8B Loan Program
Frequently Asked Questions

1. Program Overview
2. Loan Terms and Eligibility
3. The Loan Application Process
4. Interest Rates
5. Credit Checks
6. Personal & Financial Information
7. Loan Repayment

 

Program Overview

  1. What is the 8B Loan Program?

The 8B Loan Program is a student financing program exclusively designed to bridge financing gaps for African students who are attending international universities.

  1. Who’s eligible for a student loan from 8B?

To be eligible for a student loan from 8B, applicants must be citizens of an African country. Currently, 52 African countries are eligible (Somalia, South Sudan, Libya, and the Central African Republic are ineligible).

  1. Where can I find 8B Loan Program rates?

Use our Find My Rate tool to determine your exact student loan interest rate, compute your monthly payment, and compare lifetime interest.  We do not provide ranges of rates or estimates, but rather, we will show you the exact rate you are eligible for.

  1. Are cosigners required in order to receive a loan from 8B?

The great news is that 8B does not require cosigners to obtain a student loan from us.  There are other eligibility requirements (see below), but requiring a cosigner is not one of them!

  1. How does applying with a cosigner help my application?

The 8B Loan Program doesn’t require a cosigner. However, if you have access to a US-based cosigner, applying with one who has good credit can enable you to access more loan options and receive a loan interest rate.

  1. How much can I borrow?

8B student loans can help you finance the total cost of education at U.S colleges and universities. Our minimum loan amount is $5,000, the maximum is $25,000 per academic year, and the lifetime maximum is $50,000.

  1. Are there any fees associated with this loan?

Yes. 8B student loans charge a 5% origination fee.


Loan Terms & Eligibility

  1. What are the terms of the loan?

We offer an eight (8) year term at a fixed rate.  While in school, you would make interest-only payments on the loan.  Following graduation, there is a six (6) month grace period in which interest-only payments on the loan would continue.  After the grace period, and for the balance of the loan term, you would make full principal & interest payments on the loan on a monthly basis.

  1. What is the origination fee?

There is a 5.00% origination fee on the loan.  A loan origination fee is a one-time charge that many international student loan programs assess to cover the costs of processing and underwriting a loan. The specific way that a loan origination fee works can vary depending on the lender and the type of loan you are getting. For all 8B loans, you should expect the following:

  • Added to the loan:  The loan origination fee will be added to the principal amount of the loan. This means that the fee is rolled into the total amount you borrow, and you will be responsible for repaying it along with the principal and interest over the life of the loan. For example, if you borrow $10,000 with a 5.00% origination fee, $9,500 would be disbursed to the University on your behalf and you would owe back the full $10,000 plus applicable interest.

It’s important to understand how loan origination fees work with your specific loan, as they can affect the total cost of borrowing and your monthly payments. Be sure to read the loan agreement carefully and ask any questions you have about how the fee is being handled.

  1. What is the interest rate type?

We only offer fixed rate loans.  The interest rate would remain the same for the life of the loan.  We do not offer variable rate loans.

  1. Is an Social Security Number (SSN) required?

An SSN is not required to obtain a loan from 8B.  8B uses alternative metrics to assess the risk on its borrowers.  

  1. If cosigners are not required, then what makes me eligible for an 8B loan?

If you do not have a cosigner, then you are still eligible for the loan.  8B requires some additional verification items, including $2,500 of assets.  We will request 2 consecutive months of bank statements that verify a minimum of $2,500 (USD or equivalent).  The $2,500 can be from a combination of multiple bank accounts.  Secondly, we will request that you complete the Academic Merit Score.  The Academic Merit Score is a quick process in which you verify your school and term, and then our team computes a risk score based on your academic performance to date.  In lieu of a credit score, most individuals will need to complete this step.  We will provide a link to it in the document checklist.

  1. Why do you need to verify $2,500 in assets?

In order to ensure that you have a sufficient base of funds in order to repay the loan, we require that you have a minimum of $2,500 USD in verifiable funds.  With repayment beginning 30 days after disbursement, you need to prepare and begin making interest only payments from the onset of the loan.

  1. What is the Academic Merit Score?

The Academic Merit Score is a model that 8B uses to estimate the likelihood of a borrower to default on their student loan relative to the borrower’s institutional peers.  It takes into account your prior academic performance, including GPA, the degree you’re pursuing, total credits earned vs. attempted, and other variables.  It’s a key metrics for 8B in order to assess risk since many borrowers will not have credit history in the U.S.

  1. Is income required?

While income is not required to receive the loan, we do require that you have $2,500 USD in verifiable assets in your name.  

  1. What is the repayment schedule?

We only offer one type of repayment option. Interest-only payments during school.  Once you graduate, there is a 6 month grace period when interest-only payment will be required.  At the end of the grace period, full principal and interest payments are due. Any payment larger than the amount due made before the due date will be applied directly to the loan’s principal balance.


The Loan Application Process

  1. What is entailed in the 8B Loan Program application process?

8B has a fast and secure online process.  First, you will want to determine if you pre-qualify by completing using our pre-qualification tool.  If you are determined to be eligible, then you will need to complete a short loan application online, and then upload a few documents to complete the application.  After all documents have been processed, you will e-sign the Promissory Note, and the funds will be disbursed directly to your school.  You will then have an online account to manage and repay your loan.

