Education Loans in USA for Indian Students

When it comes to studying in the USA, we all know that going to college can be fairly expensive. Students are taking out loans in order to pay for their education, and some of them are lucky enough to get scholarships as well. However, the problem is that it’s much easier for a native student to get a loan than it is for an international student coming from India.

Students of this origin will typically have to apply for a loan in their own country but it is not always easy to get one this way either. Loans are rarely given to someone trying to leave the country, which might put a dent in their plan. So, what do students do when they want to receive education overseas? Well, we’re about to find out.

Are there Education Loans in the USA for Indian Students?

Indian international students have a very hard time getting a student loan from a traditional bank, mainly because of their visa status. Their own country won’t give them a loan because they are planning to leave, whereas their “host country” will not provide because they do not have the citizenship.

That being said, while the task might be difficult, it is not impossible. You can still find lenders to give you a loan, albeit alternative ones. Even if you are in the United States on a student visa, you can still get a loan that will cover the course of your studies. You just have to be thorough about it and find the right lender with the right rates.

Options for Education Loans in the USA for Indian Students

Indian students have a fair number of options to go for when it comes to taking out a loan. Each of them will come with different rates and benefits, which is why you will have to carefully decide which one is the best for you. Here are some of the more popular options.

  1. Discover

Discover is quite popular among international students, mainly because of their affordable rates. You can get a very good loan based on your GPA, and other rewards make them a top choice for students from India.

So, why is an education loan in the USA for Indian students so easy to get here? That’s simple; because this lender does not focus so much on trivialities such as citizenship or documentation. You simply need to be approved in a university, and your GPA will determine exactly what your interest rate will be.

Other than that, students appreciate this lender because it provides full coverage. Some aggregate loan limits will apply, but most of the time, the loans given here will cover your entire tuition. There are also no fees to consider (application, origination, or late fees), which means that these loans are relatively inexpensive. This applies to refinance student loans as well.

A student may choose how they wish to pay the loan. They may make in-school payments, which is a good option if they have a part-time job while being a student. They can also go for a deferred payment option, where they may pay back the loan after they have graduated.

  1. Citizen Bank

Citizen Bank is one more popular option for international students to receive a loan for their tuition. The entire cost of the tuition will be covered and depending on what they bring to the table, they might even get some fairly good rates.

When it comes to getting a loan from the Citizen Bank, you will need several things. For one, you will need a co-signer with good credit that also has US citizenship or permanent residence. Someone will have to be responsible for them, after all.

Aside from that, you will have to get your student visa. This will require an interview and some other formalities which is why you might want to arrange for this in a timely manner. The embassies and consulates are fairly busy during summer which is why you might want to make the arrangements beforehand.

Last but not least, you will need a decent English level. Since most colleges require you to pass a Standard English test, it is assumed that you cannot make it through college unless you can actually integrate.

  1. Wells Fargo

Wells Fargo is one more popular option when it comes to private student loans for those of Indian origin. They have flexible payment options, making them popular for all types of students. You may go for in-school payments or you can go for deferred payments. In most cases, students can make no payments until about 6 months after graduating. This will give them enough time to find a job so that they can pay back the money.

The coverage will depend on the university that you apply for. In most cases, it will cover up to 100% of the costs. This will include not only the costs of your tuition but also the costs of your books, the computers you have to use, as well as housing.

As a student, you may also be eligible for student discounts. However, you may have to check whether you qualify for these rate discounts or not. For example, this is an option if you or your co-signer has an open Wells Fargo checking account. Plus, if you set for automatic payments, you may be eligible for even more discounts. There are no fees for the application, nor do you receive any penalty fees for making early payments.

Why it’s Hard for Indian Students in the US to Get a Loan

As we already mentioned, it might be very difficult to get a loan as an international student. Here are the main reasons why that is the case:

  • No Credit History: In order to get a loan, a citizen will need a verifiable credit history. This might be difficult, considering that non-US citizens have no credit history in the US, so no one is willing to give them a loan.
  • Foreigners Can Always Leave: When someone from the US borrows money, the bank knows that they will likely remain in the country. They do not have that certainty with someone outside the US.
  • They Need Co-Signers: A student coming into the country will likely not have any trusted US acquaintances willing to co-sign a loan. This might make borrowing difficult.

Thankfully for students, there are still private loan options for them – no matter if they wish to borrow or refinance a student loan.

How to Get a Personal Loan for Indian Students in the US

You may get an education loan in the USA for Indian Students by simply borrowing from Stilt. The process is rather simple and convenient for many students.

  1. Apply: The application process takes no longer than a few minutes even if you are a non-US citizen. You just have to provide the documentation necessary for the lenders to check you.
  2. Get Approved. This might take 24-48 hours during which the Stilt staff decides whether you are eligible for a loan or not. Once you get approved, you will be told the interest rate and if you accept, you will receive the money shortly.
  3. Start Repaying: You may start repaying right away or you may go for a deferred payment in which you pay after graduation.