Studying abroad from Nigeria is not a joke; there’s so much involved in the area of tuition fees and living costs. Many Nigerian students usually apply for scholarships to reduce the huge cost of tuition expenses. But where there’s no scholarship, what do you do? Study abroad education loans come in handy in this situation.
Study abroad loans are specialized loans that can help students cover the costs associated with studying in the USA, Canada, UK and Australia. They are becoming more and more popular as they provide students with a flexible option to cover costs such as tuition, textbooks, food, and accommodation while they are away from home.
Depending on the loan institution you choose and your credit score, you can borrow as much as $50,000 to $75,000 to pay your tuition fees and other related expenses.
This article will list the top 7 study abroad education loans institution for Nigerian students considering studying in the USA and Canada.
Let’s get started!
Table of Contents
What are Study Abroad Education Loans?
A study abroad education loan is a type of loan intended for students who plan to continue their studies abroad but lack the required funds to cover tuition and other expenses. The education loan usually covers tuition fees, living expenses, necessities such as books, housing, and other costs you may incur when living and studying abroad.
The interest rate charged on the education loan amount will depend on a number of factors, such as the financial institution you are choosing, the specific education loan you are choosing, the amount you have plans to obtain, and your university. The repayment period will also depend on various factors.
What are the Eligibility Requirements for Study Abroad Loans?
Before you even begin applying for a loan to study in the USA, Canada, or Australia one important thing you should do is to determine your eligibility.
The following are the general criteria for any study abroad loan:
- To qualify for a loan as a Nigerian student, you must attend an eligible school in the USA, Canada, or Australia.
- You must also be an undergraduate or graduate student pursuing a degree, certificate, or license.
- You need to apply for a Co-signer.
- The Co-signer must be a United States citizen or permanent resident with good credit who has lived in the United States for at least two years.
Top 7 Study Abroad Loans for Nigerian Students
The following are the top study-abroad education loans for Nigerians;
- Mpower Financing Loan
- Prodigy Finance
- Education Advisory Service (EAS)
- Future Finance
- Lendwise
- EDFIN Loan
- Sallie Mae loans
Mpower Financing Loan
Mpower Financing loan company is a public-benefit corporation whose main aim is to reduce the financial barriers to international education. The company is based in Washington, DC, USA. Their loans can be used to pay for tuition fees, housing, books, meal plans, and health insurance associated with education.
The company majorly supports schools in the USA and Canada. Nigerian students can borrow up to $50,000 each academic year and can take up to $100,000 in total.
The best part is that you do not require collateral or a co-signer to obtain study loans from MPower Financing, and you will start paying back the loan six months after your graduation. You will have a 10 years grace period to pay back the loan.
Prodigy Finance
Prodigy Finance is a loan company that enables financing for international students who attend a participating postgraduate school in the USA, Canada, Uk, or Australia.
Prodigy Finance’s loans are collectively funded by a community of institutional and private investors who receive a financial and social return while the student gains access to oversea education that they might not otherwise be able to finance.
The company also offers student loans, even without collateral or a co-signer, assisting you in realizing your ambitions of studying abroad.
Prodigy Finance’s loan plan will pay for all your educational expenses—including tuition fees, books, housing, and other living expenses. You can begin making payments on your loans six months after your college course has concluded, and the loan’s payback period can last up to 20 years.
Education Advisory Service (EAS)
The Education Advisory Service (EAS) is a Nigerian-based loan company that allows aspiring Nigerian students to access bespoke study abroad education loans.
The EAS is a joint initiative of MOD Education and the First City Monument Bank Limited (FCMB).
The company offers eligible students with support, advice with admissions, and other facilities like lodging, travel arrangements, and airport concierge services.
Your tuition fee, books, rooms, living costs, and other study-abroad-related expenses are all covered by the EAS loan. Remember that the bank will pay all these expenses to the school of your choice.
The EAS loan currently covers only the USA, Canada, Australia, UK, and Ireland. Only FCMB is authorized to offer the loan.
Future Finance
Future Finance offers loans to all students studying in the United Kingdom, regardless of which level of study they are pursuing. The UK-based company transferred its rights to Asset Link Capital legal and beneficial title to the loan arrangements involving its clients in November of 2022.
