STEM vs Non-STEM Education Loans: What’s Different for US-Bound Students?

Education Loan

Table of Contents

What Are STEM and Non-STEM Courses?
STEM vs Non-STEM Education Loans: Key Differences
Top Education Loan Options for STEM Courses in the USA
Top Education Loan Options for Non-STEM Courses in the USA
Why Lenders Are Happy to Offer You Education Loans for STEM Courses?
What Are the Top Reasons You May Get Education Loans for Non-STEM Courses?
Conclusion: Decide Your Course, Choose Your Lender
Frequently Asked Questions

STEM vs non-STEM discussion factor in when you choose a career path. Should it be a concern for an education loan application? Is it true that only STEM courses are funded by banks, and non-STEM courses must be funded from your savings?

Well, a clear answer to the question is here: since STEM and non-STEM courses are required for social and developmental needs, there are future earning potential for both types of courses. As the USA is a global academic innovation and planning leader, top education loan lenders fund degrees from US universities.

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What Are STEM and Non-STEM Courses?

STEM is an acronym for Science, Technology, Engineering, and Mathematics. Popular STEM courses in the U.S include Computer Science, Data Science, Engineering, and Biotechnology. STEM courses have a strong job market potential and longer post-study work visas, like the OPT STEM extension.

Non-STEM courses cover a broader academic spectrum, ranging from Humanities, Arts, Business, and Social Sciences to Law and Education. Although they don’t pave the way for OPT extension, non-STEM courses have significant career pathways.

STEM vs Non-STEM Education Loans: Key Differences

STEM education loans for the USA enjoy better chances of loan acceptance, interest rebate, and repayment flexibility compared to non-STEM education loans. This is because of the high future earning potential of STEM courses. The fact that US degrees are globally accepted makes STEM or non-STEM courses acceptable to many education loan lenders.

Feature	STEM Courses	Non-STEM Courses
Loan Approval Chance	Higher	Moderate or Lower
Lender Preference	Higher	Moderate
Interest Rates	Lower	Moderate or Higher
Repayment Terms	More flexible	Less flexible
Future Earning Assessment	Easier	Harder to Unpredicatable

Top Education Loan Options for STEM Courses in the USA

STEM courses have better education loan options than non-STEM courses. The USA being a leader of science and tech, STEM education loans are provided by top lenders of all category. You can approach an Indian bank or NBFC, an international lender, or a US bank to apply for a STEM education loan.

Lender Type	Sample Lenders	Maximum Amount	Interest Rate	Repayment Period
Indian Public Banks	SBI, UBI, BoB, Canara Bank, PNB	INR 1.5 Cr	9.00% – 11.00%	15 years
Indian Private Banks	Axis, ICICI, IDBI FIRST	INR 50 Lakhs	10.00% – 13.00%	15 years
Indian NBFCs	Credila, Auxilo, Avanse, InCred	INR 40 Lakhs	11.00% – 14.00%	10 years
International Lenders	MPOWER Financing, Prodigy Finance	USD 100,000	8.35% onwards	7 – 20 years
US Banks	Sallie Mae, Abe, Union Federal, Earnest	USD 100,000	3.47% onwards	7 – 15 years

Top Education Loan Options for Non-STEM Courses in the USA

Indian public and private banks: Banks like SBI, UBI, BoB, Axis, ICICI, and Canara Bank offer education loans for non-STEM courses like LLB, Business, and Economics in the USA. Applicants must have collateral with a high market value to cover the loan.

Indian NBFCs: NBFCs offer student loans for non-STEM courses like MBA, LLM, and Master’s in Finance. NBFCs look for applicant’s academic record, university ranking, future earning potential, and other factors.

International lenders: International lenders like MPOWER Financing and Prodigy Finance have listed MBA, LLM, Finance, and Economics to the list of courses eligible for funding. International student loans are often limited to postgraduate courses in the USA.
US Banks: MBA, LLM, Finance, and Accounting are some of the top non-STEM courses funded by US banks. Applicants must submit their academic record, their US cosigner’s income proof, and pass the future earnings assessment.

Why Lenders Are Happy to Offer You Education Loans for STEM Courses?

Higher employability: STEM grads often secure high-paying jobs in tech and healthcare.
Post-Study work benefits: U.S. offers a 24-month OPT extension for STEM students.
Industry demand: Global demand for STEM professionals is consistently strong.
Higher Return on Investment (ROI): Better earning potential ensures timely repayment.

What Are the Top Reasons You May Get Education Loans for Non-STEM Courses?

Emerging opportunities: Fields like international business, UX design, sustainability, and public policy are growing.
Reputed institutions: Admission to top-tier U.S. universities increases trust in the student’s ROI.
Collateral/Cosigner strength: Strong financial backing can offset perceived course-related risks.
Diverse career paths: Non-STEM degrees often lead to successful careers in management, education, media, and public service.

Conclusion: Decide Your Course, Choose Your Lender

Plan your education in the USA without worrying about the degree type. STEM or non-STEM, you can apply for an education loan option if your lender approves the course, your academic records are strong, and documents are proper. In short, your academic profile, admission offer, financial background, and choice of lender all play a crucial role in getting an education loan.

Always have a comparative approach and choose the top offer with maximum funds and lower interest rates.

Ultimately, it’s all about achieving your US study dream without financial stress. Nomad Credit’s tailored guidance provides solutions for your financial needs. Connect with us today for free. Join the club of 3,000+ successful global alumni!

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Frequently Asked Questions

Do STEM courses have a better approval chance than non-STEM courses?

Typically, STEM education loans in the USA have a better chance of approval. Lenders favour STEM courses due to their high earning potential and job market demands.

Can non-STEM students get an education loan without collateral?

Non-STEM courses like MBA and LLM are available without collateral. If your lender finds your non-STEM course has better job potential, you have better odds of getting a loan approval.

Which is better loan option for STEM courses in the US?

Choosing the best loan option for STEM in the USA depends on your personal situation and interests. Consider the interest rates, loan amount, and margin money before choosing from the top options available.

Is there any difference in the moratorium period for STEM and non-STEM education loan options?

The moratorium period for STEM and non-STEM courses in the USA usually does not differ. It is usually course years plus 6 – 12 months.

Should I choose a STEM course for an education loan?

You are responsible for choosing a course, whether STEM or non-STEM. Before changing your course option for an education loan, ensure you have exhausted all lender options. Some lenders usually sponsor a wide range of courses in the USA.