What's Annual Percentage Rate for Education Loan & 9 other FAQs

Your questions have been answered. Presented here are the ten most common inquiries raised during the education loan options webinar featuring Prodigy Finance.

1. How is Prodigy Finance able to provide education loans without requiring collateral or a cosigner?

Collateral and cosigners are not universally required for education financing. Although they may be standard in your region, Prodigy Finance has adopted practices from the most customer-friendly loan systems globally.

Furthermore, rather than relying solely on past credit history, Prodigy Finance utilizes a Future Earning Model that evaluates the income you are likely to generate following the completion of your master's degree in your chosen field. Assessing your financial outlook post-graduation lowers risk, enabling Prodigy Finance to offer loans free of collateral and cosigners.

2. Can I secure a lower interest rate by providing a cosigner or collateral?

The specialized risk evaluation model designed and utilized by Prodigy Finance does not necessitate collateral or cosigners, and we are unable to accept them, partly due to the global nature of our corporate structure and loan offerings.

Prodigy Finance delivers competitive, and frequently lower, rates. Nevertheless, if prospective borrowers can obtain superior rates elsewhere and possess the necessary collateral, they should evaluate different options to determine the best fit.

3. Is there a maximum borrowing limit set by Prodigy Finance?

Yes, but this limit fluctuates based on the specific university and program you plan to attend. In certain instances, you may borrow up to the complete cost of attendance specified by the institution, which might differ from your personal budget.

On the other hand, some academic institutions impose strict caps that cover exclusively tuition expenses after subtracting any financial aid or scholarships, or they permit borrowing only a fraction of the total attendance cost.

These limits are communicated transparently, and you can review the maximum loan amounts offered by Prodigy Finance for all eligible programs on their platform.

4. Will my loan also handle living expenses?

This depends entirely on your chosen program. While not universally applicable, Prodigy Finance loans generally cover living costs for engineering disciplines, as well as the supported law and public policy courses. Certain business schools also permit Prodigy Finance loans to be used for living expenses.

Your best course of action is to consult the specific loan details page for the universities you wish to attend.

5. Will the approved loan amount be adequate for the visa interview without needing other personal funds?

To obtain an international student visa, you must prove to immigration authorities that you possess sufficient resources to finance the entire cost of attendance throughout your studies.

Your loan from Prodigy Finance is recognized as an acceptable liquid asset for your I-20 documentation, visa application, and any other official paperwork. If the loan covers the full cost of attendance, encompassing both tuition and living costs, you may not need any additional financial backing.

Students relying on multiple financial sources must disclose all of them to immigration officers. The international student advisors at your university are well-equipped to guide you through visa requirements and can assist with any specific inquiries.

6. When is the ideal moment to submit a loan application, and how long does the process take?

It is always advisable to apply for a loan as soon as you have submitted your program applications and are awaiting or have received acceptance letters. Processing takes time, and international students must also factor in visa scheduling.

Applying with Prodigy Finance begins with an initial application, which yields instant conditional approval for eligible candidates. This offer remains valid for two weeks, and upon your acceptance, we verify your submitted documents to complete the loan agreement.

A distinct advantage of a Prodigy Finance loan is the flexibility to reduce the borrowed amount right up until you sign the final agreement upon arrival on campus. Should you secure scholarships later, you can scale down your loan accordingly, eliminating any reason to delay your application.

7. What paperwork is mandatory for the loan application?

You are not required to submit documents to Prodigy Finance until you receive your preliminary loan offer. The application procedure is conducted entirely online, and candidates with provisional approval will need to upload the following items:

• Proof of Identity
• Proof of Admission
• Credit Report
• Proof of Address
• Proof of Income
• Proof of Savings (if applicable)
• Proof of Scholarships or Company Sponsorship (if applicable)
• Financial Aid Form (if applicable)

Should you have questions regarding any of these documents, helpful information is readily available on the Prodigy Finance FAQ page.

8. Could you clarify what APR means? Is it equivalent to the interest rate?

APR stands for Annual Percentage Rate, encompassing both your interest rate and any associated loan fees. APR is valuable for contrasting different loans, as it is easy to be drawn to a low interest rate that ultimately becomes costlier than alternatives due to hidden fees.

In countries such as the United States and the United Kingdom, APR is required by law because it presents consumers with the comprehensive cost of borrowing. If you are unfamiliar with analyzing APR, a dedicated reference guide is available to address your questions.

9. What criteria determine the fixed margin component of the loan interest rate?

Prodigy Finance utilizes LIBOR as the base rate for every loan, accompanied by an individual fixed margin that adjusts on top of it. Together, the variable base rate and the fixed margin constitute your complete interest rate.

The fixed margin calculation reviews your employment background, existing debts or assets, and credit history. Prodigy Finance also evaluates your future earning potential, recognizing that your master's degree will transform your financial trajectory just as well as you do.

Grasping these details about any loan is vital, and you ought to ask as many questions as necessary until you are fully confident in your borrowing choices; we recommend reviewing this guide beforehand.

10. When does loan repayment start?

For full-time students, loan repayments start six months after the completion of classes. For part-time borrowers, repayment starts three months after the final disbursement date.

Keep in mind that Prodigy Finance charges no fees or penalties for paying off your loan ahead of schedule, allowing you to make payments earlier or pay more than the minimum amount to lower your overall borrowing expenses.

Do you have a question we have not addressed yet? Check the Prodigy Finance FAQ pages to find out if another user has already asked about it. Alternatively, email info@prodigyfinance.com and we will respond promptly so you can focus on what matters most securing admission and making the most of your studies abroad.

This piece forms part of the FinLit collection of webinars and blog posts by Prodigy Finance. Explore the remaining articles right here:

1. Prodigy Finance Answers your Top 10 Education-Loan Questions
2. Education loan 101: Understanding International Loan Terms
3. What's Annual Percentage Rate for Education Loan & 9 other FAQs
4. True cost of an Education Loan
5. The 7 stages of your International education loan
6. Applying for MS? Understand your education loan options...before you even apply to your school

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