But access to high standards of global education doesn’t come for free. And if you’re applying to a highly developed country such as the United States to study abroad, a Master of Science (MS) degree can come at an overwhelming cost.
If you don’t have the means to afford an MS degree, applying for a student loan is a reasonable solution. After all, insufficient funds shouldn’t stop you from pursuing your dream MS degree.
Here are some student loan options that you should consider:
Federal Loans for MS students in the US
If you are a U.S. citizen, you can apply for a federal loan through two options: a Direct PLUS Loan or a Direct Unsubsidized Loan.
Direct PLUS Loans allows you to borrow as much money as you need to finish your MS program at a 5.3% annual interest rate. Direct Unsubsidized Loans allows you to borrow money based on the amount determined by your university at a 4.3% annual interest rate.
To be eligible for a federal loan, you must be a US citizen. In some cases, green card holders who are not U.S. citizens may also apply.Â
Loans From Public Sector Banks
For international MS students, most public sector banks offer collateral loans. Depending on your home country, public sector banks may require you to have a co-signer and collateral.
In most cases, you can get up to 90% Cost of Attendance (CoA) cover. And depending on your country, you may be required to pay the margin money, which is the remaining 10% of the loan upfront to the public sector bank.
The average variable interest rate for collateral loans is 10.5%.
Non-Banking Financial Corporation (NBFC)
Taking out a student loan from an NBFC can be complicated for an MS applicant without a good credit history. In most cases, loans from an NBFC are assessed based on the credit score, credentials, and salary of the co-signer.
Typically, these loans offer to cover up to 100% of the student’s CoA. Usually, only a co-signer is required to take these loans from an NBFC, but you may be obligated to provide collateral if you’re borrowing a large sum.
International Private Lenders
Some private lenders offer student loans to MS applicants without collateral or a co-signer. Some of these loans can cover up to 100% of the student’s CoA, but only in unique cases such as getting admitted into a top-ranked university.
Taking out a student loan from a private lender is much faster compared to other options. In some cases, you may even have the liberty to pick between a fixed and variable interest rate.
Making arrangements to fund your MS education is necessary when you’re planning to study in the United States. Make informed and wise decisions when taking out a student loan by reading relevant articles here at MSM Unify.
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