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 the 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.

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-

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

Reapplying for a Student Visa With an 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 after loan approval. This means that the first loan disbursement can wait till six months post loan sanction. During the Covid-19 pandemic situation, wherein foreign countries were holding back on student visa approval, private banks and NBFCs had 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 straightforward 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.

Reapplying for a Student Visa With a Loan for a New Country and Program

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.

Visa Rejection Appeal or Reapplication

Visa rejection can be difficult to handle but it is not the end of your study abroad journey. Stay calm and follow the below-mentioned steps to address visa rejection. You can appeal a visa rejection or even reapply with better preparation.

Appeal Against Visa Rejection:

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  Analyze the Rejection Letter - Carefully examine the rejection letter to identify the reasons for rejection. This will help you to address the issues efficiently while appealing. Ensure that you file an appeal within 2 months of receipt of the rejection letter.

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  Prepare a Letter of Appeal: Write a formal letter stating why you believe the rejection was incorrect. Include supporting documents to strengthen your case, such as financial proof, additional academic records, etc. Submit only original documents.

Visa Rejection Appeal or Reapplication:

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  If you feel like your visa application was rejected on valid grounds then try to overcome the issues in the visa application and reapply. 
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  You must start by addressing the reasons for the rejection of your visa application and rectifying the errors or issues raised in the rejection letter. 
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  Provide all the necessary documents to support your visa application. Make sure the documents attached by you are updated.

These steps will help you to improve your chances of visa approval.

Country-Specific Visa Insights

When you apply for a student visa, it is crucial on your part to understand the country-specific requirements for visa approval. You must also learn about the common rejection reasons so that you can bypass those reasons in your visa application. Below are some of the common rejection reasons and visa trends for popular study destinations like the US, UK, Canada, Australia, and Germany. 

Common Reason for Visa Rejection:

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  Invalid or Insufficient Documents - To apply for a visa, make sure you attach all the necessary and updated documents in your visa application to increase the chances of approval. Review your visa application carefully as even minor negligence can lead to your visa rejection.

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  Unclear Intent to Return - if you fail to convince the visa officer of your plans to return after your studies, then there are high chances of visa rejection. Express your genuine intent to return back to your home country after completion of your studies.

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  Insufficient Funds - When you fail to arrange sufficient funds to support your education in the US, then there are high chances of your visa rejection.

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  Weak academic or test scores - Poor academic records or low standardized test scores (e.g., TOEFL, IELTS, GRE, or SAT) can raise concerns about your ability to handle academic challenges in the country of study. It will negatively affect your visa application. Visa officers must feel that you will be a valuable addition to their country.

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  Medical Reasons - You are required to meet specific health standards to ensure that you do not pose a public health risk. Failing to complete required medical tests or keeping information about a health condition can negatively impact your application.

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  Criminal Records - Your visa application can be rejected on the grounds of criminal records against you. You must ensure that you have a clear background with no criminal record.

Visa Trends for Popular Study Destinations:

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  USA - The recent trends show that the rejection rate for F-1 visas is around 34%, primarily due to inadequate financial documentation or weak intent of return after completion of studies. In recent years, there has been an increased emphasis on showing strong connections to the home country during visa interviews to clear your intent to return.

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  UK - The UK has a student visa approval rate of 95%, thanks to its easy-to-follow Tier 4 system. The availability of a post-study work visa also attracts graduates and allows them to stay in the UK for up to two years. This has led to an increase in applications, especially for programs in business, healthcare, and data science.

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  Canada - Around 183,310 students from India applied for Canadian student visas in 2022, with 30% of them facing rejection. The main reason for the rise in rejections is concerns raised by immigration officers regarding the funds shown during the application process. This has led to delays in visa approvals, affecting many applicants' plans to study in Canada

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  Australia - Australia maintains a Student Visa approval rate of around 89%, emphasizing financial stability and clear academic intent. The introduction of the Temporary Graduate Visa (subclass 485) has contributed to increased applications for engineering, medicine, and business-related programs. It lets you live, study, and work in Australia temporarily. In 2022, 32% of Indian student visa applications were rejected, and this figure worsened to 50% in 2023. For 2024, the rejection rate for Indian students applying for Australian student visas is expected to be between 13.3% and 14.9%.

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  Germany - The German student visa rejection rate has risen sharply from 10% to 18% within a year, which is causing significant concern for Indian students who wish to pursue education there. This is often due to incomplete documentation or insufficient financial proof via a blocked account. 

Students Dropping Study Abroad Plans After Loan Approval

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 were any disbursements 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.

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