Education Loan for USA
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Exploring the paths to study in the USA, you are most likely to face some challenges. Financing your education is one of them. Studying in the US might be expensive. That is why an education loan for USA is paramount. And if you are a student from India, you won’t face many challenges either. The USA is the most famous destination among Indians for higher studies. The number of students relocating to the US for academics is rising.
Beyond incredible universities, the country has diverse cultures, which help students gain innumerable experiences. From budding entrepreneurs to tech innovators, such students have left an incredible mark. That is why several students dream of pursuing academics in the USA and climbing the success ladder and opt for an education loan for the USA.
Types of Education Loan for USA
When applying for an international student loan in the USA, Indian students typically have two main options: secured education loans (with collateral) and unsecured education loans (without collateral). Here’s a breakdown of both:
- Secured Education Loan (With Collateral)
A secured education loan requires the borrower to pledge collateral or security while applying. This collateral can be either movable or immovable assets such as Fixed Deposits (FDs), LIC policies, non-agricultural land, residential property, or commercial property.
Public sector banks in India usually offer education loans for studying abroad against collateral, often providing lower interest rates and higher loan amounts.
- Unsecured Education Loan (Without Collateral)
An unsecured education loan for studying in the USA does not require any collateral. However, because of the higher risk for lenders, these loans usually come with higher interest rates. In most cases, a co-applicant or co-signer is mandatory. The loan amount is determined based on the co-applicant’s income level, creditworthiness, and CIBIL score. These types of loans are commonly offered by private banks and NBFCs.
As a student, you should first evaluate the pros and cons of an education loan for USA. Firstly, research each of these loans by yourself. Then reach out to Qck Loans for more detailed information about what they offer. Consider your financial situation, risk tolerance level, and repayment abilities when selecting an education loan that suits you the best. Understand the terms and conditions and opt for professional guidance to make the right decision.
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Expenses Covered by an Abroad Education Loan for Studying in the USA
Once your education loan for the USA has been approved or sanctioned, the next step is the loan disbursement. You can either choose to disburse the entire sanctioned amount at once or opt for a partial disbursement, depending on your financial needs.
Most students prefer partial disbursements, as interest is only charged on the amount actually disbursed, not on the total approved loan. This approach can help reduce the overall interest paid on your education loan.
Common Expenses Covered Under an Education Loan for USA Study
Lenders usually cover a wide range of education-related expenses under abroad education loans, including:
- Tuition fees
- Living expenses (accommodation, food, utility bills, etc.)
- Health and travel insurance
- Visa application and processing fees
- Study-related expenses (lab fees, books, stationery, equipment, etc.)
Eligibility Criteria for Studying in USA
The American education system is similar to the Indian education system in that it recognizes educational certificates for admission. The country is blessed with numerous world-class universities. Each of them has different eligibility criteria. It is advisable to visit the official university website and check the prerequisites for the course you want to take up. The general eligibility criteria are as follows:
- Age Requirement
The age criteria usually vary from 18 to 35 years. Nonetheless, this range is based on the course. For instance, the age for undergraduate programs should not exceed 21 years.
- Educational Qualification
Studying in the US has certain academic requirements. Many universities require a minimum of 55% in your educational qualifications. Also, specific subjects may be required for certain courses. For instance, you need Mathematics or Biology in your higher education certificates to pursue a BSc in Biotechnology.
- Entrance Test
To secure your seat in a US university, you need to clear standard tests such as the Graduate Record Examinations (GRE) or Graduate Management Admission Test (GMAT). Both of these are necessary based on the course, and every educational institute has its merit list and requirements.
- English Proficiency Test
English is the primary language in the USA, and you are required to prove your proficiency in it. This ensures that you can effectively communicate and understand the native language. To demonstrate this, exams such as IELTS, TOEFL, and PTE are commonly accepted and may be required as part of the admission process.
- Application Fee Receipt
During the application process, the university website will direct you to pay the application fee. Download the receipt and save it for future reference. You may need it during the time of verification. You will also get a confirmation on your email ID.
Documents Required to Secure an Education Loan to Study in USA
In addition to meeting the eligibility criteria for an education loan, Indian students planning to study in the USA must ensure they have all the necessary documents ready before applying. Having a complete and well-organized education loan document checklist can significantly speed up the loan approval process.
To make the process easier, platforms like Qckloans also offer a personalized document checklist based on your profile and loan type (secured or unsecured).
Here are the most commonly required documents for securing an abroad education loan for the USA:
- Loan application form (accurately filled)
- Proof of admission – Admission letter from a U.S. university or institution
- University fee structure – Detailed breakdown of tuition and living expenses
- Academic transcripts – Class 10, 12, and undergraduate mark sheets
- Standardized test scores – GRE or GMAT (as required by the university)
- English proficiency test scores – IELTS, TOEFL, or Duolingo
- KYC documents of the applicant – PAN card, Aadhar card, passport
- Passport-size photographs
- Address proof – For both the applicant and the co-applicant
- Income proof of the co-applicant – Salary slips, ITRs, Form 16 (required for unsecured loans)
- Property documents – In case you’re applying for a secured education loan
How to Apply for an Education Loan for the USA (Step-by-Step Guide)
Applying for an education loan to study in the USA can be a time-intensive process, depending on the lender you choose. It’s highly recommended to start your loan application at least 4–6 months before your planned intake to avoid last-minute stress.
