For many Indian students in the U.S., pursuing a second master’s degree isn’t just about academic ambition—it’s a strategic decision to maintain F1 status after OPT or to pivot into a more competitive and employable position in the U.S. job market. However, this next step often brings a significant financial challenge. After all, many students have already invested heavily in their first U.S. degree and may not have enough savings to cover the cost of a second.
In this context, education loans may seem like the most practical solution. But in 2025, borrowing money isn’t just about interest rates and approval odds—it’s also about how your financial choices can affect your immigration future.
With USCIS increasingly syncing data with IRS systems, your financial behavior—loan applications, repayment history, credit score—is becoming more visible to immigration authorities. Questions like “Can a missed loan payment hurt my visa status?” or “Will my credit score affect future green card applications?” are no longer hypothetical. Your financial record is becoming a part of your immigration profile.
In this guide, we’ll walk you through how to responsibly fund your second degree: from loan options without a cosigner and tips for building or protecting your credit, to smart ways—like joining hybrid professional programs—to earn income while you study. Whether you're just beginning your research or ready to apply, this guide will help you avoid costly mistakes and move forward with confidence.
Yes, but it’s more nuanced than securing a loan for a first degree. Your eligibility depends on:
Most education lenders—whether based in the U.S. or India—require that borrowers are enrolled in an accredited institution offering a full-time or hybrid degree program. Accreditation is a formal recognition that a university meets certain quality standards set by independent accrediting bodies approved by the U.S. Department of Education (ED) or the Council for Higher Education Accreditation (CHEA). It assures both lenders and the government that the education provided is legitimate and meets academic and administrative benchmarks.
This is especially important for international students applying for loans, as lenders often cross-check whether your school is listed in one of these official databases. If your university is not accredited—or if it’s accredited by an agency not recognized by ED or CHEA—your loan application might be denied, even if you're otherwise eligible.
To verify if your school is properly accredited, you can use these resources:
Both databases allow you to search by school name or location and view the accrediting agency and status.
In short, don’t assume that any SEVP-certified or CPT-eligible school will automatically qualify you for an education loan. Do your homework in advance to avoid delays or loan denials.
Yes, though the impact can swing either way—it all comes down to how you operate financially.
When you take out an education loan in the U.S., it becomes part of your credit profile. If you make your payments on time and in full, this can significantly improve your credit score. A strong credit history not only helps with future loan approvals (for a car, a house, or even a business) but can also influence non-financial decisions, such as renting an apartment or securing a mobile phone plan. In short, building a solid credit profile while studying is one of the long-term financial benefits of managing a student loan responsibly.
However, the reverse is also true. Missed payments, late payments, or defaulting on a loan can severely damage your credit score. For international students on F1 visas, this doesn’t just create financial stress—it may also raise red flags during future immigration screenings.
Here’s why this matters now more than ever: In recent years, USCIS has begun increasing data-sharing integrations with other government agencies, including the IRS. While your visa eligibility is still primarily judged by immigration status and program compliance, your financial behavior can play an indirect role—especially when applying for visa extensions, change of status, or even a green card.
For instance:
Bottom line: if you're planning to take a student loan for your second master’s, treat it not just as a financial commitment, but also as a factor that could shape your future in the U.S.
Securing an education loan for a second master’s degree in the U.S. comes with unique difficulties—especially for Indian students. Many of these challenges relate to creditworthiness, documentation, or loan eligibility criteria that aren’t tailored to international student realities. Below, we break down the most common obstacles and practical ways to work around them.
Many U.S.-based lenders require a creditworthy U.S. citizen or permanent resident as a cosigner. However, most Indian students don't have close contacts in the U.S. who qualify. Additionally, if you haven’t lived in the U.S. long enough or haven’t used credit products like credit cards or car loans, your credit history may be too limited to qualify on your own.
