In the overseas education domain, the United States has long been the mecca for students seeking higher education opportunities. In the academic year 2022-23, more than a million international students from all over the globe were living the American Dream! Among many diverse programs in which these students enrolled, MBA stands out as a popular option. But let’s be honest and understand the fact that inflation is high worldwide presenting a significant financial challenge for students from developing countries.
That is where getting an overseas education loan for MBA in USA comes into play, making sure your dreams don’t go down the drain because of financial constraints. But what exactly are the benefits of securing an overseas education loan and what factors should aspiring students consider when contemplating this option? Let us find out.
Benefits of Taking an Overseas Education Loan
As beneficial as your MBA in the USA, the following are the benefits of taking an overseas education loan,
- Eases Financial Burden: An overseas education loan acts as your reliable ally, helping you manage the burden of tuition and living expenses while you study. This means you can focus on your studies without stressing about finances.
- Preserves Personal Savings: Your personal savings are like a safety net for unexpected situations or future plans. With an education loan, you can safeguard your personal finances, ensuring you can use your savings for other important expenses or future investments.
- Lower Interest Rates: With an education loan for MBA abroad, you have access to flexible repayment options as per your financial circumstances and career aspirations. This benefits you to design a repayment plan that aligns with your financial goals.
- Income Tax Benefits: An education loan opens doors to income tax benefits as well. Under specific provisions of the Income Tax Act’s section 80E, you can claim deductions on the interest paid towards your education loan. A loan co-applicant is also beneficial for this tax benefit.
- Flexible Repayment Options: Education loans offer flexible repayment options that cater to your unique financial situation and career objectives. This flexibility allows you to tailor your repayment plan to suit your financial goals.
After exploring the benefits of securing an overseas education loan for your MBA journey in the USA, let us check the key factors to keep in mind to selecting the right loan option.
10 Important Factors to Consider While Taking an Education Loan for the USA
The following are the factors to consider while taking an overseas education loan for an MBA in the USA.
- Calculate Loan Amount: Calculate the total expenses for your MBA, covering tuition fees, living costs, and other necessities, to determine the loan amount needed.
- Quantum of Finance: Explore financing options from various lenders, including nationalized banks, private banks, non-banking financial companies (NBFCs), and international lenders, to determine the maximum amount available for borrowing from each.
- Loan Processing Time: Consider the time required for loan approval and disbursement to ensure timely funding for your MBA expenses.
- Interest Rates: Compare interest rates from different lenders mentioned above to find the best deal that fits your financial situation and repayment capacity.
- Moratorium Period: Also known as the grace period, allows borrowers to postpone making regular loan repayments for a specific duration within the loan tenure. It is important to consider the moratorium period as well.
- Loan Disbursement: Ensure to inquire about the loan disbursement process, including the timeline and any associated documentation requirements, to plan your finances effectively.
- Repayment Terms: Assess the repayment duration and flexibility offered by lenders to ensure they align with your post-MBA financial plans.
- Currency Fluctuations: Stay mindful of currency fluctuations between your home country and American dollars, as they can impact your loan repayment.
- Fees and Charges: Take note of any additional fees and charges associated with the loan, such as processing fees and penalties, to avoid unexpected costs.
- Financial Counselling: Seek advice from financial experts or counsellors to navigate the complexities of education loans and make informed decisions.
In conclusion, it is essential to carefully consider all these factors when contemplating student loan for USA. By doing so, you can maximize the benefits of the student loan and ensure a smooth financial journey throughout your higher education pursuit in the USA. Additionally, opting for a student loan shows your dedication and commitment level to your academic aspirations.
So, go get that USA – MBA degree without the straining about the finances.
