Overseas Education Loans: What to do if your Student Visa is Rejected?

    Updated on: 11 Sep 2023 6 min read


    Carving your name in this world of cut-throat competition is never easy, especially for the common man. The same can be said for students who are out there to overcome all odds and be successful in their chosen careers. For students who have headed abroad for higher studies, the hurdles are even greater - right from getting selected to their dream program in their dream University to navigating in a foreign country and many more. Their hardships start even before they get aboard the flight that will take them to their dream school. Among all the various roadblocks they face, rejection of their student visa is one that they fear the most.

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    Let us discuss the way forward in each case

    Students who re-apply for a student visa to study in the same country, in the same University, and the same program with a study abroad education loan.

    Indian public sector banks have a clause in their secured education loan wherein a student/borrower can hold on to the sanction letter till six months of loan approval. This means that the first loan disbursement can wait till six months post loan sanction. In the current Covid-19 pandemic situation, wherein foreign countries are holding back on student visa approval, private banks and NBFCs also have extended the disbursal time to one year in case of sanctioned unsecured education loans.

    Keeping in mind these rules, the road ahead for students who re-apply to the same country, the same university, and the same program is simple and straight-forward if they are re-applying within six months of their first student visa rejection. There is no need for them to inform their lenders and they can proceed with the reapplication of the student visa with the same education loan sanction letter.

    Students who re-apply for a student visa to a different country and program with a study abroad loan

    To be on the safer side, students who wish for higher studies abroad apply to multiple universities and may have more than one offer letter from different Universities. If you too are such a student and your student visa has been rejected and you plan to re-apply for a student visa to another country in a different University and program; then the process is different for you. You will need to inform your lender about this change in the decision and will have to request them to change the name of the country/university/program in the education loan sanction letter. Once the lender makes the requisite changes in the offer letter, you can then re-apply for the student visa.

    Students who shelf their study abroad plans after taking an education loan

    The Covid-19 pandemic has changed the priorities of a lot of people and a few students might be relooking at their study abroad plan in the immediate future. If you too are one such student whose student visa was rejected and you have now decided not to go ahead with your study abroad plan, then you need to inform your lender of this decision as soon as possible. If there was any disbursement made by your lender, then you have to return that amount to the lender.

    Even though thousands of Indian students dream of a foreign degree, going abroad for higher studies is no cakewalk and the road is filled with numerous roadblocks. Getting a student visa is one of many roadblocks that you have to cross and if you do want to make any mistakes and get your student visa rejected, then you can get in touch with GyanDhan and take Admission counseling. The admission counseling not only includes University shortlisting and admission but also post admit assistance as well as visa guidance.

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Written by Gurbani Kaur Suri

A keen lover of reading and loves to explore new things. A strong believer of spirituality and goodness.

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Reviewed by Aman Jain

Aman Jain graduated from IIT Kanpur, and currently functions as the CMO at GyanDhan. He is deeply passionate about creating equality in higher education and has directly interacted with 2 Lakh students in his 8-year-long journey.

Specializes in:
Education loan , Study Abroad Admissions

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