✅ MPOWER Financing
MPOWER Financing offers fixed-rate student loans specifically designed for international and DACA students pursuing education in the U.S. and Canada. Their loans do not require a cosigner or collateral. Instead, MPOWER evaluates applicants based on factors like academic performance, career trajectory, and future earning potential. This approach allows students to build their U.S. credit history through timely repayments.
✅ Prodigy Finance
Prodigy Finance provides loans to international postgraduate students without the need for a cosigner or collateral. Their lending model assesses applicants based on future earning potential and the quality of the academic program, rather than existing credit history.
The problem: Without a cosigner or collateral (like property or fixed deposits), many students are offered higher interest rates—sometimes exceeding 12-14%—which increases long-term repayment stress.
Solutions:
One of the most attractive features of many second master’s programs—especially those that offer Curricular Practical Training (CPT) from the very beginning—is the opportunity to work in paid internships or professional roles while studying. This can make a huge difference in your financial planning and return on investment (ROI).
Unlike traditional programs that may require students to wait one academic year before becoming eligible for work authorization, hybrid professional programs are structured to allow employment as an integral part of the curriculum.
Here’s how that benefits you:
Paid CPT roles can help cover a significant portion of your tuition, housing, and living costs, reducing the need for high loan amounts or external financial support.
Many CPT students secure positions in high-demand fields like technology, data science, software engineering, business analytics, IT consulting, and digital marketing—all of which offer competitive pay and flexible work arrangements.
Well-known companies like Amazon, Deloitte, Meta, Infosys, Accenture, TCS, and other tech-forward startups frequently offer roles that qualify for CPT, especially in large urban job markets.
By gaining industry experience while you study, you’re not only generating income—you’re also building a stronger resume, expanding your U.S. professional network, and increasing your chances of landing a full-time role post-graduation. The combination of earnings + experience makes the degree far more valuable, especially if you’re transitioning careers or aiming for future H1B or green card sponsorship.
Day 1 CPT programs are not just a legal workaround—they’re a strategic path for Indian students who want to fund their education, stay in status, and gain a foothold in the U.S. job market. Just make sure to choose a reputable school and remain fully compliant with USCIS guidelines.
5. How to Apply for a Student Loan for a Second Master’s Degree (Step-by-Step Guide)
Start by understanding the two main types of lenders:
💡 Tip: Compare interest rates, repayment terms, loan coverage, and processing times. Use platforms like GyanDhan or WeMakeScholars to simplify this.
Before applying, confirm:
Typical documents you’ll need include:
For U.S. lenders: Visit the lender’s website (e.g., mpowerfinancing.com, prodigyfinance.com) and complete the online application.
For Indian banks: Apply through the branch or online portals. You may need to visit a local branch for verification or document submission.
🕒 Processing times vary. U.S. lenders may approve in a few days. Indian banks can take 2–4 weeks, especially if collateral is involved.
Once approved, you’ll receive a loan sanction letter, which includes:
📌 You can also use this letter as proof of funding during your visa interview if needed.
Make sure to confirm tuition deadlines with your school to avoid late fees.
Q: Can I repay the loan early?
Yes, but check for prepayment penalties. Some lenders allow early repayment with no fees.
Q: What happens if I transfer schools mid-program?
You may need to reapply or inform your lender. Make sure the new school is eligible.
Q: Does a loan affect my H1B or green card chances?
Only if unpaid. Good financial history typically does not hurt immigration prospects.
Q: Does my major affect my chances of getting a student loan? Are STEM majors more likely to be approved?
Yes, your major can influence your eligibility and approval odds for a student loan—especially with private and international lenders. STEM majors often have an easier time securing loans because they are associated with higher earning potential, strong post-graduation employment rates, and longer OPT periods (up to 36 months). These factors reduce the lender’s risk.
Securing a loan for a second master’s degree in the U.S. is entirely possible—especially when paired with a well-paying internship through a Day 1 CPT program. By understanding your loan options, planning repayment responsibly, and choosing the right academic path, you can make your next move both academically and financially sound.