Change of University after Education Loan Sanction: What is the Process?

When you decide to study abroad, your journey often begins with a mix of excitement and uncertainty. You apply to multiple Universities, hoping to secure that dream admission, and at the same time, you work on arranging the finances through an overseas education loan. 

Now, here’s where things get tricky, sometimes you receive a loan sanction based on one University’s offer, but later, you get an admit from an even better institution. At this point, the big question pops up in your mind: What happens to your education loan if you change the University?

This is a situation many students face, and it’s completely normal to feel confused. After all, you wouldn’t want your financial plans to hold you back from choosing the University that best fits your goals. So, let’s clear the air and understand through this article.

Can you Change the University after an Overseas Education Loan Sanction?

Yes, you can change the University even after your overseas education loan has been sanctioned, but the process isn’t as simple as just informing your lender. Since an education loan is approved based on specific details like the University, Course, Tuition Fees, and Admission Letter, any change in these factors requires a reassessment. Depending on the lender's policies, they may revise the loan agreement or, in some cases, treat it as a fresh application.

It’s important to understand that lenders are primarily concerned about the credibility of the new University and your repayment capacity. If the new institution meets its criteria, the lender usually allows you to switch. However, this process involves extra checks and paperwork, which is why students are often advised to be prepared with valid reasons for the change. This brings us to the next important question: what exactly makes students switch Universities after their loan has already been sanctioned?

Reasons for Changing University after Overseas Education Loan Sanction

Since your overseas education loan is sanctioned based on the University mentioned in your application, any change in that choice needs careful consideration. Here are some of the most common reasons why you may think of changing your University after the loan has been sanctioned.

• Better Academic Opportunities: You receive an admit from a University with stronger global rankings, advanced facilities, or a program more suited to your goals.

• Program Availability: The newly admitted University could provide specializations, research opportunities, or internships not offered at the earlier one.

• Cost & Financial Factors: The new University may offer lower tuition fees, scholarships, or overall affordability compared to the one initially chosen.

• Admission Timelines: Sometimes, students accept an early offer and apply for a loan, but later receive an admit from their top-choice University.

• Location Preferences: You might prefer studying in a country or city that offers better living conditions, cultural fit, or future work opportunities.

Whatever the reason may be, the next thing you’ll want to know is how this shift impacts your sanctioned loan. Let’s look at the possible modifications in your overseas education loan when you decide to change your University.

Modifications in Overseas Education Loan on Changing the University

An overseas education loan is sanctioned based on the details you provide in your application form. However, if you receive an admission offer from another University after the sanction, you may need to modify your loan file accordingly. 

The process of making these changes depends on the stage at which you request them. Let’s take a closer look at how the modification works at each stage, right up to the loan disbursement.

At the time of Education Loan Processing

If you wish to change the University while your loan is still being processed, the procedure is relatively simple. You’ll need to submit the new offer letter, an updated cost of attendance, and replace the earlier details in your loan file. In many cases, the lender may also ask you to resubmit the application form with the revised details before proceeding further.

After Getting the Loan Sanction Letter

Once the education loan sanction letter is issued, the process becomes a little more formal. If you want to change the University at this stage, most lenders require you to submit a fresh application with the updated University details. Along with this, you may also be asked to pay a modification fee, which varies depending on the bank or financial institution. 

At this point, the impact of changing your University largely depends on whether the loan amount needs to be revised or if it remains the same. Let’s look at both scenarios.

• Change in Overseas Education Loan Amount

  If the new University’s fee structure is lower, you can request the lender to reduce the sanctioned loan amount by submitting the updated expenses. On the other hand, if the financial requirements are higher, you can apply for a top-up loan. However, approval for a higher loan amount depends on your eligibility and, in the case of secured loans, the value of the collateral you have pledged.

• No Changes in Overseas Education Loan Amount

  In situations where the cost of study is similar, lenders may simply update the University details without altering the sanctioned loan amount. However, this still requires formal documentation, and approval may take some time as banks often recheck the credibility of the new institution before updating records.

After Disbursement of Education Loan

Changing the University after the loan amount has already been disbursed is the most complex stage. In such cases, you may be required to close the existing loan account and reapply with the new University’s details. This essentially means starting the process afresh, and lenders may also charge an additional modification fee.

