Study Loan for the USA - Pursue Your Academic Goals

Studying in USA is a dream for many students due to the country’s renowned universities in New York, Boston, Seattle, etc. However, the costs of education can be high. A study loan can provide the financial assistance needed to cover tuition fees, living expenses, and more, allowing you to focus on achieving your academic goals.

 

A study loan for the USA typically includes flexible repayment options, with a moratorium period to ease the financial burden while studying. These loans cover essential costs like tuition and living expenses, helping you manage your finances while pursuing quality education in the United States.

Several lenders on Bajaj Markets offer study loans for students planning to study in USA:

*Disclaimer: The mentioned details are subject to change at the lender’s discretion.

Here are the key advantages of applying for a study loan to pursue higher education in USA:

• Access to Prestigious Institutions

  Borrow up to ₹1.5 Crores and easily pursue a degree in any prestigious American university

• Financial Planning for Career Growth

  Investing in your education with a loan helps you get access to career opportunities in USA and globally

• Comprehensive Financial Coverage

  Student loans cover tuition, accommodation, travel, and study materials. It provides 100% financial support for your educational journey.

• Flexible Repayment Terms

  Most lenders offer grace periods, allowing repayments to start only after you complete your degree and secure employment.

• Building a Credit History

  Repay the loan on time to build a positive credit score. This is crucial for obtaining new loans in the future.

Choosing the right loan provider is essential to ease your financial planning. Here are the factors to consider:

• Interest Rates and Loan Amount

  Look for competitive interest rates and sufficient loan amounts to cover all expenses. On Bajaj Markets, study loans of up to ₹1.5 Crores are available at interest rates starting from 10.25% p.a.
  

• Moratorium and Grace Period

  Opt for lenders with a moratorium period where repayments begin after graduation. This reduces financial pressure while studying.
  

• Collateral Requirements

  For loans below ₹80 Lakhs, unsecured options are available. For larger amounts, you may need collateral.
  

• Hidden Costs

  Be mindful of processing fees and other hidden charges to avoid unexpected costs
  

• Repayment Flexibility

  Look for step-up EMIs or flexible repayment plans that make managing finances easier post-graduation

Speeding up loan approval can make the process smoother. Here are some tips to ensure quick approval:

• Maintain a Low Debt-to-Income (DTI) Ratio

A lower DTI ratio signals responsible financial management, making it easier for lenders to approve your loan

• Choose Flexible Loan Terms

Opt for flexible repayment options like step-up EMIs or interest-only payments during the study period to improve your chances of approval

• Communicate Promptly with the Lender

Stay in regular contact with your lender. Quickly respond to any additional document requests to avoid delays in the process.

Overseas education loans cover a broad range of education-related expenses, ensuring comprehensive financial support:

• Tuition Fees

Loans cover the entire tuition fees for your chosen academic program. This ensures that you can study without facing any financial burden.

• Living Expenses

Loans can cover accommodation, whether on-campus or off-campus. Also, the cost of your food, utilities, and transportation may be covered by the loan amount.

• Travel Expenses

International and domestic travel for academic purposes, such as attending seminars or internships, are covered

• Study Materials

Books, study materials, software subscriptions, and even necessary tech gadgets like laptops can be bought with the loan amount

• Health Insurance

Most loans cover mandatory health insurance, ensuring that you are financially secure in case of medical emergencies

• Visa-related Expenses

The loan covers student visa application fees, including additional costs like visa interviews and travel arrangements

• Exam Fees

Certification or professional exam fees required during or after the program can be paid with the loan amount

Understanding the repayment options is crucial for managing your loan. Here’s what you should know:

Repayment Tenure and Interest Rates

Tenures of study loans for the USA can range up to 15 years, with interest rates starting at 10.25% p.a. Ensure to get repayment schedules that are tailored to suit your financial situation.

Moratorium Period 

A moratorium period enables you to defer repayments until after your studies. This grace period typically extends 6–12 months after graduation.

