Summary: Due to financial shortage, don’t step backwards from US study dreams. Read on & learn about your top education loan options in the US, eligibility, & the application process. Have insights on who to approach for education loan options & how to select your options.
Table of Contents
- Student loan options in the USA
- Who to approach for education loan options in the US?
- Documents required for Education loan
- Student loan options in the USA with a cosigner
- Student loan options in the USA without a cosigner
- How to apply for education loan options in the USA?
- Frequently Asked Questions
International students choose American education for multiple reasons. You can sense the global enrollment swelling like a big wave, as evidenced by the statistics and trends documented by Statista, an international statistics agency. According to their data, 1,057,188 international enrollments were there in the US academies in 2022-2023.
However, the cost of attendance remains a challenge for many, as the US boasts one of the most costly education systems in the world. Thanks to education loan options, the financial challenge is no longer a big issue for deserving students. An education loan helps students connect the dots by offering funds without expecting repayment when they study.
Student loan options for international students in the USA
Mainly, there are two categories of education loan options to finance your studies in the US:
- Education loan options with collateral (also known as Secured education loan options)
- Education loan options without collateral but a cosigner(also known as Unsecured education loan options)
Secured education loan options
In this category, you take an education loan against a collateral guarantee. Your loan amount depends on the collateral value, which is estimated according to the market value. Typically, public and private sector banks in India offer collateral education loan options.
- Comparatively lower interest rates
- Tax benefits under Section 80 E
- Margin money of 5% – 10% of the loan amount is charged
Unsecured education loan options
Unsecured education loan options are typically provided against the guarantee of a cosigner who earns better. Indian banks, Non-Banking Financial Companies (NBFCs), US lenders, and international lenders offer unsecured education loan options to international students in the US.
- The interest rates and loan terms change with the lender you choose
- Upto 100% funding is possible, depending on your special case & lender
- The repayment holiday is typically 7 – 15 years. You may be asked to repay the interest in the moratorium period.
Top student loan options in the USA for international students
Based on the lender and involvement of collateral or a cosigner, we can further divide education loan options to study in the US into three categories: Indian bank education loan options, no cosigner education loan options, and US cosigner education loan options.
| Indian bank education loan options | They are education loan options from Indian lenders, with or without collateral. There will be FOREX conversion charges as the loan amount is disbursed in Indian currency. |
| No cosigner education loan options | These are education loan options without collateral or cosigners. The loan amount is disbursed in USD from prominent international lenders. |
| US cosigner education loan options | These are from US lenders with the guarantee of a US citizen or permanent resident as the cosigner. |
Who to approach for education loan options to study in the US?
Are you looking for education loan options to study in the US? Visit Nomad Credit, your trusted study abroad consultancy, for complete guidance. Our counselors will evaluate your profile and offer customized suggestions and assistance.
Nomad Credit has partnered with top lenders in the market for education loan options to finance your dreams. See the table below for top lenders who offer education loan options to study in the US:
| Lender | Type of Education Loans Offered |
| Indian banks | Secured & unsecured education loans |
| NBFCs | Unsecured education loans |
| International Lenders | Unsecured education loans |
| US Lenders | Unsecured education loans |
Education loan options for international students in the US: Documents required
The checklist of documents required for education loan options in the US varies with lenders. A general list of documents includes the following:
- Offer letter or proof of admission
- Academic records
- Financial documents of the cosigner
- Passport copy
- Recent passport-size photographs
Student loan options for international students in the USA with a cosigner
Primarily, there are two types of education loan options in the USA with a cosigner – US cosigner loan options and unsecured education loans from Indian lenders.
| Loan Type | US Cosigner Loan Options | Indian Banks Unsecured Loan Options |
| Eligibility | Be an international student Have a US cosigner who is a citizen or permanent resident | Be an Indian citizen Have a financially sound cosigner, preferably from your family |
| Interest Rates | Fixed Rates: 4.11% – 15.90% *APR Variable Rates (with autopay discount): 5.62% – 16.51% APR Disclaimer: The interest rates are subject to market conditions and can change from case to case. | From public banks: 9.5% – 10% From private banks: 10.28% – 12.5% From NBFCs: 10.5% – 13.5% Disclaimer: The interest rates are subject to market conditions and can change from case to case. |
| Maximum Amount | Up to 100% of the total expense | Up to 70% – 100% of the total expense |
| Additional Charges | Zero (no application, penalty, or origination fee levied at the time of application) | Processing fee: 1% – 2% of the loan amount FOREX charges: up to 5% of the loan amount Cancellation fee: 1% – 2% of the loan amount |
| Moratorium Period | Course years + 6 – 12 months | Course years + 6 – 12 months |
| Repayment Tenure | 5 – 15 years | 7 – 20 years |
Student loan options without a cosigner
No worries if you don’t have a cosigner for an education loan application. There are options where no cosigner is required to fund your studies in the US with an education loan. Here is the overview of your no-cosigner education loan options:
| Maximum Amount | Up to 100% of the cost of attendance |
| Loan Option Coverage | Tuition fees Living costs Housing costs Food Books |
| Interest Rates | 9.99% – 14.99% Disclaimer: The interest rates can be fixed or variable, are subject to market conditions and can change from case to case. |
| Interest Rate Discount | 0.25% |
| Additional Fees | 5% of the loan amount, charged when you start the repayment |
| Repayment Period | 7 – 20 years |
| Repayment Options | Immediate: Pay the full amount + interest in one go Interest only: Pay SI/PSI interest every month Fixed pay: Pay a fixed amount every month Deferred: No payment while studying |
Explore your personalized no-cosigner education loan options and streamline the application process. To know more, connect with Nomad Credit now and access seamless education loan support at zero cost.
How to apply for education loan options in the USA?
Here’s the key to an easy education loan application – connect with Nomad Credit’s counselor and provide your details. Based on your profile, you will get tailored suggestions and complete guidance for a successful application.
- Enjoy a hassle-free education loan process with holistic support
- Get help in documentation and disbursement
- Save more, as guidance from Nomad Credit is delivered at no cost
In short, getting an education loan to study in the US requires you to explore your options and apply timely. For that, Nomad Credit, your trusted study-abroad partner, helps without charging a penny. Join us today and be part of our successful alumni who study in the US with our holistic support. Get started today.
Frequently Asked Questions
Can international students get student loans in the USA?
International students can apply for education loans to study in the US. There are multiple loan options available based on eligibility and requirements. To explore your education loan options in the US, connect with Nomad Credit now and get personalized guidance at zero cost.
What is the interest rate for education loan options in the US?
The interest rate for education loan options in the US varies with lenders. In general, it can be from 4% – 10% or more, depending on your lender and market conditions. For an accurate answer at present, connect with Nomad Credit’s counselor now.
What if I don’t accept an education loan option at the last minute?
If you don’t accept an education loan offer at the last minute, the lender might charge a cancellation fee from you. It can be case-specific as all the lenders do not charge a loan cancellation fee.
What if I can’t repay an education loan in the US?
If you don’t repay your education loan debt, you will be considered a defaulter. It will affect your credit history for future banking transactions, and the lender can take legal action against you.
Do I need to repay my education loan while studying?
Typically, you don’t need to repay your education loan when you are studying. However, the lender may or may not ask for interest repayment while studying.
What is the average repayment period for education loan options in the US?
The repayment period for education loan options to study in the US varies from 5 – 20 years, depending on your lender and personal choice. Typically, 10 years can be considered an average repayment period for education loan options for international students to study in the US.
