Abroad Education is a dream for many Indian students. It serves as a gateway to numerous career opportunities for students with higher academic aspirations. Education loans are a valuable support for many students to navigate financial challenges.

Of all the foreign countries, the US is a favourite destination for many students to pursue higher studies. However, students have to meet the financial eligibility requirements to secure a student VISA for the US. They have to submit an I-20 form, which is proof of funds, along with the student visa.

What is proof of funds? Why is it required? How much do you need to show for a US student visa? Is it that important? Well…, read further to know the answers to all the questions.

What is Proof of Funds?

To secure a US VISA, students have to submit certain documents as proof of funds. This document serves as evidence that students have enough funds to cover tuition fees, accommodation, travel, and miscellaneous expenses* during their stay in the US.

This typically involves bank statements, Education loan documents, sponsorship letters, etc. The above proofs efficiently demonstrate students' financial ability to cover all the related expenses in the US.

*What Expenses are Covered in an Education Loan - Explained

Why does Proof of Funds Matter?

To Demonstrate Financial Ability: The primary reason to show proof of funds is to demonstrate that the students have enough finances that cover tuition fees, accommodation, and other related costs.

Confidence for visa officers: Having these documents builds confidence in visa officers that the student is intent on pursuing higher studies and is well prepared for the same. This reduces the chances of visa denial.

Assurance to universities: Showing proof of funds also ensures the university that the student will pursue the course and will not discontinue or fail because of financial constraints.

Required for I-20 visa: For a US student visa, proof of funds is necessary to issue Form I-20, which is important for a visa application and interview.

An Education Loan sanction is crucial for funding the education of many students. However, students often struggle to get their loans sanctioned without the right guidance. WeMakeScholars can help you in such situations. Our team is dedicated to assisting students in receiving education loan approvals on time. We provide complete education loan assistance to students applying through us. Request a callback today, and one of our experienced financial officers will contact you as soon as possible.

What is accepted as Proof of Funds in the US

Generally, the accounts that are easily liquidated are accepted by the US government for easy access. The following is a list of documents accepted as proof of funds.

Bank account Statements: It's a statement given by the bank in the form of a document that shows the details of the transactions*. Usually, they consider the transaction for a specific time to check the financial stability. Students can show this as proof of funds, showing that they are capable of sustaining themselves in the US.

Education Loan Approval Letter: This letter of approval is a loan approval document issued by the lender. This document contains the terms and conditions of the Education Loan, the approved amount, interest rates, and the repayment conditions. This document serves as an official confirmation of the funds issued by the lender, which is solid proof of funds.

Sponsorship Letter: It's an official letter signed by the students and the sponsors stating that the sponsor takes responsibility for finances during the student's stay in the US. A student can use this letter as proof of funds. However, the sponsor agrees upon certain conditions that demonstrate the financial stability of the student.

CA Certificate: This is a certificate issued by a certified chartered accountant. This certificate outlines the details of the assets and liabilities of the student or parents/sponsors. This also includes the financial statement, such as the bank's balance, FDs, and fixed assets like land, property, gold, etc. The CA must sign and stamp the document to make it authorized. This is one of the certificates that students can use as proof of funds.

Fixed deposits(FD): A Fixed deposit shows financial stability. While applying for the US VISA, students can show FDs as proof of funds. An FD indicates financial security and the capacity to cover expenses abroad. This is another source that students can show as proof of funds.

*Read: Documents Required for an Education Loan

Documents

Description

Bank Account Statement 

Records of recent transactions at least 6 months showing stable funds

Education Loan approval letter

Official documents from a financial institution confirming the Education loan approval

Sponsorship letter

 An agreement between a sponsor(apart from) taking financial responsibility

Income Tax Returns

Demonstrate income, taxes, and deductions

CA certificate

Documents having Details of assets and liabilities signed by a CA

Fixed Deposits

Savings in the form of deposits

How Much Money Do You Need to Show for a US Student Visa?

  • To answer this question, the US government has not particularly mentioned any fixed amount. Students are required to show a certain amount as proof that they have the necessary finances to stay in the US.
  • As per the guidelines, a minimum amount that covers tuition fees for one year is required to be shown as proof of funds. However, with the increased financial scrutiny and to increase the chances of visa approval, demonstrating healthy and strong financial proof is recommended.
  • Before applying for a US visa, students need to understand how much money they need to show to get the visa. Generally, students' expenses in the US include tuition fees, accommodation, etc. 

Below is the breakdown of the key components of the expenses.

Expense Category 

Approximate Annual Cost($)

INR

 Tuition fees 

 $15,000 to $40,000

 ₹12 - ₹35 lakhs

 Living expenses

 $10,000 to $15,000

 ₹8 - ₹12.5 lakhs

 Books and stationery

 $500- $1000

 ₹41,000-₹83,000

 Miscellaneous expenses

 $1000-$ 2000

 ₹83,000-₹1.65 lakhs

 Health insurance

 $2000-$3000

 ₹1.6-₹2.5 lakhs

 Total per year 

 $28500-  $61,000

 ₹22,84,000-₹41,23000

Note: The above illustration is an approximation and the average breakdown of expenses; the amount may vary depending on the university selected and exchange rates. 

As previously discussed, the US State Department has not set any fixed amount as a requirement. However, $15,000 is required for a basic start, and the rest will depend on the university's other factors for the student.

Oftentimes, many students borrow a smaller education loan amount than what they are eligible for. As a result, they struggle to manage their student loan finances, not having the right guidance. This is why at WeMakeScholars, we advise our students to take the complete amount required for their education. Get in touch with our team today to get expert guidance and complete support for your education loan.

Conclusion:

Students are required to show certain funds as proof in the I-20 form to get the VISA. In this blog, we have discussed how much money does student has to show for a US student VISA. We have also explored what other proofs of funds are accepted by the US government.

Now, when you go via WeMakeScholars, an organization partnered with over 15 public and private lenders, we have a dedicated post-sanction team to resolve any Disbursement issues you may face in your Education Loan in no time. Get in touch with us today to get a stress-free student loan journey.