Table of Contents
- How to Identify Your Top Education Loan Lender for the USA?
- Top International Lenders for USA Education Loan
- Top Indian Education Loan Lenders for Studying in the USA
- Best Student Loan Options to Study in the USA from US Lenders
- Tips: Remember Before Education Loan Application
- Conclusion
- Frequently Asked Questions
The United States is currently home to more than 1.1 million international students from 160+ countries who contribute to the economy and culture. Many of these students plan to find employment and settle in America to be successful leaders in their respective fields.
Are you planning to join the batch of international students and want to study in the USA in the upcoming intakes? We’re here to help you discover your path. Student loan options will assist in sponsoring your academic and daily expenses in the USA as an international student.
How to Identify Your Top Education Loan Lender for the USA?
The most important aspect of getting your education loan for study abroad goals is approaching the right lender. Amidst many in the market, choose the best option with the following guidelines:
- Competitive interest rates: Compare the interest rates of different education loan products and choose for the lowest interest rate.
- Coverage of expenses: Choose a loan option that covers your tuition fees, living expenses, travel, student health cover, and other expenses.
- Loan margin: Some lenders have a margin of 10%—20%, meaning you need to find that part of the total cost of attendance. It is better to prioritize a lender with zero margin.
- Flexible repayment options: Compare the repayment terms of different lenders and choose the one most suitable for your financial plan.
- Income tax benefits: Some education loan options offer income tax benefits. If available, prioritize those options.
- Optimum processing time and charges: Consider the time and fees required to process your education loan application.
- Favourable moratorium period: Ensure your education loan offer has a moratorium of course years plus 6 – 12 months.
- Support after loan disbursement: Compare different lenders. Ensure your chosen lender offers post-disbursement support and is available to address your concerns.
Top International Lenders for USA Education Loan
International lenders offer the best student loan options for studying in the USA without collateral or a cosigner. They keep a list of universities and courses eligible for an education loan. International lenders fund students from 160+ countries to study in the USA, mostly for postgraduate courses.
| Lender Name | Cap Amount | Rate of Interest | Additional Fee | Repayment Period | Loan Margin |
| MPOWER Financing | USD 100,000 | 9.99% onwards | 4% – 5% | 7 – 20 years | 0% |
| Prodigy Finance | USD 220,000 | 8.35% onwards | 4% – 5% | 10 – 20 years | 0% |
Eligibility Requirements
- Be 18 years older
- Secure admission to a university listed by the lender
- Choose a course supported by the lender
- Have a good credit history
Top Indian Education Loan Lenders for Studying in the USA
Banks and NBFCs are the top Indian lenders of education loans for studying in the USA. Taking an education loan from a public or private bank in India is suggested because of their competitive interest rates and tax benefits under Section 80E. NBFC education loan options are popular because they offer flexible loan terms according to the applicant’s needs.
Overview Table: Top Indian Lenders for An Education Loan to Study in the USA
The first step to choosing the right education loan for the USA is comparing lenders. The table below helps you compare loan options from different Indian lenders.
| Bank | Lender Type | Maximum Amount | Interest Rate | Margin Money | Processing Charge | Repayment Tenure |
| SBI | Public bank | INR 3 CrINR 50 Lakhs without collateral | 9.65% | 15% | INR 10,000 | 15 years |
| UBI | Public bank | INR 1.5 CrINR 40 Lakhs without collateral | 9.25% – 9.75% | 15% | INR 5,000 | 15 years |
| BoB | Public bank | INR 1.5 Cr | 9.20% – 10.65% | 10% – 15% | 1% of the loan amount (max. INR 10,000) | 15 years |
| PNB | Public bank | No cap | 9.85% – 12.35% | 15% | 0.35% of the loan amount (max. INR 15,000) | 15 years |
| Canara Bank | Public bank | INR 1 Cr | 10.00% – 10.85% | 10% | 0.50% of the loan amount | 15 years |
| Axis Bank | Private bank | INR 75 Lakhs – INR 1 Cr | 10.70% – 14.35% | 15% | 2% of the loan amount | 15 years |
| ICICI Bank | Private bank | INR 3 CrINR 1 Cr without collateral | 11.32% – 14.25% | 0% – 15% | 2% of the loan amount | 15 years |
| IDBI Bank | Private bank | INR 75 Lakhs | 11.10% – 13.5% | 20% | 1% of the loan amount (max. INR 5,000) | 15 years |
| IDFC FIRST Bank | Private bank | INR 1.5 Cr INR 75 Lakhs without collateral | 11.00% – 13.00% | 0% | 1.5% of the loan amount | 15 years |
| Yes Bank | Private bank | INR 1.25 Cr | 11.25% – 12.75% | 15% | 2% of the loan amount | 15 years |
| Credila | NBFC | INR 50 Lakhs | 11% – 14% | 0% | 1% – 1.25% of the loan amount | 10 years |
| Avanse | NBFC | INR 40 Lakhs | 11% – 14% | 0% | 1% – 2% of the loan amount | 10 years |
| InCred | NBFC | INR 40 Lakhs | 11% – 14% | 0% | 1% – 2% of the loan amount | 10 years |
| Auxilo | NBFC | INR 40 Lakhs | 11% – 14% | 0% | 2% of the loan amount | 10 years |
Eligibility Requirements
The specific eligibility requirements vary with the lender you choose and according to your profile. Here are the general criteria to apply for an education loan to study in the USA from an Indian lender:
- 18 years of age
- Admission to a US university
- Show I-20
- Have a strong academic merit
- Have a cosigner with stable income and a good financial history
- Provide collateral if required
- CIBIL score must be 750+ for the applicant or cosigner
- Show the cost of attendance
- The lender must accept the course of study
- Provide proof for future earning potential
Documents Required
Your academic and financial documents are required to complete your education loan application. The lender assesses your financial background and cosigner’s documents to ensure creditworthiness.
| Identity documents – PAN, Aadhar | Passport-size photographs |
| I-20 | Cost of attendance |
| Passport copy | Academic documents |
| Address proof | Entrance scores – IELTS/ TOEFL, GRE/ GMAT, |
Best Student Loan Options to Study in the USA from US Lenders
US lenders provide top education loan offers without collateral for international students. You need a cosigner to guarantee the loan, a US citizen or a permanent resident with a credible financial history and stable income. US cosigner loans save you FOREX conversion charges, and it is easy to complete the application process.
