By Olawale Fatunwase
For many Nigerian students, studying abroad is a dream, but the high cost of tuition, living expenses, and travel can be a significant challenge. When scholarships and personal savings are not enough, student loan can help cover the financial gap. However, securing a loan as an international student can be tricky since most lenders require collateral, co-signers, or proof of financial stability.
This guide explains the different types of student loans available, the eligibility requirements, and how to apply successfully.
Types of Student Loans for International Students
There are two main categories of student loans for international students:
Government-Sponsored Student Loans
Some countries provide student loan programs that include international students. However, these are rare and often require proof of long-term residency.
Example: The UK Student Finance Program only supports UK residents.
The US Federal Student Aid (FAFSA) does not cover international students (except eligible non-citizens).
Most Nigerian students cannot rely on government-backed loans abroad, making private loans the best option.
Private Student Loans from International Lenders
These loans are offered by banks, financial institutions, and private organizations. They are accessible to international students but may require a co-signer (someone who guarantees to repay the loan if you fail).
Some lenders offer no co-signer loans, making it easier for Nigerian students to qualify.
Best Student Loan Providers for Nigerian Students
Prodigy Finance (No Co-Signer Required)
Who Can Apply? Master’s and MBA students from Nigeria studying in the US, UK, Canada, Australia, and Europe.
Loan Coverage: Up to 100% of tuition and living expenses.
Repayment Terms: Starts 6 months after graduation, up to 20 years repayment.
Interest Rate: Variable (depends on creditworthiness and country).
Co-Signer Needed? No.
To apply, visit: https://www.prodigyfinance.com/
MPOWER Financing (No Co-Signer Required)
Who Can Apply? Master’s and final-year undergraduate students in the US and Canada.
Loan Coverage: Up to $100,000 for tuition and expenses.
Repayment Terms: Fixed rates, repayment starts 6 months after graduation.
Interest Rate: Fixed (6-14% APR).
Co-Signer Needed? No.
To apply, visit: https://www.mpowerfinancing.com/
Lendwise (For UK Universities)
Who Can Apply? Master’s and PhD students in the UK.
Loan Coverage: Tuition and living costs.
Repayment Terms: Flexible repayment options after graduation.
Interest Rate: Competitive rates.
Co-Signer Needed? No.
To apply, visit: https://www.lendwise.com/
Ascent Student Loans (For US Universities)
Who Can Apply? Undergraduate and graduate students in the US.
Loan Coverage: Tuition and living costs.
Repayment Terms: 10-15 years.
Interest Rate: Fixed and variable options.
Co-Signer Needed? Yes (for international students).
To apply, visit: https://www.ascentfunding.com/
Steps to Secure a Student Loan as an International Student
Step 1: Determine How Much You Need
Calculate tuition, accommodation, food, books, and travel costs.
Check if you have other funding sources (scholarships, personal savings).
Avoid borrowing more than necessary to reduce future debt.
Step 2: Research Loan Providers and Compare Terms
Co-Signer or No Co-Signer? If you don’t have a co-signer, choose lenders like Prodigy Finance or MPOWER.
Interest Rates: Fixed rates offer stability, while variable rates may change over time.
Repayment Terms: Some lenders allow repayment after graduation, while others require payments immediately.
Eligibility Requirements: Some lenders only fund certain universities or programs.
Step 3: Gather the Required Documents
Most lenders require:
✅ Admission letter from a recognized university.
✅ Valid Nigerian passport.
✅ Proof of tuition and living expenses.
✅ Bank statements (to show financial stability).
✅ Proof of employment (if applying for postgraduate loans).
If a co-signer is required, you’ll also need:
✅ Co-signer’s bank statements and credit history.
✅ Co-signer’s proof of income.
Step 4: Apply for the Loan Online
- Visit the lender’s website and fill out an application.
- Submit the required documents.
- Some lenders require a short interview.
Step 5: Receive Loan Approval and Disbursement
- If approved, the loan funds are sent directly to the university or your bank account.
- Some lenders send the full amount at once, while others release funds in installments.
Step 6: Plan for Repayment
- Check when repayments start (some lenders allow 6-12 months after graduation).
- Set up a budget for loan repayments.
- Consider refinancing options if interest rates become too high.
Alternative Funding Options
If securing a loan is difficult, consider:
✅ Scholarships & Grants: Apply for fully funded scholarships like Chevening, Commonwealth, or DAAD.
✅ Work-Study Programs: Some countries allow students to work part-time to cover expenses.
✅ University Payment Plans: Some universities offer installment payment plans for tuition.
✅ Family Sponsorship: A relative abroad may help finance your education.
Final Thoughts
Securing a student loan as an international student requires careful planning. While scholarships remain the best funding option, private lenders offer great opportunities when scholarships are unavailable. By researching different loan providers, comparing terms, and planning repayment strategies, you can finance your education abroad without unnecessary financial stress.
Would you like some professional assistance regarding your study abroad plans? Shoot me a message via email at: wale.fatunwase@outlook.com
See you on the next one. For now, cheers.
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