Can Indian students apply for U.S. federal financial aid?

You’ve likely heard that filling out the Free Application for Federal Student Aid (FAFSA) is a crucial first step to qualifying for financial aid, but what if you’re an Indian student looking to study in the U.S.?

Federal aid, including Pell Grants and federal student loans, is limited to U.S. citizens and permanent residents. You also need a valid Social Security number to fill out the FAFSA online to qualify for other forms of aid.

However, there are some instances where international students can complete the FAFSA. Even if you aren’t eligible for U.S. federal student aid, you may still qualify for financial aid in the form of institutional scholarships, grants and education loans for Indian students.

MPOWER Financing, for example, offers no-collateral, no-cosigner education loans for Indian students looking to study abroad in the U.S. or Canada. Find out if you’re eligible for an MPOWER Financing student loan by clicking the link below.

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. Average cost of a master’s degree in the U.S.According to the Education Data Initiative, as of Nov. 23, 2024, the cost of a master’s degree typically ranges between US$44,640 (INR 3,716,000) and US$71,140 (INR 5,945,000), depending on the school, major, and program length. On average, the cost is around US$62,820 (INR 5,291,000).Source: Education Data Initiative – Average Cost of a Master’s Degree
3. Employment outcomes for master’s degree graduates in the U.S.Nearly 90% of master’s degree graduates from the class of 2023 were employed or continuing their education within six months of graduation, reflecting strong career prospects for advanced degree holders. While this marks a 0.9% decrease from the class of 2022, it remains higher than employment outcomes recorded during the pandemic, highlighting the resilience of the job market for master’s graduates.Source: NACE – Class of 2023: Nearly 85% of Bachelor’s Grads Employed or Continuing Education

The FAFSA is a form issued by the U.S. Department of Education. College and graduate school students must complete it to qualify for federal financial aid, including Pell Grants and federal student loans. Many universities use the FAFSA to determine students’ eligibility for other forms of aid, such as institutional grants or work-study programs.

However, you must meet the U.S. government’s eligibility requirements for federal student aid. You must be a U.S. citizen or permanent resident (meaning you have a Form I-551, I-151, or I-551C, also known as a “Green Card.”) You also need a valid Social Security number to fill out the FAFSA. Indian students and other international students without Social Security numbers cannot complete the FAFSA.

If you aren’t able to fill out the FAFSA, you can still qualify for financial aid in other ways. To qualify for grants, scholarships and institutional loans as an Indian student, you may need to complete one or more of the following applications:

• International Student Application for Financial Assistance (ISAFA): The ISAFA is a form many colleges and universities use to determine your eligibility for institutional aid. The form is free to complete, and you can access the application online.
• CSS Profile: The CSS Profile is another commonly used application used by schools all over the U.S. It collects information about your family’s income, assets and expenses in your home currency.
• Institutional applications: Some schools have their own financial aid applications for Indian students. For example, the University of Pennsylvania requires the CSS Profile and a separate Penn Financial Aid Supplement application.

Contact your selected university to find out what the financial aid application process is for Indian students.

Scholarships and grants

There are many grants and scholarships for Indian students; unlike student loans, they don’t have to be repaid. Scholarships and grants can come from universities, nonprofit organisations, government agencies, and private companies.

For example, the Fulbright Foreign Student Program provides funding for graduate students and young professionals to study and conduct research in the U.S., and MPOWER offers a variety of scholarships for Indian students.

You can search for scholarships and grant opportunities with databases like IEFA.org and Edupass.org.

Fellowships and assistantships

Fellowships and assistantships provide funding opportunities for graduate and doctoral students. These are often paid positions where students assist professors with research or teach undergraduate courses. Some fellowships specifically cater to international students.

For example, students at the Massachusetts Institute of Technology (MIT) can apply for the Josephine de Karman Fellowship, which provides up to US$25,000 (INR 20,85,000) in funding for students completing dissertations.

To explore fellowship opportunities, reach out to your university’s department head or financial aid office.

Student loans for Indian students

Federal student loans are only issued to U.S. citizens, permanent residents and eligible noncitizens. However, there are education loans for Indian students available from private lenders.

Many lenders require Indian students to have cosigners who are U.S. citizens or permanent residents to qualify for a loan. However, there are a few lenders – including MPOWER – that offer student loans for Indian students that don’t require cosigners.

Through MPOWER, you can borrow up to US$100,000 (INR 83,40,000) to finance your education, and you’ll only need to make interest-only payments while you’re in school and for six months after you graduate. After this six-month period ends, your outstanding balance will be amortised over the next 10 years, and monthly principal and interest payments will be due.

MPOWER has fixed interest rates, and you can qualify for a 0.25% discount by signing up for automatic payments.

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Financing your studies in the U.S.

Although students are usually encouraged to fill out the FAFSA as soon as possible, that’s not the case for Indian students. If you aren’t a U.S. citizen, permanent resident or eligible noncitizen with a valid Social Security number, you cannot complete the FAFSA or qualify for federal financial aid.

Even though you can’t take out federal student loans, there are financial aid options for Indian students that can help you manage the cost of studying in the U.S. Scholarships, grants, fellowship opportunities and private student loans can all help you finance your education.

Research your options and contact your university’s financial aid office to find out what types of aid you may qualify for as an international student. If you’re ready to apply for a loan, you can start the process online.