Studying in the United States can offer a rich educational experience in terms of cultural exposure and academics. The top universities in the United States demand an academic rigour that drives people to succeed in their respective fields. Further, these places are culturally plural and diverse with many international students from different parts of the world. This helps students get a well-rounded education and a holistic perspective that helps them thrive in any environment.
The only catch is that pursuing a master’s in the United States can be heavy on your pocket. However, affordability is no longer a roadblock in pursuing higher education in the USA, especially since well-designed and well-structured personal loans for education are made available by Tata Capital. Any Indian national between the age of 16-26 years pursuing higher education can apply for a personal loan from Tata Capital with tenure for personal loan repayment up to six years. Here are a few reasons why it makes complete sense to apply for an education loan for your master’s in the US.
Additional Read: Education Loan from NBFCs: Pros and Cons
A loan taken for higher education is eligible for a tax deduction, according to Section 80E of the Income Tax Act. While the principal amount by itself is not eligible for the deduction, the interest amount paid towards the loan is, which means that education loans can prove to be relatively inexpensive.
This tax benefit is most beneficial to those who fall under large tax brackets. For instance, an individual who falls under the 30% tax bracket, with an education loan interest of Rs. 1 lakh in a financial year, that individual can claim up to Rs. 30,000 in tax deductions.
Scope for Improved Credit Scores
A personal loan can help improve an individual’s credit mix and improve their credit scores in the long run, given that the loan is repaid on time. Since having a good credit mix is a criterion for evaluation of credit scores, applying for an educational loan can help you enhance the score.
Extensive Coverage of the Loan
Educational loans are not confined to tuition fees but also cover other allied expenses such as those of finding accommodation, library fees, examination fees, etc. In the United States, where standards and cost of living are high, the extensive coverage of a personal loan for education can come in handy.
Additional Read: Secured Vs Unsecured Education Loans: A Detailed Guide
An educational loan has wide-ranging benefits and applying for one makes sense for any Indian national pursuing a Master’s in the USA. Apart from the tax benefits, extensive coverage, and improvement in credit score that these loans can provide, they also help protect the savings of an individual. This means that potential plans for a retirement corpus, purchase of a new house, or a child’s marriage can go unhampered throughout the period of the master’s programme. With Tata Capital’s minimal documentation and ease of application, seeking an educational loan is extremely convenient.