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Education Loan For MS In The USA

Shreya Berry
November 4, 2020
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8 min read
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Last Updated: March 5, 2024

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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 study abroad education loans for MS in the USA.

Study Loan For MS In USA: Key Features

Securing an education loan for the USA is a common practice among international students due to the high cost of education. Various financial institutions, both private and government-backed, offer study loans tailored to meet the needs of aspiring students. These loans typically cover tuition fees, living expenses, and other related costs. Table given below highlights the key features of the USA MS education financing:

Student Loans For MS In The USA Overview
Key Features	Description
Loan Limit	1 Cr-1.5 Cr
Interest Rates	9-13.5%
Processing Fees	1-2%
Moratorium	Course Duration + 6-12 months
Repayment Tenure	10-15 years
Collateral Requirement	Tangible property, bonds, assets, etc.
Co-applicant Requirement	Parents, Guardians, Spouse, In-laws

MS In USA Loan Options

Indian education loan space always works in the favour of students, giving them customised loan options to choose from. For Indian students studying in the USA, education loan options can be broadly categorised into two types:

Secured Education Loans:

Require collateral such as Fixed Deposits, LIC Insurance, non-agricultural land, residential property, or commercial property.
Most public banks in India mandate collateral for education loans for studying abroad.

Unsecured Education Loans (Loan Without Collateral):

Do not require collateral as security.
Typically come with higher interest rates due to increased risk for the lender.
Often requires a co-applicant or co-signer.
Loan amount is determined based on the co-applicant’s income and CIBIL score.

Banks Offering Education Loans For MS In The USA

If you are confused about which bank to choose for a USA education loan for a master’s degree, UniCreds has got your back. We have partnered with the top financial institutions to help you get the best education loans at lower processing fees and faster sanction time. The table below compares the top banks at UniCreds and their key features:

Bank Name	Loan Limit	Interest Rates	Processing Fees
ICICI Bank	INR 1 Cr.	9-12%	0.75-1%+ GST
Bank of Baroda	INR 1 Cr.	9.7-10.2%	1-2%
Axis Bank	INR 2.5 Cr	9.9-12.5%	1-2%
IDFC First Bank	INR 1.5 Cr	9.5-12.75%	1-2%
Union Bank of India	INR 1.5 Cr	9.8%-10.5%	1-2%

NBFCs Offering Education Loan For MS In The USA

NBFCs (Non-Banking Financial Company) offer financial aid for MS in the USA. UniCreds has partnered with top NBFCs in India that give flexible funding opportunities for students like you. Let’s compare the key features of these NBFCs in the table below:

NBFC Name	Loan Limit	Interest Rates
HDFC Credila	INR 1.5 Cr	9-12%
Avanse	INR 1.5 Cr	10-12%
InCred	INR 85 Lakhs	11.5-12.5%
Mpower Finance	INR 80 Lakhs	12.99%
Auxilo	INR 85 Lakhs	11-13.5%
Prodigy	INR 80-1 Lakhs	10-13%

Education Loan Eligibility For MS In The USA

International students applying for an educational loan for a Master’s degree in the US must fulfil specific eligibility requirements, which include:

Securing acceptance confirmation from an accredited American institution for a full-time master’s programme.
Attaining a minimum age of 18 years.
Exhibiting a commendable academic history.
Selecting a field of study with favourable career opportunities.
Offering collateral, if opting for a secured loan.

What Is The Average Cost Of MS In The US?

In comparison to other study abroad destinations, the United States is known for having the highest education costs. Here’s an overview of the typical expense range:

Tuition Fees: Tuition fees at US universities vary based on factors like university ranking, chosen field of study, and program duration. On average, tuition fees range from $22,500 to $60,000 per year.

Cost of Living: Living expenses encompass accommodation, transportation, meals, utilities, and miscellaneous household costs. The average annual cost of living in the US falls between $10,000 to $18,000.

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.