If you’re overwhelmed by dealing with multiple lenders, platforms like Qckloans simplify the entire journey of securing an international student loan for the USA, from eligibility checks to final disbursement.
Here’s a step-by-step guide on how to apply for an abroad education loan to study in the USA:
- Step 1: Check Your Loan Eligibility
Start your loan application process by checking your education loan eligibility on Qckloan’s platform. This helps filter out lenders best suited for your profile.
- Step 2: Get Expert Guidance
Once you complete the eligibility form, a dedicated loan expert from QckLoan will reach out to discuss your requirements and recommend the two most suitable lenders based on your academic and financial profile.
- Step 3: Receive a Customized Document Checklist
You’ll get a personalized list of required documents tailored to the specific lender’s requirements. This helps avoid delays and confusion during submission.
- Step 4: Submit Your Documents
Depending on the lender, you’ll either upload soft copies online or submit hard copies through a relationship officer. Qckloans assists you throughout this step.
- Step 5: Loan Processing and Approval
The verification process begins once your documents are submitted. It generally takes 7 to 15 working days. Once approved, you’ll receive a loan sanction letter and agreement to sign.
- Step 6: Disbursement of Loan
After signing the agreement, you can request disbursement at your convenience. Depending on the lender, funds will either be:
- Transferred directly to your account (common with Indian private banks), or
- Sent directly to the U.S. university (common with international lenders).
Repayment Process of Education Loans for USA Education
When applying for an education loan to study in the USA, understanding the loan repayment process is crucial. Repayment terms, including repayment tenure and moratorium options, vary by lender and directly impact the total cost of your loan. Choosing the right repayment option, such as EMI, Simple Interest (SI), or Partial Simple Interest (PSI), can help you manage your finances effectively during and after your studies.
To simplify your decision-making process, here’s a comparative guide focusing on the top education loan providers for Indian students studying in the USA, including private banks and NBFCs.
Repayment Options Offered by Top Lenders
| Lender Name | Repayment Tenure | Repayment Option During Moratorium |
|---|---|---|
| HDFC Credila | Up to 15 Years | PSI (Partial Simple Interest) |
| Avanse | Up to 15 Years | PSI or SI |
| ICICI Bank | Up to 10 Years | SI or EMI |
| Incred | Up to 15 Years | PSI or SI |
| Prodigy Finance | Up to 15 Years | SI |
| MPOWER Financing | Up to 15 Years | SI |
| Auxilo | Up to 15 Years | SI |
Before applying for an education loan to study in the USA, it’s important to carefully evaluate and compare the options available from various lenders, considering factors like interest rates, repayment terms, processing times, and eligibility criteria. However, navigating this process alone can be time-consuming and overwhelming. That’s where QCKLoans comes in. With our simplified and student-friendly education loan services, you can get free expert guidance to secure the right loan tailored to your academic goals and financial background. Our experienced loan advisors will assess your profile, match you with the most suitable lenders, and support you through the entire process from documentation to disbursement. QCKLoans has strong partnerships with top government banks, private banks, NBFCs, and international lenders to help you access the best offers in one place. Don’t let finances hold you back. Check your education loan eligibility with QCKLoans today and take the first step toward your dream of studying in the USA.
F-1 & J-1 Study Visa Requirements
When you receive your acceptance letter from your chosen university, it is time to apply for a student VISA. Listed below are some additional documents you need for your student VISA:
- Passport
- Acceptance Letter
- Statement of Purpose
- Recommendation Letter
- I-20 Form
- Student and Exchange Visitor Information System (SEVIS) Fee Receipt
- Proof of Funds
- Academic Transcripts
- English Proficiency Test Certificates
- DS-160 Form
- Receipt of VISA Application Fee
For a broader understanding of documentation requirements, you can also refer to this guide on documents required for student visa to USA from India.
Part-Time Jobs In USA
This helps you find an answer to the question: Why study in the US? Your student visa allows you to work part-time while pursuing your academics, giving you the opportunity to gain experience while studying at one of the world’s leading universities. You can work part-time during the academic year and for more hours during vacations. However, it is important to maintain a balance between your studies and work.
Besides taking an education loan for USA, you can tutor fellow students, take orders and serve customers at a cafe or restaurant, and land a campus gig so that you can cover the cost of your studies in the USA. Hence, do not miss out on the opportunity and explore part-time employment opportunities in the country that will make your pockets happy when you concentrate on your academics.
Click below to learn more about part-time jobs available in the US.
Our free tools will help you out
Our advanced tools, such as the EMI calculator and loan eligibility checker, streamline the process of obtaining quick student loans for studying abroad by eliminating complex procedures.
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EMI Calculator
Determine your EMIs and repayment schedules before committing to a student loan.
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Everything you need to know
Yes, the US is good for job opportunities. It offers employment in different industries like hospitality and travel, information technology, medicine, finance, marketing, etc.
You can study in the USA without IELTS or TOEFL, but you need to provide another English proficiency certification.
After completing your studies in the US, you can do the following:
- Get a PSW (Post Study Work) VISA
- Extend your student VISA to pursue another course