Prodigy Finance lends to students who are looking to pursue graduate-level education abroad and doesn’t have cosigners, collateral or in the need for guarantors. While it’s not the ideal option for the majority of students in college, Prodigy fills a critical requirement for many students from abroad who need loan.
Prodigy Finance is a student loan provider who wish to continue their education in another country. Since its inception in 2007, the firm has helped over 20000 students obtain over $1billion to fund their master’s degrees with no needing cosigners or collateral. Instead of focusing on credit history, Prodigy Finance looks at the potential earnings of borrowers in the future in order to develop an efficient application that can be utilized by more international students.
Prodigy Finance Student Loan Pro’s
Table of Contents
- No cosigner-Prodigy Finance has developed its loans to address the needs of students that do not have access to cosigners with creditworthiness.
- There is no Collateral Many international lenders for student loans will require collateral such as property, or cash deposit.
- Simple Interest Interest on student loans that is compound is among the main reason why borrowers are having trouble paying off their loans. Prodigy Finance uses a simple-interest calculation that could reduce the amount of money borrowers pay.
Prodigy Finance Student Loan Cons
- No Fixed-Rate Options – The only option for interest rates is variable interest. Therefore, the amount of the loan will be determined by fluctuations in the three-month London Inter-Bank Offered Rate (LIBOR) throughout the duration of the loan.
- Graduation Programs only – Graduate Programs are the only ones that are eligible. Undergraduates and students seeking master’s-level degrees within the field of arts aren’t eligible to receive Prodigy Finance student loan.
Graduate Student Loans
Prodigy Finance student loans are offered to graduate students who are enrolled in programs that study science, business, technology engineering, maths economics, public policy, medical and law professions.
|5.91% and up
|15,000-100 percent of the total cost of attendance
|7 10 15 or 20 years
The minimum loan amount and maximums are different for each school. In most cases, Prodigy Finance can lend up to 100 percent of the expense of attendance. The loan terms available can vary by school and the application.
Prodigy Finance Student Loan Requirement
Prodigy Finance has very simple qualifications for being eligible:
- It is essential to plan your attendance at the school and the course it offers. Prodigy Finance currently supports more than 750 schools around the world however, its offerings are restricted to the public policy, business and law, as well as health sciences technology, engineering and mathematics (STEM) careers.
- You have to plan to take a course overseas. You must plan to go to school in a different nation that is different from where you currently reside. But, if you’ve only lived in the country you’d like to attend school in for less than one year at the time you apply to study abroad, you could still be qualified.
- Prodigy Finance supports 120 countries– There are a few countries, regions and U.S. and Canadian states where the company cannot lend.
Is Prodigy Finance Student Loan Pre-qualification Available?
Yes. You may submit an application to receive a pro forma offer that includes the amount you are able to take out, the fee, interest rate and the repayment conditions. Then you will have two weeks to take your decision and then proceed to verification, if not, your application is deemed to be void.
Student Loan Interest Rates
Prodigy Finance offers a unique student loan that is variable in rate. The rate is comprised of two components:
- First is fixed margin which is determined by Prodigy Finance
- Variable base rates that is determined using the three-month LIBOR
Fixed margins are calculated based on the information you provide on your form & the data from the schools supported as well as data from previous borrowers. At present, the lowest variable rate of interest is 5.91 percent (assumes that you have a 5.6 percent fixed margin, plus 0.23 % LIBOR + 5% administrative fee) as of the present standard rate for borrowers is 10 percent.
Prodigy determines the variable interest simple with this formula Principal balance outstanding x (fixed margin plus the variable rate base) *365 = days since the date of your last transaction, or the days of the month cycle.
Another advantage one of the benefits of Prodigy Finance student loans is that the interest rate is calculated using a simple formula rather than compound. Simple interest calculation means that you won’t have to pay an interest rate on interest that you earn that could save you money, or at the very least to compensate for the increase in the three-month LIBOR.
Prodigy Finance bases interest rates on the 3-month London Inter-Bank Offered Rate (LIBOR) which means that your interest rate could increase or decrease every 3 months.
The late payment is subject to a $25 fee. Also, there’s an administrative fee, also known as an origination fee of up to 5percent of the total amount, which is added to the loan at the time it’s granted. Based on the relationship Prodigy Finance has with the school you attend and your course of study the cost of administration could be as little as 0% or 5percent.
