Types of Education Loans to Study in the USA
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Table of Contents
- Types of Education Loans to Study in the USA
- Top Education Loan Options to Study in the USA
- How to Apply for Education Loans to Study in the USA?
- Documents Required for Education Loans to Study in the USA
- Conclusion: Get Started with Your US Education Loan Application
- Frequently Asked Questions
The US is a hub of academic opportunities and top-tier universities, making it an ideal destination for international students seeking educational empowerment and career advancement. Your dream of studying in the US gets easier with education loans.
Education loans (or student loans) bridge the gap between academic needs and funding shortages. Thanks to diverse lenders in the market, financing your US education with a student loan is no longer a tough task. Read on, and find answers to your education loan concerns to study in the USA!
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 |
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!
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.
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