The Ultimate Guide to Funding Your U.S. Master’s Without Breaking the Bank

Getting a master’s degree from a prestigious university in the USA can take your career to new heights. 

However, the rising cost of pursuing higher studies abroad shuts the majority of Indians out, especially those who belong to low-income households in rural India. 

And the USA happens to be the most expensive study-abroad destination in the world.

Tuition fees alone can run into tens of lakhs. Add living expenses, application and visa fees, and travel costs to that, and the dream starts to feel out of reach. 

But here’s one thing that students don’t hear often enough: affordable US education funding is available. Even someone without a wealthy background, hefty collateral, or co-signer can have access to several funding options.

Take the SBIF Asha Scholarship Program for Overseas Education 2024-25, for instance. The initiative offers scholarships of up to INR 20 lakh to meritorious students in need.

And it’s just ONE of the many avenues you can try. 

Importance of financial planning for a master’s degree in the USA

Students who have been preparing for higher studies abroad already know that financial planning is important. So, instead of TELLING you why it is important, let us SHOW you why through a scenario. 

Let’s take the example of Ravi, a 20-year-old engineering graduate from Telangana. Ravi wants to pursue a master’s in the USA and has even secured admission to a reputable mid-tier university.

Here, “mid-tier” refers to universities that fall outside of the U.S. News rankings’ top 100 universities. These institutions offer quality education but aren’t as expensive as Ivy League or top private schools. 

If Ravi gets into any of the following universities, the estimated cost may look something like this:

Now, based on a similar estimation, Ravi gets a loan of 50,00,000, and it seems to cover everything at first.

However, later down the road, the rent in his college town shoots up by 10%. Or, let’s say his books cost much more than what he had expected, or that his health insurance is $2000 extra every year. 

Furthermore, unforeseen expenses like a laptop repair will have him spending hundreds of dollars more. By the end of the year, Ravi will find himself financially strained. 

He may even have to rely on part-time jobs that barely cover his daily expenses. The stress of the increasing debt will then end up taking a toll on his academic performance.

Ravi’s example is one of many. Most students or their parents plan for the tuition and living costs. But most don’t account for additional and unforeseen expenses. 

Without a proper financial plan, students are likely to find themselves in a debt trap.

Also Read: Best Exams to Study in USA for Indian Students 2025 (Masters & UG)

Scholarships for international students pursuing graduate studies

Securing study abroad scholarships is a pivotal step for international students. The best way to get U.S. education funding for graduate studies is through scholarships. 

The good news is that there are several excellent graduate scholarships in the USA. In fact, the U.S. Department of Education awards approximately $46 billion in scholarships every year. 

However, only 16% of students receive state scholarships, and only 13% receive private scholarships.

The scholarship landscape in the USA is fiercely competitive. But that shouldn’t deter you from trying. In fact, with early and strategic planning, your chances of securing graduate scholarships in the USA can increase manifold.

Here’s a list of the top graduate scholarships in the USA:

Note: The application deadlines and eligibility criteria vary. Make sure you consult the official scholarship websites for the most current information.

Grants and financial aid options for master’s students

Another way to secure U.S. education funding is through grants and financial aid. However, just like scholarships, financial aid and grants for international students are highly coveted. That means these are extremely competitive. 

That’s why identifying and applying for the right international student financial aid is crucial. Here are a few that you must consider pursuing:

Affordable universities in the USA for international students

Unless the international student scholarships and grants offer 100% coverage, many of the top universities in the USA are simply out of reach for Indian students who come from modest family backgrounds. 

The average tuition cost for out-of-state students in public universities is around $27,279. For private universities, the national average is around $37,641.

As a yearly figure, these are still too high for the majority of Indian students. That’s why it is crucial to find low-cost study abroad programs. The good news is that there are several affordable universities in the USA. 

Here’s a list of the most notable ones:

If you are looking for affordable tuition and diverse academic programs, these are the best choices for you. 

Before finalizing a university, research the potential university thoroughly. Go beyond the tuition costs. Look into the cost of living in the area, scholarship availability, and the university’s support services for international students.

Also Read: 5 Most Affordable Universities in the USA for Indian Students

Education loans for international students: Pros and cons

For most Indian students looking for U.S. education funding, education loans are the only option. With the rising cost of studying abroad, student loans have become indispensable.

In India, both government and private banks, as well as NBFCs (non-banking financial companies), offer education loans for international students. The study abroad loans have varying interest rates.

Depending on the eligibility of the student, the interest may be anywhere from 8% to 15%. 

For instance, SBI’s Global Ed-Vantage Scheme offers loans up to INR 1.5 crore with interest rates starting at 9.15%. However, it’s a secured loan. That means you have to put property or a fixed deposit as collateral. 

HDFC Credila, on the other hand, offers unsecured loans of up to INR 45 lakhs with a floating interest rate as per their Benchmark Lending Rate.

Having said that, there are several pros and cons of taking education loans in India for international studies. Understanding these is essential for making well-informed decisions.

If you are going with education loans as your U.S. education funding option, make sure to plan your finances meticulously. Assess your repayment capacity and also consider the potential ROI. 

Tips for finding low-cost study abroad programs

Besides looking into every possible avenue for U.S. education funding, you should also search for low-cost study abroad programs. Fortunately, there are practical steps you can take to reduce the financial burden without compromising the quality of education. Here’s what you should do:

Explore Community Colleges

Those looking for affordable universities in the USA may consider community colleges. The tuition fees are significantly lower here. 

You can begin your academic career in the USA at a community college. After completing a two-year associate degree there, you can transfer to a university to finish your bachelor’s degree.

This pathway can significantly lower costs. 

Apply to Universities with No Application Fees

University applications come with hefty fees. Each time you apply to a university, you need to pay that fee. If you want to save money, consider applying to universities that waive these fees for international students.

Consider Public Universities in States with Lower Living Costs

For many Indian study abroad aspirants, getting admission to one of the top US universities is a dream. But this dream is simply too unattainable for those with a lower economic status.

That doesn’t mean they need to ditch their dream of studying in the USA entirely. There are several affordable universities in the USA. The list above can help point you in a helpful direction.

Utilize Exchange Programs

Exchange programs are a great way to study abroad. Look for domestic institutions that offer exchange programs or check for international partnerships. 

Consult Education Counselors

If you need help with this, try consulting education counselors. They can guide you to cost-effective programs and even assist you with applications.

With these tips, you can make your dream of studying in the USA a reality. 

Frequently asked questions

1. What Are The Best Funding Options For International Students In The USA?

Scholarships and grants are certainly the best options for U.S. education funding. Look into merit-based and need-based international student scholarships. Government grants like the Fulbright Foreign Student Program are perfect for Indian students. It usually offers 100% coverage.

2. Are There Scholarships Specifically For Master’s Degrees In The USA?

Yes, there are several scholarships for master’s degrees in the USA. The Fulbright-Nehru Master’s Fellowship and the AAUW International Fellowships for women are good examples of that. You can also find university-specific scholarship programs. 

3. How Can International Students Access Low-Cost Education Programs In The USA?

To find low-cost study abroad programs, you need to look into public universities. States like Mississippi and North Dakota are usually affordable for international students. You may also apply for in-state tuition waivers or assistantships to reduce costs.

4. What Are The Eligibility Criteria For Grants For International Students?

Eligibility requirements vary by program. However, common eligibility requirements include an excellent academic record, proof of financial need, admission to a recognized US university, and non-US citizenship.

5. Which Universities In The USA Are The Most Affordable For International Students?

There are several affordable university options. South Texas College, Minot State University, and California State University–Long Beach are great examples of that.