Scholarship vs. Education Loan: Which Is the Best Way to Fund Your MS in the USA?

Education Loan

Share this blog

Funding Your MS in the USA

Pursuing a Master’s degree in the USA can cost between $11,000 and $90,000, depending on the program and university. To fund your MS in the USA, you should consider a mix of scholarships, assistantships, education loans, and personal savings.

Funding your MS in the USA requires careful planning and a strategic approach. Start early and research thoroughly to secure the best funding opportunities for your MS in the USA.

Scholarships for MS in the USA

Pursuing a master’s in the USA can be expensive, but several types of scholarships are available for international students. Types of scholarships for MS in the USA are:

Type of Scholarship	Scholarship Name
Government Funded	Hubert H. Humphrey Fellowship Program Fulbright Fellowships National Overseas Scholarship Fulbright Nehru Scholarship
Organization Based	AAUW International Fellowships Aga Khan Foundation Rotary Peace Fellowships
University Based	Cornell University Tata Scholarship New York University Wagner International Scholarships Yale University Scholarships Columbia University Scholarships University of Minnesota Fellowship Michigan State University Scholarships

Top Scholarships for Indian Students Pursuing an MS in the USA

Studying in the USA can be expensive, but having a scholarship can ease the financial burden. Indian students planning to pursue an MS in the USA can secure merit or need-based scholarships.

Scholarship	Details
Hubert H. Humphrey Fellowship Program	Offered to mid-career professionals Must have a UG degree Must have 5 years of work experience Demonstrated leadership qualities and record of public service English language proficiency
National Overseas Scholarship	For low-income students from marginalized communities Must be below 35 years as of April 1 (of selection year) Family income should be less than 8 lakhs per annum Must have a Bachelor’s degree with 60% marks
Fulbright Fellowships	Offered by the United States-India Educational Foundation Must have a US equivalent bachelor’s degree with 55% marks Must have relevant work or research experience of 3 years Must not have another US degree
Aga Khan Foundation Scholarship	To support financially weak students from developing countries Must have excellent academic records Must have a Bachelor’s degree or equivalent training / professional experience Demonstrate genuine financial need Secured admission to a reputable postgraduate university and starting 1st year of the program
AAUW International Fellowships	For women pursuing full-time graduate studies in the USA Must have a US equivalent bachelor’s degree Must return to their home country to pursue a career

Education Loans for MS in the USA

A Master’s in the USA is a great investment for your future, but it can be expensive. While scholarships or grants may not cover the entire amount of your studies, having an education loan is the best option. If you are looking for an education loan for an MS in the USA, here’s what you should consider:

Interest Rates: Check the interest rates thoroughly when taking a loan. Compare fixed vs floating interest rates. If you are looking for a low-interest education loan, Nomad Credit offers a 3.47% US Co-signer loan for MS in the USA.
Loan Amount & Coverage: Always check how much coverage you are getting in your loan. Ensure that your loan amount covers your tuition fees, living expenses, health insurance, and study materials.
Repayment Terms: Check the grace period of your loan. This gives you time to start repaying your loan without paying late fees.
Collateral & Co-Signer: Secured loans require collateral as security and can often have lower interest rates. Several banks may require a US Co-signer for your loan.

Start Your Application Today!

Scholarships vs. Education Loans: Key Differences Compared

Scholarships are the ideal choice as they offer financial support without repayment. Education loans are helpful for students who need extra money, ensuring that money won’t stop them from studying.

If you are still deciding between a scholarship and an education loan, this side-by-side comparison table will help you make the best choice.

Feature	Scholarship	Education Loan
Definition	Financial aid is awarded to students based on merit, need, or other criteria	Borrowed money that must be repaid with interest
Eligibility	Student’s needs, extracurricular achievements, etc	Financial need, credit history, and ability to repay the loan
Repayment	No repayment required	Repayment is required, usually with interest
Source	Government, universities, private organizations, NGOs	Banks, financial institutions, and government education loan programs
Amount	The amount is usually fixed	The amount varies and can cover full tuition, living expenses, and other costs
Interest	No interest is charged	Interest is charged and is based on the loan
Obligation	Often requires a particular GPA or other conditions	Must be repaid within a set period
Best For	Students excelling academically, athletically, or with financial need	Students who need financial assistance and are willing to repay later

Loan Finder

Find Your Best Loan
Options in Minutes

Explore Offers Now

Frequently Asked Questions

Can I get an education loan without collateral for an MS in the USA?

Yes, several banks, NBFCs, and international lenders offer education loans without collateral for an MS in the USA. However, the loan would be based on factors like university ranking, academic profile, co-applicant income, etc.

What is the average cost of studying in the USA for Indian students?

The cost of studying in the USA for Indian students may vary based on the program and the university. On average, it will cost you approximately $11,000 and $90,000.

What are the different types of education loans available for MS in the USA?

There are two types of education loans available for MS in the USA: secured loans (with collateral) and Unsecured loans (without collateral). In secured loans, you would require assets to pledge as security, while for unsecured loans, banks would check your academic profile, co-applicant’s income, co-signer, and more.

What are the different ways to fund education in the USA?

You can fund your education in the USA through scholarships, grants, education loans, part-time jobs, sponsorships, financial aid, and more.

What are the eligibility criteria for a Master’s program in the USA?

You must have a Bachelor’s degree (equivalent to US degree), standardized test scores (GRE / GMAT / IELTS / TOEFL) if applicable, academic transcripts, SOP, LORs, resume, student visa, proof of funds, and more.