Education Loans in USA: What Are The Benefits?
What Are The Benefits?
The USA is one of the leading international education destinations for Indian students seeking a degree or specialized education abroad. Most students from India go to the US for obtaining an undergraduate degree in either engineering or medicine. After completing their degree, most of them migrate to the USA. The competitive education loan offers a wide range of funding options for student’s education needs in the USA.
The student’s education loans in the USA are the most popular among Indian students. In India, the education loan companies usually ask for a host of documents like the academic transcript, college transcript, medical clearance, and job references.
How to Apply for Education Loan in the USA?
The process of applying for an education loan in the U.S. differs from country to country. However, there are steps that you need to follow to be successful in this process. In the U.S., there are many educational loans that you can apply for. For instance, a private student loan is one of the most popular and it can be utilized by international students for educational purposes.
The reason behind this is that students will be able to apply for private loans in the U.S. and then have the payments taken over a fixed monthly period. However, these loans also come with their own advantages and disadvantages. Many colleges and universities offer private student loans for their international students. Since the cost of education is higher in the U.S.
What is a Co-signer?
Before they can apply for a loan, Indian students should be aware of the following points: a. A co-signer is someone who will be held responsible if the borrower cannot pay back the loan. Therefore, if the borrower doesn’t have enough assets or income to support himself or herself, a co-signer will be required to pay the money back. b.
Once you are accepted to an American college, you will need to have a co-signer to get the student loan. Co-signers are people who will be held responsible if you cannot pay back the loan. It is important to get to know the responsibilities of a co-signer before you get admitted.
What are the Different Types of Loans Available?
The majority of educational loans are federal in nature and are given by the federal government to the students in the course of obtaining higher education, as mandated by the U.S. Dept. of Education. After being admitted to a non-profit college/university, the student must have a satisfactory academic record along with a financial need for the education, so that he/she can apply for this loan.
Federal Student Loans Federal student loans are generally offered to American citizens who are admitted to an educational institution in the USA. They can avail of a maximum loan of $31,000 per academic year (four years). Most of these loans are in the form of student loans without a repayment period.
The Stafford Loan is a federal government student loan with fixed interest rates. The loan is not repayable until graduation, which means it must be paid back in 10 years from the commencement of study. A Stafford Loan has a fixed rate for the term of the loan and no interest accrues.
Elite Scholarship Program If you are seeking federal financial aid, a Stafford Loan may not be a perfect fit. However, you may qualify for federal need-based financial aid, but you must choose from several other loan programs to get access to these funds.
The primary federal need-based aid consists of scholarships. You can search for scholarships here. The colleges you select should provide full scholarships to all students regardless of financial standing. Plus, you can search for scholarships here.
Federal Perkins Loan
Students opting for a Federal Perkins Loan are also able to carry forward the remaining period of the loan to their next academic year and the amount can even be transferred to the new student’s account. Federal Perkins loans have strict eligibility criteria that can’t be waived. State Department of Education Loan State Department of Education loans can be used by those who are applying for a teacher’s training program in the USA.
State Department of Education loans don’t have a strict eligibility criterion. Employment and Family Assistance Program AFAP loan is a good option for those who wish to seek employment in the USA and need the loan in order to pay for their daily expenses. AFAP loans will not be subject to any financial hardship period.
Grad PLUS Loan
This loan is a federally subsidized loan offered by the Federal Government of the United States. It is offered by the Department of Education. It is best suited for people who have excellent academic achievement and significant financial need and there is no limit to the number of times one can apply for a Grad PLUS loan. Parent PLUS Loan This loan is also offered by the Department of Education.
A parent can apply for this loan if he/she is the co-signer on a student’s student loan. This is one of the most popular private student loans and the Federal government only approves applications for applicants with financial needs. You can apply for this loan either on your own or through your parents. The Federal government only approves applications for applicants with financial needs.
Education loans in the U.S. can be a wonderful source of funding for those who are pursuing higher education for foreign education. The application process to get an education loan in the U.S. is much more relaxed compared to other countries. The banks and the lenders in the U.S. are also more accepting of loans that are repaid in an interest-free or minimal payment period.