“The engineer has been, and is, a maker of history” – James Kip Finch. Engineering is everywhere around us, from the buildings we live in to the technology we use daily. The USA has some of the top universities, job opportunities, global exposure, and diverse culture that make it an ideal destination for many aspiring engineers. However, financing your dream of studying in the USA can cost you too much; that’s where an education loan comes in. In this quick guide, we will walk you through the step-by-step process of engineering education loans in the USA.
Table of Contents:
- Step 1: Research and Shortlist Loan Providers
- Step 2: Check Eligibility Criteria
- Step 3: Decide Between Secured and Unsecured Loans
- Step 4: Get Your Admission Letter
- Step 5: Gather Documents
- Step 6: Apply for a Loan
- Step 7: Loan Sanction and Disbursement
- Smart Tips to Secure Your Engineering Student Loan for US
- Frequently Asked Questions
Step 1: Research and Shortlist Loan Providers
A thorough research is what you need for a study loan in the USA. Research helps you identify which loan provider will suit you best. Shortlist loan providers based on interest rates, collateral requirements, processing fee & time, repayment period, grace period, and more. Here’s what you should know about shortlisting loan providers:
| Fixed vs Floating Interest Rates | Hidden or Additional Processing Charges |
| Maximum Repayment Tenure | Coverage of Expenses (Living, Travel, etc.) |
| Co-applicant Eligibility & Requirements | Reviews of Past Borrowers |
Step 2: Check Eligibility Criteria
Don’t start applying to every bank or lender until you make sure you fit the requirements for loans. Every bank and lender lays out its own rules, and meeting them is important for approval. Here are some of the common eligibility criteria that a bank or lender requires:
| You must be above 18 years of age | You must be an Indian citizen |
| Must have secured admission to a US university | Must have a co-applicant (parent/guardian) with stable income |
| Co-applicant must have a good credit score | Collateral if applying for a secured loan |
Step 3: Decide Between Secured and Unsecured Loans
A secured loan requires property, fixed deposits to pledge as collateral, and it often has lower interest rates. While an unsecured loan, aka a no collateral loan, has higher interest rates, but does not require collateral. Both loan types are good, but it depends on your financial condition, goals, and requirements.
Step 4: Get Your Admission Letter
Several top lenders ask you to submit a confirmed admission letter from your US university before approving your loan. Lenders typically ask for this to see proof of your admission to confirm your loan application. This serves as evidence that you have successfully gained admission to the university.
Step 5: Gather Documents
Some lenders may ask for fewer documents than others. However, the requirements vary from lender to lender. Having a proper set of documents can save you time and lead you to a successful loan application. Here are some of the common documents required for a study loan in USA:
| Proof of Admission to a US University | Co-applicant / Guarantor |
| Academic Records | Income Documents |
| Address & Identity Proof | Security / Collateral (if required) |
| Copy of Passport | Student Visa |
Step 6: Apply for a Loan
Once you have met the requirements and arranged the needed documents, go ahead and request a loan. You can get a loan by either visiting the closest branch of the bank or accessing the official website. You can also take guidance from study abroad experts at Nomad Credit, as they specialize in helping international students take a study loan in the USA. With Nomad Credit, you can
- Compare loan options from multiple lenders
- Get personalized guidance throughout the loan process
- Get benefits from competitive rates, their US co-signer loan starts from 3.47%*
- Avoid the hassle of visiting multiple banks
Step 7: Loan Sanction and Disbursement
Once your loan is approved by the lender, you will get the sanction letter. Typically, a loan sanction letter will give you the amount of the loan, the interest you pay, the plan for repayment, and related details. Go through the letter sanctioning your loan carefully and ask any questions you might have before coming to a decision.
After accepting the loan letter, the loan amount will be disbursed to you or the university’s bank account, as discussed with the lender. At this point, stay in contact with your lender.
Smart Tips to Secure Your Engineering Student Loan for US
Securing an engineering education loan for the USA requires planning and preparation. Here are some smart tips to secure your education loan in the USA:
| Tip | Why It Matters |
| Good Credit Score | Maintaining a good credit score helps your lender assess your creditworthiness and reduce their risk |
| Reliable Co-applicant | Your co-applicant should be reliable, as a strong income and credit history increase the chances of approval |
| Complete Documents | Prepare your documents thoroughly to avoid any delays |
| Apply Early | It is advisable to apply as early as possible to meet deadlines and to resolve any issues (if any) |
| Understand Loan Terms | Interest rates, repayment tenure, and grace period are some of the important loan terms that you should understand |
Are you looking for help with your student loan options? We, at Nomad Credit, specialize in helping international students find the right loan products by comparing lenders, interest rates, and eligibility criteria, all in one place. Nomad Credit’s US co-signer loan offers competitive interest rates and higher chances of approval, especially for international students aiming to study in the US.
Frequently Asked Questions
Which is the best engineering college in the USA?
Massachusetts Institute of Technology (MIT) is considered the best engineering college in the USA. The university is often ranked number 1 and is known for its high-quality education.
How much does it cost to study Bachelor’s in the USA?
The cost to study Bachelor’s in the USA may vary depending on the program, university, and specialization. However, it can range from $15,000 – $50,000 per year.
How much does it cost for USA student visa?
The total cost of USA student visa is $535. The SEVIS fee is $350, while the visa application fee is $180.
Which is the best scholarship for international students in USA?
The best scholarship for international students in USA depends on the student’s profile, goals, and financial needs. Fulbright Fellowship, Hubert H. Humphrey Fellowship Program, Aga Khan Foundation Scholarship are some of the top scholarships.
How to apply for an education loan in the USA as an international student?
To apply for an education loan in the USA as an international student, you must have a US co-signer with a good credit score.
