A lot of us dream to study abroad but when the question of financing arrives several students have to take a step backward. Most of the times this happens due to not knowing the right way of displaying the funds. A lot of students also hear scary stories of showing more than Rs50 Lakhs in account for 6 months. Some are unaware that funds can be shown from 2-3 sponsors together. A lot of confusion prevails in this area and several fall prey to it and skip their dream to go to USA.
So let us have few basic fundamentals cleared here:
1) How much funds to show?
You have to show one-year funds for whatever duration course you are going. One year Tuition fees + One year Living Cost. This cost is typically mentioned on your I20. Before I20 you would have it on the college website.
2) Who can sponsor my education?
Several Entities can be your sponsor. So let us see all possible options:
Parents – First resort is always your Father or Mother.
Relatives – Blood relatives are also allowed to be your sponsor. So the form needs to mention the relation how they are linked to you. So grandparents, immediate uncle aunt from both maternal and paternal side can support you along with cousins also.
Mix of Both – You may have Parents + Relatives making it 2-3 sponsors as well to show the entire one-year cost.
Note: It is always preferred to have your sponsors from India and not USA. If overseas but not in USA it is still ok.
3) How to show those funds?
US universities and embassy accept only liquid cash. You need to show these funds twice.Release your I20Visa InterviewParents/Relatives can show that fund in the following manner:
Fixed deposits receipt - attested by bankSavings account statement - balance certificate by bank attested PF/PPF - passbook or statement However if we do not have liquid cash in the above formats we can choose Solvency letter. Solvency letter is one of the options, which we can use to show funds and get our I20 released. This option is suitable for people who look forward to arrange a loan at the later stage.
Solvency Letter - A letter from the bank stating your sponsorer is capable enough to raise funds of approx Rs 25 - 30 lakhs for your higher education. This is a not actual fund in your account it is like a capability certificate a bank provides looking at your history and assets which you would mortgage to acquire a loan. Note: 90% of times solvency letter work but there have been certain cases where in university rejects this letter and in this situation we have no other way but show liquid cash in above formats.
Loan Letter - Sanction letter is typically received post-receiving I20 by all national and public banks. Only private banks provide loan letters before I20 on the basis of students admit letter. So incase if you have received the loan letter prior to I20 you may use that also to show funds to university.So after showing the necessary financial documents university releases the I20 and we can now proceed for Visa. We should certainly maintain what we showed in the I20 as they have records. But not necessary to hold the money for so long in the account. You may have your transactions but when the student goes for visa interview you may again have the necessary balance and may also add a Loan letter in addition which you received post I20 in hand.A lot of permutation combination is possible apart from this.
So you need to find out as each case is very subjective and hence different solutions are provided. If you have any further doubts and need clarification on crucial decision about USA education and Visas you may write to me at: [email protected] I am an overseas education counselor and Educator.
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Ankita Thakkar is an alumnus of VESIT, Mumbai where she studied Bachelor degree in Information Technology. She is a dedicated professional counselor who spearheads Education Street.
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