Home to some of the world’s most prestigious universities, the US remains a top destination for Indian students pursuing higher education abroad. With world-class academics, cultural diversity, career opportunities, and extensive networking prospects, studying in the US offers students an unparalleled experience. In 2023, approximately 268,923 Indian students chose the US for their studies, a number that rose to 337,630 in 2024. By 2030, annual enrollments are expected to surpass 1 million. Education Loan to Study in the USA for Indian Students options are increasingly in demand, helping to make these academic ambitions a reality.
So many reasons for its popularity, but studying in the world’s largest economy comes at a cost. The tuition fees and the living expenses involved in studying in the USA can seem quite challenging for students aspiring to study abroad. Well, don’t dwell on it! The increasing availability of education loans for studying abroad has made it easy for Indian students to pursue their study abroad dreams. With numerous Indian and International lenders offering education loans to Indian students, the financial hassle is becoming a far cry.
How Much Does it Cost to Study in the USA?
Let’s calculate the costs of studying in the USA, assuming you’ve planned to pursue your Master’s
degree. The cost related to the admission process changes depending on the location of your chosen university. Thus, it’s always helpful to secure an education loan for studying in the US that would cover your tuition fee, living, and other miscellaneous expenses.
| Particulars | Cost |
| Exam fees | $213 for GRE INR 15,500 for IELTS $190 for TOEFL |
| University Application fees | $45 – $100 |
| Visa Application fees | $ 160 |
| SEVIS fees | $ 350 |
| Tuition fees | $18,000 – $65,000/year |
| Living expenses | $10,000 – $20,000/year |
| Health Insurance | $1500 – $2500 |
| Air fare | $ 1000 |
To fund the costs involved in studying in the US, the easiest way is to secure an Education Loan to Study in the USA for Indian Students and repay it after course completion and securing a job. Education loans for Indian students planning to study in the US are available with both domestic and international lenders at affordable interest rates, helping you access a world-class education abroad.
Education Loans in the US for Indian Students
There are numerous options available for Indian students to finance their dream of studying in the USA. Opting for an Education Loan to Study in the USA for Indian Students is one of the most affordable choices. To study in the United States, Indian students can choose from various types of education loans: secured education loans, unsecured education loans, US cosigner education loans, or no cosigner no collateral education loans.
Let’s learn a little more about all these loan categories!
Secured Education Loans for Indian Students to Study in the USA
Secured loans for studying in the US are loans where the student or the cosigner pledges collateral in exchange for the loan amount, which in most cases is in the form of property. This enables you to secure a higher loan amount compared to unsecured loans.
Types of Collateral Accepted
Any tangible or intangible assets you plan to pledge in exchange for your study abroad loan
amount are considered collateral. However, lenders have a list of what can be accepted. This list
includes any liquid asset preferably shares, bonds, FD, mutual fund units, gold, life insurance
policy, government securities, bank deposits, debentures, or any immovable property like the
house, any commercial property, or land that can be classified as collateral.
Note: Agricultural land whose tax is paid to Gram Panchayat or Nagar Panchayat is not accepted as collateral.
Here’s a list of all the lenders that offer education loans with collateral for Indian students to study in the US:
| Lender | Type | Maximum Loan Amount (In INR) | Starting Rate of Interest* | Margin Money |
| Auxilo | Indian NBFC | Upto 100% of the cost of education | 11.50%* | Nil |
| Avanse | Indian NBFC | Upto 100% of the cost of education | 11.50%* | Nil |
| Axis Bank | Indian Private Bank | Upto 1 crore | 10.50%* | 15% |
| HDFC Credila | Indian NBFC | Upto 100% of the cost of education | 10.50%* | Nil |
| ICICI Bank | Indian Private Bank | Upto 1 crore | 10.25%* | Nil |
| IDFC Bank | Indian Private Bank | Upto 1 crore | 10.50%* | Nil |
| Incred | Indian NBFC | Upto 100% of the cost of education | 11.75%* | Nil |
| State Bank of India | Indian Public Bank | Upto 1.5 crore | 10%* | 15% – 20% |
| TATA Capital | Indian NBFC | Upto 100% of the cost of education | 11.50%* | Nil |
| Union Bank of India | Indian Public Bank | Upto 1 crore | 9.25%* | 15% |
Unsecured Education Loans for Indian Students to Study in the USA
For students who wish to study abroad but face challenges in arranging funds or assets to pledge as security for secured loans, an Education Loan to Study in the USA for Indian Students without collateral is the best option. However, due to the absence of collateral, the interest rates for these loans are typically higher than those for secured education loans for studying abroad.
