Student loans have helped students seeking to study abroad but who unfortunately have limited funding.
As a student seeking to study abroad, finance is a major headache to sort out before embarking on this new phase. One of the reasons many people stall in actualizing their dreams is that they do not have a capable funding source. Hence they become limited and are unable to move forward.
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In this post, you’ll be enlightened on two student loan establishments; MPower finance and Progidy Finance. These establishments can help with your expenses providing you with the opportunity to further your studies abroad without any form of limitations.
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Let’s now dive into the purpose of this article:
Table of Contents
What are loan companies?
A loan company is a financial establishment whose sole purpose is to render financial assistance to the public by giving out loans, advances or otherwise to help carry out activities other than its own.
For this article, the loan companies we’ll be discussing focuses only on student loans.
Student Loan establishments are set up to provide financial aid to students seeking to further their studies.
They are somewhat different from other companies in the sense that their interest rates are considerably lower than other types of loan companies. They also have different payment plans some of which may allow students to defer payments while in school. Their major purpose is to provide financial assistance to students wanting to further their post-secondary education.
Some companies in Nigeria that provide these services to students include MPower Finance, Prodigy Finance, Quorum, Future Finance, and others.
MPower finance vs prodigy Finance
MPower Finance is a public-benefit nonprofit organization. This means that it is a company chartered by the government of the United States primarily for charitable, educational, social, and recreational activities. They are solely for the benefit of the public rather than being profit-driven.
Furthermore, it is based in Washington DC and its operations started in 2014. As of 2021, MPower is recorded to have raised over $160 million in equity funding and $200 million in debt finance.
Prodigy Finance on the other hand is a Fintech establishment with its office in London, United Kingdom. It was founded in 2007. Additionally, Prodigy Finance’s loans are funded collectively by institutional investors, qualified private investors and a community of alumni.
Since its inception, it has disbursed over $1.4 billion to over 20, 000 students in over 150 countries.
Current statistics
MPower Financing
According to the 2022 progress report from MPower finances, over 5,000 students have graduated from universities abroad after being able to obtain a loan to further their studies.
Over 91% of students admitted that MPower’s loan enabled them to further their education.
Also, MPower has helped students from across 152 countries to pursue their dreams by giving them access to loans.
46% of students who obtain loans from them belong to the middle/lower class income bracket in their different countries.
Furthermore, 45% of MPower students are first-generation graduates.
Also, 52% of MPower female students pursue STEM courses in contrast to 46% of their male counterparts.
MPower also helps to diversify higher education institutions by allowing students from different countries the opportunity to further their education by providing funding.
India, Nigeria, China, Brazil and Ghana are the top five countries of origin that account for 50% of all MPower students globally. Moreover, MPower’s impact work also contributes to four SDG goals which include: quality education, gender equality, industry, innovation and infrastructure and reducing inequalities.
Prodigy Finance
According to the 2022 impact report from Prodigy Financing, over 28,000 students have been served so far in about 850 schools in 150 countries. They have also disbursed $1.5 billion to students across the globe.
Prodigy Financing has also been able to contribute positively to the SDG goals by providing opportunities for people to have access to quality education, decent work and economic growth, and reduced inequalities.
Check: Top International Student Loans For African Students
Ease of application process
MPower Finance
The application process for a student loan from MPower Financing is online. You need to go through the requirement criteria, and if you fit, you go ahead to fill out the online form. The requirements are below:
- Must currently be a student in the U.S. or Canada. It should also be a school MPower supports.
- Secondly, must reside in the US, Canada or the state of your school and must not be a citizen of a restricted country, subject or individual.
- Should be within two years from graduation and it must be a course endorsed by MPower.
- Finally, want the funds to be disbursed within 12 months.
If you meet the above criteria, you can go ahead to fill out the online form. But have it in mind that you will need a valid passport, resume, standardized English test result, admission letter and other documents listed here.
Prodigy Finance
The entire application for student loans from Prodigy Financing is also totally online and should take approximately thirty minutes to complete. Qualified applicants will receive conditional approval for their loans within two business days. But you must first ensure that you are eligible to apply. You need to first register your interest on their website, then you will apply for funding. You will receive a customized quote and will need to also give some additional information. Thereafter, you’d upload the necessary document. Then finalize your loan and then proceed to sign the dotted line after which your loan will be sent to you. Paying back the loan starts six months after graduation so you’re free to go about your studies without any worries.
