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Education loan eligibility requirements vary with your preferences and the lender you choose. For example, the criteria for secured education loans include collateral value eligibility, while no-collateral foreign education loans require an earning cosigner. For international lenders, your university of admission and course must be listed by the lender.
Finding the right education loan for your course in the United States is crucial. Here’s your guide to check your eligibility for education loans to study in the USA.
Meeting the eligibility requirements is vital to your education loan application to study in the USA. Most lenders do not allow for compromise on the eligibility criteria. While banks are very strict regarding education loan eligibility details, NBFCs and private lenders are slightly flexible, given the proof of creditworthiness.
The eligibility criteria can vary depending on the lender you choose. Here are the US education loan eligibility criteria for different lenders:
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Are you seeking exclusive education loans for Indian students looking to study in the USA? Look no further – Indian banks (public & private) and NBFCs are the top players here. They offer education loans of high amounts at affordable interest rates and with a flexible repayment plan.
Plus, education loans from Indian banks and select NBFCs are eligible for a tax reduction under Section 80 E of the Income Tax Act.
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 |
In the USA, international students can apply for education loans offered by lenders operating exclusively in the USA and across countries. For loan options from US lenders, a US cosigner, either a US citizen or a permanent resident, is required for security assurance. International lenders offer education loans without collateral or a cosigner.
The top US cosigner education loan lenders are Sallie Mae, Earnest, Abe, and Union Federal. The interest rate varies from 3.39% – 15.00%, depending on your course, university, financial profile, and the lender’s choices.
Example US Cosigner Loan Lenders | Sallie Mae, Earnest, Abe, Union Federal |
Maximum Loan Amount | Up to 100,000 USD or 100% of your cost of attendance |
Interest Rates | 3.39% – 15.00% APR |
Processing Charges | Zero |
Margin Money | Zero |
Grace Period | 6 – 12 months |
Repayment Period | 7 – 20 years |
MPOWER Financing and Prodigy Finance are the top international lenders for education loans in the USA. The interest rates vary between 8.39% – 14.00%. There is an origination fee of 4% – 5%, which is added to the loan amount and gets levied along with your EMI.
Sample Lenders | Maximum Amount | Interest Rates | Margin Money | Repayment Period |
MPOWER Financing Prodigy Finance | Up to 100,000 USD | 8.39% – 14.00% APR | 0% | 10 – 20 years |
A comparison of the interest rates determines your education loan – a key criterion. Low interest rates, even a 0.1% reduction, can have a significant impact on your savings and repayment. When accrued over the years, the small difference can add up to save you more.
If you are eligible for multiple loan options to study in the US, the first thing you should do is to compare the interest rates.
Student Loan Lender | Interest Rates |
Indian Public Banks | 9.65% for girls, 10.15% for boys |
Indian Private Banks | 10% – 13.5% |
NBFCs | 12% – 13.5% |
International Lenders | 8.39% – 14% APR |
US Lenders | 3.39% – 15.00% APR |
Ready to check your eligibility and apply for education loans to study in the USA? Connect with Nomad Credit, your personalized study abroad partner for education loans. Unlock your education loan options to experience a stress-free study in the USA. Join us today!
The basic eligibility requirements for a student loan in the USA include admission to a US university and collateral or cosigner to back the loan. The other requirements vary with the lender you choose. Check your loan eligibility now with Nomad Credit’s tool.
Indian students can get education loans to study in the USA from Indian and international lenders. The education loans are provided on the guarantee of collateral or a cosigner.
An I-20 is a mandatory requirement for applying for education loans to study in the USA. If you are awaiting your I-20, you can request a time extension from the lender to submit your I-20.
It is up to your personal situation and choices to determine the best education loan for studying in the USA. You can choose from secured or unsecured loans offered by top lenders.
There is no minimum or maximum loan amount specific to the USA. However, it should not be less than INR 4 Lakhs for Indian banks and NBFCs.
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