Introduction:

Around 915,000 overseas students enrol in MS programmes worldwide each year to advance their careers, with the United States being their first choice. The United States has half of the world's top universities and employs world-renowned faculty and resources, which is why everyone roots in the US school system. However, as you may know, higher education in the US is expensive -tuition fees range from 20,000$ - 80,000$, yet money should never stop you from pursuing your dreams. You can apply for a scholarship or a student loan for MS in the United States to bridge this gap.

This article will go over a few things you should look out for when looking for an MS education loan in the United States.

When to apply to universities in the USA for MS:

You should start your application to study abroad in the United States as soon as possible, ideally before the end of your second year of undergraduate studies. In most situations, you should submit your complete application for postgraduate studies during the final year of your undergraduate degree programme.

Some colleges/universities will accept applications early, and some take their sweet time.  If you wish to be considered for various scholarships and other financing opportunities like Education Loans, meeting this deadline earlier may be useful.

Right time to apply for an Education Loan for MS in the United States:

The timeline depends on various factors, one of which is the Intake season. There are usually 2 major intakes, One during September - Fall Intake; and the other during January - Winter Intake. There’s also a minor intake during May, known as the Summer intake, which not all the universities prioritize.

Banks surprisingly sometimes sanction the loan in a week, whereas, few take a month or more! And that is why, to be on the safer side, this is when you should ideally apply for an Education loan depending on your Intake season:

Fall intake (September) - Start applying in June or earlier
Winter intake (January) - Start applying in October or earlier
Summer intake (May) - Start applying in February or earlier

Lenders offering education loans for MS in the USA for Indian students:

In India, student loans are categorized in to secured and unsecured based on a single factor: collateral security. If you're familiar with how loans work, you've probably heard this term before.

Secured education loans are typically granted by government banks and are authorized when the borrower provides collateral security to the lender; Unsecured education loans, on the other hand, are provided by NBFCs and private banks and do not require any form of collateral to be pledged.

Secured Education Loan: Assets you can pledge.

Unquestionably, the process of borrowing a secured education loan is no cakewalk. It's a time-taking process; however, it has its benefits, one of which is the provision of lower interest rates.

In India, Lenders accept two types of collateral security for education loans:

• Immovable Security: Refers to assets such as houses, flats, and non-agricultural land.
• Liquid security: Refers to fixed deposits, term insurance policies, and government bonds.

For education loans, banks also consider third-party collateral. Third-party collateral refers to the securities of your friends and relatives, where you can pledge their property as collateral for your education loan if they are ready to do so.

To figure out how much of a loan you may acquire with collateral? What are the methods for valuing collateral securities? What documentation, if any, is necessary, and what else? We've already discussed it in-depth in our article on Collateral Education Loans for Studying Abroad.

For you, your education loan process begins the day you start looking for lenders, their education loan schemes, loan amount and interest rates as per your requirement, and so on.

The process of getting your education loan sanctioned for the US is as follows:

• Students are required to show the acceptance letter/ offer letter from the university to the bank.
• If the loan criteria are met and you're eligible, the loan is sanctioned to you.
• The sanctioned letter can then be forwarded to the university as proof of funds.
• The university will then send you the i20, an important document required by students to apply for a student visa from the US embassy.

In our previous article, we've described the procedure for both the collateral and non-collateral education loan and the list of all the documents you must have handy, in order to speed up your loan process and not delay the sanction.

To have an effortless education loan process, suiting your profile, connect with our team at WeMakeScholars.

Impact of Academic & Language test scores on your Education loan:

It is always a plus point to have amazing test scores in Academic & Language tests like  IELTS, GRE, GMAT etc. The reason being, Banks and private lenders at times take into consideration these test scores. If they notice your scores to be impressive, your loan is sanctioned on priority.

Tips regarding your Education Loan (Must know!)

• Start your loan process early- It is better to be on the safe side with a sanction letter 1 month prior than having to run to banks for a student loan till the last moment. Start applying for a loan once you get your offer letter from the university. Never underestimate the time that can be taken for an education loan for MS in the USA for Indian students.
• Make collateralized loan your first priority! - Undoubtedly, public banks offer the best education loan deals - be it a lower rate of interest, no-payment moratorium period, less processing fee, more lenient loan term, etc. The only downside is that the public banks can take months to process your loan if you visit them directly, hence, to avoid that, reach out to WeMakeScholars, and we’ll make it a point to get it done in 15-20 days! 
• Have an unsecured loan as a backup - Since getting an unsecured loan doesn't require you to pledge collateral. Apply for a secured loan first, as it takes longer and if it doesn’t work out at the last moment, only then resort to an Unsecured loan.

Conclusion:

Well, we hope we’ve cleared all your doubts and assumptions about an Education Loan for the US. If you have any more queries regarding the same, our financial team at WeMakeScholars is here to help you.

Request a callback today!