Student Loan USA - All You Need To Know

To be able to study in the USA is a dream of every student. The country is home to some of the most renowned and top universities in the world. Yet, many hesitate to further their education in the USA because of the exorbitant cost it comes with. Studying abroad in the USA is an expensive affair but with the right financial aid, students can pursue their dream with little to no cost. Student loan for USA is one such aid that helps students with living and studying in the USA stress-free. There are many banking and non-banking institutes in India that offer education loans in the USA for international students at the lowest interest rates and with added concessions. Today, applying for a student loan in the USA has become an effortless task and anyone who wishes to study abroad can do so hassle-free.

Before everything else, a student must see that they fit the general eligibility criteria for acquiring a student loan in the USA. There are multiple requirements that a student must fulfil before applying for a loan. If students aim to have the smoothest process while applying for international student loans in the USA then make sure you tick out all the eligibility standards below:

1. The applicant must be an Indian citizen
2. The candidate must be looking to enrol in a professional or technical programme. Banks always prefer loans for career-focused programmes.
3. The candidate should have a remarkable academic history.
4.  The applicant must already be enrolled at the international university.
5. The borrower must be older than 18 to receive a loan; their parents will be required to do so.

The above criteria for education loans in the USA is the basic standard followed by most institutes, although you must go through their respective eligibility mandates to understand the process correctly.

In order to determine your ability to repay the capital for student loan debt in the USA, banks must first confirm that you are a legitimate student (user) and have been accepted to a reputable university. Here is a list of the standard paperwork that banks typically demand in order to process student loans in the United States.

1. Loan application form (filled)
2. Offer letter is given by the university (proof of admission)
3. The estimated cost of study (as per the I-20 form)
4. Documents of qualifying exams (GMAT, TOEFL)
5. Original education certificates/mark sheets
6. Residential Proof of student and co-borrower
7. PAN card and other identity proofs of student and co-borrower
8. IT returns of co-borrower
9. Proof of income of co-borrower
10. Details of assets and liabilities of parents/co-obligates/guarantors 
11. Passport copy

Note: It is always recommended to check the list of the papers required with the specific bank as the requirements of documents can vary depending on the bank's own laws and regulations for a student loan in the USA.

Always verify what other expenses, including tuition, are covered by your loan programme. There are numerous more things for which you must watch out. Nowadays, a number of loan programmes are available to pay for expenses besides tuition. Some of the costs paid for by a student loan in the USA are:

1. Examination, laboratory fees, library
2. Fee expected to college and hostel
3. Purchase of books, instruments, equipment
4. Travel expenses
5. Caution deposit, refundable deposit, building fund
6. Insurance premium for the student (if applicable)
7. Other expenses like study tours, thesis, project work
8. Purchase of laptop (if required for the course)

Generally speaking, there are two types of student loans available in India for studying in the United States:

Secured Education Loans: Education loans with collateral are known as secured loans. As the name implies, in order to obtain a student loan in the USA, you must offer the lender a security interest in a piece of property. This collateral comes in two varieties:

1. Tangible assets like apartments, non-agricultural land, stores, etc.
2. Intangible assets such as government bonds, life insurance, and fixed deposit accounts.

Unsecured Education Loan for USA: These are those that lack any form of security. As the name implies, you can apply for a student loan in the USA without giving the lender any collateral. However, a co-applicant is required, and that co-income applicant will play a significant role in whether the loan will be approved. Additionally, only a small number of foreign lenders and private Indian lenders offer unsecured education loans for sums greater than INR 7.5 lakhs.

A year of full-time English study in the USA costs roughly $20,000. Unexpectedly, participating in a study abroad programme is less expensive than enrolling directly at an American university.

While the programme costs for studying abroad in the USA are significantly less than the $20,000 figure, when you include other expenses like flights, insurance, food, pocket money, vacations inside the USA, and visa fees, your annual budget will likely be between $18,000 and $23,000.

A study abroad programme for a semester is more expensive compared to a year-long programme. In the USA, a semester typically costs between $14,000 and $16,000 in total. A year-long programme is a better value at that price.

Because there are so many top-notch universities worldwide, more and more Indian students want to study there. But without a loan or scholarship, attending school abroad can be very expensive. How can students choose the best loan provider for them when there are so many options available? Let us see.

1. Understand the loan 
2. Be confident about the targeted college
3. Consider the advantages and disadvantages of the loan
4. Study all the available options
5. Confirm the grace period
6. Pick up the right repayment option if available
7. Know the repayment process
8. Be sure about work-outs and cancellations
9. Aware of pre-payment fees of the loan
10. Ask questions

UniCreds, unlike any other platform, makes securing student loans easy. Here are some of the reasons why receiving a student loan in the USA with UniCreds is the best choice:

1. Full financing (up to 100 %) for tuition and living expenses
2. No margin money
3. Immediate sanctions in the event of an emergency 
4. Options for customised financing
5. Comparing education loans
6. Tracking of loan applications
7. Loans with no collateral
8. Doorstep delivery of services
9. Paperless approval of loans