The United States of America has been a popular destination to pursue studies for students around the world. However, considering the dominating position of the US dollar, it could be hard to cover the costs of education in America. The best option in such a situation is to opt for student loans. USA is home to many esteemed institutions like Harvard University, Massachusetts Institute of Technology, and more. If you see yourself studying in any of these prestigious institutions, here is a complete guide to getting a student loan in the United States.
Student loans guide
Education loan eligibility
Since a student loan is a secured one, the eligibility criteria are quite strict. You can only apply for student loan if you are between the age of 16 and 26 years. You must also have an excellent academic record and a stable income. If you are unemployed, you will need a co-applicant. This could be a parent or a guardian. In addition to this, you will also require a guarantor or need to sign security or collateral.
Pick the right lender
You must compare the education loan process for different loan providers. Do note that college admissions in the US begin in October and you must choose an appropriate lender well before that. While comparing different lenders, pay attention to factors such as the rate of interest, eligibility criteria, loan tenure, etc.
The education loan process is not limited to just acquiring the funds. The settlement is as crucial. When applying for a loan, you must pay attention to the options of repayment. There could be hidden costs of prepayment or part payment charged by many lenders. Sometimes, the equated monthly instalment (EMI) options are quite stringent and allow very little room for flexibility. Hence, it is essential to pick a lender that offers varied repayment choices.
List of documents
Each loan provider will have a list of specific documents required to get an education loan in USA. However, the following documents remain common for most lenders:
- Letter of admission by the university/college
- I-20 Form
- Attested mark-sheets, certificates, as well as GMAT, GRE, TOEFL scores
- Entry permit
- Address proof
- IT returns
- Income and employment proof
- Identity proof like a PAN Card or Aadhar Card
- Property documents in case of collateral
Higher studies in the US promise a bright and stable career. While you work hard to get into the college of your choice, pay equal attention to picking an education loan that can make this journey easy for you. Apply for a loan from Tata Capital and cover the costs of your education in the USA without any worries.