| Lender | Type | Maximum Loan Amount (In INR) | Starting Rate of Interest* | Margin Money |
| Ascent | International NBFC | Upto 100% of the cost of education | 3.79%* | Nil |
| Auxilo | Indian NBFC | Upto 40 lakhs | 11.50%* | Nil |
| Avanse | Indian NBFC | Upto 75 lakhs | 11.50%* | Nil |
| Axis Bank | Indian Private Bank | Upto 50 lakhs | 10.50%* | 15% |
| Earnest | International NBFC | Upto 100% of the cost of education | 3.74%* | Nil |
| HDFC Credila | Indian NBFC | Upto 75 lakhs | 10.50%* | Nil |
| ICICI Bank | Indian Private Bank | Upto 1 crore | 10.25%* | Nil |
| IDFC Bank | Indian Private Bank | Upto 85 lakhs | 10.50%* | Nil |
| Incred | Indian NBFC | Upto 60 lakhs | 11.75%* | Nil |
| MPower Financing | International NBFC | Upto $100,000 | 12.74%* | Nil |
| Prodigy Finance | International NBFC | Upto 100% of the cost of education | 11.50%* | Nil |
| Sallie Mae | International Bank | Upto 100% of the cost of education | 3.49%* | Nil |
| State Bank of India | Indian Public Bank | Upto 75 lakhs | 10%* | 15% – 20% |
| TATA Capital | Indian NBFC | Upto 75 lakhs | 11.50%* | Nil |
| Union Bank of India | Indian Public Bank | Upto 40 lakhs | 9.25%* | 15% |
US Cosigner Education Loans for Indian Students to Study in the USA
To explain, if you’re planning to study in the US and have a relative/friend/acquaintance as a citizen of the US, they can be the cosigner for your education loan. Such loans are referred to as US Cosigner Education Loans. You do not need to pledge any collateral as security for a US cosigner loan. These loans help students secure higher amounts at affordable interest rates for their higher education in the USA.
To be eligible for a US cosigner education loan, lenders assess your past academic performance, the cosigner’s credit history, and your potential to succeed.
At Lorien Finance, we’ve partnered with Sallie Mae and Earnest, the industry’s top lenders who offer education loans for studying in the US with a US cosigner.
Role of a Cosigner in Study Loans for the US
A cosigner or co-applicant signs the education loan application and loan agreement with you and gives you the financial commitment to cosign the education loan. Most lenders mandate a cosigner so that, in case, you fail to repay the loan, they can hold the cosigner liable for completing the payment.
Expenses Covered by Abroad Education in the US for Indian Students
While applying for an education load for your studies in the US, you might wonder what expenses your loan would cover. Well, almost all loans cover 100% of the cost of your education, which includes:
- Tuition fees
- Living expenses (accommodation, food, utility and more)
- Visa fees
- Health Insurance
- Other study-related expenses
Selecting The Right Bank for a Study Loan in the US
When selecting the right lender to secure an education loan for studying in the USA, it’s important to keep various parameters in mind to make an informed decision. These parameters include:
- Compare various lenders to find the most competitive and affordable interest rate for your education loan in the USA.
- Almost all banks cover 100% of your study abroad costs, but some don’t. These costs included
your tuition fees, living expenses, and other costs. - Some lenders charge a processing fee for processing your study loan for the USA, while some don’t. This can impact the overall cost of your education abroad.
- Ensure checking any Income Tax benefits provided by your lender on the loan to enhance your cost savings.
- Some banks require a margin of your loan amount as a margin fee. This can affect the total cost you will incur to secure your education loan for studying in the USA.
- The processing time of your study loan for the US is an important factor as you must ensure that your chosen lender’s processing time aligns with your timeline of fee payments.
- It’s crucial to learn well in advance about any prepayment terms involved in your education loan for studying in the USA. You should know about any penalties or fees if you plan to repay your loan before the loan term.
Eligibility Criteria to get an Education Loan for USA
As an Indian student applying for an education loan to study in the USA, you must be eligible to secure a loan. These eligibility criteria are as follows:
- You must be an Indian citizen
- You must be at least 18 years old
- You must have an acceptance letter from a recognised university in the US
- You must have a good academic background
- You must have a cosigner who meets the minimum income requirements
Documents Required for Study Loan in the US
If you fulfil all the eligibility criteria, the next step is gathering all the required documents to apply for your education loan in the USA. Some of the common documents required by most lenders include:
- Education loan application form
- Admission letter from a recognised university in the US
- Fee structure from the university
- Proficiency and standardised test scores
- Past academic records
- KYC documents of the student
- Resident proof of the student
- Income proof of the cosigner
- Property paper (for secured loans)
- Passport-sized photographs
How to Apply for an Education Loan for Indian Students in the USA
Securing an Education Loan to Study in the USA for Indian Students can be a time-consuming process, as you’ll need to compare various lenders to find the most suitable loan option. It’s recommended to start the loan process at least 3-4 months before your enrollment date to ensure a smooth and timely completion.
