Education Loan For USA Study | Process | Documents | Eligibility[2022]

education loan for usa study

Hello guys we are talking about the Education Loan For USA for international students. Also discuss more the loan eligibility, criteria, and required documents. Also the process of the loan, and the amount of the loan. Not only that we also discuss more…and much more things. So guys if you are interested to study in the USA with the help of an education loan then you have to know all about the Education Loan. Let’s go to the main topic…

Education Loan For USA Students

U.S. Education Loan For International Students simplified. So we started the series of loan flakes with a motive to educate all these students about all the different aspects of Education Loan For USA Study. Though we made a lot of articles explaining the information and product from a loan products perspective. We got a response from students that they want us to share the information more structured for each country.

It makes sense because a lot of universities and embassy requirements has to align with the loan process. Also for the next few episodes, we’ll be discussing the timeline and the process you should follow for each country. We will be discussing details like at what stage you need proofs like the loan sanction letter or the financial proof or the disbursement do you need it at the time of admission or at the time of immigration latest like I 20 Or at the time of visa so in this episode. Let’s start with the loan details for the United States.

U.S. Education Loan Category For International Students

So in the US, you can get both secured and unsecured Education Loan For USA Study. General top limits for an unsecured loan is like 40 lakhs it can go a bit up and down based on your academic profile, or your co-applicants income profile. So if you want to know details, further details on unsecured loans like ROI, the exact eligibility criteria, etc. Please refer to episode third of the series. Secured loans from government banks are a cheaper option than unsecured loans. There is no loan limit on secured loans as such. It just depends on the value of the security which you’re putting. So the entire process of your learning in the US briefly has three stages.

Stage one is the application process when you know before you got admission you’re making the application to the universities. And Stage two is when you hear back from the university and you’re now deciding on which one to choose and requesting identity, etc. Stage three is post-identity when you are planning to go for your visa.

What are The Education Loan Documents Required

So let me tell you the Financial Proof or other Finance Requirements at each of these three stages. A lot of US universities example San Jose State University asked for something called a solvency letter along with the admission application.

Now NBFCs can easily give you this letter in the form of pre-sanction based on your GRE score and other profile parameters. But government banks generally, you know are a little hesitant to give it and they do not have a policy in place for it.

A very few US universities asked for liquid cash in the account instead of a Loan Sanction Letter or a Solvency Letter. It is asking for this thing is kind of torture for the students who are relying on loan money from loan for their studies. So this thing is called pre-admission disbursement.

U.S. Education Loan Interest Rate

Now, most the banks don’t give it but even if you somehow managed to get it from an NBFC. You need to know that the interest will start right from that month. So imagine without even getting confirmation of admission, you will be paying interest on your Education Loan For USA Study. How stupid is that? But I’m again repeating that it’s kind of rare that a university asked for it. I’m just saying that even if your university does there is a provision for us to get it done.

Every university requires financial proof before issuing it. This financial proof has to show an amount equal to the I 20 amount. This proof can be your bank statements and all if you’re self-funding, or it has to be your loan sanction letter. If the source of funds for you is the loan.

Now FTS as a proof for I 20 is still kind of not clear whether it’s acceptable or not. Because some universities accepted it while others deny accepting it. So, if these as proof are still very subjective.

Education Loan Sanction Letter Process

Now coming to the loan sanction letter. Most of the banks and NBFCs can give you this loan sanction letter without I 20. I know government bank branches have told many students that I 20 is kind of mandatory for loan processing. Guys, there is a policy for loan processing without identity they’re just not aware of it.

But some universities ask for liquid cash in the student’s accounts as the funds prove only then do they issue the I 20. Also, this is called pre visa disbursement. So now universities like Syrah, cuse or UMC P University of Maryland, College Park. And even some departments at Harvard kind of insist on this.

So NBFCs can easily give you previous or disbursement because they have a policy for it. Government banks are kind of resistant to this.

You don’t need any special financial arrangements before applying for a visa. But just make sure that if you have shown sell funds at the time of getting 20 Those funds. Should still be in the account of most of the people who get 20 on their own funds and then they go for a loan sanction letter before visa. So that is also acceptable. And if you have used the loan sanction letter for getting I 20 Then you can use the same sanction letter for the visa as well.

Education Loan Eligibility

One very important thing which you need to know is that forgetting I 20. You only need to prove one year of funds that is your I 20 amount. But for the visa as per the embassy requirement. If it is a two-year course, then you need to multiply your I 20 amount into two and then show at least 75% of the total. So make sure you’re taking sufficient Education Loan For USA Study.

And most of the embassies these days give more importance to those who have taken Education Loan For USA Study, than, you know those who are completely relying on cell funds. The reason being I mean, even they understand the kind of cell phones which you show at the time of visa are generally not available when it is you don’t need it or required it is a no brainer.

Important Guideline

I would say the earlier you apply the better it would be so that you can come to know of any of the shortcomings well in advance and you can work on them. So, I would say as soon as you have applied to the universities. You should start with the initial steps of the loan as well. And if this was not possible, apply for it at least a month and a half before the time when you need it.

So, if you need it at the time of admission application, then plan accordingly if you need it at the time of I 20. Then apply for it like a month and a half before. Ideally, the process would not go more than like 20 to 22 days if everything is in place.

But any deviation from the normal profile will add on extra days for example. If your collateral owner is in another state or is in another country altogether. So that’s why you should leave a buffer and leave at least 1.5 months for the entire loan process.

How To Deal With Your Bank

Time for my hug most of these students wait for at least 1.5 to two months after they have applied to universities. And you know there are waiting for University decisions. So we suggest students start the loan process at this stage. Now a lot of students came back with the feedback that you know they went to the bank branch and branch told them Oh loan process is only possible once you have the admission.

So that’s true. Banks generally do not have the policy to start the loan process without admission letters and they are anyway trying to put it off as much as possible right. But we are we mix colors can help you with it. So if you’re planning to go to a government bank. We can at least give you the details of impaneling lawyers and evaluators. And we know we can help you in getting the legal and valuation done for your property.

So that is very important because even if let’s say something is missing or something you need to apply for, you will have ample amount of time with you to you know do all these things. Also once these two reports are done, that is a legal report and valuation report.

Conclusion

The rest of the process would not take more than seven to 10 days. So you should get these two things done. And then kind of probably wait until you hear back from universities and finalize where you want to go to, and then continue with the rest of the seven days process and get your loan sanctioned data. That’s it, guys. I hope the entire money requirements for the Education Loan For USA Study are clear to you.

Let me know if I’ve missed anything. I’ll try to add that information. And if you have any questions, please mention them in the comment section and I’ll get back to each one of you. Do share to our website. If you’re liking the quality of the content in the articles and like and share it with your fellow US aspirants. Stay tuned for my next episode.

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