A Comprehensive Guide to International Student Loans for African Students Studying Abroad
Financing an international education can be challenging for students from Africa. However, various options exist for international student loans that African students can utilize to fund their academic ambitions abroad. By understanding the different types of loans, popular lenders, eligibility criteria, terms, and additional funding opportunities, African students can make informed choices to secure the financing needed to study globally.
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Overview of International Student Loans
Let’s first understand what international student loans are:
- Loans offered to students from foreign countries to fund their studies abroad.
- Provide an alternative source of funding besides self-financing.
- Offered by private lenders, banks, credit unions and specialized finance companies.
- Requirements and terms depend on the lender, loan type, course of study etc.
- Usually more stringent eligibility than domestic student loans in the host country.
- Interest rates, fees, loan limits and repayment timelines vary.
Now let’s look specifically at loans for African students looking to study overseas.
Types of International Student Loans Available
African students can choose from two main categories of international education loans:
1. Cosigner Loans
- Require a creditworthy cosigner, usually a US citizen or permanent resident.
- The cosigner guarantees the loan will be repaid fully.
- Approval depends on the cosigner’s profile more so than the student’s.
- Often easier to qualify for compared to no-cosigner loans.
2. No-Cosigner Loans
- No cosigner required. Based solely on the student’s credentials.
- Harder to qualify for, but offer independent financing.
- Require strong academic record and financial profile.
- May need prior US-based income or assets to apply.
- Offered by fewer lenders due to higher risk.
African students should evaluate if they can attract a suitable guarantor when choosing between loan types.
Popular Lenders for African Student Borrowers
Some leading lenders used by African students for international education include:
MPower Financing
- Loans specifically for international students.
- No cosigner required – approvals based on academic merit and earning potential.
- Students from over 200 countries funded, including many from Africa.
- Disburse loan directly to university’s financial aid office.
- Requirement: must attend an approved partner university.
Prodigy Finance
- Loans designed for international master’s/MBA students.
- No cosigner needed – based on academic background.
- Funded students from over 125 countries.
- Must attend one of over 700 partner universities globally.
- Fixed interest rates and loan terms.
Ascent Funding
- Offers cosigner and no cosigner loans.
- Over 150 university partnerships worldwide.
- Multi-year loan options available.
- Provides networking and career support.
- Requirement: 3 years prior education in English.
In addition to these specialized lenders, banks like Sallie Mae and Discover also offer cosigner loans. Credila and Global Student Loan Corporation are other options.
Eligibility Criteria and Requirements
Eligibility criteria for international student loans include:
For Cosigner Loans:
- Cosigner must be creditworthy with income and US citizenship/residency.
- Their debt-to-income ratio should not exceed 50% after the student loan.
- Minimum FICO score requirements for the cosigner (typically 670+).
For No-Cosigner Loans:
- Strong academic track record at previous institutions.
- Acceptance letter from an approved university.
- Some lenders require prior income or US accounts/assets.
- Meeting minimum FICO score independently (around 650+).
- English language proficiency.
Carefully review lender websites to confirm you meet their specific eligibility requirements before applying.
Key Loan Terms and Conditions
When comparing lenders, consider these key factors:
- Interest rates – fixed vs variable, annual percentage rates.
- Fees – origination fees, application charges, loan processing fees.
- Loan limits – per year and total aggregate amounts.
- Repayment timeline – grace periods, total repayment duration.
- Deferment options – possibilities to temporarily postpone repayment.
- Co-signer release – ability to remove co-signer after certain conditions met (for cosigned loans).
- Credit reporting – does the loan help build your US credit history?
Reading the fine print is essential to make cost and feature comparisons and choose wisely.
Additional Costs to Factor In
When budgeting, remember that the loan amount itself does not cover all costs:
- Tuition fees and out-of-state costs
- Accommodation and living expenses
- Books, supplies, equipment costs
- Health insurance premiums
- Travel and transport costs
- Personal expenses and emergencies
- Origination, processing, insurance fees on the loan itself
Build in buffers for unexpected costs and currency fluctuations when estimating your total financing needs. Keep costs reasonable by selecting affordable schools and programs.
Scholarships and Grants to Reduce Loan Dependence
In addition to loans, African students should actively seek scholarships and grants to lower reliance on debt. Some helpful resources include:
- Scholars4Dev – scholarships aggregated from multiple sources by country/region.
- AfterSchoolAfrica – extensive database of funding opportunities for African students.
- Edusa – provides information on scholarships, admissions and visas for studying in the US.
- University websites – many have dedicated sections on financial aid options and scholarships for international applicants.
- EducationUSA – network of advising centers providing guidance on studying in the US.
Finding multiple sources of free or discounted funding through scholarships can significantly reduce your need to borrow.
FAQs on International Student Loans for Africans
What loans are best for undergraduate vs. graduate programs abroad?
For undergrads, cosigner loans are usually the best option. For grad school, you may qualify independently for no-cosigner loans based on your prior academic and professional profile.
How do I choose between fixed and variable interest rates?
Fixed rates provide stability and may be better for bigger multi-year loans. Variable rates start cheaper but carry the risk of going up over time as market rates change.
Are the loans only for study in the US or also other countries?
Most lenders focus on financing studies in the US and Canada. But some like Prodigy Finance and Ascent Funding offer loans for approved universities globally including Europe, Asia, Australia etc.
Can I pay off the loan faster than scheduled to reduce interest costs?
Yes, most lenders allow early repayment or overpayment without penalty. Paying off your principal faster reduces interest costs over the loan lifetime.
How do I find the best cosigner for my loan application?
Look within your family and friends network, focusing on US citizens/residents with good FICO scores above 680, low existing debts, and stable incomes. Discuss with them before applying.
Conclusion
African students have multiple options to secure funding for global education through international student loans, both with and without cosigners. By researching lenders, ensuring their eligibility criteria are met, evaluating costs and terms, and supplementing with scholarships, African students can obtain the necessary financial resources to fulfill their academic aspirations abroad.
References
- Prodigy Finance – Loans for International Students. https://prodigyfinance.com
- MPower Financing – Loans for International and DACA Students. https://www.mpowerfinancing.com
- Ascent Funding – Loans for International Students. https://ascentfunding.com
- International Student Loan – Compare International Student Loans. https://www.internationalstudentloan.com
- IEFA – Financial Aid for International Students. https://www.iefa.org/scholarships