Many Nigerian students dream of leaving the country to pursue undergraduate or graduate degrees abroad.
This ambition exists for several reasons, such as higher educational standards, better living conditions, and more advanced employment chances.
However, studying abroad requires a lot of funds, and most of these students can’t afford it. Finding financial aid opportunities to study anywhere in the world might be difficult.
As a result, some companies offer overseas student loans to Nigerians to help them fulfill their study dreams.
As a Nigerian student looking to study abroad but looking for a way to cover the costs, you have a variety of options to consider. This piece will show you the companies and how to get a study abroad loan in Nigeria.
What are student loans?
Student loans are loans established expressly to help students with their postsecondary and graduate studies. It includes tuition, book materials, and living expenses.
There are various forms of loans for studying abroad, and the interest rates vary. The repayment terms and conditions can vary depending on the type of loan.
The federal government is the single provider of federal loans, whereas banks, credit unions, and other financial organizations are the primary providers of private loans. Their qualifying requirements, loan amounts, and interest rates also differ.
Study Abroad Loan Options for Nigerian Students
There are various study abroad loans in Nigeria available to Nigerian students. Some of them include:
1. Mpower Finance
MPower Finance doesn’t require a cosigner. They exist to benefit the public rather than for profit.
According to recent estimates, they presently have $60 million in equity funding and more than $200 million in debt financing. MPower presently helps more than 400 schools in several countries. The application for the MPower loan is online.
It presently assists around 400 schools across multiple nations. The maximum amount you can borrow is between $2,100 and $100,000 to pay for your needs, while the fixed interest rate does not change.
Eligibility conditions
To qualify for the MPower loan, a Nigerian student must complete the following requirements:
- Participants must be admitted to or currently enrolled at one of MPower’s 400+ institutions in the US and Canada.
- Applicants must be graduate or undergraduate students within two years of graduation.
- Provide a valid, unexpired ID card.
- Must supply all necessary supporting documentation.
What do the loans cover? MPower loans presently cover up to 100% of educational and living expenses.
Repayment term: Students begin repaying their loans 45 days after the funds are disbursed. During this time, payments will be interest-only until graduation, with an extra six months of grace period.
The remaining months of repayment are determined using a 120-month amortization schedule. MPower Finance supports a wide range of degrees, including Master’s, MBA, PhD, Bachelor’s, J.D., Diplomas and Associates (Canada only), LL.M., M.D., D.D.S., and select boot camps.
They offer a fixed interest rate of 12.99% (13.98% APR¹) plus a 0.25% discount for loan payments made automatically from your bank account.
You can apply for the MPower student loan directly on their website.
2. Ascent Funding
Ascent is a private loan organization that provides loans to students who want to pursue their education. The loans can be with or without a cosigner.
They also provide low rates, customizable programs, and up to 1% cash back upon graduation, among other benefits. The application process is also conducted online. You can begin your application instantly on their website.
The maximum amount students can borrow is anything from $2,100 to $200,000.
To qualify for the Ascent student loan, you must have a cosigner earning at least $24,000 annually. The individual must have at least two years of credit history.
Loans are accessible to US citizens, permanent residents, DACA recipients, and international students. The repayment terms range from 5 to 15 years.
Ascent financing now supports undergraduate, MBA, medical science, law, and general graduate school programs.
Interest rates for cosigned loans range from 4.48% to 15.51%, with a variable rate of 5.94% to 15.83%, including the 0.25% autopay discount.
3. Prodigy Finance
Prodigy Finance was created in 2007 and is a fintech company with an office in London, United Kingdom. Prodigy Finance has already disbursed more than $1.4 billion.
The company’s 2022 impact report indicates that they have served over 28,000 students worldwide in 850 schools across 150 countries.
The maximum amount that can be borrowed varies by institution and course of study; however, it can cover up to 100% of tuition and living expenses.
Eligibility conditions: To be eligible, applicants must:
- Be admitted to a Prodigy Financing-supported school or program in the US, Canada, or the UK.
- Be willing to study abroad.
- Reside in one of Prodigy Financing’s supported countries.
Repayment term: If you study abroad with a Prodigy loan, payment does not begin until 6 months after graduation. They have a variable repayment duration of 7–20 years.
Prodigy Finance now supports programs in business, STEM, public policy, law, and health sciences.
You can begin the Prodigy application process by visiting their official website.
Interest rate: They offer a minimum annual percentage rate (APR of 11.18%). Individual rates vary depending on the conditions, loan amount, and period. The average APR on student loans is 14.88%.
Requirements for Loans to Study Abroad
Different student loans have different requirements. The requirements vary depending on a variety of factors, including the lending firm, type of loan, amount, and country.
However, to be eligible for the loan, every student must meet certain basic standards. These prerequisites include:
1. Proof of acceptance
This is a global criterion for student loan applications, and it applies to Nigerian students who want to study abroad as well.
Before you apply for a student loan to study abroad as a Nigerian student, you must have proof of admission.
Proof of acceptance is a letter indicating that you have been admitted to a university or college overseas.
This means that before you can apply for a student loan, you must first be admitted to school. In addition, your school must be one of those approved by your loan provider.
Your proof of acceptance should include the following information:
- Your name
- Declare your major of study
- Credit hours earned to date
- List the start and end dates of your current enrollment
- Enrollment status (full-time or part-time)
- Expected graduation date
- Class (freshman, sophomore, junior, or senior)
- Grade Point Average (GPA)
2. Student visa
A student visa is another necessary criterion before applying for a student loan. A Nigerian student who studies overseas is considered an international student.
The visa allows you to stay in the nation where you are presently studying. As you go through the student loan application process, your loan provider will most likely request that you attach a copy of your student visa.
3. Cosigner or Good Credit History
If you want to borrow money to study abroad, you will usually need to have decent credit.
However, as a Nigerian student wishing to study abroad, you would not have this option because you have never lived overseas.
This is why certain loan providers require a cosigner before approving your loan. A cosigner is an adult, typically a resident of your host country, who agrees to cosign on a loan with you. In some situations, the cosigner is obligated to repay the debt if the borrower defaults.
If you are a Nigerian student who has been admitted to the United States or the United Kingdom and wants to apply for a private student loan, you would need a cosigner who lives in one of these countries and will sign alongside you.
However, some loan providers, such as MPower and Prodigy Finance, do not require a co-signer.
4. Necessary documents
Before proceeding with the application procedure, you must furnish the following papers: As a Nigerian student applying for a loan to study abroad, you must have:
- Proof of identity
- Educational transcripts
- Estimated costs for studying and living in the United States. This is for students who want to study in the United States (your institution will supply you with an official fee).
- Copies of your qualifying exam documents for admission.
- Proof of identity.
Who can apply for a study abroad loan?
Any student, including Nigerian students, can apply for a student loan, provided they meet the loan provider’s eligibility requirements.
Conclusion
We know that studying abroad requires a lot of finance, and the thought of bearing such a financial burden can be intimidating to a lot of students. Such huge fear causes many of them to give up their dreams, but this piece brings you a solution.
As a Nigerian student looking to study abroad, don’t allow expenses to hold you back because you can get study abroad loans in Nigeria, and these loan options provide adequate time for repayment. And their interest rates are fairly reasonable.
