How to Get an Education Loan without Collateral for MS in the US

Education Loan without Collateral for MS in US

The United States is among the most preferred destinations for international students. However, pursuing education overseas comes with a financial burden as studying abroad can be expensive with high average tuition fees, living expenses, accommodation, transportation costs, etc. Hence, most of the students opt for education loans to cover all the associated costs. In case you are worried about studying MS abroad and want to avail of an education loan, this blog is a comprehensive guide for you to get an education loan without collateral for MS in the US.

Table of Contents

How to Get a Loan to Fund Your MS Degree in the US On Your Own

Funding a Master’s degree in the US can be daunting but manageable with proper planning. Here are steps you can consider to get a loan on your own:

  • Research Loan Options: Explore different types of loans available for students, such as federal loans (like Direct Loans) and private loans. Another aspect is the loan being secured or unsecured. Each has its terms and conditions.
  • Understand Eligibility: Check eligibility criteria for loans, which often include factors like enrollment status (full-time), citizenship or residency status, collateral requirement, and credit history (for private loans).
  • Compare Loan Offers: Review and compare offers from different lenders, including interest rates, repayment terms, and any fees associated with the loan.
  • Apply for the loan: After choosing a suitable lender, provide the required documentation, which may include proof of enrollment and financial information. 
  • Manage Loan Disbursement: Once approved, the funds will typically be disbursed directly to your school to cover tuition, fees, and sometimes living expenses.

How to Get an Education Loan Without Collateral for MS

Getting an education loan without collateral or a cosigner can be challenging, but it’s not impossible. Here are some ways you can approach it:

  • Government Schemes: In many countries, governments offer education loans with favourable terms, sometimes without requiring collateral or a guarantor. Research if there are any such schemes available in your country.
  • Check with Banks: Some banks and financial institutions offer unsecured education loans to students based on their academic record, potential future earnings, or other criteria. 
  • Scholarships and Grants: Explore scholarships and grants that can help cover your educational expenses. While not loans, they can reduce the amount you need to borrow.
  • Peer-to-Peer Lending Platforms: Consider peer-to-peer lending platforms that connect borrowers directly with individual lenders. These platforms may have different criteria and potentially lower interest rates than traditional banks.
  • Employment-Based Loans: Some employers offer education loans or reimbursement programs as part of their benefits package. 

Also Read : Types of Collateral for Abroad Education Loan

How to Get an Education Loan Without Margin Money

Margin money, in the context of loans, refers to the upfront amount that a borrower is required to contribute towards the total cost of a loaned asset or service.

In the case of education loans, margin money refers to the initial down payment or contribution that a borrower (usually the student or their family) needs to make towards the total cost of education. This amount is not covered by the loan and is expected to be paid by the borrower upfront. While availing of an education loan in a country like India, it is very common that it requires 15% margin money. The lender may require you to deposit margin money into your account before they disburse your loan.

But, not every lender uses margin funds. Lenders in the US and abroad do not utilize margin funds, and many of them offer up to 100% of the cost of attendance, which includes living expenses and tuition. You will still be responsible for covering the remaining costs for courses that give less than 100%.


Education Loan Eligibility for MS in the USA

To be eligible for an education loan for pursuing an MS in the USA, you typically need to meet the following criteria:

  • Admission to an Accredited Institution: You must have secured admission to a recognized and accredited university or college in the USA for a full-time MS program. The institution’s accreditation is crucial as it ensures the quality and recognition of your degree.
  • Loan Amount: The loan amount you are eligible for depends on several factors, including the total cost of attendance (tuition fees, living expenses, books, etc.) minus any scholarships or grants you may have received.
  • Creditworthiness: Most lenders will assess your credit history to determine your ability to repay the loan. For international students, this often means providing evidence of creditworthiness either in your home country or through a co-signer who is a U.S. citizen or permanent resident with good credit.
  • Collateral or Guarantor: Depending on the lender and your financial profile, you may need to provide collateral (such as property or fixed deposits) or have a guarantor who can guarantee the loan repayment.
  • Visa Status: Typically, you need a valid student visa (such as an F-1 visa) to apply for an education loan. Some lenders may require proof of your visa status or the visa application process.
  • Loan Repayment Capacity: Lenders will assess your ability to repay the loan based on your future income potential and career prospects after completing your MS degree.

It’s essential to research and compare loan options from different lenders or financial institutions to find the best terms and conditions that suit your financial situation and educational goals. Starting the application process early and preparing all necessary documents will help streamline the process and ensure timely funding for your MS program in the USA.

Also Read : How to Pay International School Costs from India to Abroad

Cost for MS in the USA

Before getting an education loan without collateral for MS, it is necessary to understand the estimated costs for a master’s degree in the USA. 

