Are you searching for the best international student loan options currently available to African students? Have you discarded the thought of pursuing higher education because you this it is now affordable? Are you a student in Africa currently seeking to further your studies abroad but finances are a restriction? Then this post is for you!
This post explains the various international loan options available to African students seeking to further their studies abroad. If you want to get more updates like this one, subscribe to our newsletter.
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Table of Contents
What To Consider Before Applying For Student Loans
Before we go into the top international student loan options for African students, let’s examine some important factors to consider before applying for loans.
Decide on the amount you need
Before looking for the student loan options to pick from, you need to, first of all, decide the amount you are going to need. Get an estimated price of the tuition, accommodation and other costs, and add them together to determine the approximate amount you will need. As you do this, also look at the future. Examine ways and strategies you can implement so that you will be able to pay the loans back. You can look up the average salary range paid to people who function in your field and map out a reasonable plan you can adopt to pay the loan on time
Consider the Federal financial loan option first.
Before applying for private loans, consider the federal loan option. The reason is that federal loans generally have a fixed interest rate and reasonably flexible payment options. Also, while private loan establishments often require a cosigner or collateral, federal loans do not necessarily require any, making it easier to submit the application form.
Explore various options
Before going ahead to settle for one, you must explore the different options available. Go through the lists of loan establishments, and compare their interest rates, repayment terms, and requirement. After a thorough examination, pick the option that best suits you.
Use the money wisely
When you get the money, remember the reason you applied for it in the first place and ensure you use it wisely. Maximise the time you will spend in school and put in the work to follow the repayment plan you have strictly.
International Loans available for African students
We will examine the different loans available for African students under the following subheadings.
Student Loans without a cosigner
A cosigner is a person who is responsible for paying back a loan along with the primary borrower. A cosigner is like a guarantor, he/she is responsible for paying back the loan if the borrower defaults or stalls and in many cases is often a family member.
MPower Finance
MPower Finance is a company chartered by the government of the United States of America primarily for charitable, educational, social and recreational activities. It exists to benefit the public rather than make profits.
Current stats: 60 million in equity funding and over $200 million in debt finance. MPower currently supports over 400 schools in different countries.
Supported schools: Mpower currently supports about 400 schools in different countries. So far about 5,000 students have graduated as a result of MPower’s loan supported
Maximum amount: Students are allowed to borrow from $2,100 to $100,000 to cover the cost of their education while the fixed interest rate does not change.
Ease of application process: the application process for the MPower loan is online!
Eligibility conditions: for international students to qualify for the MPower loan, they have to meet the following conditions:
- Must be admitted or currently attending one of the over 400 schools US/Canada MPower is affiliated with.
- Must be a graduate or undergraduate student within two years of graduation
- Must provide a valid and unexpired ID card.
- Must provide all of the supporting documents required.
It is important to note that the process can take weeks and even months, so it is beneficial to start early to finish on time. To know more about the eligibility conditions click here.
Eligible countries: MPower finance currently supports prospective students seeking to further their knowledge from Asia, Africa and South American continents respectively. They also support schools from the following regions in the North American continents. This includes countries like the United States and Canada. Schools cut across states like Ontario, Pennsylvania, Washington DC, California, Minnesota, Texas and more.
What do the loans cover: loans from MPower currently cover up to 100% of the education expenses and living expenses.
Repayment term: students start repaying the loans 45 days after the disbursement of the funds. During this period, payment will be interest only until graduation with an additional six months of grace period. The remaining months of repayment are calculated using a 120-month amortization schedule.
Supported programmes: MPower Finance supports all types 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.
Interest rate: they have a fixed interest rate of 12.99% (13.98% APR¹) but give a 0.25% discount if the loan payment is made through automatic withdrawal from your bank account.
To get started with the MPower student loan, click here.
Prodigy Finance
Prodigy Finance was founded in 2007 and it is a Fintech organization with an office in London, United Kingdom. So far, Prodigy Fiance has disbursed over $1.4 billion
Current stats: the 2022 impact report from Prodigy Finance states that they have served over 28,000 students globally in 850 schools in 150 countries.
