Frequently Asked Questions

Q.1. Who is eligible for International Education Loans?
A.1. International Student Loan is a credit-based loan that requires a credit-ready applicant who is a US citizen or permanent resident. All applicants must have a US citizen or permanent resident as a co-signer regardless of loan amounts or other circumstances.

Q.2.  Is it possible to get loans without cosigner? Do student applicants need co-signers?
A.2.  If a student is applying for IELI loans that requires a credit-worthy borrower, s/he must be credit-worthy or apply with a credit-worthy co-signer (see definition of "credit-worthy" below). If the student is a graduate student, health professions student, or is studying for a second undergraduate degree, s/he may apply without a co-signer as a credit-ready borrower (see definition of "credit ready below")

"Credit Worthy": An applicant is "credit worthy" if s/he:    

Has a satisfactory credit, residence and employment history of at least two years;

Has proof of current income (if self employed, has been in business for at least two years); and

Is a US citizen or permanent resident who has resided in the US for the previous two years.

"Credit Ready": Certain of IELI loan programs (for graduate students and health professions students) allow the student to qualify for the loan even if s/he does not meet all of the criteria of credit-worthiness. An applicant is "credit-ready" if s/he:

Satisfies certain credit criteria, although an established credit history is not required; and

Is a US citizen or permanent resident who has had a stable residence in the US for the past two years.

Q.5. Why should a student who could qualify as credit-ready apply for a loan with a credit worthy co-signer?
A.5. IELI loans to credit-worthy applicants generally carry lower rates and fees than those made to credit-ready applicants. So, if a student is credit-worthy or can apply with a credit-worthy co-signer, the cost of his or her loan will be lower.

Q.6. How do I register for loans?
A.6. Any student from any country can register for loans. Click on the link Registration to register now.

Q.7. What is the total amount I can obtain as Loan?
A.7. Minimum: US $1000
Maximum: US $65000 annually or the Cost of Education as determined by the school. Aggregate borrowing limit of $225,000 for dental and medical programs; $130,000 for law and osteopathy programs; $150,000 for MBA programs; $120,000 for all other programs.

Q.8. What can this loan be used for?
A.8. Your loan may be used for the following purposes:

(a) Tuition and school fees; (b) Books and supplies (which may include a computer if the college requires students to have a computer); (c) Room and board (this is also included for the students who commute); (d) Other education related expenses; (e) Past due balances; (f) Transportation to and from school.

As well as additional costs such as: (a) Dependent care; (b) Study abroad programs; (c) Expenses related to a student's disability; (b) Costs for a Co-operative education program; (e) Any required loan fees

Q.9. What is the interest rate on the loan?
A.9. International Student Loans for studies abroad in USA, UK, Canada, Australia, New Zealand & over 40 Countries are available @ 5.25% interest per annum. (Wall Street PLR – quarterly variable). Click here to check current WSJ Prime Rate.

Q.10. Is the interest rate fixed during the tenure of the loan? How the Interest rate will be charged?
A.10. It is quarterly variable as per Wall Street PLR. It will be simple interest on reducing balance.

Q.11. Is the loan available for any school / college / University of the approved countries?
A.11. NO! Student needs to provide name of the university /school (with website) and name of the country. The list of pre approved schools and colleges is available on our website.

Q.12. I cannot see my school/college in the list provided on your website. What do I do?
A.12. The School Approval process is very simple and fast. It generally takes 4-6 weeks for the complete procedure. You may ask your school officials to visit our website and click on the link "For School Officials" to get the complete information about School Approval. For more details you may write to us at schoolapproval@ieli.org

Q.13. Is there any guarantee fee Or loan origination fee? Can I avoid this fee?
A.13. From 0% to 9.5%: Varying according to repayment options, these fees allow you to borrow without pledging assets or collateral. Fees will be added to the principal of the loan at disbursement. Yes, this fee can be avoided but the rate of Interest goes higher. Contact our counselors for more details.

Q.14. How long will it take for my loan application to be processed?
A.14. The loan application will be processed in approx. 2 to 4 weeks if the application is accurate and co-applicant's documents and credit history is satisfactory.

Q.15. What is the time period I have for repaying loan?
A.15. Repayment terms vary between 10 and 25 years, depending on the cumulative amount borrowed; minimum monthly payment allowed is $25.00. There are no penalties for early repayment.

Q.16. Is there any flexibility in the repayment options? Do I have the option to defer my interest and principal?
A.16. Option 1—Immediate Repayment
You begin making payments of principal and interest 45 days after the disbursement of your loan.
Option 2—Interest Only Repayment
You begin making interest-only payments 45 days after the disbursement of your loan. Principal and interest payments then begin 45 days after graduation.
Option 3—Deferred Principal and Interest Repayment
You defer payment of principal and interest for up to four consecutive years while enrolled in school/ College. Your first principal and interest payments become due 6 months after you graduate. Any unpaid interest accrued during this period will be capitalized before you commence repayment.

Q.17. Do you offer loan for any other purpose?
A.17. No. Our loans are especially for International Student Education only. (No Home loans/Car loans or personal loans.)

Q.18. If I meet your requirements is the loan guaranteed?
A.18. Yes. It is guaranteed. These are loans (and not scholarship) so there is no quota system. Any number of eligible students can avail International Student loans.

Q.19. Is there any fees in INR to be paid to IELI here in India? This fee is towards what?
A.19. Yes. There is one time verification and processing fee per loan application. This is towards processing, recommending, pre & post follow up with IELI’s lending partners overseas and towards finally getting the loan disbursed and delivered to the Financial Aid office of the university. All the incidental & necessary counseling and help required at this end are included in this fee. (Click on the link Fees to know the current/prevailing verification and processing fees.)

Q.20. How is my loan secured in case of any eventualities?
A.20. There is a mandatory life insurance which you will have to take to cover all the risks. (Contact us for more details)

Q.21. What is the deadlines to apply for the loan?
A.21. There is no deadline. Students should be advised to leave plenty of time to submit the application and required documentation so that funds may be disbursed by school deadlines. Application for past academic years is allowed only if the school will certify that past education related expenses are due.

Q.22. Are there any benefits for my co-signor?
A.22. 0.25% Rate reduction: It is available to borrowers who arrange with the loan provider to automatically deduct monthly payments from their bank account. The rate reduction will begin when automatic principal and interest loan payments start, and will remain in effect as long as automatic payments continue without interruption. The reduced interest rate will return to contract rate if auto payments are cancelled, rejected or returned for any reason.
Co-signer release: It is subject to certain conditions, including (i) the borrower must make their initial 48 consecutive on-time principal and interest payments, and (ii) the borrower must be credit-worthy at the time of the request to release the cosigner. The lender and loan provider reserve the right to modify or discontinue these borrower benefits at any time without notice.