At Lorien Finance, we ensure you don’t have to go through this daunting process that can take up to months, and thus, we do all the hard work for you.
On getting in touch with you, our loan counsellors understand all your needs related to securing a study abroad loan for the USA in your dream university and help you compare the interest rates from among 15 international and domestic banks and NBFCs. They negotiate with these lenders on your behalf so that you fulfil your study-abroad dream cost-effectively.
Once you find the most suitable lender per your needs, the loan counsellor will help you proceed with the application process. After submitting all required information and necessary documents, your application will be logged in with the lender, who after carefully scrutinising it, will approve or reject it.
Lorien’s loan counsellors help you throughout the way to minimise any chances of loan rejection. Once the loan is sanctioned, you decide your loan disbursement date and finalise your loan.
We aim to ensure you have a smooth loan application process without any hassle so that your focus remains on your education abroad.
Factors to Consider Before Applying for an Education Loan for Indian Students in the USA
Before applying for an education loan for your higher studies in the US, you must consider numerous parameters to ensure a smooth application process and successful financing. These parameters include:
Course and University Selection
Ensure choosing the course you want to pursue and the university you wish to study in the US well in advance, as most lenders have a list of universities and courses they offer loans for.
Cosigner Identification
Almost all loans require you to have a cosigner who cosigns the loan with you so that, in case you fail to repay the loan, the cosigner is liable to do so. Ensure choosing someone who has a good credit history and whose income requirements match with the lenders.
Document Preparation
Make sure you have all the documents required by the lender ready with you including your acceptance letter, past academic transcripts, financial statements etc.
Financial Planning
Calculate an estimated amount of how much funds you need in total including everything from your tuition fees to living expenses to other costs so that you secure a loan of a similar amount.
Timely Application
At times your US visa interviewer might ask about the availability of funds, and thus, it’s important to have your sanction letter at the time of your visa interview. Therefore, it is recommended that you start your loan application process at least 3 months before your visa date.
Disbursement Timing
Factors like loan processing time and the timeline of your university fee payment rely on when your loan is disbursed. Thus, plan for your loan application process keeping in mind the disbursement time.
How to Repay Your US Education Loan?
While choosing an Education Loan to Study in the USA for Indian Students, it’s important to consider the repayment options. The repayment tenure and the moratorium period play a crucial role in selecting the right lender for your US education loan. Let’s take a detailed look at both factors for all the lenders listed with Lorien Finance, ensuring you make an informed decision.
| Lender | Repayment Tenure | Moratorium Period |
| Ascent | Upto 15 years | Study period + 6 months |
| Auxilo | Upto 15 years | Study period + upto 12 months |
| Avanse | Upto 15 years | Study period + upto 12 months |
| Axis Bank | Upto 15 years | Study period + 6 months |
| Earnest | Upto 20 years | Study period + 9 months |
| HDFC Credila | Upto 15 years | Study period + upto 12 months |
| ICICI Bank | Upto 15 years | Study period + upto 12 months |
| IDFC Bank | Upto 12 years | Study period + 12 months |
| Incred | Upto 15 years | Study period + upto 12 months |
| MPower Financing | Upto 20 years | Study period + 6 months |
| Prodigy Finance | Upto 20 years | Study period + 6 months |
| Sallie Mae | Upto 15 years | Study period + 6 months |
| State Bank of India | Upto 15 years | Study period + 6 months |
| TATA Capital | Upto 13 years | Study period + upto 12 months |
| Union Bank of India | Upto 15 years | Study period + 12 months |
FAQs
How much of the total education expenses does the loan usually cover?
Most loans typically cover about 90-100% of the total expenses. In certain situations, the students are required to arrange the remaining funds themselves. This arrangement eases the financial burden on students and their families.
How does the exchange rate impact the disbursement amount of education loans for studying in the US?
Fluctuations in the exchange rate can affect the amount students receive as a loan. A decrease in the exchange rate may result in students receiving less money than anticipated, highlighting the importance of considering this factor when planning finances.
How much student loan can I get for my Masters in the USA?
You can secure an education loan for pursuing your Masters in the US at nominal interest rates starting from 3.49%* that cover the 100% cost of your education. Just get in touch with us and our team will make the rest happen.
Should I take an international student loan in the USA or from my home country?
At Lorien Finance, we have partnered with international and domestic lenders to help you fund your education abroad. On securing a loan for studying in the US from international lenders the interest rate starts from 3.49%* while on choosing Indian lenders the interest charged starts from 9.25%*. Connect with our team today to know the most suitable education lender for your education abroad in the USA.