Supported schools: Prodigy Finance currently supports about 850 schools in 150 different countries.
Maximum amount: the amount to be borrowed is dependent on the school and the course of study but can cover up to 100% of the tuition and living expenses.
Ease of application process: the application process for Prodigy students is online.
Eligibility conditions: The basic requirements to endorse eligibility include:
- Must be admitted to a school and programme in the US, Canada & the UK supported by Prodigy Financing.
- Must be willing to study abroad.
- Must reside in one of the countries supported by Prodigy Financing.
Eligible countries: Prodigy Finance supports about 800 schools offering Master’s courses in the various programmes listed above. To find out the list of schools supported by Progidy Finance, click on this link.
Repayment term: Payment doesn’t start until 6 months after studies if you study abroad on a Prodigy loan. They have a flexible repayment term of 7 to 20 years
Supported programmes: Prodigy Finance currently supports programmes in Business, STEM, public policy, law and health science courses. To get started with the Prodigy application process, click here.
Interest rate: the minimum annual percentage rate (APR) they offer is 11.18%. Individual rates differ according to the circumstances, the loan amount and the term. The average APR for student loans is 14.88%.
Student Loans that require a cosigner
Ascent Funding
Ascent is a private loan company that offers loans to students willing to further their education. The loans may be with or without a cosigner. They also offer affordable rates, flexible plans and up to 1% cash back at graduation with other benefits.
Supported schools: click this link to know the list of schools supported by Ascent funding.
Maximum amount: Students can borrow from $2,100 to as much as $200,000.
Ease of application process: the application process is equally online. To start an application, click here.
Eligibility conditions: to qualify for the Ascent student loan, you must:
- Earn/Have a cosigner that earns at least $24,000 per year
- The above must have at least two years of credit history.
- As an international student, you must have a U.S. citizen or permanent resident as a cosigner.
Note that loans are available to U.S. citizens, permanent residents, DACA students and international students. To know more about the eligibility conditions, click here.
Eligible countries: they provide loans to U.S. citizens, permanent residents, DACA students and international students
Repayment term: they have a repayment term from 5 years to as much as 15 years.
Supported programmes: Ascent funding currently supports undergraduates, MBA, medical science, law and general graduate school programmes.
Interest rate: cosigned loans have a fixed interest rate that starts from 4.48% to 15.51% and a variable rate of 5.94% to 15.83% including the 0.25% autopay discount.
Citizens Financial Group Inc.
Citizens financial group is an established financial institution with $ 222.3 billion in assets as of June 30, 2022. It has its headquarters in Rhodes island and they offer a wide range of retail and commercial baking services to their customers.
Supported schools: Citizens loans are available for students who want to study in the U.S.
Maximum amount: Students can borrow from $1,000 to as much as $350,000.
Ease of application process: the application process is also online. To start, click here.
Eligibility conditions: Citizens provide loans to U.S. citizens or permanent residents. For international students, they are to meet the following requirements;
- Students must have good credit or a qualified cosigner
- Have no previous student loan default
- Must reach the age of majority in your state
- Should be enrolled at least half-time in a degree programme at a school endorsed by Citizens.
Repayment term: the repayment term for a Citizen’s loan is between 5 to 20 years.
Supported programmes: Citizen currently supports graduate, MBA, law, medical and dental programmes.
Interest rate: It has a variable interest rate of 6.03% – 12.78% APR and a fixed interest rate of 6.03% – 12.78% APR
Other types of student loans that require a cosigner include Discover, Wells Fargo, Juno, Earnest and others. There are different opportunities available for African students to harness that will help them further their studies, but as was discussed earlier, go through each of the loan suggestions, and carefully pick out the best options for you.
If you need help in the application forces for the no-cosigner loans, we at afterschoolafrica will be willing you guide you through this process.
