Guide for Indian students to secure education loans in the USA
Studying in the USA is a dream for many Indian students, but financing this education can be a challenge. Securing an education loan becomes essential with rising tuition fees and living expenses.
This blog guides you through the process of securing an education loan for studying in the USA, covering essential topics such as types of loans, eligibility criteria, how to apply, and tips for choosing the right loan. Whether you’re just starting your application or comparing lenders, this comprehensive guide will help you take the proper steps toward achieving your educational goals in the USA.
What are the types of education loans for Indian students?
When pursuing higher education in the USA, Indian students typically have two main types of loans to choose from:
Where to secure a USA education loan for Indian students
Indian students aiming to study in the USA can secure education loans from either Indian banks or international lenders.
Indian banks
Indian banks offer education loans that can be used to finance studies in the USA. However, not all banks provide loans for international education, and factors like inflation, insurance and currency exchange rates can pose additional challenges. Some of the Indian banks that offer these loans include:
(Note: These banks often have strict eligibility criteria.)
International lenders
International lenders are another option for financing your USA education. These loans can cover tuition, living expenses and more, with a streamlined application process and disbursement in U.S. dollars. These education loans may require you to meet typical requirements like a strong credit history, a cosigner or collateral.
Fortunately, some international lenders, like MPOWER Financing, offer flexible education loans tailored for international students without needing a cosigner or collateral.
MPOWER Financing Student Loan
A loan based on your future earnings
Finding a no-cosigner USA education loan
When searching for a USA education loan, you’ll find that most banks require a cosigner. Eligibility for a no-cosigner loan typically depends on several factors:
What are the eligibility criteria for education loans?
To secure an education loan, an Indian student must meet specific criteria set by international lenders:
Start by finding out if you qualify for MPOWER Financing’s no-cosigner, no-collateral loans. Check your eligibility in less than one minute.
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 and terms. When you’re shopping around, compare loan features such as:
Lender comparison for loan application process
Lender type | Processing time | Documentation | Interest rates | Eligibility criteria |
Public sector banks | Slow | Extensive | Competitive | Strict |
Private sector banks | Moderate | Streamlined | Higher | Moderate |
Nonbanking Finance Company (NBFCs) | Fast | Minimal | Competitive | Relaxed |
MPOWER Finance | Fast | Minimal | Competitive | Relaxed |
How do Indian students apply for a USA education loan?
Applying for an education loan to study in the USA as an Indian student involves several key steps:
Research and compare lenders
Example: A student accepted into a master’s program in the USA might find that a bank offers a low interest rate but requires collateral, while another provider, such as MPOWER Financing, provides a seamless digital process at a competitive interest rate.
Check eligibility
Gather required documents
Prepare the following:
Submit your application
MPOWER’s application process is fully online, with a conditional offer provided instantly.
Loan approval and disbursement
The lender reviews your application and, if approved, disburses the loan directly to your institution or to you.
MPOWER typically provides a conditional offer instantly, which can be used as proof of funds during the visa process.
Review loan terms carefully
Before accepting, review the terms, including interest rates, repayment schedule and fees.
MPOWER disburses funds directly to your university in alignment with the tuition payment schedule.
Required documents for USA education loan application
Depending on whether a secure or unsecure loan is selected and if the loan provider requires a cosigner or co-borrower, the documents required for a student loan to study in the USA typically include:
Student documents
Co-applicant documents (usually a parent or guardian)
Additional documents (as required)
Final thoughts on USA education loans for Indian students
As an Indian student with the goal of studying in the USA, ensuring you have enough funding for your studies and living expenses is essential. For many, taking out an education loan is the only way to afford the cost of attendance. These loans can cover your expenses, helping you bridge the financial gap.
As you explore USA education loans for international students, be sure to consult your school’s financial aid office. Financial aid officers can provide valuable information on student loans, as well as grants and scholarships. Once your funding is secured, you can focus on your studies and make the most of your time in the USA.
For personalized assistance with obtaining an education loan, connect with a representative from MPOWER Financing today.
MPOWER Financing Student Loan
A loan based on your future earnings
FAQs
Eligibility criteria include academic qualifications and financial background checks; and with some lenders cosigner and collateral requirements.
It depends on the lender. Some lenders require a cosigner, while others, like MPOWER Financing, offer no-cosigner loans.
Indian banks, USA lenders, international organizations and NBFCs offer loans to Indian students with varying requirements like collateral and cosigners.
Currency exchange rates can affect the amount you need to repay, especially if you take a loan from an Indian bank that disburses in rupees but you must pay your USA education expenses in dollars.
Yes, certain students opt to combine loans from Indian and International lenders to meet all their financial needs. But careful financial planning is necessary when dealing with multiple loans.
DISCLAIMER – Subject to credit approval, loans are made by Bank of Lake Mills or MPOWER Financing, PBC. Bank of Lake Mills does not have an ownership interest in MPOWER Financing. Neither MPOWER Financing nor Bank of Lake Mills is affiliated with the school you attended or are attending. Bank of Lake Mills is Member FDIC. None of the information contained in this website constitutes a recommendation, solicitation or offer by MPOWER Financing or its affiliates to buy or sell any securities or other financial instruments or other assets or provide any investment advice or service.
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