Tuition Fees

Generally, tuition fees range from USD 10,000 to USD 80,000 (INR 10 – 58 Lakhs) for a two-year duration. But, it can change depending upon the institution and the residency. For instance, Carnegie Mellon University has an annual tuition fee of approximately USD 43,000, while Harvard University charges tuition fees ranging from USD 47,000 to USD 49,000 per year.  Columbia University’s tuition fee is USD 29,382 per semester.

Other Costs

Living Expense(Accommodation, food, transport)$10,000 to $20,000 per year
Books and Supplies$500 to $2,000 per year
Health Insurance$500 to $2,000 per year

These mentioned costs vary depending upon multiple factors including- location, university, nature of accommodation, etc,

Also Read : How to Get an Education Loan With Low CIBIL Score

Required Documents for MS in the USA Education Loan

When applying for an education loan without collateral for MS program in the USA, the required documents typically include:

  • Admission Letter: A copy of your admission letter or offer of acceptance from the university where you will be studying.
  • Cost of Attendance: Documentation from the university detailing the total cost of attendance (tuition fees, living expenses, etc.) for the academic year.
  • Loan Application Form: Completed loan application form provided by the lender or financial institution.
  • Identity Proof: Typically, a copy of your passport.
  • Academic Records: Copies of your academic transcripts and certificates, including proof of previous degrees or qualifications.
  • Collateral Documents (if applicable): If you are providing collateral (such as property or fixed deposits) for the loan, documents related to the collateral may be required.
  • Income Proof: If you or your sponsor (if applicable) are employed, documents such as salary slips, income tax returns, or bank statements may be required to demonstrate income and repayment capacity.
  • Co-borrower or Guarantor Details (if applicable): If a co-borrower or guarantor is required for the loan, their financial and identity documents may be needed.
  • Visa Documentation: Proof of visa status (if already obtained) or documentation related to your visa application process.
  • Other Supporting Documents: Depending on the lender’s requirements, additional documents such as a statement of purpose (SOP), references, or any specific forms related to the loan application may be needed.

It’s essential to check with the specific lender or financial institution you plan to apply to, as requirements can vary. Additionally, start gathering these documents well in advance to ensure a smooth loan application process.

Repayment of Education Loan for MS in the USA

Repayment of education loan without collateral for MS in the USA typically begins after a grace period, which usually starts after you complete your studies or after you graduate. The repayment tenure and moratorium options are essential factors when selecting a lender. The table below dictates the repayment tenure and repayment options available by different lenders:

LenderRepayment TenureRepayment Options during the Moratorium Period
SBIUp to 15 yearsNo payment or only SI
Axis BankUp to 15 yearsSI or EMI
ICICI BankUp to 10 yearsSI or EMI
HDFC CredilaUp to 15 yearsPSI
AuxiloUp to 15 yearsSI
AvanseUp to 15 yearsPSI or SI
MPower FinancingUp to 10 yearsSI
Prodigy FinanceUp to 15 yearsSI
IDFC First BankUp to 12 yearsPSI or SI or EMI

Note: SI= Simple Interest, EMI= Equated Monthly Installments, PI= Partial Simple Interest

It’s important to stay informed about your loan terms, repayment options, and any updates or changes from your loan service. Develop a repayment plan that fits your financial situation and be proactive about managing your student loan debt.

Also Read : Tax Benefits on Education Loans Under Section 80E

Why Choose HiwiPay?

Want to pursue MS in the USA but worried about how and where to get an education loan without collateral for MS? HiWiPay is here to assist you with the process. Here’s what HiWiPay offers:

  • Streamlined Process which is completely digital. No hassles of endless paperwork.
  • Match you with the best-suited provider
  • Saves you time and money
  • Relevant lenders interested in your profile will reach out to you directly with personalised offers.


When you apply for an education loan without collateral to pursue Master’s Degree in the United States, it is advisable to evaluate and compare different aspects offered by different lenders. With HiWiPay, you can shift your worries to us as we’ll align your needs with the most appropriate lender available. Our education loan experts will personally assist you, understand your needs and then provide you with the most suitable loan options. 

FAQs of Education Loan without Collateral for MS

Can I get an education loan without collateral in the USA?

Yes. You can get an education loan without collateral in the USA. It can be based on your academic profile and your credit score.

Can I get a loan for MS without collateral?

Yes. You can get an education loan for MS without collateral.

Can I get an INR 20 lakh education loan without collateral?

Yes. You can get an INR 20 Lakh education loan without collateral. Lenders may assess your academic performance and repayment capability based on your credit score.

Can I get an INR 50 lakh education loan without collateral?

Yes. You can get an INR 50 Lakh education loan without collateral. Many lenders provide collateral-free loans on the basis of your academic performance and repayment capability based on your credit score.


Cost of Attendance- Harvard Accessed 27th June 2024

Cost of Attendance- Carnegie Mellon University . Accessed 27th June 2024

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