The dream of most African students is to study outside of Africa. The continent has a huge percentage of its population dominated by young people who desire a better life and quality education. The government fails to provide the level of quality education and the dream lifestyle the youth of the African continent want, which is why they seek it abroad.
Many of the African students are aware of how studying abroad can be a key to success and numerous opportunities for them. The challenge is that the majority of them cannot afford this quality education. Lack of available funds is not making their dream a reality except for those who have rich parents or relatives.
For most of them, after considering options like scholarships- or grants and it doesn’t work out, they are left with only one option and that is an international student loan.
With the availability of numerous financial institutions that are ready to give study loans to international students including African students. Their hope of studying abroad and having access to quality education irrespective of their lack of funds is still achievable.
There are quite a number of the best international student loans for African students that we have listed in this article. You don’t need collateral or a cosigner to apply for some of these loans. We have a number of these International student loan platforms listed in this article with the necessary information you would need about them.
What Are International Student Loans?
International student loans could be a good option for African students to help fund their education abroad, but the risk should be well calculated before applying. Factors such as interest rate, credit score, repayment option and your status of eligibility should be considered. Understanding how the loan offer you want to take works and counting your cost is very important.
International Student loans can be categorised into two.
1. International student loans without cosigner or collateral
For this category, you (the borrower) don’t need to have a cosigner or collateral before you can apply. The interest rate for this category is high because the financial institution offering the loans is taking a huge risk. The companies issue loans to international students based on the future of their careers and earning potential, which is very risky.
2. International student loans with cosigner or collateral
Students applying for this category of loan offer are asked to provide a cosigner or collateral before they can be given loans.
It is a loan offer meant for students who have a valuable asset that is worth the loan amount to be offered or have a rich relative or friend who has a good credit score and can pay it back.
The companies that offer this category of international student loans do so to protect their money as they can apprehend the cosigner or flip the asset or property at any spot of the borrower defaulting.
Defining the Meaning of Collateral and Cosigner for Better Understanding
A cosigner is a person either a parent, a family member or a friend. Such a person will be responsible for paying the loan alongside the student who borrowed the money. He/she will also be held accountable to pay if the student who borrows missed payment default to payback or abscond
Collateral on the other hand is a valuable property or asset the student who wants to borrow must submit its documents/proof of ownership before the loan can be issued. The asset must be an equivalent or worth more than the loan to be issued. Such that at any point the borrower fails to pay back, the lender acquires and sells the assets to recover their money.
Student loans offered by financial institution in the student’s countries are the most ones that require collateral
Challenges of African Students Applying for International Students Loans
There are typically five (5) kinds of challenges that most African students encounter when applying for International Student Loans. They are:
1. Lack of credit history
Companies or financial institutions who are offering international student loans always check students’ credit history before they offer them loans.
They check if you have default loans borrowed from previous financial institutions in the past. They check your credit card to see how you pay off their bill or if you have unsettled bills.
Some African students can be disqualified for international student loans if they have had a bad credit score history in the past.
2. Limited access to loan options
Lack of adequate access to information about different companies, financial institutions or even scholarships and grants can make it difficult for African students to get international student loans.
3. Higher Interest Rates
Companies and Financial institutions that offer international student loans with high-interest rates make it difficult for the student to finish paying back the money on time.
High-interest rates can scare most African students from applying for international student loans. Some of them can even lose interest in their dream of studying abroad when they become aware of how high the interest rates they will pay back will be after graduation.
4. Limited Loan Amount
The loan amount issued by private companies or financial institutions may not be enough to cover all of their expenses. This can discourage some African students from applying for international student loans because they will be left with no option of where to raise the remaining funds to cover their study abroad expenses.
An international student loan that offers both tuition fees and living expenses will appeal more to African students who want to study abroad.
5. Collateral requirement
There are financial institutions in the home country of African students who want to study abroad that offer International student loans. These companies and institutions mostly request that students submit collateral before they can be given loans which most don’t have.
Finding the Best International Student Loan as an African Student
Several innovative financial companies offer international student loans to African students and have refined their requirements. Instead of giving loans to students who only have collateral or rich parents or relatives to be their cosigners. The companies issue loans to students based on their future careers and earning potential.
You can also consider some of the factors listed below when you are looking for the best international student loans to apply for:
- Be certain about the total amount of money you need to borrow
- Confirm the repayment plans of the loan you are applying for
- Check the company interest and fees if they are not too high for you
- Know the eligibility criteria and requirements of the company
To help you make a better choice, we have made a list of some companies and financial institutions that have the Best International student loans for African students in the subsequent part of this article.
International Student Loans for African Students without Cosigner or Collateral
1. Prodigy Finance
Prodigy Finance is a student loan provider. They give international student loans to students from different parts of the world including African students. Their loan offers do not require students to have a cosigner or collateral or have to pay any hidden fees or surprises. Their application is quick and easy and it is strictly an online application. The loans they give to students always cover their tuition and living costs.
- Prodigy Finance has given out over $1.5 billion worth of loans to over 30,000 students in 150 countries with their students in over 1400 schools.
- Their international student loans support over 850 schools in 18 different countries
- Students applying for their loans can start paying 6 months after their classes ends
- They have flexible repayment terms of between 7 years to 20 years
- Students who would qualify for their loans must meet their eligibility and underwriting requirements
2. Mpower Financing
Mpower Financing international student loans is an easy and affordable way for international students including African students can fund their education on their own. Their loans support students’ independence as there is no need for a cosigner or collateral.
- Their loans have supported over 400 students who are studying in the U.S and Canadian schools
- They have career development guidance and resources on the topics that matter most to international students
- There is no prepayment penalty for international student loans
- An undergraduate or graduate student within 2 years of graduating or about to begin a 1 year or 2-year program is eligible for Mpower student loans
- Students who are attending one of their over 400 approved schools in the U.S or Canada are eligible for Mpower school loan
- International students, DACA, U.S citizens, refugees or asylum-seekers are all eligible for their Mpower student loan
- They have a flexible repayment plan of 10 years
- Their interest rate is fixed and will also remain the same even in a rising interest rate environment
3. Edxtra
Edxtra offers no collateral and no cosigner $100,000 worth of international student loans to international students including graduate students in Africa who are interested in studying STEM, Business or Management Degrees in over 1000 supported Universities and Colleges.
- Students who are admitted for masters at one of their over 1000 supported schools in the US, Canada, Asia or Europe will be eligible for their student loan
- Students who are studying Master’s in STEM, Business or Management Degrees are eligible for international student loans
- Their international student loans cover up to 100% of education and living expenses.
- They have a flexible repayment plan of 10 years period after graduation
Final Verdict
As an African student who dreams of having a quality education abroad. Lack of available funds should not stop you from making that dream become a reality and setting yourself up for greater opportunities.
We have listed in this article the requirements and benefits you will get from these institutions that are offering international student loans to students in different countries including African students. They will help you enjoy independence in funding your education abroad as there is no need for a cosigner or collateral.
Visit each of the institutions’ websites, and further your search about their requirements, eligibility status and some other vital information that has not been discussed here.
Get informed and understand how their programs work, count your cost and be aware of the risk you want to take to enable you to plan how to repay after graduation even before you apply.