Can I Get a Student Loan Without Work Experience?

Applying for student loans can help with the expenses that come with studying abroad. If you cannot get a grant or a scholarship and you cannot fund the cost by yourself, then a student loan can be your next best option. As an African student who desires to study abroad, there are different loan options available for you.

If you are a student seeking to apply for a student loan, many questions will be run through your mind. Generally, before applying for a loan, it is expected that one has a good credit history, meaning that financially, you are capable of paying back the loan over the agreed period. But as a student who is seeking to study abroad to gain knowledge and also increase the possibility of getting a good job that will in turn increase your finances, you might have the required credit history needed. 

So, what do you do in this instance?

Is it possible to get a student loan without any work experience?

This article answers these questions and more. First, let us explore the eligibility requirement a student needs to meet before applying for a student loan. 

Eligibility Requirements for Student Loans

When it comes to eligibility requirements, it differs based on the loan provider. Each loan provider has specific requirements every student must meet before starting the loan application process. But for this article, we will mention the general requirements that apply to most loans: 

1. Proof of acceptance: This is a document that contains your name,  major of study, credit hours earned to date, and start and end dates of your current enrollment term. Enrollment status(full-time or part-time), projected date of graduation, current class and grade point average. 
2. Student Visa
3. Proof of identity
4. Credit history/Cosigner
5. Educational transcripts
6. Estimated cost of studying and living in the country U.S. This is for those who want to study in the U.S. and your school will provide an official cost for you).
7. Copies of documents you have for the qualifying exams you took to gain admission. 
8. Proof of identity

Getting A Student Loan Without Work Experience. 

You can apply for and get a student loan without having a solid credit history or any job. This is where a cosigner comes in.  A cosigner is an adult, mostly a resident of your host country who is willing to sign for a loan together with you. In some cases, the cosigner is required to repay the loan if the borrower defaults. 

In many cases, private loan provides require students to have a cosigner with a solid credit history to sign during the application process. The student does not necessarily need to e currently working a job. The cosigner is required to pay back the loans based on the agreed terms if the borrower defaults. Also, the cosigner has to be a trustworthy person, it could be a family member or a friend. The cosigner should typically meet these criteria:

• A good credit score 
• Steady Income 
• Favourable 15% or less debt-to-income ratio

How Do I Qualify for Student Loans Without a Job?

Once you are a student, you qualify to apply for a student loan but of course, you must meet the eligibility criteria of the loan provider before your loan will be approved. It is also important to note that some of the loan providers deposit the money directly to your school’s account rather than an individual account. 

Student Loan Options that do not require work any work experience

Below is a list of some of the loan options available to students. Although some of them may require a cosigner. 

1. MPower Finance

MPower is a popular loan option choice for students who want loans to further their study abroad. They do not require any cosigner or collateral and are available for international students. Graduate students can borrow with a fixed interest rate of 12.99% (13.98%APR). This is also the maximum limit as it will not be higher than this. There is also a 0.25% discount for students who make loan repayments through automatic withdrawal from their bank accounts. 

For repayment, it starts 45 days after the loan is disbursed. 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.

2. Citizens Group

Citizens Group on the other hand requires a cosigner. Applying for a loan from Citizen’s Group with a cosigner increases the chances of getting approved for a bigger loan with lower rates. They have a fixed interest rate of 6.03%-12.78% and a fixed interest rate of 6.03%-12.78%. In addition, they offer a repayment term of 5,7,10,15 or 20 years. 

3. Ascent Funding

They are also a private loan company and they require a cosigner too for international students. 

The cosigner must:

• Be a citizen of the U.S or have a permanent resident status
• Have a minimum credit score although the score is subject to change
• Earn at least $24,000 per year. 

They also offer a fixed interest rate that starts from 4.48% to 15.51% and a variable rate of 5.94% to 15.83%. However, there is a 0.25% autopay discount. The repayment term is between 5 to 15 years.

4. Prodigy Finance

Just like MPower, Prodigy Finance does not also require collateral or a cosigner. The minimum APR Prodigy Finance offers is  11.18%. The accurate rates differ according to circumstances, loan terms and the amount. Additionally, 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.

5. Earnest

Like Ascent, Earnest also requires a cosigner. The eligibility requirement of a cosigner for an Earnest loan include:

• Have a cosigner with a minimum of 3-year credit history.
• Have a cosigner who is a U.S. citizen or a permanent resident.
• Must not have any bankruptcies.
• Have at least $35,000 annual income.

Earnest has a fixed interest rate of 4.42% to 15.90% with autopay and a variable interest rate of 5.39% to 16.20% with autopay. The repayment term is also between 5 to 15 years. 

Repayment Options

While it is possible to apply for and receive a student loan without a job, you will need a job to be able to pay one back. It is also advisable to pay back before the time limit expires. Getting a job that allows you to study and work and taking a part-time job is a way to help you repay your student loan faster. Payment can also be made through a cosigner then you have to reimburse the cosigner as the case may be too. Whatever way you may choose, ensure you pay back the loan when due so as not to taint your integrity. 

Do you wish to know more about student loans for international students? Do you want to apply for one to help aid your education expenses abroad? Then reach out to us as we can put you through the process and make things easy for you. Do not also forget to our newsletter Afterschoolafrica to get more updates on student loans, grants, scholarships and more.