Getting funds to acquire a good education is fast becoming one of the herculean things to do nowadays, especially with the country’s recent economic downturn. If you are a student in need of reliable and trusted loans to help you access your education; do not worry, this article aims to share with you a few of the genuine ways you can get student loans in Nigeria.
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5 Genuine Ways to Get Student Loans in Nigeria
What is a Student Loan?
Firstly, a student loan is a type of loan that is designed to help students pay for their university/college education with a minimal interest rate. A student loan covers the cost of tuition, living expenses, and also study materials.
Types of Student loans
There are two types of student loans in Nigeria, and they are categorized based on their interest rates. The interest rate for a student loan in Nigeria is usually variable or fixed.
Variable Interest Student loans
This type of student loan has a variable interest rate which is usually lower than the fixed interest rate loans. However, interest rates could go higher with fluctuation in market prices
Fixed Interest Student loans
Here, the interest stays fixed throughout the loan. It is not affected by market forces. Before getting a student loan, you must consider the number of years your course of study demands, estimate the loan amount that would cover your study expenses, also consider the student loan interest rates and if possible ways you can reduce the cost of getting an education. This will help to reduce the financial stress of getting a loan amount that is going to be over your education costs and of course you would have to pay the interest associated with it.
Ways to get Student loans in Nigeria
Getting student loans in Nigeria might seem like it will never happen. Many think that it is not possible to get one, while some don’t even know that these student loans exist. Well below are the few genuine ways you can get a student loan in Nigeria
The Federal Government
I know this might come off as a surprise but the federal government does offer student loans. The federal government has set up education banks and boards in States to ensure students who need educational aids get help. You would have to look this up in the state you reside in and submit a loan application and other requirements to be eligible to access the loan.
Private Money Lenders
With the advancement in digital life, banking has evolved. Today there are hundreds of money lenders on the digital platform who offer convenient loans and flexible interest rates to applicants to meet their needs. You can look on to a private money lender to get your education financing. Example of reputable money lenders in Nigeria are; Fairmoney, Carbon, Branch, Okash, etc.,
International Organizations
This is the best and most reliable way you can get a student loan in Nigeria. Every year many international organizations through the use of their educational intervention projects in Africa provide loans, grants, and scholarships to allow ease of study among students. You can learn more about international organizations through their websites and other information blogs.
Banks
Many banks today are known to offer student loans. Some of these banks include First bank through its Firstedu program, Access bank, GT bank, etc. However, you would have to meet their eligibility criteria before you can apply.
Loans from family and friends
This is the conventional way of getting a student loan in Nigeria. It works by making your intention known to a rich sponsor who can cover your educational cost with the promise of paying back at a later date.
Requirements for getting a Student Loan in Nigeria
The basic requirements for getting a student loan in Nigeria are;
- Applicants must be 18 years of age and above
- Meet the criteria for the loan program
- Have a valid means of identification(recent passports, Voters card, or National identity card)
- Proof of admission(admission letter)
- Copy of fees from the educational institution, and course of study/duration.
- A completed and submitted loan application letter
- A valid BVN linked to a bank account.
Please note: The criteria for being considered eligible for a student loan in Nigeria differs with the financing source so you would have to seek information from your intended loan provider.
Student Loans Repayment Plan
The repayment process of your student loan is important that is if you do not want to get in trouble with the lending authorities. It is more important that you consider and choose a repayment option that would be convenient for you to avoid defaulting on loan repayment.
Student loan duration varies with lending institution. However, the common student loan repayment terms are;
Repayment after graduation
This suggests that you will be repaying your student loan after you have graduated and exceeded the 6 months of grace given. It is convenient as you must have begun working and earning a monthly salary, still, it is expensive because your loan will be accruing interest while you are in school.
Repayment while in school
Choosing to repay your student loan whilst you are in school is a good idea but you must have an alternative funding source( this means you might have to work whilst studying ). You can decide to make full loan payment while in school(interest and loan amount) or repay the interest accruing on the loan while in school and then make payment of the loan amount after you have graduated.
Whichever one you choose, you need to remember that student loans are meant to help make your education journey easier, so choose a repayment plan that would not give you a lot to worry about while you should be studying.