In Nigeria, student loans are intended to assist students in covering the costs of post-secondary education, including tuition, books, supplies, and living expenses. The importance of education in Nigeria for the development of the nation has long been a topic of discussion with the administration. In order to assist Nigerian students in financing undergraduate or graduate education in Nigeria or abroad, the Nigerian Students Loans Board was first founded in 1972. Between 1973 and 1991, it disbursed loans totaling 46 million. However, there have been significant issues, and the pace of debt repayment recovery has been incredibly unsatisfactory. There are many lenders who offer cash for students, despite the difficulties and problems that have plagued Nigeria’s education funding system.
Paying Back Student Loans
There are typically three options to pay off your student loans:
First, you can choose to postpone payments until after you graduate. This means that until you graduate and the six-month grace period has passed, you won’t have to make any payments on your student loans. Your balance due will continue to accrue interest while you are a student if you decide to defer all payments, but you won’t be forced to do so.
The second option for repaying your student loans is to make interest payments while you are in school. In the long term, this is the most expensive way to pay back your loans because interest has a lot of time to build. These payments may be as little as $1000 or they may be sufficient to pay the interest that is being charged on the loan. You will start making full payments on the interest and principal once you graduate and have passed the six-month grace period. Over the course of your loan, you might significantly reduce your repayment costs by using this strategy.
Making full payments on the principal and interest of your student loans while you are still in school is the third frequent way to pay them off. Since you have a student loan because you need assistance paying for education, most students may find this option challenging. However, you can save a sizable sum of money over the course of your loan if you can make complete loan payments while you are still in school.
You can choose between fixed and variable interest rates when it comes to student loans. Although there are some variations between the two rates, neither is fundamentally superior to the other. Unless you refinance or consolidate your student loans, a fixed interest rate stays the same for the duration of the loan.
The lowest advertised variable rates are typically greater than the lowest fixed interest rates. You are giving up some freedom in exchange for consistency, which is why. Up until the loan is paid off, you will know the amount of your payments and the fixed interest rate cannot increase. Although they can increase significantly, variable interest rates frequently start off far lower than fixed interest rates. This is so because variable interest rates are predicated on rates that are determined by external markets. The interest rate that banks employ when lending money to one another is called the interbank offered rate (IBOR).
Your variable interest rate will increase if the rate does. Likewise, if it declines, your variable rate may do the same. It can be a little risky to choose between a fixed and variable interest rate for your student loan. A variable rate can frequently result in much lower interest costs over the course of the loan if you’re willing to take a chance on the rate rising. However, a fixed rate can be a better option if you want to know the precise amount you will be paying for your student loan each month.
Get all the facts before making a decision when taking on any kind of debt, but especially student loans. Make sure you read and comprehend the loan’s terms. Choose the loan features and interest rate that are most relevant to you before moving further. You can realize your goals and receive a top-notch university education with the aid of the correct student loan.
FCMB STUDY ABROAD
On May 31, 2018, First City Monument Bank (FCMB), a renowned provider of financial services, announced a program dubbed “FCMB Education Advisory Service.” This service would provide easy access to cheap education support for clients or clients’ children who want to pursue undergraduate and graduate degrees while studying abroad.
The assistance comprises services for foreign admission information, transmission of tuition money, school living expenses and travel costs, loans to support tuition payments, visa processing, travel, and exam preparation. On the FCMB website, branches where operating desks are currently located are posted for access by customers and other potential candidates.
It is a component of the Bank’s efforts to foster the growth of a new generation of great minds that will propel Nigeria forward.
The MOD Group and the FCMB Education Advisory Service are working together to promote and market education internationally. The MOD Group has activities throughout West Africa, including Nigeria.
In line with the initiative, which was unveiled in a ceremony on May 30, 2018, FCMB is providing a full complement of basic financial services, customized to its clients’ needs in the area of studying abroad.
Among them are the Bank and Credit Direct Limited, a subsidiary of FCMB Group Plc (the holding company), which offers customers up to N5 million in school fee support, Flexx accounts (in foreign currency) for students traveling to study abroad, and swift and secure international funds transfers through internet banking platforms for the payment of tuition and other overseas educational costs. Additionally, FCMB debit cards are distributed, including the pocket money card (pre-loaded), which may be used to withdraw money from ATMs abroad and make purchases at shops and supermarkets.