One of the biggest issues students face while studying in the USA is arranging finance. The price of studying and living there is not easy to maintain. However, the inspiration to study abroad in the USA aids in overcoming these problems. In this, arranging a USA study loan is one of the vital processes of this whole journey. Understanding this, many banks offer loan services to students. But handling all this alone is not an easy task for them. It is where a study abroad counsellor assists them. With their knowledge and skills, they aid learners in getting loans.
Want to know how they help the aspirants in fulfilling their study dreams? Read the below article and get all your queries solved. Let’s first start with knowing the features of study loans in the USA.
Features of USA Study Loan
Spending in the education area offers the highest returns to people. A USA study loan aid students to continue their studies despite financial issues. Apart from that, it also consists of some features that aid you in making better decisions. Want to know what they are? Read the next section.
Repayment
This is one of the vital factors of a study loan that you do not need to pay while studying. However, it charges a little interest. In this, many banks offer you to do the repayment through EMI. This can last up to 10-20 years. Generally, the paying back amount of the bank begins after completion of your course. Also, some of the banks provide six months of relaxation time for getting a job. In contrast, some wait till one year after doing the studies.
Interest Rates
Apart from the amount, you also need to pay the extra cost on it. It is generally known as interest charged on the loan price. The rate of it depends on several factors. Such as interest range of lender, loan amount, loan tenure and more.
Expenses Covered
Education loan in USA covers the fees of tuition. However, also check the other expenses that you can cover in that loan. There are several schemes present which help in managing these costs. Some of the prices covered by them are as follows:
- Travel cost
- Buying of books, instruments, tools
- Fees for exams, laboratory and library
- Cost payable to hostel and college
- Building fund, caution deposit, refundable deposit
Collateral
Many banks in India demand collateral as safety on the loan amount. It can be in the form of moveable items like FDs, shares and bonds. In addition, immovable things include land and houses. However, if you do not want to give collateral, you can apply for less amount.
For this, you can take advice from a study abroad counsellor. The expert aids you in offering other options for funding. Also, some banks demand the involvement of a third person. It states that if the lender fails to make the repayment of the loan amount, that person will pay on his behalf.
These are the several features of a loan for study in the USA. In addition, students or their parents should have good credit scores to get loans easily. Moving forward, let’s know the eligibility criteria for getting funds in the USA.
Eligibility Criteria for USA Study Loan
When applying for a USA study loan, the first thing to know is its eligibility criteria. The general qualification fixed by banks to give the loan is as follows:
- The person who is applying for the loan should be an Indian citizen.
- To take the loan, you must be 18 years old. If you are less than that on your behalf, your parents can apply.
- The candidateshould have a good record in education.
- The learner should pursue a technical or professional degree. This is because banks always give loans to courses that are job-oriented.
- Students have received an offer letter from the applied university.
Following are the criteria that students need to follow for taking a USA study loan. In addition, the study expert helps you in dealing with banks for loans. Moving forward, let’s read about the documents needed for it in the USA.
Documents Required for Getting a USA Study Loan
While giving the study loan, banks also verify about the students. It aids them in knowing that you are the right person to give the loan. In addition, it also helps in boosting their trust towards repayment of the loan amount. Through several documents, they are able to do so. Want to know about them? Read the listed points.
- Admission proof- offer letter from the applied university
- The estimated budget for studying in the USA as per the form I-20
- Passport copy
- Aadhar card, PAN card and other identity proofs of the borrower
- Papers of passing the English language test
- Information of liabilities and assets of the borrower
- Residential proof
- Proof of salary and IT returns
- Original study certificates
These are the several papers that banks asked for while giving study loans to students. However, it can vary as per banks. Because every bank has its own rules and regulations. So, it is advised to check the papers before applying for a loan. For this, you can also take the help of a study abroad counsellor. The expert has details of all the loan processes in several banks.
Moving forward, let’s know about the application process for the loan.
Application Process for USA Study Loan
Generally, the application process in many USA universities starts from the October month. So, one should start the loan process with proof of funds, loan sanction and more before it. After getting the I-20 form and offer letter from the college, loan payments can be made. It aids in saving a lot of time for students. Furthermore, you also get the option to search from several banks for getting loans. In addition, it helps you manage all things well.
This was all about the application process. In case you need any help or guidance, you can get aid from study experts. With their skills, they give you the right advice, that assist in fulfilling your USA study dream.
Conclusion
Getting an education loan in USA not only helps students in completing their study dreams. But also aid them in managing their finance. Through this, the learners are able to bear all their costs, whether it is living or travelling prices. However, it is advised to compare several banks before applying any for the loan. In this, aspirants can take the help of study experts. As they have both knowledge and skills in this. With their aid, students will able to make the right decision.