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Education Loans for USA

Updated on Nov 15, 2022
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Question 1: What types of courses may I get an education loan for?

Answer: For authorized vocational courses, diplomas, undergraduate, postgraduate, doctoral, and professional courses, you can apply for an education loan.

Question 2: Are there any tax advantages to taking out an education loan?

Answer: You can get tax breaks on your college loan interest payments. Sections 80C and 80E of the Income Tax Act of 1961 will apply.

Question 3: Is there any kind of security required?

Answer: Typically, collateral is only required for school loans over a certain amount, which varies by bank.

Question 4: Is it possible to add a co-applicant to my loan?

Answer: A co-applicant is required by several banks for an educational loan. A parent, guardian, spouse, or parent-in-law can all be considered.

Question 5: When will I be able to begin repaying my loan?

Answer: The repayment period will vary depending on the lender, but for the most part, it will begin at the end of your study or a few months after you start working. After completing your course, you will be placed on a moratorium period.

Question 6: Is taking out a student loan the best option?

Answer: Education loans provide readily available funds, which are always useful. Even if you have enough savings to pay for your education in the United States, you should consider taking out an education loan because if you invest your money wisely, you can earn more interest than you would pay on your education loan.

Here are some of the most significant advantages of taking out an education loan to study in the United States:

  • Personal savings are unaffected.

  • Tax benefits on student loans

  • Loans that are tailored to you

  • After graduation, repayment

  • Self-dependence

Question 7: What should you check for while selecting a student loan?

Answer: Choosing the finest college loan is a difficult task. When picking the proper lender, there are a few things to bear.

Some of the most significant aspects to consider while selecting an education loan package are as follows:

  • Rates of Interest

  • A moratorium has been imposed.

  • Processing charges

  • Penalty for paying in advance

  • In USD vs. INR, fixed vs. fluctuating interest loans

  • Duration of the loan

  • The kind of loan

Question 8: What are the different education loans available in India for studying in the United States?

Answer: In general, there are two types of education loans available in India for studying in the United States:

Secured Education Loans: These are secured education loans. To obtain an education loan, you must pledge an asset as a security to the lender. There are two sorts of collateral -

  • Flats, non-agricultural land, stores, and other tangible assets

  • Fixed deposits, life insurance, government bonds, and other intangible assets are examples. 

Unsecured Education Loans: Unsecured education loans do not require collateral. As the name implies, you do not need to commit any security to the lender to obtain an education loan. However, there should be a co-applicant, and his or her income will be a crucial factor in the loan approval. In addition, only a few foreign players and private lenders in India offer unsecured education loans for amounts greater than INR 7.5 lakhs.

Question 9: What are the different types of lenders that offer Indian students education loans in the United States?

Answer: Four primary categories of lenders offer education loans to Indian students who want to study in the United States:

  • Public-sector banks

  • Private-sector banks

  • Non-banking financial companies (NBFCs)

  • International lenders 

Question 10: Is a bank account required to apply for a student loan?

Answer: The borrower's, parent's, or guardian's bank account statement for the last six months. The borrower's, parent's, or guardian's income tax assessment for the previous two years. The specifics of the security pledged must be provided for loans with collateral.

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