest rates. These loans are typically provided by private banks, credit unions or specialised lenders. They often require a cosigner, but some education loan providers offer no-cosigner loans that assess your future earning potential instead.

• Cosigner loans: Require a U.S. or Canadian resident to back your loan, which can be difficult for Indian students to secure.
• No-cosigner student loans: Available from certain lenders, these loans focus on your academic performance and potential future income, making them more accessible for students in fields like engineering or business.
• Indian bank education loans: Many Indian banks offer education loans for studying abroad, though these often require collateral or a guarantor based in India.

Work-study programs

Work-study programmes allow Indian students to work part-time while studying. Depending on your visa, you may be able to work on campus for up to 20 hours per week, which can help cover living expenses.

• On-campus jobs: Universities often offer part-time jobs in libraries, cafeterias and administrative offices that can supplement your income.
• Off-campus opportunities: Through programmes like Optional Practical Training (OPT) and Curricular Practical Training (CPT), students on F-1 visas may qualify for off-campus work in their field of study.

Scholarships and grants: Competitive but worthwhile

While international scholarships and grants are highly competitive, they’re the most viable options because they don’t require repayment. Applying for multiple scholarships and seeking out niche grants related to India or your field of study can increase your chances of securing this aid.

Loans: A necessary option for many students

For many Indian students, international student education loans are necessary to fully fund their education. Private loans, especially no-cosigner options, provide flexibility, but it’s crucial to understand the long-term financial commitment involved.

Work-study: Helpful but limited

Work-study programmes can help offset living expenses, but they’re unlikely to cover a significant portion of your tuition. However, they can help you manage day-to-day expenses and gain valuable work experience in the process.

1. Not applying for enough scholarships

Many students focus on one or two large scholarships and neglect smaller, lesser-known awards. This limits your chances of securing aid.

Solution: Apply for a mix of large and small scholarships. Smaller awards add up and can make a significant dent in your costs.

2. Overestimating loan amounts

It can be tempting to take out a larger loan than necessary, but this leads to higher debt down the road.

Solution: Calculate your exact financial needs, including tuition, fees and living expenses and avoid borrowing more than you need.

3. Neglecting deadlines

Missing scholarship or grant application deadlines can disqualify you from receiving aid.

Solution: Keep a calendar of all financial aid deadlines and submit applications well before they’re due.

4. Failing to research all available aid

Many Indian students overlook financial aid opportunities from international organisations or the Indian government.

Solution: Look beyond university financial aid packages. International organisations, nonprofits and even the Indian government may offer scholarships or grants for studying abroad.

Studying abroad is a life-changing adventure, but financing it shouldn’t be a roadblock. MPOWER Financing offers innovative financial aid solutions designed for Indian students, ensuring you have the support you need from start to finish. Whether it’s covering tuition, securing housing, or managing day-to-day expenses, MPOWER’s got your back — without the red tape of traditional lenders.

• No cosigner or collateral required: MPOWER eliminates traditional barriers by offering loans that don’t require a cosigner or collateral. This makes it easier for Indian students to access the funds they need without relying on financial support from family or sponsors.
• Funding beyond tuition: MPOWER’s financial aid covers more than just tuition fees. In the U.S., students can use their loans for essential expenses such as housing, books, meal plans and health insurance, ensuring they have the financial support needed to fully focus on their studies abroad. For students studying in Canada, MPOWER loans can be used to cover tuition.
• Fixed interest rates and flexible repayment options: MPOWER provides competitive, fixed-rate student loans ranging from US$2,001 (INR 1,66,700) to US$100,000 (INR 83,33,000) that give students a clear and predictable repayment schedule. With the option to qualify for a 0.25% interest rate discount through automatic payments, students can manage their repayments with ease.
• Fast and convenient online application process: MPOWER’s fully digital platform ensures a quick and streamlined application process. Students can check their eligibility within seconds, receive fast approval, and access the financial aid they need without the complications of lengthy paperwork.
• Support beyond financing: MPOWER offers more than just financial aid. Through its Path2Success program, students gain access to free career services, visa support, and discounts on essential resources like textbooks and travel, helping them adjust to life abroad and build a strong foundation for future success.