Features:
- Easy assessment of eligibility
- Secure and seamless loan application
- Repayment flexibility
- Quick access to expert support if required
Eligibility Criteria for US Cosigner Loans
- Secure admission to a US university
- Have a US cosigner (a US citizen or a permanent resident) with a stable income and good financial history
- Choose a course supported by the lender
Earnest Student Loan
Earnest is a popular fintech in the USA for top student loans at low interest rates. Earnest interest rates are 10.99% APR onwards, making it a go-to choice for international students with a US cosigner.
| Maximum loan amount | Up to 100,000 USD |
| Rate of interest | 10.99% APR onwards |
| Top courses supported | MS in Engineering, MBA, LLM/JD |
| Grace period | 9 months |
| Documents | Government ID (applicant’s & cosigner’s), Applicant’s home country address, phone numbers |
Sallie Mae Student Loan
Sallie Mae offers education loans for international students with up to 100% of funding at an interest rate of 3.49% onwards. Sallie Mae student loans support medical, dental, and health courses in the USA.
| Maximum loan amount | Up to 100% of the cost of attendance |
| Rate of interest | 3.49% – 15.49% APR (fixed)4.54% – 14.71% APR (variable) |
| Top courses supported | MS, Medical, Dental, Law, Health professions |
| Grace period | 6 months |
| Documents | 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
Education loans from Abe, a US fintech, support MS, dental, medical, law, and health courses in the USA. With a US cosigner, international students can apply for education loans starting at a 3.39% interest rate and funding up to 100% of the cost of attendance.
| Maximum loan amount | Up to 100% of the cost of attendance |
| Rate of interest | 3.39% – 15.00% APR |
| Top courses supported | MS, Medical, Dental, Law, Health professions |
| Grace period | 12 months |
| Documents | Government ID (applicant’s & cosigner’s), Applicant’s home country address, phone numbers |
Union Federal Student Loan
International students can explore Union Federal education loans in the US for their affordable interest rates and up to 99,999 USD funding. Processing your Union Federal student loan application takes only 5 – 7 days.
| Maximum loan amount | 99,999 USD or 100% of your cost of attendance |
| Rate of interest | 4.24% – 14.04% APR (fixed)4.46% – 14.10% APR (variable) |
| Top courses supported | MS, Medical, Dental, Law, and Health Sciences |
| Grace period | 6 months |
| Documents | Government ID (applicant’s & cosigner’s), Applicant’s home country address, phone numbers |
Tips: Remember Before Education Loan Application
Most lenders consider the USA a top choice for education loans. Selecting the top options requires carefully analyzing your needs and eligibility, a highly personalized approach.
Calculate your total cost of studying in the USA
Have a clear idea of how much you need from an education loan. If you can contribute to your educational costs, keep your loan amount as minimal as possible.
Secured or Unsecured – which is your type of education loan?
Decide between an education loan with or without collateral. For secured loans, public banks are better choices than NBFCs.
Check for lenders who sponsor your program of study
All lenders will sponsor all programs of study. Connect with the lender to know if your program is covered or not.
Sort out your documents. Keep them handy
Always stay one step ahead in documentation. If there are slight errors, the documentation part often takes more time than expected.
Look into the repayment rules
Your education loan repayment plan must be flexible and convenient. Ensure your lender offers repayment flexibility.
Conclusion
High-five to your US study goal. Education loan options make it possible to soar high without financial concerns. The top lenders offering education loans are Indian banks, NBFCs, and international and US lenders. The education loan options they offer cover up to 100% of the total cost of attendance at median interest rates and with flexible repayment plans.
We have covered how to choose the right lender and tips for finding the right options. Go through the sections carefully to make a decision.
And that’s not the end! Take your education loan search to study in the USA to another level with Nomad Credit’s game-changing guidance. Join our team of successful global alumni for free. Receive personalized advice tailored to your needs from our seasoned counsellors. Book a free consultation call now.
Frequently Asked Questions
Secured or unsecured education loan, which is better for the USA?
Secured and unsecured loans are good choices for your education loan plan for studying in the USA. It depends on the loan amount, interest rates, your eligibility, and you need to decide on the top pick.
What is the interest rate for an education loan to study in the USA?
The interest rate for an education loan to study in the USA depends on your lender, loan type, financial history, academic details, and collateral value or cosigner’s income. Check the blog for interest rate details of different education loan lenders.
Can you get an education loan to study in the USA without collateral?
You can apply for an education loan without collateral from banks, NBFCs, and international lenders to study in the USA. The maximum loan amount and interest rates differ depending on the lender you choose.
Can you get an education loan to study in the USA without a cosigner?
International lenders like MPOWER Financing and Prodigy Finance offer education loan options without collateral or a cosigner to study in the USA. If eligible, you can apply for them.
Do education loans for the USA cover 100% of your expenses?
Many lenders offer education loan options to study in the USA that claim 100% cost coverage. It depends on your financial profile, academic details, and cosigner’s income to determine whether you qualify for 100% coverage of costs.