Prepayment Options

Most lenders do not charge penalties for prepayments, allowing you to reduce the loan burden early

Income-linked Repayment Plans

Some lenders tie repayment amounts to your income post-graduation, offering flexibility based on your financial situation

Interest-only Payments During the Course

You may opt to pay only the interest when studying, reducing the overall loan burden as the interest does not accrue and compound

Balloon Payments

With this option, you make smaller EMIs throughout the loan tenure and a large final payment. This works well if you anticipate a significant income increase.

USA is a global leader in higher education, offering top-notch academic programs and excellent career opportunities:

• Quality Education

USA is home to many of the world’s top universities, offering diverse fields of study, from technology to the arts

• Post-study Work Opportunities

With an F-1 visa, you can stay for up to 12 months on OPT (Optional Practical Training) and work in your field of study

• Scholarships and Financial Aid

USA offers various scholarships and financial aid options to reduce the cost of education for international students

• Cultural Diversity

USA is a melting pot of cultures, offering students an enriching and diverse environment for learning and personal growth

Studying in the USA can be financially demanding. Here’s how to overcome common challenges faced when applying for a study loan for USA:

• High Interest Rates

Education loans can have high interest rates. To reduce costs, you can look for government-subsidised loans with lower rates. You could also talk to lenders about better terms, especially if you or a co-applicant have a good credit score.

• Collateral Requirements

Some lenders ask for collateral, like property, for large loan amounts. If you don’t have assets to pledge, you can opt for unsecured loans, which go up to ₹80 Lakhs. However, unsecured loans may have higher interest rates.

• Currency Fluctuations

When you’re studying abroad, your loan is in Indian Rupees, but your expenses and sometimes repayments may involve foreign currencies, like the US Dollar. In this case, consider locking an exchange rate for loan repayments. This way, you won’t have to worry about the rupee weakening, as your instalments will stay the same regardless of currency changes.

American Government & University-specific Scholarships

USA offers numerous scholarships to support international students:

Fulbright Scholarship

The Fulbright Foreign Student Program offers prestigious scholarships for international students, including Indians, to study in the U.S. This program covers tuition fees, living stipends, airfare, and health insurance for graduate students, young professionals, and artists. Approximately 4,000 scholarships are awarded annually. Eligible applicants must have an undergraduate degree equivalent to a U.S. bachelor's degree and demonstrate strong academic performance. Applications typically open between February and October each year.

 

Inlaks Shivdasani Foundation Scholarships

The Inlaks Shivdasani Foundation Scholarships support Indian students pursuing postgraduate studies at top U.S. universities. These scholarships cover tuition fees, living expenses, and travel costs. Applicants must be Indian citizens under 30 years old with a confirmed admission offer from a recognised institution in the USA. The application process requires academic transcripts, personal statements, and letters of recommendation.

Hubert Humphrey Fellowship Program

The Hubert Humphrey Fellowship Program is designed for experienced professionals from various countries, including India. It helps them enhance their leadership skills through academic study in the USA. This non-degree program lasts ten months and includes professional development opportunities. Applicants must have at least 5 years of professional experience to qualify for the fellowship program.

Indian Government Scholarships for Studying Abroad

Here are some scholarship schemes in India that you can apply for to get financial assistance for studying in USA:

Fulbright-Nehru Fellowships

This prestigious scholarship is designed for Indian citizens pursuing master's or doctoral degrees at U.S. universities. It covers tuition fees, living expenses, and travel costs, providing substantial financial support to facilitate academic pursuits in the USA.

 

Inlaks Shivdasani Scholarships

Offered by the Inlaks Shivdasani Foundation, this scholarship supports Indian students seeking postgraduate studies at top universities in the USA. It provides coverage for tuition fees, living expenses, health insurance, and a one-way travel allowance.

 

Aga Khan Foundation International Scholarship Program

This program is aimed at outstanding students from developing countries, including India, for postgraduate studies. The scholarship offers a 50% grant and 50% loan model to cover tuition and living expenses, making it a valuable option for those pursuing higher education abroad

 

Tata Scholarship

Available to Indian students, the Tata Scholarship is offered to students admitted to the undergraduate programs at Cornell University. This scholarship covers tuition fees and living expenses for up to 4 years. It aims to support students from India in accessing quality education at a prestigious institution.

