A Comprehensive Guide to Education Loans for Nigerian Students Studying Overseas
As a Nigerian student, you have a wealth of options when it comes to pursuing higher education abroad. Countries like the USA, UK, Canada, Germany and Australia are top study destinations. However, the high tuition fees and living costs involved often require taking an education loan.
Here’s an extensive guide to help you understand and choose suitable study abroad loans as a Nigerian student.
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Overview of Loan Options for Nigerian Students
There are several avenues you can explore for education loans:
International Student Loans
Specialized lenders like Prodigy Finance, MPower and International Student Loans provide loans designed for international students from Nigeria and worldwide. Key features include:
- Loans of $10,000 to $50,000
- Competitive interest rates
- Option to apply without a cosigner
- Repayment terms aligned to student needs
However, they may have strict eligibility criteria.
Loans From Nigerian Banks and Lenders
Many financial institutions in Nigeria like Wema, Edfin and Ecobank offer education loan products. Benefits include:
- Better understanding of local student profile
- Potentially easier approval for Nigerian citizens
- Repayment in Naira may be possible
However, loan amounts may be lower and require collaterals.
Government Education Loans and Scholarships
- Nigerian government agencies like PTDF and TETFund provide scholarships for higher education overseas.
- Check if your home state also offers any study abroad scholarships.
- While not loans, scholarships reduce your financing needs.
Factors to Consider When Choosing a Study Abroad Loan
Consider the following when researching loan options:
Accredited University and Course
Lenders want to see you are pursuing accredited programs with strong career prospects.
Total Costs and Required Loan Amount
Factor in all expenses – tuition, living costs, travel, books, insurance etc. to determine the loan amount.
Loan Interest Rates and Fees
Compare rates across lenders. See if there are any processing fees or prepayment charges.
Repayment Plans
Understand the repayment timeline, moratorium period, tenure and EMI amounts you’ll need to pay.
Cosigner Requirements
Some lenders require a cosigner. Ensure you have someone who meets eligibility norms and can repay if you are unable to.
Estimating the Overall Costs for Studying Abroad
Here are typical costs for studying internationally:
- Tuition fees – $10,000 to $70,000 per year
- Accommodation – $300 to $1000 monthly for shared housing
- Health insurance – $500 to $2000 mandatory annual coverage
- Food and travel – $300 to $800 monthly
- Textbooks and supplies – $600 per semester
- Miscellaneous expenses – $200 to $500 monthly
In total, plan for around $25,000 to $50,000 in annual costs on average when studying abroad.
Applying for an Education Loan as a Nigerian Student
Follow this step-by-step process:
Research and Shortlist Lenders
Go through this guide to shortlist 2-3 suitable lenders based on your needs and profile.
Choose a Loan Amount
Determine the total loan amount needed factoring in costs and any scholarships received. Account for living expenses realistically.
Prepare Documentation
Collate documents needed including academic transcripts, university admits, cost break-up, income statements, ID proofs, cosigner documents, etc.
Submit Your Application
Apply directly on lender websites or meet representatives. Follow up diligently to ensure smooth processing and quick approval.
Tips for Responsible Repayment After Studies
Here are some tips for managing education loan repayment:
- Begin seeking job options actively during your final semester to ensure you have employment post-studies. This will help you repay smoothly.
- If you have difficulty finding a job immediately, speak to your lender to explore options like extended moratorium period, step-up EMIs etc. Avoid defaulting.
- Stick to the EMI repayment schedule set by your lender. Make payments on time to prevent credit score damage.
- Whenever possible, make lump sum advance payments to reduce overall interest costs.
- Keep lenders informed if your financial situation changes at any point during the repayment phase.
By planning smartly and staying disciplined throughout your studies and after graduation, you can repay your loan successfully while growing professionally.
Conclusion
Pursuing higher education internationally is an investment that requires financial planning. Fortunately, Nigerian students have access to several loan options through private lenders, local banks and even government scholarships. Evaluate your needs diligently, choose a legitimate lender and borrow prudently. With these steps, you can make your study abroad dreams a reality.
FAQs on Education Loans for Nigerian Students
What are the maximum loan amounts I can get?
You can obtain overseas study loans of $30,000 to $50,000 based on your course and expenses. Some Nigerian bank loans may cap at ~$25,000.
What are the lowest interest rates I can expect?
Specialized overseas education lenders often offer competitive rates of 4.5% to 8%. Nigerian bank loans are typically 11% to 15%.
What documents are needed for the application?
You’ll need income proofs, academic records, university admits, cost break-up, accommodation details, insurance, financial statements, cosigner documents etc.
How early should I apply for the loan before commencing studies?
Start researching loans 8-12 months prior and submit your application at least 4-6 months before your course start date.
Which lenders don’t require a cosigner for overseas students?
MPOWER, Prodigy, and Stilt are some lenders that may offer loans without a cosigner based on your profile. But having a cosigner improves approval odds.