Planning to study in the US, why not get loans from the US banks?

Studying abroad often requires financial assistance for extra expenses such as travel, accommodations and materials, which can make it a greater financial commitment.If you are planning to pursue your higher studies in the USA, please take a note that Interest rates are much cheaper in the US than India. However, either the university or a greencard holder should be a guarantor. For students applying to US universities, there is another option to garner funds. Provided they have a guarantor (US co-signer) a green card holder or, in some cases, if the university stands the guarantee they can avail the loan in the US itself. International education is expensive, and many students struggle to fund their international studies. Scholarships and grants are available, but they are very competitive and rarely cover all of your expenses. According to data from the Open Door Report published by the Institute of International Education, US was the preferred destination for Indian students, with 104,897 of them opting for courses in 2010. Rajni Bhatla, Director of Kampus Landing which is one of the best overseas education consultants says, "Loans from US banks works because of the low interest rate they offer. Currently, loans sanctioned through US universities charge interest at around 7 per cent. In contrast, education loans from Indian bank are expensive. For instance, Bank of Baroda, UCO Bank, State Bank of India and Axis Bank extend loans at 12.75 and 14.75 per cent, respectively. Loan repayment tenure is longer in the US." Thus, the students would either need high paying jobs on the completion of the course or be given the option of longer tenure to repay the loans. While university backed loans have a tenure of 20 -30 years, those availed directly through banks are shorter, at 15 years. In comparison, most Indian banks have a repayment tenure of around 7 years. If you opt for a loan through Credila, an education loan company by HDFC limited, the tenure is longer, at 10 years. Rajni Bhatla told that Kampus Landing is in the process to tie up with one of the leading banks in India to ease the process for students wishing to study abroad.