Start Early and Do Your Research

Begin looking for scholarships at least 12 months before your course starts. Check for scholarships from the government, universities, and private groups. Starting early helps you find the best options based on your background and financial needs.

Know the Eligibility Criteria

Review the requirements for each scholarship. This could include your grades, field of study, and English language skills. This step saves time and increases your chances of finding the aid you qualify for.

Apply for Loans and Scholarships Together

Submit your loan and scholarship applications as early as possible. Gather documents like transcripts, financial records, and personal essays. This will make the process smoother.

Choose the Right Loan Amount

If you get a partial scholarship, take a loan to cover what’s left, like rent or travel costs. Make sure the loan matches your needs and doesn’t add unnecessary debt.

Understand the Terms and Conditions

Read the scholarship rules carefully. Some scholarships require you to maintain good grades or work after your studies. Also, check the repayment terms and related charges of a loan before signing the agreement. If you're unsure, consult an advisor to help you understand these terms and conditions.

The US is home to many prestigious universities. Here are some top institutions:

The F-1 visa is a non-immigrant student visa that allows international students to pursue academic studies in the United States. Here’s a detailed overview of the F-1 visa application process, eligibility requirements, and important considerations.

Eligibility Requirements:

To qualify for an F-1 visa, applicants must meet several criteria:

• Acceptance by a SEVP-Approved Institution

The applicant must be accepted into a full-time academic program at a school certified by the Student and Exchange Visitor Program (SEVP) 12

• Full-time Enrollment

Students must maintain a full-time course load as defined by their institution 

• English Proficiency

Applicants must demonstrate proficiency in English through TOEFL or IELTS scores

• Financial Support

Students need to provide evidence of sufficient financial resources to cover tuition and living expenses during their stay

• Intent to Return

Applicants must show ties to their home country, indicating they plan to return after completing their studies.

 

Here’s how to apply for an F-1 student visa:

 

Step 1: Obtain Form I-20

Once accepted by a SEVP-approved school, students will receive a Form I-20, which is essential for the visa application process. This form confirms the student's acceptance and provides details about their program of study.

 

Step 2: Pay the SEVIS Fee

You must pay the SEVIS fee (currently $350) before applying for the visa. This fee supports the SEVP program that tracks international students.

 

Step 3: Fill Form DS-160

The next step involves filling out the DS-160 form, which is the online application for a non-immigrant visa. After submission, print the confirmation page for your visa interview.

 

Step 4: Schedule and Attend a Visa Interview

You must schedule an interview at a U.S. embassy or consulate. During the interview, present various documents, including:

• A valid passport (valid for at least 6 months beyond the intended stay)

• Form I-20

• DS-160 confirmation page

• SEVIS fee payment receipt

• Financial documentation (e.g., bank statements)

• Academic records (transcripts, diplomas).

 

After getting the visa, you can remain in the U.S. for the duration of their academic program plus a 60-day grace period afterwards. This is subject to the policies of the immigration department of the USA.

 

You are permitted to work on-campus but have restrictions on off-campus employment. This is unless you obtain authorisation through programs like Optional Practical Training (OPT). As  F-1 visa holders, your spouses and children can accompany you on F-2 visas. However, F-2 dependents cannot work but may attend school.

The cost of education in the USA varies by institution and program. However, here is a rough estimate:

*Disclaimer: The mentioned amounts are estimates. Check the official website of the university you wish to study in to get the complete fee structure and make financial decisions accordingly.

 

It is also essential to keep in mind that alongside this, you will also have to manage your everyday expenses. Living costs in the USA typically vary between $10,000 and $18,000 per year, depending on location. Here’s a breakdown of the estimates for you to understand better:

• Housing

Varies widely based on location; average costs can range from $500 to $2,000 per month. This depends on whether you choose on-campus or off-campus housing.

• Food

Monthly grocery costs typically range from $200 to $600

• Utilities and Other Expenses

Additional costs for utilities (electricity, water), health insurance ($700-$1,100 annually), and personal expenses should also be factored in