Education Loan Guide For International Students In USA

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How to get an education loan? Is the first question that comes in our minds when we are planning for higher education. And, this becomes the biggest hurdle when we are thinking of applying in a foreign university.

In this article we would be explaining the process of getting an international student loan

The entire loan process is divided into three main stages-

  1. The List Of Documents Required– The documents that a college or University may ask from an international student are-
  2. a) Letter of Solvency,
  3. b) Pre- admission disbursement.
  • Letter Of Solvency– This is an important financial document usually asked by many Universities and Colleges in the United States of America. It is the proof of financial stability of an individual which is usually provided by the bank referring to his or her financial transactions or on the basis of CA certificates.
  • Pre- Admission Disbursement– Some Universities and colleges ask students to show them that the amount is present in their bank accounts which is needed for admission. The banks call it pre-admission disbursement.

2. Letter That States That Loan Has Been Sanctioned- After students are through getting their admits there are a lot of Universities in USA who ask to see  the loan sanction letter. This letter gives them the surety that the student who getting enrolled in the University is capable enough to fund himself.  This letter is provided to the student by the bank that sanctions the student’s loan. It is important to keep in mind that there is a provision that allows the bank to release the sanction letter even before the 1-20 is released.

Another way of convincing the college or University that the student applying is financially capable is by submitting the student’s fixed deposit.

Some universities may also ask to transfer the tuition fees even before the session starts as proof of financial stability. This is known as pre-visa disbursement.

3. Getting Your Visa Approved– The next important stage is getting the visa approved. The US embassy needs assurance that the student applying for Visa has adequate funds in his account to sustain the entire course. The students need to provide assurance of having a minimum of 75% of the total course fees mentioned in the form in order to convince the embassy.

Therefore, in order to apply for an education loan a student should first calculate the loan amount inclusive of all the other factors to get the exact amount that he would be needing.

Students can approach assignment help to get more information on the loan procedures for international students.

There are mainly two types of loans for international students.

i) Secure Loan for foreign students and

ii) Unsecure loan for foreign students.

  1. Secure Loan For Foreign Students-  In this type of loan the student gives an asset as guarantee to the bank. It can be anything starting from a property to a fixed deposit. The asset is termed as a Collateral which acts as a security. This collateral can be ceased by the bank in case the person fails to repay the loan.

Benefits Of A Secure Loan are-

  1. The interest rates are low compared to unsecure loans.
  2. Because of the collateral the sanction amount is higher.
  3. The time provided by the bank to repay the loan is longer,
  4. A special benefit is that no repayment needs to be done during the study period.

2. Unsecure Loan For Foreign Students– These types of loans are provided by banks both private and government banks. They don’t need any collateral as surety.

These loans have the following disadvantages-

i) The rate of interest is higher,

ii) Their processing fees is much more than secure loans,

Documents Required For Secure Loans Are-

  1. Fees structure of course applied for.
  2. Admission proof from college or university
  3. Co-applicant’s bank statement
  4. Co- applicant’s IT- Return
  5. Basic academic qualification records of the applicant.
  6. Proof of residence and citizenship of both the applicant and the co applicant.

The same documents are required if a student is applying for Unsecure loan.

You can get clarity on the documents by approaching assignment help where there are experts to give you clarity in case of any confusion.

Steps To Get An Education Loan For An International Student

Any student applying for education loan should go through  the following steps-

  1. The students need to go through the eligibility criteria before they apply for education loan.
  2. There is a representative from the loan department who gives you all the possible loan options.
  3. After selecting the correct loan option required documents needed to be submitted. These documents can also be submitted with the help of online assignment help. The sanction of the loan greatly depends on the submission of correct documents.
  4. Once the documents are successfully submitted it is further checked by the bank where the loan has been applied. Additional information or documents may be asked by the bank in case the criteria is met by the applicant loan is approved.
  5. In case the loan is approved by a private or public sector bank the co-applicant requires to sign a sanction letter.
  6. Post signing the sanction letter the applicant needs to sign a loan agreement. The time duration is 2 to 6 months before the applicant can apply for loan disbursement.


Keeping all the factors in mind we can therefore say that applying for a secure loan is always considered to be a better option for international students because it helps cover almost 80 percent of the expenses and leaves the student stress-free during the study period.

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