Nigerian students can borrow between £2,000 and £60,000 with a loan term of seven to ten years if they want to study in the UK.
You can apply online quickly and receive a response as soon as possible. Following loan approval, the funds will be sent directly to your university to cover tuition as well as your living expenses.
After graduation, you can repay as little as £5 per month for the rest of your studies, up to three months. The remaining loan total can then be repaid over a period of up to ten years, with two three-month payment breaks available.
Lendwise
If you are studying in the UK, lendwise is a good option. The company assists Nigerian students who want to pay for their education at top UK universities.
The Financial Conduct Authority of the United Kingdom manages the day-to-day operations of Lendwise, which has its headquarters there. If you are given a loan through the company, you will have access to a grace period that will allow you to repay the loan after graduation.
It’s worth noting that Lendwise’s interest rates are both competitive and fixed for the whole loan duration. However, this is dependent on your overall profile. The application process is simple and can be completed online.
Sallie Mae loans
Consider this loan company if you are studying in the USA. Sallie Mae Loans is US based financial institution that helps international students to pursue higher education regardless of their financial situation.
You can easily apply for this loan online, and besides, you have over a 97% approval rate when you return to Sallie Mae with a cosigner.
This study loan covers all expenses like tuition, housing, and little costs, like books and a laptop.
How to Apply for Study Abroad Loans?
If you have considered all things and are ready to take a loan, here are the general steps to apply for it:
Step One: Choose your lender
First, make sure you do proper research about the Loan institution before applying. We have listed and discussed some of these loan institutions above on this page. Get an overview of all the conditions and use that information to choose your lender.
Step Two: Check your eligibility for the Loan
Next, check whether you are eligible for the loan. You might be eligible if you check with the loan company you have chosen. Also, check to see if your school supported the lender of choice.
Step Three: Submit your online application
After confirming your eligibility status, submit your application to the loan company. When your submission is complete, the loan company’s credit analysis team will conduct a review.
Step Four: Receive your offer and other terms
At this stage, an offer will be sent to you if you are successful. Read it carefully and accept it if it is okay with you. It is very important for you to carefully go through the content they are offerings and the conditions of the loan you are about to take.
Step Five: Final Approval
When you agree to the loan terms and conditions, you have been certified, and the final approval will be issued to the facility.
Step Six: Disbursement
The final stage is when you receive your study abroad loan credit alert. When you receive it, avoid being tempted by the amount of money; instead, use it for the reason mentioned in the documentation. Some loan companies, such as MPower Financing, will deposit funds directly into your school account.
Important Things to Consider When Applying for a study abroad Loan
While applying for a study abroad education loan, here are a couple of things you need to keep in mind:
- Loan margin
- Moratorium period
- Effect of exchange rate
FAQs
Can I get a student loan in Nigeria to study abroad?
Yes, you can! But you need a cosigner to apply for a study loan. The cosigner must be a United States citizen or permanent resident with good credit standing and who has lived in the USA for the past two years.
Which loan is best for studying abroad?
The answer to this question is relative and depends on your choice. But the MPower financing loans stand out. You can get an MPower education loan without collateral – a 100% Unsecured Loan.
Can the bank give me a loan to study abroad?
Yes, some Microfinance banks, such as Edfin microfinance bank, offer study abroad loans to students who might be interested. You must, however, meet their loan requirements to access a loan.
Where can a student borrow money in Nigeria?
As a Nigerian student studying in Nigeria, you can access an education loan from First Bank Plc. They have a portfolio called FirstEdu Loan for students looking for loan assistance to further their studies. There’s also the GT Bank’s school fees advance, which is designed to finance the payment of your child’s school fees for schools in Nigeria only. You should visit their website to apply for these loans if you are interested.
Conclusion
As promised, we have highlighted and explained the top study-abroad loans that are worth considering if you don’t have the financial means to study in the USA or Canada. You should also know that these loans come with terms and conditions, and we advise that carefully research them before obtaining a loan. We wish you success all the way!
can an undergraduate get mpower loan?
No Sir.
Please is there any bank\agency offering loans for schools in Europe?
I can’t think of any Nigerian bank that offer such. But try GTBank.