Eligibility Criteria to Apply for a US Education Loan

Education Loan

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.

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Eligibility Criteria for US Education Loan

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:

For US education loans from Indian lenders:

Be at least 18 years older at the time of application
Secure admission to a recognized university in the USA
Receive a confirmed admission letter (I-20) from the university
Have a strong academic record (preferred GPA 3.0+ or equivalent)
Have a co-applicant (if required) with a stable income and a good credit history
Provide valid collateral (for secured loans) such as property, fixed deposits, or insurance policies
Have a good credit score (CIBIL 700+ preferred for Indian applicants or their cosigners)
The loan amount requirement must match the university’s tuition and living expenses.
Course type (STEM and professional courses preferred for better approval chances)
Show repayment capability based on future earning potential.

For education loans from US lenders (with a US cosigner):

Be at least 18 years old at the time of application
Secure admission to a recognized university in the USA
Receive a confirmed admission letter (I-20) from the university
Have a strong academic record (preferred GPA 3.0+ or equivalent)
Have a US cosigner with a stable income and a good credit history
Your cosigner must have a CIBIL 750+

For education loans from international lenders:

Be at least 18 years old at the time of application
Secure admission to a university listed by the lender in the USA
Choose a course listed by the lender
Receive a confirmed admission letter (I-20) from the university
Have a strong academic record (preferred GPA 3.0+ or equivalent)
Have an excellent CIBIL score

Education Loan in the USA for Indian Students

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

Education Loan in the USA for International Students

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.

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US Cosigner Loans

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

International Lenders

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

USA Education Loan Interest Rate

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!

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Frequently Asked Questions

Who is eligible for a student loan in the USA?

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.

Can Indian students obtain education loans in the United States?

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.

Is an I-20 required for education loans in the USA?

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.

Which type of student loan is the best for the USA?

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.