How To Get Student Loan In Nigeria. Unable To Pay Your School Fee? Check This Post On How To Get A Student Loan In Nigeria.
Are you a student? Do you wish to get a loan to be able to complete your education? Then this article is for you. I have put together useful and valid information on how you can get a student loan in Nigeria. This article covers everything you need to know about getting a student loan. Interesting right? I’m sure you cannot wait by now. Let’s get right into it.
Who is a student?
A student is simply an individual who is enrolled into a school or any other educational institution to acquire a certain level of mastery of a subject or subjects who acts under the guidance and supervision of an instructor or a teacher in other to be useful to him and the society at large.
How can I get student loan in Nigeria?
Since education has become a necessity in the world we are right now, people find it ideal to move with the trend and go to school to acquire knowledge. However, funding the school fees can be quite difficult for a lot of people especially people who are in private higher institutions which are obviously and usually more expensive that the regular government owned higher institutions. For this reason, student loan was put together to assist people who might find it difficult paying for their school fee.
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There are four bodies that offer student loans in Nigeria and they are:
1. Access bank student loan
Here are what you would be needing to get an access bank student loan:
- An application form (completed)
- Your admission letter to your school
- Your BVN
- Tuition advice
- A letter of domiciliation of your parent’s or sponsor’s salary account
- You parents valid identification
- Credit checks
It should be noted that one can get up to 5million naira loan.
2. GT bank student loan
Here is what you would need to get a Gt bank student loan:
- A completed form and undertaking employer form
- Your school fees bill and credit insurance
- Staff terminal benefit
3. First bank first edu loan
Here is what you would need to get a First bank first edu loan:
- Your school must be populated with more than 100 students
- You have access to a maximum amount of 10 million naira
- Your school must have been in account relationship with first bank for 6 months or 12 months with any other bank
4. Federal government education loan
How do I pay back a student loan?
If you are wondering how to pay your student loan if you have gotten it, then it is important that you know that a student loan can be paid back in three different ways. Many student loans give these three opportunities to students to be able to pay back their student loans which I why I would be giving you these three ways. Here are the ways by which you can pay back your student loan:
- The first option for you if you wish to pay back a student loan is for you to defer your payments until after you have graduated. This simply means that one would not pay back the loan at all while one is still in school until one has finished with school and probably the grace period of about six months has ended.
One thing you should know about this type of payment is that it is more like the most expensive ways to pay back your student loan. This because the interest would have gone up because it has been built for a long time.
- The second option for you to be able to pay back your student loan is by making interest payments of the loan you have collected while you are in school. It should be noted that on can make payments of this loan with as low as ten thousand naira (NGN 10,000) . Once you have then graduated, and the grace period of about six months must have passed, then you can then start to pay fully on the interest as well as the other. This method is not as expensive as the first and can save you a lot of money as the interest would not have to grow too much over time. This method is considered as one of the best ways for you pay back your student loan.
- The third option of you paying back your student loan is for you to male full payment for the loan and the interest while you are still in school. This means that you have to make full payments of the loan and the interest before you graduate from school.
This particular option is considered as the most difficult ways for which students can pay for the loan because they obviously need money for school themselves and many of them would not even be working but if you feel you would be able to pay back the loan while you are in school then you can definitely go for this option.
What are the types of interest rates one can find for student loans?
There are basically two types of interest rate which one can find for students loan. They are:
- Fixed rates
- Variable rates
Types of interest rates
1. FIXED INTEREST RATES
Fixed interest rates are the type of interest rate that remains the same all through the life span of the loan. It can only change if one refinances one’s student loan. Fixed interest rates are usually higher than the other type of interest rate which we are going to be talking about.
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2. VARIABLE INTEREST RATES
We should know that anything that varies is anything that can change. From the name, we can simply depict the kind of interest rate this is. Variable interest rate is the type of interest rate that changes throughout the life span of the loan.
This particular type of interest rate can start up very low and grow to be higher over time. Choosing the type of interest rate that would be best for you as a student can really be difficult. I would advise that if you want to know the exact amount you would be paying throughout the life span of the loan then you should go for the fixed interest rate however, if you want an interest rate that would start up small then you can choose the variable interest rate.