How to Use Student Loan from India
By HSB
Debjyoti [Premium Membership Club Member] @ Save Money on Student Loan
Banks in India if approved student loans draw the dollar draft required for tuition fees in favor of the university name. So how can one deposit the sum in his own checking account??
Secondly do bank approve loans for living expenses too????Or they simply approve the loan mentioned in the I-20 as tuition fees and a cost of buying a laptop may be included??If anybody get full scholarship do he/she can apply for a student loan????Please let me know…
Cashing Out Student Loan
Banks in India don’t have standard rules, procedures and formats. Each branch of the same bank will follow different set of standards. For example State Bank of India will approve student loan to a student going to US based on value in I-20, but
- Some SBI branch will issue only one Demand Draft (or cashiers check) in the name of the University
- Some branches will give 2 Drafts (Tuition fee and Living expense in your name)
If the bank gives only single check in the name of the University, don’t argue with them and waste your time and energy. It is very hard to convince the managers who thinks, they have all the power in the world, while issuing that single draft. Get enough money to cover first semester expenses ( Tuition fee, Living Expenses, …) and get 300 to 500 US Dollars to take with you for travel.
After reaching the University, pay the first semester fee with the DD. Additional fees will be will be refunded to you in 2 to 4 weeks. University will issue a Check in your name. You can deposit that check in your bank account.
Student Loan for Living Expenses
Yes, bank will approve a maximum amount ( upto 20 Lakhs Indian Rupees ~ 40,000 USD) which can include tuition fees and living expenses. If bank can give you 2 demand draft ( or cashiers check) it will be better, but as you said, some bank’s just don’t get the reality. They think students will use that money for other purpose.
There are few Universities in America that will approve Student Loan without co-signer for International Students. Check with the University for more details.
Student Loan and Scholarship
Depending on type of scholarship awarded, you may need to get student loan. But, it’s always better to get student loan approval, if you need to later, you can use it. It’s really pain in the A** to get student loan after you go to US.
In some universities, scholarship will get you in-state tuition fees, you will have to pay for the rest of the fees. Some types of scholarship will pay you $10,000 to $20,000, in which case you don’t need student loan. If you get RA/TA, that will pay you monthly $300 to $1500. So, based on type of Scholarship/Fellowship you may want to get student loan approval in India.
Related posts:
- Student Loan: How to use the money and save more?
- Paid extra college tuition fee? No worries
- How to Save Money on International Student Loan.
- Who else wants to know about student loan?
- How to Earn Interest from Student Loan Money
Banks give loans for the amount mentioned on I-20. The amount mentioned on I-20 is the expected amount that you may need during your semester. This amount can include living expenses also. You should check the I-20 and it will clearly explains the expenses. The bank will not give you additional loan amount for anything that has no bill. Like you can get airticket amount by mentioning the amount and showing them bill later. But for a laptop I dont think you can do so because you have to purchase laptop from US. If you purchase from India then you can ask the bank but better buy the laptop when you come to US because while travelling there can be a risk that your laptop gets damaged or misplaced (well I dnt wish this to happen.. just a suggestion only)