When to Apply for Student Education Loan?

Most students going to the U.S. for graduate studies usually apply for student loans. However, some students are not sure when to apply for a student loan.

There is some false hope among students that banks will provide student loans during the application process. Sad to say, that’s not true.

Student Education Loan for Bank Statement?

When applying to U.S. Universities, as part of application documents, students have to submit bank statements showing bank balance equivalent to at least one year of expenses (tuition fees + living expenses).

U.S. universities will list the amount required in the university application instructions.

Banks will not provide any student loan to students applying at U.S. colleges during the application period. You have to get bank statements and some schools will also ask for financial affidavits.

Sometimes, a bank manager must sign both the bank statement and financial affidavit.

Student Education Loans

Some of the banks that provide student education loans for students in India who are planning to attending graduate studies in the U.S. include SBI, Canara Bank, ICICI, Citi Bank, …I know it’s hard to education loans to be approved.

Bank managers will ask so many questions and request for numerous documents before approving education loans.

I’m not sure about the process of getting education student loans in other countries. If you have any idea, please share them here by posting comments.

Requirements for obtaining Student Education Loans

To get an education loan for admission at universities in the U.S. is mandatory. Unless a student has an I-20 and admission letter, a U.S. bank will not provide student education loan to applicants.

So before appearing for student visa stamping, it’s always better to first get a student education loan approved.

Some students use liquid cash in savings accounts to cover for the 1st year’s education expenses and use student loans for the second year.

Some affluent students might have money for the entire 2 years deposited in a savings account and then try to get an education loan approved as backup funds.

Save Money from Student Education Loan Interests

I have written a few articles on how to save money on student education loan payments. I know many current students that I’ve been I’m talking to are already following my advice.

It’s a very simple technique, which, in the long run, can allow students to save lots of money. Even a $100 savings is already huge for any student.


  1. Prakadeessh A. 12BC060 on June 19, 2014 at 8:44 AM

    When should I apply for student loans?
    “Before sending the application packet” or “before attending the visa interview”?

  2. Max on April 28, 2012 at 2:30 PM

    Hi HSB,

    Could you please answer a small query of mine. My brother is about to start college this semester . And I am starting my MS. We both will need education loans. Is there any restriction that two education loans can’t be sanctioned for one family in India? I am willing to even take two loans from two different banks.

    Note: I am taking a loan of 4 lakhs and my brother will also do the same.


  3. Pawan on September 28, 2011 at 8:46 AM

    Hi HSB,

    Thanks for the info..

    I had one query..I have got one i20 from one of the university and waiting for admission decision from other universities.So, I was thinking what if I apply for an educational loan with the i20 in hand and change the university later as I will be in a better position to decide on university after all the admission decision is received.This can also help me in getting the loan approved by the time I appear for visa interview as i heard it usually takes one month to get the loan approved.

    Is it possible or feasible to change the university after the loan is approved?


  4. Ajeyagv29 on August 25, 2011 at 3:17 PM

    can anyone tell what should the bank statements as well as financial affidavit should have in its contents ?

  5. Saurabh Srivastava on July 2, 2011 at 3:44 PM

    I want to know that If someone has not a good financial background and want to attend the graduate school in U.S. and want to apply for the student loan for the first year then is it possible?
    And what about the second year?
    Loan for complete 2 years?
    Or the student will be able to manage by part time jobs as I have heard that generally the student has to pay for 5-6 remaining credits out of 30 credits in his/her second year.

  6. Maitreyi on April 20, 2011 at 9:58 PM

    Is it so that bank loans taken from USA are cheper?? and wt are the procedures??

  7. Sohil on February 23, 2011 at 10:36 PM


    I have no gurantee to kep. But have enough money in my Bank Account to show i can afford 1st yr education. So kindly let me know if i can still get a loan for the amt equivalent for 2nd yr expenses.

    And if yes than which bank?

  8. vaish on November 4, 2010 at 8:24 AM

    My passport is expired and i'll hve to re-apply for the same. If i get my passport by end of december will i be able to take up examination in feb 2011.ie- can u tell me if there any kind of the number of days/months prior to which we need to book a slot for taking up the examination ??

  9. pankaj on June 18, 2010 at 5:02 AM


    A little question about student loan from India.

    I am planning to take a loan for my second year of studies and have already spoken to one bank and they are willing to give as well. But I can get this loan only in next month. But I have my VISA interview next week. SO what kind of document I can get from the bank to show their willingness to provide the loan? Would a letter be fine?

    Any sample letter or format will be really Helpful.


  10. Harshil Jhaveri on June 7, 2010 at 10:51 PM

    I want to take a loan from Us Bank, how do i go about it?? I have a co-signer..When do I apply for loan? before or after Visa Interveiw? I can show Funds for first year from my fathers account but i want to actuallly pay the fees by loan

  11. Ankit on June 7, 2010 at 10:12 AM

    is that gre going to be change its pattern in 2011???

    right now i completed my 3rd year b.tech and i am ready to take gre exam, but i didnt receive the passport and didn't booked the slot

    If i receive the passport in october can i book the slot for december is that possible.

    If i book now for jan 2011 , pattern will be old one or the new pattern of gre

    please help me out!!!!!!!!!!!

  12. rambabu.v on May 15, 2010 at 11:21 PM

    i rambabu iam looking for gre exam details plz send details immsdiately
    in my email.

  13. Balachandra.M on June 23, 2009 at 2:00 AM


  14. vinodnreddy on April 5, 2009 at 12:22 PM

    please tell me when to take gre …………
    rite now i am in 6th sem engg
    i am totally confused so please help me out…………….

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