An overview of eligibility criteria for a study loan for USA colleges

Posted by james carter on April 27th, 2021

Many students aspire to complete their higher studies in the USA. Have you aspired to do so too? Then you may know that education in the USA is expensive. Many students search for “study loan USA” on Google to search for student loans to study at some of the prestigious universities there. In this article, we will tell you the eligibility criteria to get an education loan for higher studies in the USA.

To get an education loan, you and the co-borrower would have to fulfil the following eligibility criteria:

Student eligibility criteria

The student must:

1. Be an Indian citizen.
2. Be above 18 years of age. If the student is not then the parents of the guardian would have to apply for a loan on the behalf of the student.
3. Display good academic performance.
4. Have an admission proof into a college approved by the lender.
5. Have applied for a course that is job-oriented.

Co-borrower eligibility criteria

If a student has applied for a full-time course then he or she needs a co-borrower to get a study loan for USA colleges. A co-borrower in most cases is either one of the student’s parents or a guardian. A spouse can be a co-borrower as well. The repayment of the loan lies on the co-borrower’s shoulder if the student is unable to pay back the loan after completing his or her education.

The co-borrower must:

1. Be an Indian citizen.
2. Have a reliable income source.
3. Have a good credit score.
4. Be either a parent or a guardian (Spouses of married people can be considered as co-borrowers as well)

Once you have check marked the eligibility criteria then comes the phase of submitting your own and your co-borrower’s documents that are required for a study loan for USA colleges.

Student documents required

The student documents usually required are:

1. A filled loan application form.
2. Couple of passport-sized photographs.
3. Identity proof (AADHAAR card/ PAN card/ Passport)
4. Residential proof (Electricity bill/ Gas bill/ Water supply bill)
5. Academic mark-sheets and certificates
6. Competitive exam mark-sheets (GRE/TOEFL/ GMAT)
7. Admission proof from the university approved by the lender
8. A log of potential expenses incurred while studying the course

Co-borrower documents required

The co-borrower’s documents generally required are:

1. Couple of passport-sized photographs.
2. Identity proof (AADHAAR card/ PAN card/ Passport)
3. Residential proof (Electricity bill/ Gas bill/ Water supply bill)
4. The details of the loans held presently by the co-borrower.

If the co-borrower is a salaried employee then they need to submit these documents additionally:

1. Salary slips of last 3 months.
2. Income tax returns.
3. Salary account statements of the last 6 months.

If the co-borrower is self-employed then they need to submit these documents additionally:

1. Qualification certificate (B.Sc certificate if the co-borrower is a Science graduate).
2. Address proof of the business office.
3. Income tax returns.
4. Bank account statement of last 6 months.

So, this was the eligibility criteria and the documents required to apply for a study loan for USA colleges. We hope that after reading this article, you have a better understanding about the eligibility conditions to get education loans. All the best!