Federal Student Loans for Study Abroad: Eligibility, Interest Rates, Benefits

Federal student loans study abroad can be used to finance an education abroad programs, including study abroad, internships, research, and volunteer work. It is important to note that the specific terms and conditions of your federal student loans for education abroad will depend on the type of loan you choose, your enrollment status, and other factors. It is recommended that you research and compare your options carefully before borrowing any funds. The eligibility requirements, interest rates, and benefits of federal student loans for education abroad are as follows:

Loan Provider	Federal student Loan
Loan Offered by	US Department
Purpose of Loan	Student Education
Nationality	All Nationality

About Federal Student Loan For Education 

Federal student loans for education abroad are loans offered by the U.S. Department of Education to help students cover the costs of studying abroad. These loans are available to eligible students who are enrolled in approved study abroad programs, including undergraduate, graduate, and professional students.

Types of Federal Student Loans for Study Abroad

There are three types of federal student loans study abroad that can be used to finance an education abroad:

• Direct Subsidized Loans: These loans are available to undergraduate students who demonstrate financial need. The U.S. Department of Education pays the interest on the loan while you are enrolled at least half-time, during your grace period, and during any authorized deferment periods.
• Direct Unsubsidized Loans: These loans are available to undergraduate, graduate, and professional students, regardless of financial need. Interest begins to accrue as soon as the loan is disbursed, and you are responsible for paying the interest while you are enrolled in school and during any deferment periods.
• Direct PLUS Loans: These loans are available to graduate and professional students, as well as parents of dependent undergraduate students. PLUS loans require a credit check and may have higher interest rates and fees than other federal student loans. Parents are responsible for repaying the loan, but graduate and professional students can borrow up to the total cost of attendance, minus any other financial aid received.

Also Read- PFMS Scholarship

Benefits of Federal Student Loans Study Abroad

Federal student loans study abroad would undoubtedly prove beneficial for students who want to pursue higher education. Some of the perks are listed below 

• Direct Subsidized Loans do not accrue interest while you are enrolled in school at least half-time, during your grace period, and during deferment periods.
• Direct Unsubsidized Loans accrue interest while you are enrolled in school and during all other periods, but you have the option to defer the interest payments until after you graduate.
• Direct PLUS Loans offer the opportunity to borrow up to the full cost of attendance, minus any other financial aid received, but they require a credit check and may have higher fees than other types of federal student loans.

Amount Borrow in Federal student Loans Study Abroad

The borrowing amount can depend on the undergraduate and graduate program 

• If you are pursuing an undergraduate program, the maximum amount you can borrow  each year in the range of direct subsidise and direct unsubsidised loan is $5, 500 to $12, 500 per year
• If you are pursuing a graduate program or any professional program, you can borrow up to $20,500 each year in Direct unsubsidised loan 

Also Read- Scholarship for Undergraduate for USA 

Eligibility Criteria 

To be eligible for Federal student loans to study abroad, you have to fulfil the following eligibility criteria.

• You must be a U.S. citizen or an eligible non-citizen
• You must be enrolled at least half-time in a degree-granting program at an eligible institution
• You must be in good standing on any existing federal student loans

Interest Rates

The interest rates for federal student loans vary depending on the type of loan you choose and when you borrow the funds.

• Direct Subsidized Loans and Direct Unsubsidized Loans for undergraduate students have a fixed interest rate of 3.73% for loans disbursed between July 1, 2021, and June 30, 2022.
• Direct PLUS Loans for parents and graduate students have a fixed interest rate of 6.28% for loans disbursed between July 1, 2021, and June 30, 2022.

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Application Procedure 

This is one of the most important things you need to remember while applying for a student loan. The application procedure for federal student loans for education abroad is similar to applying for domestic education loans. Here are the general steps.

• Complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is used to determine your eligibility for federal student loans and other types of financial aid. You should complete the FAFSA as soon as possible after October 1 of the year before you plan to attend school.
• Research the study abroad programs that interest you. Be sure to check with your home institution and the program provider to ensure that the program is eligible for federal student loans.
• Contact the study abroad program provider to obtain a cost of attendance estimate. This will help you determine how much you need to borrow in federal student loans to cover your expenses.
• Complete the loan application process. This may involve submitting additional paperwork to your home institution’s financial aid office, such as a study abroad approval form or a consortium agreement.
• Accept your loan offer. Once you have been approved for federal student loans, you will receive an award letter that outlines the amount of aid you are eligible to receive. You can then choose to accept all or part of the loan offer.
• Complete loan entrance counselling. Before you can receive your federal student loans, you must complete loan entrance counselling to learn about the terms and conditions of the loans and your rights and responsibilities as a borrower.

Documents Required 

These are the mandatory documents required for the application for a federal student loan for education abroad. 

• Current Qualification Proof
• Copies of degree & mark sheet 
• The score of admission tests like the GRE, GMAT, SAT etc
• Proof of Fee structure 
• Admission letter/ Offer Letter 
• Proof of Identity (Passport, Voter ID, PAN Card)
• Address Proof 

Also Read- WBMDFC Scholarship

FAQs

This was all about Federal Student Loan For Education Abroad. If you want to read more about Education loans follow Leverage Edu, and if you are also looking to pursue education from abroad our experts will help you with your study abroad process, call us on 1800 57 2000