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More and more Nigerian students are heading to the U.S. to pursue undergraduate or graduate degrees, and many are searching for ways to finance their education.

According to a report from Nov. 14, published by Open Doors on International Educational Exchange, 14,438 Nigerian students studied in the U.S. during the 2021-22 academic year. This is a 12.3% increase from the previous year. Most of these students were in graduate programs, while about 31% were studying for undergraduate degrees.

If you’re one of these students, you might be looking for loans to help pay for your studies. Studying in the U.S. can be quite costly, with yearly expenses ranging from $9,700 to $38,800. Fortunately, there are loan options available to Nigerian students. Below are some options you can explore.

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1. MPOWER Financing

MPOWER Financing offers loans to both undergraduate and graduate students from Nigeria and other countries who are studying in the U.S. Students can borrow amounts between $2,001 and $100,000, with a 10-year repayment term. Importantly, no cosigner or collateral is needed.

All MPOWER loans have fixed interest rates, meaning the rate won’t change over time. They provide loans to students attending over 400 universities and also offer support for visas, career services, and a chance to build a U.S. credit history as you make timely payments.

2. Citizens

Citizens Bank offers student loans to international students, but a U.S.-based cosigner is required. This cosigner must either be a U.S. citizen or a permanent resident and must meet certain credit and income criteria.

For undergraduate students, the loan amount can be as high as $150,000. Graduate students may borrow up to $350,000, depending on their field of study. Borrowers can choose between fixed interest rates, which stay the same for the entire loan period, or variable rates, which may change according to market conditions.

3. Sallie Mae

Sallie Mae also provides loans to international students, but like Citizens, it requires a U.S.-based cosigner. Students can borrow up to the full amount of their school’s certified cost of attendance. Loan terms are available for either 10 or 15 years, and Sallie Mae offers loans for both undergraduate and graduate students.

How to Qualify for an International Student Loan

To get an international student loan, the requirements can differ depending on the lender. Generally, you must be attending an approved school or program, and some lenders prefer students who are close to finishing their degree.

MPOWER Financing is one option that doesn’t require a cosigner or collateral and is aimed at helping international students. However, most U.S.-based lenders will need you to have a cosigner who is either a U.S. citizen or a permanent resident. This cosigner must meet certain requirements, such as having a strong credit score (usually 650 or higher) and a steady income to ensure they can pay back the loan if needed.

Having a cosigner can make it easier to get approved for a loan, but it also comes with some risks. The cosigner is equally responsible for paying back the loan, and if you miss payments, their credit can be affected.

If you’d rather borrow without a cosigner or can’t find one, a loan from a provider like MPOWER might be a better choice.

Tips for Choosing an International Student Loan

When comparing loans, consider the following factors to help you make the right choice:

1. Interest Rates: Private loans start charging interest as soon as the money is given to you. Over time, this can add up. A loan with a lower interest rate can save you money, so it’s important to look for a competitive rate. A fixed rate is usually better than a variable rate because it stays the same throughout the loan term, even if the market changes. You could also check if your local bank in Nigeria offers student loans, though the rules might vary on whether the funds can be used for studying abroad.
2. Fees: Some loans come with extra costs, like origination, application, administrative, or late payment fees. Avoiding these fees can help reduce the overall cost of the loan.
3. Repayment Terms: Check how long you have to repay the loan and if the repayment schedule fits your financial plans. Most loans give you 10 years to pay them back, but some offer shorter (5 years) or longer (15 years) terms. Some lenders may charge a penalty if you pay off the loan early, but MPOWER Financing does not.
4. Monthly Payments: Estimate how much you’ll need to pay each month so you know what to expect. A good rule is to avoid borrowing more than you think you’ll earn in your first year after graduating. However, this might not apply as strictly if you’re attending graduate programs like medical or law school, which often lead to higher salaries.
5. Grace Period: Some loans give you a grace period where you don’t have to make full payments while you’re still in school. However, interest will still build up, so paying at least the interest during this time can prevent your loan from growing larger.
6. Borrower Protections: Look into whether the lender offers options like delaying payments if you go back to school or releasing your cosigner after a certain number of on-time payments. Some lenders also allow you to adjust payments if you experience financial difficulties.
7. Eligibility Requirements: Each lender has specific rules about who can qualify for a loan, so make sure you understand what’s needed to be eligible.

Don’t Forget Scholarships

While loans can help cover the cost of your education, scholarships are another great option since they don’t need to be repaid. Make sure to apply for scholarships through your school’s financial aid office and use scholarship search tools like International Student, BestColleges.com, and College Board. MPOWER Financing also offers several scholarship opportunities.