Education Loan to Study MS in USA

The United States is a top study-abroad destination for international students, offering a wide range of educational institutions across its 50 states. Out of the 4,500 higher education institutions in the country, approximately 1,700 provide master's degree programs. Indian students particularly favor the USA for pursuing their master's degrees, as evidenced by the significant enrollment numbers. In the 2021-22 academic year, while around 27,500 students enrolled in bachelor's programs, an impressive 102,000 students pursued master's degrees. However, it is crucial to note that studying in the USA can be expensive, with average tuition fees for international graduate students amounting to approximately USD 39,000. To finance their education, many students opt for abroad education loans, which not only cover tuition fees but also living and other expenses. Additionally, these loans serve as proof of funds for obtaining student visas to the USA. This blog will answer the question - ‘How to get loan in USA?

Cost for MS in the USA

Before knowing how to get student loan for MS in USA, it is important to know the cost of studying MS in the USA. Master's degree program fees in the USA generally range from USD 10,000 to USD 80,000 (INR 10 - 69 Lakhs) for a two-year duration. Higher-ranked private universities often charge slightly higher tuition fees and additional expenses. Refer to the table below for an estimated costs of MS in USA.

However, students generally spend USD 500 to USD 1,000 per month on living expenses, covering items such as food, accommodation, study materials, clothing, health insurance, recreational activities, and other necessities. However, living expenses can vary depending on the state, city, and individual lifestyle choices.

Types of Education Loans for MS in the USA

Student Loan for MS in USA can be broadly classified into two categories. Refer below to learn in detail about the types of education loan:

Secured Education Loan for MS in the USA:

So, secured education loans for MS in US necessitate collateral, allowing for higher loan amounts compared to unsecured loans. Collateral can include movable or immovable assets such as Fixed Deposits, LIC Insurance, non-agricultural land, residential property, or commercial property. It is important to note that most public banks in India require collateral for education loans for studying abroad.

Furthermore, secured loans may not require a co-applicant. When exploring education loan options for studying MS in the USA, two recommended public sector banks are the State Bank of India (SBI) and the Union Bank of India (UBI). Here is a comparative analysis of these banks' education loan offerings for studying in the USA.

Read more about: Types of Collateral Security Acceptable for an Education Loan

Unsecured Education Loan for MS in USA:

If you lack collateral for an education loan to study MS in the USA, there are alternative options available like non-collateral education loans through private banks, NBFCs, and international lenders. An unsecured education loan for MS in USA is a loan option that does not necessitate the borrower to pledge collateral as security. Private banks and NBFCs may require a co-applicant with minimum financial income and no liabilities, whereas international lenders offer loans without a co-applicant.

Opting for international lenders can be beneficial as they provide loans in USD, potentially saving on foreign exchange charges and other costs. However, it is important to note that international lenders typically have higher interest rates. Each lender offering unsecured education loans for MS in USA has its own advantages and disadvantages. To aid in your decision-making process, we have prepared a comparative chart of these lenders.

Expenses Covered by Education Loan for MS in USA

Below is the list of expenses that may be covered under the loan as per the lender:

Education Loan Eligibility for MS in USA

International students seeking an education loan for MS in USA must meet certain eligibility criteria. These include:

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  Obtaining confirmation of acceptance from a recognized American institution for a full-time master’s program.
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  Being at least 18 years old.
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  Demonstrating a strong academic track record.
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  Choosing a course of study with promising career prospects.
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  Providing collateral, if applying for a secured loan.

Required Documents for MS in the USA Education Loan

In addition to meeting the mentioned eligibility criteria, it is crucial for students to gather all the necessary documents before applying for an education loan to study in the USA. The document checklist can be extensive, but GyanDhan provides a personalized document checklist to streamline the submission process for you.

How to Apply Education Loan for Masters in USA?

To avoid delays and complications in the educational loan application process, it is strongly recommended that students initiate their application as soon as they receive their admission letter from the university. Here is a general outline of the steps involved in applying for an MS loan in the USA:

Assess Your Eligibility:

Begin the loan application process for a US university by assessing your eligibility for an abroad education loan using GyanDhan's platform.

Discussion with an Education Loan Counselor:

An education loan counselor will call you to discuss the possible education loan options. Post discussion, depending upon the type of lender from which the loan is to be availed, the counselor will suggest the subsequent steps.

Receive a Customized Document Checklist:

Based on the lender's specific requirements, you will receive a customized document checklist. This checklist will outline all the necessary documents and offer alternative options (if available) to simplify the document arrangement process for you. Depending on the lender's instructions, you will be requested to submit the documents either in hard copy (collected by a relationship officer) or soft copy (uploaded on the portal).

Submission of Documents:

Upon the submission of the documents, the lender reviews the application. During this process, the student and his/her parents may be asked to furnish additional information. If the bank finds the application to be viable, it will approve the loan requests. 

Accept the Loan Offer:

Once the loan is approved, the student has to accept the loan offer by providing signatures on the sanction/approval letter offered by the bank and pay the processing fees.

Repayment of Education Loan for MS in the USA

The time required to repay an education loan after completing an MS in the USA varies. If you are also stuck at, “How much time it takes to repay loan after MS in USA?” This is yet another question that prevails in the minds of Indian students. When acquiring an education loan for studying MS in the USA, it is crucial to consider the repayment terms. The repayment tenure and moratorium options are essential factors when selecting a lender. There are various repayment options available, including partial simple interest (PSI), simple interest (SI), and equated monthly installments (EMI). To help you make an informed decision, we have created a comparative guide that focuses on repayment as a key aspect of obtaining a loan for studying MS in the USA.