Education Loans In the U.S. and Canada for Indian Students

When it comes to studying in the U.S. or Canada, college can be quite expensive. Students may need to take out loans in order to pay for their education – in addition to any scholarships they are lucky enough to receive. However, student loans are much more widely available for a domestic student than for an international student from India.

International Student Loans for Indian Students

Although many Indian students will apply for a loan offered by a bank or other lender in their own country, it isn't necessarily easy to get one this way either. Education loans are not very common for those planning to study abroad in the US or Canada. So, what are the options for an Indian national studying overseas? Let's take a look!

Studying in the U.S. is expensive for any international student. The cost can be up to $75,000 a year for private colleges and $50,000 a year for public colleges. Federal student loans are fairly famous among U.S. students but they are not available for Indian or any other international students. Instead, they can apply for international students loans.

Studying in Canada is often more affordable, but still beyond the reach of many without additional help.

For Indian students, getting student loans in the USA or Canada may not be easy but we're here to help. Choosing the right lender and understanding their terms can also be difficult which is why we have resources to explain everything.

International Student Loans for Indian Students

Loan Programs in the U.S. for Indian Students:

Indian students will be able to apply for private student loans in the USA after being admitted to an eligible school. There are a few education loan providers available in the U.S. to choose from. The rates mostly depend on the lender and your own personal circumstances.

Here are few things Indian students should know about international student loans in the U.S.:

  • Co-signer:

    A co-signer is required to join a student's application for a private loan in many cases. The co-signer will be responsible for repaying the debt of a student who can’t repay his study loans. The co-signer should be a US citizen or living there for at least 2 years and should be able to repay the loan amount with interest.

    However, many Indian students don’t have any relatives or friends living in the USA who can act as a co-signer. They can search for lenders who don’t require one.

    International Student Loans without a Co-signer

  • How much can you borrow?

    The maximum loan amount Indian students can apply for is their entire cost of their education (known as Total Cost of Attendance) including tuition fees, books, health insurance, and other necessary expenses (education-related expenses). The exact amount will depend on the school you attend and the lender.

  • Repayment:

    The monthly repayments depend on the student, the loan provider, and the terms of repayments they both agreed on. With many lenders there be a low- or no-interest repayment period while the student is still attending college and for a short time after graduation, before full monthly repayments begin.

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Education Loan Programs in Canada for Indian Students:

Students from India studying at eligible Canadian universities may find loan programs availalabe to them. In most cases a co-signer is not required when studying in Canada.

Like all private education loans, Students in Canada can use the finds to cover part of or their entire tuition fee, as well as living expenses and school-related costs, medical insurance and travel costs.


Make sure to research your lenders before applying in order to find the loan that best suits your needs. Compare interest rates, repayment options and enrollment requirements before choosing a lender.

How to apply:

The application process for international student loans is quite simple.

  1. Check your eligibility:

    Using the loan comparison tool on this page - this takes 10 seconds and will show you if any companies are able to lend to a student in your position.

  2. Application:

    If you are matched with a lender you can then proceed with your application. The application process doesn't take long even if you are a non-US citizen. You will need to submit the necessary documents and paperwork to the loan company and they will decide whether you are approved or not.

  3. Documentation

    These are the most common documents you will need to provide your lender. You may be asked to provide other documents if needed.

    • Identification proof
    • Proof of residence
    • Academic records
    • Valid passport & Visa
    • Proof of admission to your university
    • Extra-curricular certificates if appropriate
  4. Approval:

    Once your application is conditionally approved, you will be notified of the interest rates (fixed or variable rate) and repayment terms. Once you agree with the terms, your loan application will be approved and funds disbursed. This usually takes around 6 weeks.

    You should go through the terms and conditions multiple times before making any decisions. It can be very confusing to understand. If you have any doubts, consult an expert before signing to accept your funds.

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Are you a US student planning to study in India? If so, check out our study abroad loans and foreign enrolled loans that can work for you.