International Student Loan USA
To be able to study in the USA is a dream of every student. The country is home to some of the most renowned and top universities in the world. Yet, many hesitate to further their education in the USA because of the exorbitant cost it comes with. Studying abroad in the USA is an expensive affair but with the right financial aid, students can pursue their dream with little to no cost. Student loan for USA is one such aid that helps students with living and studying in the USA stress-free.

There are many banking and non-banking institutes in India that offer education loans in the USA for international students at the lowest interest rates and with added concessions. Today, applying for a student loan in the USA has become an effortless task and anyone who wishes to study abroad can do so hassle-free.

Eligibility Criteria For Education Loan For USA
Before everything else, a student must see that they fit the general eligibility criteria for acquiring a student loan in the USA. There are multiple requirements that a student must fulfil before applying for a loan. If students aim to have the smoothest process while applying for international student loans in the USA then make sure you tick out all the eligibility standards below:

1. The applicant must be an Indian citizen
2. The candidate must be looking to enrol in a professional or technical programme. Banks always prefer loans for career-focused programmes.
3. The candidate should have a remarkable academic history.
4. The applicant must already be enrolled at the international university.
5. The borrower must be older than 18 to receive a loan; their parents will be required to do so. The above criteria for education loans in the USA is the basic standard followed by most institutes, although you must go through their respective eligibility mandates to understand the process correctly.

Documents Required For Study Loan USA
In order to determine your ability to repay the capital for student loan debt in the USA, banks must first confirm that you are a legitimate student (user) and have been accepted to a reputable university. Here is a list of the standard paperwork that banks typically demand in order to process student loans in the United States.

1. Loan application form (filled)
2. Offer letter is given by the university (proof of admission)
3. The estimated cost of study (as per the I-20 form)
4. Documents of qualifying exams (GMAT, TOEFL)
5. Original education certificates/mark sheets
6. Residential Proof of student and co-borrower
7. PAN card and other identity proofs of student and co-borrower
8. IT returns of co-borrower
9. Proof of income of co-borrower
10. Details of assets and liabilities of parents/co-obligates/guarantors
11. Passport copy Note: It is always recommended to check the list of the papers required with the specific bank as the requirements of documents can vary depending on the bank's own laws and regulations for a student loan in the USA.

Expenses Covered Under The USA Education Loan
Always verify what other expenses, including tuition, are covered by your loan programme. There are numerous more things for which you must watch out. Nowadays, a number of loan programmes are available to pay for expenses besides tuition. Some of the costs paid for by a student loan in the USA are:

1. Examination, laboratory fees, library
2. Fee expected to college and hostel
3. Purchase of books, instruments, equipment
4. Travel expenses
5. Caution deposit, refundable deposit, building fund
6. Insurance premium for the student (if applicable)
7. Other expenses like study tours, thesis, project work
8. Purchase of laptop (if required for the course)

Types Of Loans Available For Study Abroad USA
Generally speaking, there are two types of student loans available in India for studying in the United States:

Secured Education Loans: Education loans with collateral are known as secured loans. As the name implies, in order to obtain a student loan in the USA, you must offer the lender a security interest in a piece of property. This collateral comes in two varieties:

Tangible assets like apartments, non-agricultural land, stores, etc.
Intangible assets such as government bonds, life insurance, and fixed deposit accounts.
Unsecured Education Loan for USA: These are those that lack any form of security. As the name implies, you can apply for a student loan in the USA without giving the lender any collateral. However, a co-applicant is required, and that co-income applicant will play a significant role in whether the loan will be approved. Additionally, only a small number of foreign lenders and private Indian lenders offer unsecured education loans for sums greater than INR 7.5 lakhs.

Cost To Study Abroad In The USA
A year of full-time English study in the USA costs roughly $20,000. Unexpectedly, participating in a study abroad programme is less expensive than enrolling directly at an American university. While the programme costs for studying abroad in the USA are significantly less than the $20,000 figure, when you include other expenses like flights, insurance, food, pocket money, vacations inside the USA, and visa fees, your annual budget will likely be between $18,000 and $23,000. A study abroad programme for a semester is more expensive compared to a year-long programme. In the USA, a semester typically costs between $14,000 and $16,000 in total. A year-long programme is a better value at that price.

Tips For Choosing The Best Education Loan
Because there are so many top-notch universities worldwide, more and more Indian students want to study there. But without a loan or scholarship, attending school abroad can be very expensive. How can students choose the best loan provider for them when there are so many options available? Let us see.

1. Understand the loan
2. Be confident about the targeted college
3. Consider the advantages and disadvantages of the loan
4. Study all the available options
5. Confirm the grace period
6. Pick up the right repayment option if available
7. Know the repayment process
8. Be sure about work-outs and cancellations
9. Aware of pre-payment fees of the loan
10. Ask questions

Why Choose FeeTap?
FeeTap, unlike any other platform, makes securing student loans easy. Here are some of the reasons why receiving a student loan in the USA with FeeTap is the best choice:

1. Full financing (up to 100 %) for tuition and living expenses
2. No margin money
3. Immediate sanctions in the event of an emergency
4. Options for customised financing
5. Comparing education loans
6. Tracking of loan applications
7. Loans with no collateral
8. Doorstep delivery of services
9. Paperless approval of loans

Top Universities In The USA & Their Rankings
USA Rank 2023 Universities QS World University Ranking 2023
1 Massachusetts Institute of Technology (MIT) 1
2 Stanford University 3
3 Harvard University 5
4 California Institute of Technology (Caltech) =6
5 University of Chicago 10
6 University of Pennsylvania 13
7 Princeton University =16
8 Yale University 18
9 Cornell University 20
10 Columbia University 22

