How Can a Student Get a Loan in Ghana?

This content aims to discuss the tips to follow about answering questions such as “How can a student get a loan in Ghana?”, “How can a student survive with loan payment in Ghana?”, etc. In this period that many African countries have begun adopting many western-proposed solutions to the challenges of the different sectors of national affairs, ranging from education, agriculture, housing, etc.

Over the years, many African children have been recorded to be more out of school than the statistics of those who are in school. This has no doubt been a very serious situation that has served as a serious drawback for the continent.

As it is popularly said that an educated society is a society that is headed towards progress, growth, and development. Education has really been an issue in Africa in that, apart from the fact that the proliferation of private schools has become a cankerworm of its own kind, this sector has really been diluted with incompetence and inadequacies for the love of money.

This love for money which translates to mean the over-capitalisation of the whole venture of education has also been a serious headache and I must say that it has so far enhanced the grave reduction in the number of students who are currently attending school.

In order to solve the increasing problem of experiencing higher data of out-of-school children and young ones, the governments of some African countries have been neck and neck with the advanced world when it comes to the matter of education. One good example of this is the case of student loan.

Student loans is a federal money borrowed from the federal government to help pay for your education, which at the end of the day must be repaid with interest, specifically after school. Thus, it is practically an economic solution to the problem of education.

One of such African governments that has adopted this type of policy is Ghana. The Ghanaian Student Loan Trust Fund is a programme that is prepared for the reason of effecting growth in education and thus providing financial assistance to indigent students who need the help.

An Overview of the SLTF Policies

As part of the consideration for the student loan, prospective applicants will need to ensure that both their institution and programmes will make them eligible for the loan. To be able to access the loan the following must be considered:

  • School is a tertiary Institution accredited by Ghana National Accreditation Board.
  • Programmes being offered are accredited by NAB
  • Loan is for only Ghanaian citizens living and schooling in Ghana.
  • Only needy applicant will be considered

A borrower shall apply the loan granted from the Fund to defray personal expenses including fees, the cost of boarding, lodging, books, equipment and for other purposes that may be necessary for the borrower’s course of studies.

Some of the Tips to Note as Requirements

Below are some of the requirements for the student loan in Ghana:

  • You must be a Ghanaian and have been offered admission to study an accredited tertiary programme in Ghana.
  • You must have a valid Ghana Card Number (can be acquired at designated GRA offices for free).
  • You must be pursuing tertiary programme such as a diploma or 1st degree and have a Student ID card or admission letter.
  • You must have an active registered Mobile Phone Number, a valid Email Address and an E-zwich Card (can be obtained at any bank).

Other Loan Options for Ghanaian Students

There are other loan options for Ghanaian students in foreign lands. Examples are:

  • MPower Finance

MPower Finance is chartered by the government of the United States of America. It is primarily for charitable, educational, social and recreational activities. It solely has the interest of the public at heart rather than making profits.

Here is the list of important points to note when considering MPower financing:

  • Current stats: overtime, MPower has recorded 60 million in equity funding and over $200 million in debt finance. MPower currently supports over 400 schools in different countries.
  • Supported schools: Mpower currently supports about 400 schools in different countries. So far about 5,000 students have graduated as a result of MPower’s loan supported
  • Maximum amount: Students can borrow from $2,100 to $100,000 to cover the cost of their education while the fixed interest rate does not change.
  • Ease of application process: the application process for the MPower loan is online!
  • Eligibility conditions: for international students to qualify for the MPower loan, they have to meet the following conditions:
    • Must be admitted or currently attending one of the over 400 schools US/Canada MPower is affiliated with.
    • Must be a graduate or undergraduate student within two years of graduation
    • Must provide a valid and unexpired ID card.
    • Must provide all of the supporting documents required.
  • Earnest

Earnest is also a Fintech company with its headquarters in San Francisco, California. It was founded in 2013. As of 2021, Earnest was reported to have refinanced $14.5 billion in student loan debt.  Important details you need to know about Earnest are listed below:

  • Maximum amount: The loan amount offered by Earnest is $1,000 up to $138,500. But it depends on the type of loan you are applying for. There is also no application fee.
  • Ease of application process: the application process is online.
  • Eligibility countries: students from Canada, India, Mexico, or South Korea may not need a cosigner. But Earnest is also open to other international students.
  • Eligible conditions: to be eligible for an Earnest loan, you should meet these conditions:
    • Have a cosigner with a minimum of 3-year credit history.
    • Have a cosigner who is a U.S. citizen or a permanent resident.
    • Must not have any bankruptcies.
    • Have at least $35,000 annual income
  • Prodigy Finance

Prodigy Finance is a Fintech organization founded in 2007 with its office in London, United Kingdom. So far, Prodigy Fiance has disbursed over $1.4 billion.

  • Current stats:  reports from the 2022 evaluation states that  Prodigy Finance has served over 28,000 students globally in 850 schools in 150 countries.
  • Supported schools: Prodigy Finance currently supports about 850 schools in 150 different countries.
  • Repayment term: Payment doesn’t start until 6 months after studies if you study abroad on a Prodigy loan. They have a flexible repayment term of 7 to 20 years.
  • Supported programmes: Prodigy Finance currently supports programmes in Business, STEM, public policy, law and health science courses.
  • Interest rate: the minimum annual percentage rate (APR) they offer is 11.18%. Individual rates differ according to the circumstances, the loan amount and the term. The average APR for student loans is 14.88%.
  • Maximum amount: this is dependent on the school and the course of study but can cover up to 100% of the tuition and living expenses.
  • Ease of application process: the application process for Prodigy students is online.
  • Eligibility conditions: The basic requirements to endorse eligibility include:
    • Must be admitted to a school and programme in the US, Canada & the UK supported by Prodigy Financing.
    • Must be willing to study abroad.
    • Must reside in one of the countries supported by Prodigy Financing.

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