Adjustment of the Foreign Education Loan After a University Change

There is a sharp increase in the number of Indian students going abroad to pursue higher education. Students who want to study abroad often choose to do so because of the superior academic programs, networking opportunities, internships, and cultural diversity that top universities overseas offer. The admissions requirements for universities overseas differ. When a student wants to study overseas, they typically apply to many universities.

Because of exchange rates, studying abroad can be expensive. In order to study abroad, students opt to take out education loan for abroad studies. Depending on the needs of the student, there are two types of education loans: secured and unsecured. In India, obtaining an education loan is a lengthy process that calls for extensive verification at each stage. In India, there are numerous banks that provide low-interest education loans. The student cannot begin the loan application process until they have met the eligibility requirements and received an official offer letter from the university. The time frames for acceptance or rejection of applications vary amongst foreign universities.

The student typically submits applications to three to seven foreign universities. They start the process of applying for an education loan with their bank as soon as they receive the acceptance letter. The student would prefer to transfer universities if the education loan is approved and they receive an acceptance letter from a better university. This could be because they are receiving scholarships or an offer letter from a higher ranked university. The loan has already been approved in the name of the former university, which is the current issue. The banks allow for adjustments to be made to the foreign education loan even if the university changes.

Let's go over the specifics of the situations where changes can be made after the education loan has been approved.

Case 1 - The loan amount is unchanged even though the university is changed.

Should the student wish to modify their education loan due to a change in their university. The student can apply in writing to the bank, specifying that the name of the university and other details will change but that the loan amount will stay the same. The bank's decision to approve or deny the students' request to make the changes will now be determined. The bank may deny the request if the student has received an education loan from the Indian government to study abroad. If the loan was denied, the student would have to begin the application process over.

 

Case 2 - Both the loan amount and the university have changed.

Most of the time, when a university changes, the loan amount does too. Together with the loan application form mentioning the modifications and the new offer letter, the student must submit a fresh statement of expenses. The search report and valuation report will not be altered. The bank will request processing fees once more in order to approve a new loan. It takes eight to ten days to receive the loan sanction letter for this.

The value of your collateral should cover the difference in the loan amount if the student has a Secured Overseas Education Loan.

The two mentioned cases require lots of paperwork and verification. All financial institutions, including government and private banks, international lenders, and non-bank financial institutions, modify international education programs. Nevertheless, each financial institution will have a different timeline for implementing the changes.

You will already have a ton of other work to complete if you are a student planning to move overseas to study. In such circumstances, you can seek the advice of experts in foreign education loans. Find the best education loan provider in your area for studying abroad, then get in touch with the professionals to arrange a consultation. You can get advice from the experts regarding the policies that will expedite the necessary changes for your education loan.