Table of Contents
- MS in the USA Education Loan Options
- Understanding Your Credit Score and Its Components
- How Does Your Credit Score Affect Your Education Loan Approvals and Interest Rates?
- Conclusion: Best Practices for Better Credit Scores
- Frequently Asked Questions
An MS in the USA is a great academic dream! It offers advanced research opportunities, course specializations, Curricular (CPT) and Optional Practical Training (OPT) opportunities, scholarships, and more! International students can soar high with an MS degree from the USA.
Education loans make your MS study in the USA stress-free. When you apply for an education loan for MS in the USA, your credit or cosigner’s credit scores come into play. They play a vital role in your education application as a mandatory eligibility requirement to decide your creditworthiness.
MS in the USA Education Loan Options
Credit scores play a significant role in getting your student loan to study MS in the USA. Either your or your cosigner’s credit scores are scrutinized before granting you an education loan. Credit scores act like proof of trustworthiness.
Your top education loan options for MS in the USA include public and private banks, NBFCs, international lenders, and US banks.
| Lender Type | Maximum Loan Amount | Interest Rate | Margin Money | Repayment Period |
| Public banks – SBI, BoB, UBI | Up to INR 80 Lakhs – INR 1.5 Cr | 9.65% for girls, 10.15% for boys | 10% | 10 – 12 years |
| Private banks – ICICI, Axis, IDFC FIRST | Up to INR 50 Lakhs | 10% – 13.5% | 0% – 15% | 10 – 20 years |
| NBFCs – Credila, Avanse, Auxilo, InCred | Up to 2INR 20 Lakhs | 12% – 13.5% | 0% | 10 – 15 years |
| International lenders – MPOWER Financing, Prodigy Finance | Up to 100,000 USD | 8.39% – 14% | 0% | 10 – 20 years |
US Cosigner Loan Options
You can apply for US co-signer education loan from US lenders to study for an MS in the USA. They require a US citizen or permanent resident to cosign your education loan. The US cosigner’s credit scores must be good enough (750+) to qualify for an education loan. The higher the credit score, the better your education loan terms, like interest rates and repayment flexibility.
Understanding Your Credit Score and Its Components
CIBIL score, or credit score, is a three-digit number ranging from 300 to 900. Higher numbers denote high creditworthiness and vice versa. The scores are determined by TransUnion CIBIL Limited based on your financial behaviours, including the following factors:
- Your payment history
- Loan debt
- Credit history duration
- Credit type
- Fresh credit
How Does Your Credit Score Affect Your Education Loan Approvals and Interest Rates?
The higher your credit score is, the better your education loan application will be. Credit scores can impact your education loan application for an MS in the USA greatly, from determining your eligibility to negotiating your education loan terms.
Don’t underestimate—a high CIBIL score can change a “No” to a “Yes” within seconds.
Confirms your education loan eligibility: A high CIBIL score indicates financial discipline and repayment punctuality. When you apply, you or your cosigner must have a high CIBIL score to be eligible for an education loan to study MS in the USA.
Reduces your interest rate: Consistent past financial behaviors are a key to lowering your education loan interest rate. Compared to low CIBIL scores, the interest difference for a high credit score can be up to 0.25%—1%, which is huge as it accrues over 10 – 20 years of repayment.
Faster approval time: High credit scores can greece up your education loan acceptance time.
Negotiations with the loan amount and terms: A high credit score gives you more power to negotiate the education loan terms in your favour. When the lender gets more creditworthy assurance, it always benefits the student.
Conclusion: Best Practices for Better Credit Scores
MS in the USA can be funded by an education loan, often up to 100% of the academic and living expenses. Getting an education loan for an MS in the USA is highly based on your credit score. The better the credit score, the higher are the chances of getting the loan approved, lowering the interest rate, and the best repayment schemes.
If you are going for an education loan, these are the best practices to have a good credit score:
- Check your credit scores early: You can easily check your credit scores online. If your credit scores are low or zero (for those who haven’t participated in financial transactions), build credit scores gradually.
- Reduce debt-to-income ratio: Pay off your loan dues and reflect a good credit history. Consider taking a small loan to repay the high loan amount.
- Avoid multiple loan applications: Don’t apply for many loans at a time. When you are applying for an education loan, don’t apply for multiple loans like a car loan or personal loan.
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Frequently Asked Questions
Does the student’s CIBIL score affect the education loan application?
Some lenders require the student to have a good CIBIL score to apply for an education loan to study an MS in the USA. The student’s CIBIL score can affect the loan application in those cases. For others, the cosigner’s CIBIL scores are more important than the student’s CIBIL scores.
Is a credit score important for an education loan application?
CIBIL scores are crucial for your education loan application. You or your cosigner must have a high CIBIL score to get an education loan.
Is 650 a good CIBIL score for an education loan to study in the USA?
650 is a good CIBIL score to apply for an education loan to study in the USA for an MS, MBA, etc. It is advisable to have at least a 750+ score.
What to do if the student has a low CIBIL score?
If the student has a low CIBIL score, do financial transactions and make necessary changes in financial transactions to improve the score. It is better to have a cosigner with a high CIBIL score to apply for an education loan.
What is the CIBIL score for US cosigner education loans?
The minimum CIBIL score for a US cosigner education loan is generally 750+. The lender finalizes the minimum score.