Documents Needed For Secured USA Study Loans For MS Programmes

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. Understanding the need of the SOP for MS in the USA. However, the documents which the banks primarily need to send to the applicants are as follows:

Document Name	Description
KYC of the applicant & co-applicant	Identification documents verifying the identity of the applicant and co-applicant, such as passport, driver’s licence, or Aadhaar card (for Indian citizens).
Citizenship and residency proof	Documentation confirming the citizenship and residency status of the applicant and co-applicant, such as passport, residency permit, or utility bills.
Relevant mark sheets of the applicant	Academic transcripts or mark sheets demonstrating the applicant’s educational qualifications and performance.
General academic qualification records of the applicant	Comprehensive records outlining the academic achievements and qualifications of the applicant.
Proof of admittance	Official documentation confirming the applicant’s acceptance into the chosen educational institution for the master’s programme.
Co-applicant’s bank statements	Statements from the bank accounts of the co-applicant to verify financial standing and ability to support the loan.
Income tax return / Form 16 of the co-applicant	Official tax documents providing details of the co-applicant’s income and financial obligations.
Fees structure	Detailed breakdown of the tuition fees and other associated costs for the master’s programme, provided by the educational institution.

Documents Required For Unsecured Education Loan For MS In The USA

Unsecured education loans for an MS in the USA can be a great way to finance your studies with no need of collateral. Here are the documents you’ll typically need to apply:

Applicant Documents	Description
Completed application form	Form collecting basic information, educational background, and financial details of the applicant.
Passport	Copy of the applicant’s valid passport.
Proof of residence	Document demonstrating the applicant’s current address, such as a utility bill, rental agreement, or bank statement.
Academic documents	Transcripts and mark sheets from previous educational institutions attended by the applicant.
Standardised test scores	Scores from standardised tests like GRE, GMAT, TOEFL, or IELTS, if required by the chosen program.
Financial documents	Bank statements, income tax returns (if applicable), and proof of scholarships or grants received by the applicant.
Co-signer Documents
Proof of identity	Identification document of the co-signer, such as a passport, driver’s license, or government-issued ID.
Proof of income	Recent pay stubs, tax returns, or other documents verifying the co-signer’s income.
Employment verification	Letter from the co-signer’s employer confirming their employment status and income.
Financial statements	Bank statements or other financial documents showing the co-signer’s financial standing.

USA MS Loan Application Process Via UniCreds

To prevent any delays or complications in the educational loan application procedure, it’s highly advised for students to commence their application promptly upon receiving their admission letter from the university. UniCreds is here to help you with the loan application. Below is a basic overview of the steps required for applying for an MS loan in the USA:

Step 1: Visit www.unicreds.com and fill out your basic details in the form on our website page.

Step 2: Our loan expert will soon get in touch with you to understand your requirements‌.

Step 3: Based on your details, we will present you the best suited loan options from the top financial institutions in India

Step 4: Choose your loan and submit the documents to us digitally.

Step 5: Wait for your loan to get sanctioned in days!

UniCreds does not charge a penny to apply on our platform. The entire process is free of cost, just for you!

How Do You Decide Which Educational Loan For MS In The USA 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 analyse 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.

FAQs

1. Can I get an education loan for MS in the USA?

Yes, you can get an education loan for MS in the USA. To bridge this gap, you can apply for a scholarship or a student loan for MS in the United States.

2. How much education loan can I get to do MS in the USA?

It depends on the lender you choose, but if you are deemed eligible, you can obtain up to 1.5 crores in secured education loans from government banks, 40 lakhs in private bank unsecured education loans, 60 lakhs in unsecured education loans from non-banking financial institutions. Foreign lenders will provide 80% of your loan requirement (Unsecured education loans)

3. When can I start applying for an MS loan in the USA?

The timeline is determined by several factors, one of which is the intake season. Banks, surprisingly, sometimes approve loans in a week, while others take a month or more! And so, to be on the safe side, depending on your intake season, this is when you should preferably apply for an Education loan: Fall intake (September) – Apply as early as June, Winter intake (January) – Apply as early as October, Summer intake (May) – Apply as early as February.