Types of Education Loans to Study in the USA

Education Loan

Types of Education Loans to Study in the USA

Education loans to study in the USA are broadly categorized into two based on collateral availability.

Secured education loans: Secured education loans are student loans that are available against collateral guarantee. The collateral can be tangible or intangible. Tangible collaterals include a plot, a building, or a shop, while intangible collaterals include a fixed deposit or a bond.

Unsecured education loans: These loans are available without requiring collateral security. A cosigner is required, whose income must be high enough to repay the loan EMIs.

Secured Education Loans	Unsecured Education Loans
70% – 100% of the collateral value is available as the loan amount	The maximum amount is decided by the bank, based on the cosigner’s income and university of admission
Lower interest rates	Higher interest rates compared to secured loan options

Top Education Loan Options to Study in the USA

Top education loan lenders for the US include Indian banks (public and private), NBFCs, international lenders, and lenders in the USA. The loan amount, interest rates, and repayment period are decided based on your profile and after you negotiate with the lender.

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

Book a Free Session Now!

US Cosigner Loan Options

If you have a cosigner who is a US citizen or permanent resident, you can apply for an education loan from a US lender. The time taken to process US cosigner education loan applications is less compared to other loan options.

Student Loan Lender	Interest Rates
Earnest	10.99% APR onwards
Sallie Mae	3.49% – 15.49% APR (fixed)4.54% – 14.71% APR (variable)
Abe	3.39% – 15.00% APR
Union Federal	4.24% – 14.04% APR (fixed)4.46% – 14.10% APR (variable)

Earnest Student Loan

Earnest offers student loans at a starting interest rate of 10.99% APR, up to $ 100,000. If you submit your and your cosigner’s documents quickly, the loan application process is completed within 3 – 5 business days.

Borrow limit	Up to 100,000 USD
Interest rates	10.99% APR onwards
Courses funded	MS in Engineering, MBA, LLM/JD
Grace period	9 months
Documents required	Government ID (applicant’s & cosigner’s), Applicant’s home country address, phone numbers

Sallie Mae Student Loan

Sallie Mae student loans offer fixed and variable interest rate options, as well as interest rebates. There is no fixed borrow limit. If your cosigner’s income is sufficient, you may be eligible for up to 100% of your cost of attendance.

Borrow limit	Up to 100% of the cost of attendance
Interest rates	3.49% – 15.49% APR (fixed)4.54% – 14.71% APR (variable)
Courses funded	MS, Medical, Dental, Law, Health professions
Grace period	6 months
Documents required	Address, Social Security number if you have one, School information, Financial aid and scholarships, Any employment information (company name and gross income), Financial information

Abe Student Loan

Abe student loans cover up to 100% of your attendance costs, which include academic expenses and living costs. The interest rates fall in the range of 3.39% – 15.00%.

Borrow limit	Up to 100% of the cost of attendance
Interest rates	3.39% – 15.00% APR
Courses funded	MS, Medical, Dental, Law, Health professions
Grace period	12 months
Documents required	Government ID (applicant’s & cosigner’s), Applicant’s home country address, phone numbers

Union Federal Student Loan

Union Federal student loans cover courses like STEM master’s, medical courses, law, health sciences, and other courses. The maximum loan amount is 99,999 USD with fixed or floating interest rates.

Borrow limit	99,999 USD or 100% of your cost of attendance
Interest rates	4.24% – 14.04% APR (fixed)4.46% – 14.10% APR (variable)
Courses funded	MS, Medical, Dental, Law, and Health Sciences
Grace period	6 months
Documents required	Government ID (applicant’s & cosigner’s), Applicant’s home country address, phone numbers

How to Apply for Education Loans to Study in the USA?

The application for an education loan to study in the USA involves checking your eligibility to submitting your documents.

Check your eligibility
Choose a lender
Fill the application form
Submit the documents
Wait for the lender’s decision

Nomad Credit simplifies the process for you. Our counselors will evaluate your profile at no cost and provide personalized guidance throughout the process. Connect with us today!

Documents Required for Education Loans to Study in the USA

Your lender has provided a document checklist for your U.S. education loan application. It includes documents regarding your identity, financial credibility, and academic history. Carefully review the checklist and submit it in the correct format for a successful loan application.

Letter of admission from the University	Guarantor/ co-borrower/ student’s bank statements
The loan application form was filled out in full	Documents on the cost of studies
PAN details of the candidate	Identification proof
Guarantor/ co-borrower/ student’s statement of assets	Guarantor/ co-borrower/ student’s proof of income
Residence proof	Academic documents

Conclusion: Get Started with Your US Education Loan Application

Ready to start your education loan application to study in the USA? Join Nomad Credit and get complete guidance for free! From finding the right lender to getting the loan disbursed, our counselors stay beside you and simplify the process. Get started with us today!

Loan Finder

Find Your Best Loan
Options in Minutes

Explore Offers Now

Frequently Asked Questions

How to get a student loan to study in the USA?

Discover your most suitable student loan options and initiate the application process online. Submit the required documents and wait for the lender’s decision. For a simple experience, connect with Nomad Credit’s counselor.

How many types of student loans are there in the USA?

Student loans are mainly of three types – with collateral, without collateral (with cosigner), and without collateral or cosigner. You can choose and apply for the options for which you are eligible and interested.

Can you apply for a student loan in the United States after completing your first year?

Yes. Many lenders allow students to apply for student loans after the first year of their education.

What are the average interest rates for student loans from US lenders?

The average interest rates for student loans from US lenders range between 3.39% – 15.00% APR. Students get interest rebates if they choose autopay and make timely payments.

Can you get an INR 40 Lakhs education loan to study in the USA without collateral?

Many lenders offer education loans to study in the USA without collateral for up to or more than INR 40 Lakhs. Such banks often keep a list of eligible colleges and courses.