The USA has a lot to sell to its foreign postgraduates as the world’s most famous study destination abroad. Not only is America the most popular option for foreign research, but it is also one of the biggest countries with 50 states and more than 4,500 higher education institutions (about 1,700 Master’s degrees). Here is what you need to know about Education Loans For Students Studying MS in The USA.
What is the Average Cost of MS in the US?
The fees usually vary from $10,000 to $80,000 for two years for MS programs in the US. Some of the top (private) universities charge marginally greater tuition fees and other expenses. In the higher category ($43,000 annually), a top-grade university such as Carnegie Mellon University falls. Then there is Harvard University, which charges between $47, 000 to $49, 000 a year for graduate tuition fees. Tuition fees of $29,382 per semester are paid by Columbia University. Princeton University’s tuition fees for 2019-20 are $51,870 a year. The total cost of MS in the USA for private universities will range from $25,000 to $50,000 if one takes the middle ground. Students appear to spend an average of $500 to $1000 a month on living, which includes food, lodging, study materials, clothes, and other essentials such as health care, leisure activities, etc.
The expenses, however, differ according to the state, area, and conditions under which one chooses to live.
Why Take an Education Loan for MS in the USA?
An education loan is an amount of money that has been lent to fund college or other expenditures related to education. Initiated by the SBI in 1995, most public and private banks and a few NBFCs now sell it. There are two forms of education loans-a secured one and an unsecured one.
Without collateral, an education loan refers to an unsecured loan. In this situation, in order to get a loan, the student concerned does not have to pledge any assets. Such loans are provided by many private banks and NBFCs.
An education loan with collateral, on the other hand, is also known as a secured loan. A student has to borrow an immovable estate or asset to get this loan. This form of loan has a lower rate of interest and a longer duration of repayment.
What are the Common Documents Needed for a United States Educational Loan Without Collateral?
Several banks and NBFCs that offer unsecured loans require the submission of certain documents by borrowers. The list of needed documentation varies according to the bank, the profile of the student, and various other factors. However, the documents which the banks primarily need to send to the applicants are as follows:
- KYC of the applicant & co-applicant
- Applicant & co-applicant’s citizenship and residency proof
- Relevant mark sheets of the applicant
- General academic qualification records of the applicant
- Proof of admittance
- Co-applicant ‘s bank statements
- Income tax return / Form 16 of the co-applicant
- Fees structure
Students who are in the dark about the documents should consult UniCreds. We have a personalized list of documents to be sent to the borrowers to ensure that all documents are submitted in one go, thereby speeding up the process of applying for the international student loans USA.
How Do You Decide Which Educational Loan is the Best for You?
To prevent financial hardship and burden in the future, it is extremely crucial for one to choose the most appropriate education loan. Therefore, it is important that students meticulously analyze all available loan options, their pros and cons, and their feasibility as per their profile before zeroing in on an educational loan. Some of the main considerations that should be taken into consideration by future borrower are as follows:
- Interest Rate
- Processing fee & Time
- Margin Money
- Duration of Moratorium
- Tax advantages
- Duration of Loan
- Covered Expenditures
- Terms and Conditions for Prepayment
Which Educational Loan for MS in the USA is Preferable: Unsecured or Secured?
It is only apparent that there is a broad range of Education Loans For Students Studying MS in The USA, the most common study destination for international students. Banks and NBFCs flood students with numerous loan options, making it difficult for them to select the most suitable loan for education according to their needs and profile. We recommend that students opt for a secured loan from PSUs because loans with a substantially lower interest rate are offered. An unsecured loan from private banks should be preferred over loans from NBFCs if you can not arrange protection against the secured loan, as they have lower interest rates compared to NBFCs. In addition, private bank lending provides additional tax incentives that are not provided by all NBFCs. In addition, at private banks, the loan processing fee is lower than that of NBFCs.
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