Documents required for study loan in United States

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Education Loan to Study in the USA: Everything You Need to Know

The biggest challenge one always faces for learning in the United States is to arrange for funds. The price of living and studying in states like the United States can be exorbitant and everyone cannot pay for it. However, the desire to study abroad and make it big in life always excurses you to overcome this difficulty. Arranging funds is one of the most climacteric parts of the whole work. Various banks have recognized this layout and resolved the complication of financing higher education by giving student loans to an applicant who wishes to learn abroad. In this post, we will report to you about the various directions one should examine while acquiring a student loan. We will also talk through what all documents are required, how much tuition fee and other costs a student loan covers.

Procedure for applying for an education loan

The application method for a majority of the United States universities begins in October. So, one should always start the course of action of loan development, loan sanction, and getting debt letters that prove as ‘proof of funds to the universities before this time. Loan payment can be done after receiving the proof of admission and i20 from the university. The loan assessment can be done before the concession is confirmed. As the whole method is time-consuming, one should always start early with each employee to avoid the last-minute rush. After giving in your appeal to the institute, while waiting for the approach letter, do not take repose and sit back. This is the time to do a thorough investigation on loans offered by various banks.

Documents required for securing a student loan

While giving a loan, banks also want to verify that you are an intelligent student (customer) and you have fixed admission in an accepted university, so, they can judge your capability of refunding the loan. Here’s a list of basic documents, which are generally required by the banks to method an education loan.

  • The offer letter is given by the university (evidence of admission)
  • Loan application form (fill up)
  • The estimated fee of study (as per the I-20 form)
  • Original mark sheets/education certificates
  • Documents of qualifying exams Graduate Management Admission Test, (GMAT) Test of English as a Foreign Language (TOEFL)
  • Residential Proof of student and co-borrower
  • Information Technology (IT) returns of co-borrower
  • Permanent account number (PAN) card and other identity proofs of student and co-borrower
  • Proof of salary of co-borrower
  • Passport copy
  • Details of assets and liabilities of parents/guarantors/co-obligates
NOTE: Demands of documents can vary as per the banks’ own rules and directives, so it is always advised to check the roll of the documents required with the respective bank

Indian Banks offering loans to students to study in the USA

Here are some of the schemes offered by Indian banks to students for studying abroad are:

Housing Development Finance Corporation (HDFC) Bank Education Loan for Foreign Education: This loan plan can be helped by Indian students who wish to pursue studies abroad. The limited amount available in this plan is Indian Rupee 20 Lakh at a nominal rate of interest. Also, it gives tax benefits to the borrower and it can be permitted before admission as well.

State Bank of India Student Loan Plans: This scheme can be availed by Indian students who have fixed acceptance in any institute in India or abroad. A limited Indian Rupee 20 lacs can be availed at a nominal interest rate and it has to be refunded within 15 years. Also, if the loan amount is more than Indian Rupee 7.5 Lacs, the borrowers want to furnish a guarantee as to safety. The refund starts after one year of fulfillment of the course.

State Bank of India Global ED-VANTAGE Scheme: This loan can be helped by Indian students who wish to pursue a full-time course abroad. Students can avail of a loan of up to Indian Rupee 1.5 crore and have to pay back it within a time of 15 years. The borrowers want to give collateral to secure this loan and will have to start a refund after six months of the fulfillment of the course.

Loans from NBFCs (Non-banking financial companies)

Apart from the nationalized banks, student loans can also be helped from non-banking financial companies/institutions (NBFCs). Non-banking institutions can give complete tuition costs to the students.

Credit: Credila is part of the renowned Housing Development Finance Corporation (HDFC) bank and furnishes loans to Indian students who want to study abroad. The loans are given at an aggressive floating rate of interest and can be refunded within Ten years.

Avanse: Part of the Dewan Housing Finance Corporation Ltd (DHFL) group, it is considered one of the most popular non-banking economic institutions in India. Student loans from Avanse cover tuition costs up to 100 percent and other costs. Apart from this, the interest rates are floating and the prepared payment can go up to 1 to 2 % of the loan amount.

ISLP International Student Loan Program: This program is specifically designed for worldwide students who want to study in the United State. Through this program, students can borrow an amount as small as $1500 and can extend the refund time up to 25 years. The loan paid out under this program covers tuition costs and other costs.

Global Student Loan Corporation (GSLC): The GSLC provides loans to worldwide students to pursue their higher studies in the United State without the requirement of any co-signer.

Read the agreement carefully

This is one of the most important points to look after while proceeding with the loan. We always advise you to go through the terms and conditions of the loan alert and then move ahead with it. This is one part we stress upon, as you should always be clear with all the situations introduced in the loan agreement.