Popular Courses To Study In The USA
The USA, as well known, is an extremely popular choice among international students looking to further their education. While the popularity of STEM courses in the USA is widespread, many universities offer a broad range of courses for students to choose from. Here are a few of the top ones:

Engineering
Business & Management Studies
Computer Science
Medicine
Communication & Media Studies
Politics
Mathematics
Economics & Econometrics
Dentistry
Physics


Student Visa Requirements For The USA
The F1 Visa is the most common option for international students heading to the USA for their higher education. However, as international students, it is mandatory to fulfil a set of requirements along with submitting the relevant documents in order to apply for the student visa. The requirements may vary based on the student; here’s a list of requirements students must take note of -

1. University Certification: The institute in which the student has enrolled has to be certified or authorised by SEVP Immigrations & Customs Enforcement.
2. Enrollment Status: The applicant must be enrolled at their university as a full-time student when their semester is in session.
3. Language Proficiency: Most universities in the USA have their set of standarized scores for English Language. It is essential for applicants to met the language proficiency requirements set by their designated institution.
4. Funding: Students must also provide evidence of sufficient funds in order to finance not only their studies but also their living expenses when studying in the USA.
5. A Valid Passport: While many students may carry a passport; it is important to ensure that it holds valid for at least 6 months after completion of the course.
6. Home-Country Residency: It is mandatory for applicants to show proof of residence in their home country so that they can return after completing their degree.

What Is A Capability Certificate?
Several universities in the USA ask students to submit a certificate provided by their banks detailing the financial capability of their sponsors. It is carried out to ensure that the sponsors are financially capable of covering the student's study costs. Banks offer this capability certificate after assessing the sponsors' financial and other supporting documents.

Government Bank Schemes Offering Education Loans In The USA
There are several Government Bank Schemes as well as private programmes available in order to assist Indian students with their education loans to study in the USA. As Indian students, there are several opportunities you can make use of when it comes to applying for an education loan to study in the USA, as listed below

SBI Global Ed-Vantage: The State Bank of India offers Indian students the opportunity to apply for overseas education loans for the USA with its Global Ed-Vantage Scheme. It should be noted that in order to apply for this loan, students must provide collateral which is considered the key source of security. The scheme doesn’t consider the co-applicant’s profile as important when compared to other banks and NBFCs. In the event that you happen to opt for the SBI RiNn Raksha insurance loan, you may also get a 0.5% concession on the interest rate.As part of this scheme -

You can apply for a loan between INR 20 lakhs and INR 1.5 crores,
Maximum Loan Tenure: 15 Years,
Repayment Period: Begins 6 months post-course completion
Bank of Baroda Scholar: Considered one of the top public-sector banks for students seeking an education loan for the USA, Bank of Baroda offers varying price schemes based on the student’s profile, course, and country. To know if you can apply for a USA study loan via the Bank of Baroda Scholar scheme, it is recommended to check if the university you are enrolling in is registered with BOB or not. As part of this scheme -

You can avail of a 100% margin for the scheme’s listed colleges
You can benefit from the 12-month moratorium period
You can also apply for a low-interest education loan in the USA
PNB Udaan: Whether you’re looking for studying diploma courses or degrees, PNB Udaan has a loan scheme for everyone. The maximum loan amount depends on the requirements fulfilled by the applicant after a thorough profile evaluation. If you apply for this loan, you should make note that the repayment period starts one year after the course completion and the loan tenure can extend to a period of 15 years.

Oriental Bank of Commerce Education Loan Scheme: Provided to Indian students who wish to either pursue their studies abroad or in India. Based on the fee structure of the designated university, the education loan amount may differ. Only if the loan amount happens to be over INR 4 lakhs, the margin would be 15% on the education loan. The maximum loan tenure would be for 15 years with this scheme and the repayment period begins upon completion of the course.

Private Banks Offering Education Loans To Study In The USA
Axis Bank: Axis Bank, one of India's leading commercial private banks, provides education loans for students studying in the United States. Unsecured loans have a maximum loan amount of INR 50 lakhs. The interest rate normally fluctuates between 11 and 15% per annum. There is no margin money for loans up to INR 4 lakhs, however, it is 15% for loans over INR 4 lakhs. There is no prepayment penalty and the appropriate moratorium period is up to 12 months following the course completion.

ICICI Bank: Indian students can apply for both secured and unsecured education loans to study in the USA with ICICI Bank. While the maximum loan amount for secured loans would be around INR 1 crore whereas it is INR 50 lakhs for unsecured loans. There are fluctuating interest rates for ICICI Bank education loans as well, however, interest rates start at 10.5% p.a. If you happen to take a loan below INR 20 lakhs, there is no margin money as such, as opposed to a 15% margin rate for loans above INR 20 lakhs. Fortunately, there is no prepayment penalty and the moratorium period is for 6 months after the course has been completed.

HDFC Bank Education Loan For Foreign Education: With HDFC, you can apply for both collateral and no-collateral loans to study in the USA. As with collateral loans, there’s no upper limit with HDFC, however, for non-collateral loans - the maximum loan amount is INR 45 lakhs. Again, HDFC education loans have floating interest rates with a repayment period spanning a duration of 14 years inclusive of the moratorium period.

IDFC First Bank: As with most private banks, Indian students can opt for secured loans with no upper limit or unsecured loans up to INR 50 lakhs to study in the USA with IDFC. For unsecured loans, the interest rate stands at 11% while there is a processing fee of around 1.5% of the loan amount.The repayment tenure lasts for 12 years with a moratorium period of one year that begins after the course completion.