Eligibility conditions
While some loan facilities require a cosigner or collateral before approving loans. MPower doesn’t require any cosigner and students can borrow from $2,100 to as much as $100,000 to cover the cost of their education with a fixed interest that doesn’t change.
All loans have a 10-year repayment term but you can pay your loans at a faster rate as there are no penalties for early repayment.
Additionally, MPower loans are available to international students, DACA recipients, U.S. citizens, refugees and asylum-seekers.
For international students to qualify for the MPower’s student loans, they must meet the following criteria:
- 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.
Note that the entire process can take weeks and even months so it is better to start early to get it on time.
Prodigy Finance on the other hand, also doesn’t require any collateral or cosigner before you apply for any loan. They do not only consider your credit history, but they also consider affordability based on your future earnings. The basic requirements to endorse eligibility include:
- Must be admitted to a school and programme in 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.
If you meet these criteria then you can go ahead to fill out the application form. After which you will receive your quota stating the amount you are eligible for. Then you can proceed with the remaining process.
Suggested: Best International Student Loans for African Students 2024 (Ultimate Guide)
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 bootcamps.
Prodigy Finance currently supports programmes in Business, STEM, public policy, law and health science courses.
Supported Schools
MPower Finance currently supports about 400 schools offering the different programmes listed above. To check out the schools supported by MPower Finance, click here.
Prodigy Finance currently 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.
Supported Study Destinations
MPower finance supports over 400 schools 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.
Eligible Countries
MPower finance supports prospective students seeking to further their knowledge from Asia, Africa and South American continents respectively.
Prodigy finance on the other hand supports students from diverse locations too. But if your school is in any one of these countries, then you might not get the loan. Click here to view the lists of ineligible regions.
Interest rates
MPower finance allows graduate students to borrow with a fixed interest rate of 12.99% (13.98% APR¹). It will interest you to know that this is the maximum limit and will not be higher than this. However, you can qualify for a 0.25% discount rate if you make your loan payment through automatic withdrawal from your bank account. If you qualify for this discount, your rate will be 12.74% (13.72% APR²).
For undergraduate students, the fixed interest rate is 13.99% (15.01% APR³). This is also the maximum as it will not be higher than this. Undergraduate students also qualify for a 0.25% discount. This is if a loan payment is made through automatic withdrawal from your bank account. This will make your interest rate to be 13.99% (15.01% APR³).
Similarly, the minimum annual percentage rate (APR) Progidy Finance offers is 11.18%. The individual actual rates differ according to different circumstances the loan amount and the term. Also, the average APR for student loans is 14.88%.
Furthermore, a 5% origination fee is included in the MPower loan. Also, a 5% administration fee is included for the Progidy loans.
Suggested: Does the Nigerian Government Give Student Loans To Study Abroad?
Disbursement of funds
On the disbursement of funds, MPower Finance automatically disburses students’ loans directly to the schools they are studying at. Loans are not given directly to individuals.
Similarly, Prodigy Finance also disburses all funds directly to schools, not individual student accounts.
repayment term
For loan repayment, students will start repaying loans to MPower 45 days after the disbursement of the funds. An automatic debit is signed before the loan is disbursed and the borrower is then entitled to a 0.25% discount. After this payment begins until the loan payment is completed.
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 but it is advisable to pay early so as not to incur any penalties or extra costs.
Additionally, we know how important it is to fuel your dreams by furthering your studies at your desired university abroad. This is now a possibility as you have access to funding which can enhance your whole learning experience. We understand that the whole process can be a lot. For someone who has been given the opportunity, you will want to harness it properly. Given this, you will need a guide, an experienced person who will assist you through the loan application journey and ensure smooth sailing for you.
This is exactly why we are here for you. At Afterschoolafrica, we do much more than provide information to enhance your education journey. We also help in your admission process and your loan application process. It is our joy to see you achieve your dreams and smash your goal. This is the reason why we are dedicated to offering you quality services. You should reach out to us to start the application process as this will move you closer to your goal.
See If You Qualify For A Student Loan To Study Abroad
Are you planning to study abroad and need funding to cover your tuition and living expenses?
We can help you secure up to $100,000 in student loan to study in the US, Canada, and UK at low interest rates. You do not need a collateral or a cosigner. Repay your loan over a period of 10 years. Click here to see if you qualify for a student loan.
