Student loans for international students from Nigeria
An increasing number of Nigerian students travel to the U.S. to earn their undergraduate or graduate degrees, and they’re looking for funding to pay for college.
According to the Nov. 14 Open Doors Report on International Educational Exchange, 14,438 Nigerian students studied in the U.S. in the 2021-22 year, an increase of 12.3% from the previous year. The majority of these students were studying at the graduate level, though 31% were pursuing their undergraduate degree.
If you’re part of this Nigerian student population, you may be searching for international student loans to fund your studies. Earning a degree in the U.S. can be expensive, with average costs of attendance ranging anywhere from US$9,700 to US$38,800 per year. Fortunately, there are several student loan options for students from Nigeria. Here’s a closer look at some of your education loan options.
1. MPOWER Financing
MPOWER Financing offers student loans for undergraduate and graduate students from Nigeria and other countries around the world who are studying in the U.S. You can borrow between US$2,001 and US$100,000 with repayment terms of 10 years and no cosigner or collateral required.
MPOWER’s student loans all come with fixed interest rates, so you don’t have to worry about your rate increasing over time. MPOWER provides funding for students at over 400 schools, as well as offering visa support, career services and the added perk of building your U.S. credit history while you make on-time loan payments.
2. Citizens
Citizens is a full-service bank providing student loans to international students with a qualifying cosigner. Your cosigner must be a U.S. citizen or permanent resident, as well as meet the bank’s credit and income requirements.
Undergraduate students can borrow up to US$150,000, while graduate students can borrow up to US$350,000, depending on their program. You can choose between fixed rates, which stay the same over the life of your loan, or variable rates, which can fluctuate with market conditions.
3. Sallie Mae
Sallie Mae is another lender that provides student loans to international students with a U.S.-based cosigner. You can borrow up to your school-certified cost of attendance and choose loan terms of 10 or 15 years. Sallie Mae offers student loans for both undergraduate and graduate students.
How to qualify for an international student loan
The requirements to borrow an international student loan will vary by lender. Most require that you’re attending an eligible program or school, and some cater to students who are one or two years away from graduating.
MPOWER Financing specializes in serving international students and doesn’t require you to apply with a cosigner or collateral. Many other U.S.-based lenders do ask that you apply with a cosigner who’s a U.S. citizen or permanent resident if you’re an international student. These other lenders also require that your cosigner meets certain requirements for credit and income. That generally means an established credit history, a credit score of 650 or higher and proof of sufficient, steady income to pay back the loan.
While a cosigner can help you qualify for a private student loan, there is some risk involved in cosigning debt. Your cosigner becomes equally responsible for the loan and will be expected to repay it if you miss payments. Plus, their credit will be impacted by your loan payments.
If you prefer to borrow on your own (or don’t have someone who can cosign for you), opting for a student loan from an international student loan provider like MPOWER may be the better fit.
Tips for choosing an international student loan
As you’re comparing your options for international student loans, consider the following features to pick the right loan for you:
- Interest rates: Private student loans typically start accruing interest from the date of disbursement, so interest charges can add up over time. Shopping around for a loan with a competitive rate is worth the effort, since a low rate can save you money over the long run. You may also prefer a fixed rate to a variable rate, since a fixed rate stays constant over the life of the loan regardless of market conditions. As you shop for a loan, you might also look for student loans in Nigeria from your local bank, but rules will vary about whether you can use these education loans abroad.
- Fees: Keep an eye out for any fees that could make your loan more costly, such as an origination fee, application fee, administrative fee or late payment fee. Avoiding fees is another way to keep your cost of borrowing down.
- Repayment terms: Find out how long you have to pay back the loan and consider whether the repayment schedule could work for your future budget. Private student loans usually come with terms around 10 years, but some lenders let you choose shorter terms of five years or longer ones of 15 years. Some lenders also have a prepayment penalty. MPOWER Financing, however, does not penalize students who wish to pay off their loans early.
- Monthly payments: Estimate the loan’s monthly payments so you have a clear idea of what your student loan bills will be each month. A general guideline is to avoid taking on more student debt than you expect to earn your first year after graduating. That said, this advice may be flexible for students attending medical school, law school or other graduate programs that are likely to lead to high salaries a few years down the line.
- Grace period: Some education loans abroad come with a grace period, allowing you to make small payments while in school or postpone them completely until after you graduate. Keep in mind that your loan will start accruing interest right away, so paying off the interest (at least) while you’re in school could help prevent your balance from ballooning.
- Borrower protections: Consider whether the lender offers any benefits that could come in handy in the future, such as the option to defer payments if you go back to school or to release your cosigner after a certain number of on-time payments. Some lenders also let you adjust or pause payments if you run into financial hardship.
- Eligibility requirements: Finally, each lender sets its own borrowing requirements, so find out what criteria you need to meet to qualify for a loan.
Don’t forget to seek out scholarship awards
While student loans can be a useful tool for financing your education, they’re not your only source of financial aid. Take some time to apply for scholarship awards, as these offer gift aid that you don’t have to pay back. Reach out to your financial aid administrator about opportunities and use scholarship search engines like International Student’s scholarship search, BestColleges.com and College Board for more options. MPOWER Financing offers several scholarships, as well.