Since the process involves reassessment and fresh verification, lenders will also ask you to provide a new set of documents to support your application. Let us shed some more light on this in the next section.

Documents Required for Change of University Process after Overseas Education Loan Sanction

To process the modification smoothly, you’ll be asked to submit updated documents that validate your new choice and help the bank verify your eligibility again. Here are the common documents you may need to provide.

• New Offer Letter/Admission Letter from the updated University.

• Revised Statement of Expenses, including tuition fees, living costs, and other charges as per the new University.

• Fresh Loan Application Form with updated University and Course details.

• Academic Records (previously submitted documents remain valid)

• Financial Documents of co-applicant/guarantor, if any additional top-up loan is requested.

• Collateral Documents (for secured loans) if the new loan amount requires reassessment of security value.

Submitting these documents ensures that your loan is properly aligned with your new academic plan and avoids delays in fund disbursement. Now that you know what paperwork is required, let’s move on to understand the steps you need to follow for changing your University after loan sanction.

Steps to Follow for Change of University after Overseas Education Loan Sanction

At first, you may feel the process is complicated, but with the right steps, it becomes much easier to manage. Here’s a simple breakdown of the steps you’ll need to take.

• Step 1: As soon as you decide to change your University, notify your bank or financial institution. Early communication helps avoid delays in fund disbursement.

• Step 2: Collect all updated papers, such as the new admission letter, revised fee structure, fresh loan application form, and any additional financial documents.

• Step 3: Provide your lender with the new details. Depending on the stage of your loan, this may involve filing a fresh application or requesting modifications to the existing sanction.

• Step 4: Some lenders levy a modification fee when changes are made after sanction or disbursement. Make sure to check this with your bank in advance.

• Step 5: The bank will verify the credibility of the new University, check the revised financial requirements, and review your eligibility before approving the changes.

• Step 6: Once approved, the lender will issue a revised sanction letter or update your existing one to reflect the new University details.

• Step 7: After the modifications are complete, the loan funds will be disbursed according to the schedule provided by your new University.

While you can follow these steps on your own, if you’re looking for a more streamlined and hassle-free way to manage the process, expert financial services can help. This leads us to the next section.

Change of University after Overseas Education Loan Sanction through Élan Loans

As you can see, the process of modifying an overseas education loan after sanction involves multiple steps, careful documentation, and close coordination with the lender. If you ever find yourself in such a situation, you don’t have to go through it alone. At Élan Loans, we have a dedicated team of education loan experts who specialize in handling such cases and guiding students at every stage.

Whether it’s getting a competitive education loan interest rate, a change in University, a revision in loan amount, or navigating updated lender policies, we make sure that you get accurate advice and timely solutions. One of the biggest advantages of applying through Élan Loans is the personalized assistance you receive. 

Since even a small delay or misstep can impact your study abroad journey, our experts ensure that your application is always in sync with the requirements of your new University.  Also, if there are policy changes or additional requirements from lenders, you can count on us to keep you informed and supported.  

So, reach out to us today and book your free counselling session. 

Change of University after an Overseas Education Loan Sanction FAQs

1. Can I switch Universities if I have already started my classes at the original University?

Yes, you can switch Universities even after starting classes at your original University. However, it’s always better to make the change at the beginning of a semester to avoid academic or financial complications. You’ll also need to inform your bank immediately and submit the required documents for the modification.

2. How long does it take for the bank to approve a University change request?

The timeline depends on the lender and the complexity of your case. Some banks may process the change quickly if all documents are in order, while others may take longer due to internal approvals. To avoid delays, it’s best to contact your bank at the earliest and clarify the expected timeline.

3. Will changing Universities affect my loan repayment terms?

Yes, it can. If the new University has a higher or lower fee structure, or if the program duration changes, your repayment schedule may be revised accordingly. Always discuss these details with your lender to understand the exact impact before proceeding.

4. Will the interest rate on my loan change if I switch Universities?

Generally, the interest rate remains the same, as it is determined by the lender’s policies rather than the specific University. However, if you apply for a higher loan amount or request a top-up loan, the bank may reassess the terms. It’s advisable to confirm this with your lender during the modification process.