Overseas Education Loans: What to do if your Student Visa is Rejected?

Carving your name in this world of cut-throat competition is never easy, especially for the common man. The same can be said for students who are out there to overcome all odds and be successful in their chosen careers. For students who have headed abroad for higher studies, the hurdles are even greater - right from getting selected to their dream program in their dream University to navigating in a foreign country and many more. Their hardships start even before they get aboard the flight that will take them to their dream school. Among all the various roadblocks they face, rejection of their student visa is one that they fear the most.

 Embassies of foreign countries have set criteria for sanctioning student visas and they look at many factors before giving you a visa. One of their most important factors for giving a student visa is based on the funding the student has for his studies in a foreign country. This is one of the reasons why many Indian students prefer to take an education loan to finance their higher education abroad as this is seen as a reliable funding source by most embassies. However, there have been times when the student visa has been rejected even with an education loan. If your student visa has been rejected or you fear that your student visa might be rejected for some reason, then do not despair. There is always a way out of any problem and this problem too has a few solutions. This blog will focus on these solutions and discuss with our readers what they can do if they have already applied for an education loan and their student visa has been rejected. So let us jump straight into this important discussion. 

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Let us first see what are some common reasons for the rejection of your student visa. 

If you still haven't applied for your student visa, do not want to make the above mistakes, and feel that you need help before applying for a student visa, then you can read our various blogs on student visas. Readers who are headed to the US for higher studies and want to know more about do’s and don’ts for US student visas can read here, while those heading to the UK can know more about the detailed UK student visa process here. Students who plan to go to Australia for higher studies will find comprehensive information on Australian student visas here. If you want to know about the German student visa process, read here. More information on Canada’s study direct stream visa is available here. 

Since most embassies allow students to re-apply for a student visa, if your visa is rejected for either of the above reasons, then you can re-apply for a student visa after making sure that the reason for visa rejection has duly been taken care of. 

Students whose visas get rejected fall under either of the following three conditions- 

1. 
   Students who re-apply for a student visa to study in the same country, in the same University, and the same program with a study abroad education loan.
2. 
   Students who re-apply for a student visa to a different country and program with a study abroad loan
3. 
   Students who shelf their study abroad plans after taking an education loan 

Let us discuss the way forward in each case

Students who re-apply for a student visa to study in the same country, in the same University, and the same program with a study abroad education loan.

Indian public sector banks have a clause in their secured education loan wherein a student/borrower can hold on to the sanction letter till six months of loan approval. This means that the first loan disbursement can wait till six months post loan sanction. In the current Covid-19 pandemic situation, wherein foreign countries are holding back on student visa approval, private banks and NBFCs also have extended the disbursal time to one year in case of sanctioned unsecured education loans.

Keeping in mind these rules, the road ahead for students who re-apply to the same country, the same university, and the same program is simple and straight-forward if they are re-applying within six months of their first student visa rejection. There is no need for them to inform their lenders and they can proceed with the reapplication of the student visa with the same education loan sanction letter.

Students who re-apply for a student visa to a different country and program with a study abroad loan

To be on the safer side, students who wish for higher studies abroad apply to multiple universities and may have more than one offer letter from different Universities. If you too are such a student and your student visa has been rejected and you plan to re-apply for a student visa to another country in a different University and program; then the process is different for you. You will need to inform your lender about this change in the decision and will have to request them to change the name of the country/university/program in the education loan sanction letter. Once the lender makes the requisite changes in the offer letter, you can then re-apply for the student visa.

Students who shelf their study abroad plans after taking an education loan

The Covid-19 pandemic has changed the priorities of a lot of people and a few students might be relooking at their study abroad plan in the immediate future. If you too are one such student whose student visa was rejected and you have now decided not to go ahead with your study abroad plan, then you need to inform your lender of this decision as soon as possible. If there was any disbursement made by your lender, then you have to return that amount to the lender.

Even though thousands of Indian students dream of a foreign degree, going abroad for higher studies is no cakewalk and the road is filled with numerous roadblocks. Getting a student visa is one of many roadblocks that you have to cross and if you do want to make any mistakes and get your student visa rejected, then you can get in touch with GyanDhan and take Admission counseling. The admission counseling not only includes University shortlisting and admission but also post admit assistance as well as visa guidance.