Which Lenders Offer the Best Student Loan Options for Studying in the USA?

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. 

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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,

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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.