The administration cost is spread out over the monthly installments and is result in a greater annual percentage rate (APR) of the loans.
There aren’t any application nor early payment penalties for the Prodigy Finance student loan. Full-time students don’t need to make payments until six months following the conclusion of their course. Part-time students should begin paying 3 months after the loan has been issued.
There are no options for in-school students for a full repayment, however you are able to make payments even while at school, since there are no fees for early payment. It is possible to make bulk payments if one that exceeds 3 times instalments under contract until the grace period expires. Prodigy Finance will automatically re-amortize the loan, decreasing the amount of your monthly payments after your grace period is ended.
Benefits and Discounts
Contrary to other loan companies for students, Prodigy Finance doesn’t offer any incentives or discounts for the student loans it offers. This means that getting good grades and setting up autopay or a record of punctual payments will not lower the rate of interest on your loan.
Are Cosigners Required?
Cosigners are not necessary; this is the unique aspect in Prodigy Finance student loans.
Forbearance and Loan Discharge Options
If you’re struggling to make the payments for your loans, apply for forbearance. This is available in three-month increments. Your eligibility being evaluated at the end of each.
Prodigy Finance is the only student loan company we’ve seen which will not disburse (forgive) student loans in event of disability or death. Instead Prodigy Finance will seek the payment through the estates of the deceased student.
Time Duration for Loan Approval and Disbursement
When the student has submitted all the documents which are required, then it can take between 2 and 4 weeks for approval of the loan. Existing borrowers are able to be pre-approved for loans next year However, they must apply at least one month prior to the beginning of the academic year that follows to ensure that the school gets the funds in time.
Is Prodigy Finance Student Loan Refinancing Available?
Prodigy Finance launched its refinance product in November 2018 however, it’s not accepting any new applications for refinances at the moment.
Prodigy Finance customer service is available via email or by phone Monday through Friday, between 2 a.m. until 6 p.m. Eastern Standard Time. You can also contact them via live chat after you have registered and started your application. Prodigy Finance services its own loans upon the disbursement.
Applying for a Prodigy Finance Student Loan
You’ll first sign up online and complete an application. You may apply prior to having been admitted to the school however, you’ll have to show proof of your admission before the loan is given out.
The application is divided into eight steps and can take around 30 minutes to finish. The details that you’ll require to fill is below mentioned:
- Academic information
- Contact details and personal information
- Plan for payment to school (including savings, scholarships gifts as well as loan from lenders other than Prodigy Finance and the loan you’re seeking via Prodigy Finance)
- Income (with the ability to verify documents)
- Assets and debts
After you’ve submitted an application for credit, you’ll receive an offer in a pro forma form that includes the amount you’ll be able to take out, the fee, interest rate and repayment conditions. After that, you’ll need to upload any necessary documents, such as an image of your credit report as well as evidence of your identity as well as admission, address as well as income, savings and a scholarship or corporate sponsorship (the two last two are only required in the event of a need). When you’ve signed the loan agreement, Prodigy Finance will send the money directly to your school.
Condition’s to consider Before Applying for Loan
Prior to applying for a loan from a private institution applicants who aren’t U.S. citizens should still determine if they are eligible for Federal financial assistance. Non-citizens who are eligible in federally-funded student loans are:
- U.S. nationals (including natives of American Samoa or Swains Island)
- U.S. permanent residents with permanent resident card or resident alien card or an alien identification receipt, sometimes referred to as green card.
- Anyone who has an Arrival Departure Record (I-94) issued by U.S. Citizen and Immigration Services (USCIS) which proves the status of a refugee asylum seeker, Cuban-Haitian entry or conditional entry (before April 1st in 1980,) or parolee
- Anyone who has a T non-immigrant condition (T-visa) or an adult with a T-visa
- Anyone is considered to be to be a “battered immigrant-qualified alien”
- The citizens of Federated States of Micronesia, the Republic of the Marshall Islands and Republic of Palau, or Republic of Palau (only eligible to receive certain federal assistance)
International students who do not fit into any of these categories should contact their country’s consulate or embassy within the U.S. or with the relevant government office in your country to determine whether any scholarships or aid programs are available.
Students who are enrolled in a degree program in another country should consider Prodigy Finance for its flexible conditions. However, those with access to a cosigner who is creditworthy will be able to look into other lenders to determine whether they can qualify for a loan with a lower fixed rate.