What are the best international student loans for African students? We get asked this question a lot from students. I’ll answer this question in this article.
There are two types of student loans. Federal student loans – offered by the government (mostly in the US). And Private student loans – offered by private companies and financial institutions.
Ideally, federal student loans offer more advantages. It would be considered the best financial aid option for students compared to private loans. But in reality, federal loans are limited to US citizens and eligible non-citizens. So, for most international students, after considering options like scholarships and grants, a private student loan is the only option.
That narrows our student loan comparison down to private loans. And few international student loans accept African students to study abroad.
In this article, we will discuss two of the most recommended student loans for students from Africa. From Nigeria, Ghana, and Kenya to Rwanda, Liberia, Ethiopia, and so on.
We help African students get student loans to study abroad for postgraduate programs. For health care and health sciences, STEM fields, education and training, law, and finance) in the US and Canada. Click here to learn more.
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The major challenge with finding reputable lenders that support students from Africa or emerging markets is collateral and cosigner requirements.
Popular student loan providers require students to provide a cosigner before they can qualify for a loan. Some financial institutions require collateral.
A collateral is a valuable asset a borrower pledges as security for a loan to protect the lender’s interest. If the borrower defaults on repayment, the lender can seize the collateral and sell it to recoup the loss. A student loan from a lender in your country, in most cases, will require collateral.
A cosigner is a person (often a parent, close family member, or friend) who takes full responsibility for paying back a loan, together with the primary borrower. The co-signer is obligated to pay any missed payments and even the full amount of the loan if the borrower doesn’t pay. A cosigner should have a good credit score. The cosigner will also need to be a U.S. citizen or a permanent resident.
Adding a cosigner provides your lender with additional assurance that the loan will be repaid.
Unfortunately, most students do not have a valuable asset to present as collateral. They don’t have family members to stand in as cosigners. This is a major barrier preventing most students from accessing student loans.
The good news is that a few innovative financing companies are redefining the requirement for student loans. Rather than evaluating students based on how much assets they or their parents have or by who they know. These companies evaluate students based on their future careers and earning potential.
Get admission at a reputable university or college for a course with high market demand and earning potential. You can get a student loan to cover part or your entire study cost – from tuition to living expenses.
Hence, the best international student loans for African students do not require collateral or a cosigner.
Founded in 2014, MPower Financing offers no-cosigner student loans for international students, including African students, to study in the US and Canada. MPower Financing considers factors like academic performance and future earning potential when evaluating loan applications.
However, if you are in the process of applying for a loan, to get responsive support, you are better off applying through an MPower partner like us, for personalized support and faster response.
As an official MPower partner, we offer fast response time through our WhatsApp contact and email at no cost. So far in 2023, we have helped students from Nigeria, Ghana, Kenya, Rwanda, India, and many other emerging countries get approval for over $2 million in student loans to study abroad for postgraduate programs in the US and Canada.
Click here to learn how we can help you get an MPower student loan.
Prodigy Finance is another popular student loan provider, launched in 2007, that specializes in providing international student loans to students from various countries, including African students. They offer loans without cosigner or collateral for students studying at top schools in countries like the US, Canada, the UK, and others.
There are two types of interest rates used by different loans and lenders to determine the interest value:
Private student loans come with fixed or variable interest rates.
The downside of no-collateral, no-cosigner student loans is that they often come with higher interest rates compared to student loans that require them. This is because loan companies take higher risks when they don’t require collateral or a cosigner.
If you can provide a cosigner for your loan application, you are likely to get lower interest rates. Let’s take a look at some of the popular international student loans that require a co-signer.
If you don’t have a problem providing a co-signer for your student loan, here are international student loans that require a co-signer.
International students attending U.S. colleges and universities may be eligible for private student loans with Ascent. Ascent offers several student loan options for international students, particularly for graduate studies. The lender offers a wide range of repayment terms, which can vary based on your loan type, and borrowers can postpone payments after graduation for up to 9 or 36 months, depending on the loan program.
You’re eligible for an international student loan if you are not a U.S. citizen or U.S. permanent resident, and if you have a creditworthy cosigner who lives in the U.S. and meets additional requirements. Your cosigner must:
More about Ascent student loan.
Discover Student Loans offers private student loans for international students who are attending an eligible US college or university. International students require a creditworthy cosigner who is a US citizen or permanent resident. They also cover up to 100% of all of your school-certified college costs. International students do not need a Social Security number to apply. More about Discover Student Loan.
Citizens Bank is another option for both undergraduate and graduate international students to consider. Rates are reasonable and borrowers have the option of choosing among multiple repayment terms.
To be eligible for a Citizens Bank student loan, international students must have a creditworthy cosigner who is a U.S. citizen or permanent resident. You cannot have any prior student loan defaults. Your cosigner must have a reasonably strong credit history. More about Citizens student loan.
If you choose student loans that require a co-signer. The interest rate you get will depend on the credit of the borrower and/or the cosigner. Good credit can mean getting a better interest rate on a private student loan, which will save you money on interest.
If you don’t have good credit, you can look at specific private loan options for international students with bad credit or no credit or who can’t get a cosigner.
Generally, remember to carefully review the terms and conditions, interest rates, repayment options, and eligibility criteria for each lender before making a decision. Additionally, consult with your educational institution’s financial aid office for more information and guidance on loan options available to African students.
We can help you through your MPower Financing student loan application or any questions you may have about student loans for African students. Click here to learn more.
Do you want to study abroad? Note that obtaining a bachelor’s degree or a master’s degree in this field helps to improve your chances in the labor market. Studying abroad is no joke for international students due to the cost. However, you can achieve your dreams without breaking the bank by applying for student loans, which you can pay for as long as 10 years. MPower Finance and Prodigy Finance are some of the best student loan providers for international students. They also do not require a cosigner or collateral before an application. Reach out to us today, and let’s help you begin the process.
This post was last modified on June 4, 2024 12:23 pm