  1. Who do I contact if I have questions?

You can also email our customer success team at [email protected].  If you have started an application, then you can contact our support team at +256 761 083927.

  1. Where do I send my underwriting documents?

To expedite the processing of your loan documents and to keep them secure, upload them directly to your application on:

If necessary, applicants may also email their documents to: [email protected]  and include the application ID.

  1. What is a Reference (a field listed in the application)?

A reference is an individual who can verify your name and address, but who does not reside with you at your physical address.

While in repayment, if we were unable to get a hold of you, we would contact your reference. This only applies if you were severely past due on paying your loan. 

  1. Who can I use as a reference?

Your reference can be anyone over the age of 18, as long as he or she is not living at the same address as you. If you are applying with a cosigner, you cannot use the cosigner as your reference, nor can your reference live at the same address as your cosigner. Lastly, you and your cosigner cannot use the same reference – so make sure to call dibs.

  1. What information is considered in the initial credit review on the application?

The initial credit review considers all of the information you and your cosigner provide during the application process, such as income, degree, and school. Once you pass the credit review, the next step is to provide documentation that supports the credit information.

  1. If I save my application to come back and finish it later, how long is it kept on file?

We’ll keep your unsubmitted application saved for 30 days. Once you have submitted your application, we’ll keep your submitted application on file for 60 days. 

You can access your unfinished application here: 

  1. How do I check the status of my loan?

Upon logging in, there will be a “Checklist” tab at the top of the screen. With the Checklist, you will be able to determine if there are any outstanding items needed.

  1. I can’t log into my account. How do I reset my username and/or password?

Visit your application at:

On the log-in page, there is a link to reset the password or to obtain your user name.

  1. Upon pre-approval, what documents do I need to provide to complete the application process?

We require three items during the underwriting process:

  • Photo ID: A passport, a National ID card, a Driver’s License, or a state-issued ID card
  • Asset Statements: 2 consecutive months of bank statements that verify a minimum of $2,500 (USD or equivalent).  The $2,500 can be from a combination of multiple bank accounts.  
  • Completion of the Academic Merit Score: this is a quick process in which you verify your school and term, and then our team computes a risk score based on your academic performance to date.  In lieu of a credit score, most individuals will need to complete this step.  We will provide a link to it in the document checklist.


Interest Rates

  1. How is the interest calculated on my loan?

Interest is calculated as simple daily interest. This means that each day the outstanding principal balance is multiplied by the interest rate and divided by 365 days to calculate that day’s interest amount. For example, if you have a $10,000 loan and the interest rate is 7%, one day’s interest will be ($10,000 x 0.07) / 365 = $1.92.

  1. How can I qualify for interest rate reduction?

You can qualify for significant rate reductions when you enroll in autopay. There’s a 0.75% interest rate reduction when a borrower signs up for payment in auto-drafting and a 0.50% interest rate discount when the borrower graduates.

  1. Can a borrower prepay the loan at any time?

Yes. A borrower may prepay the loan either partially or in full at any time without incurring any fees or penalties. So if you won the lottery, and want to take care of that balance, fees won’t get in your way.


Credit Checks

  1. Why is a credit check necessary?

The credit check serves two main purposes. First, it’s used to verify the identity of all people signing the application. Second, it’s used for qualification purposes and helps us offer you the best pricing we can based on your credit history.

  1. What if I have no credit history?

If you have no credit history, then 8B will use an alternative scoring model to determine your eligibility.  Our program accepts borrowers who may not have established credit.  If you do not have a credit history or an SSN, then you are still eligible to apply.  We understand that most borrowers from Africa will not have credit history in the U.S. or an SSN.

 

Personal & Financial Information

  1. What is the difference between a U.S. citizen and a Permanent Resident?

U.S. Citizen – A person who was born in the United States, including Puerto Rico, Guam, and the U.S. Virgin Islands; or who became a citizen through naturalization; or who was born outside the United States to U.S. Citizen parents under qualifying circumstances (derivative citizenship) and who has not renounced U.S. citizenship.

Permanent Resident – Any person not a citizen of the United States who is residing in the U.S. under legally recognized and lawfully recorded permanent residence as an immigrant. Also known as “Permanent Resident Alien,” “Lawful Permanent Resident,” “Resident Alien Permit Holder,” and “Green Card Holder.”

  1. What is the difference between a permanent address and a mailing address?

Your permanent address is the location that you consider to be your primary place of residence (like your parents’ or guardian’s address). Your mailing address is wherever you want to receive all of your loan documents.

 

Loan Repayment 

  1. Following disbursement, when will I receive information about managing my account going forward?

On the day after your loan is disbursed, you will receive an email notification from 8B with the steps to set up your online account and manage it going forward.

  1. Does 8B offer deferments or forbearance?

If you lose your job, or there was an extraordinary circumstance (such as death or illness), we will work with you on a case-by-case basis to determine the best solution.

  1. What happens if I default on my loan?

Defaulting on a loan is a very serious matter which could have an adverse long-term effect on your credit score. Further, bankruptcy does not cancel the obligation to repay an education loan. If you are about to miss a loan payment, contact us immediately to work out a repayment schedule.

  1. Is there a penalty for pre-payment or paying the loan off early?

No, you can pay your loan off early regardless of your repayment terms without any penalty. You will only be charged the amount of interest that has accrued on the loan until the day the loan is paid off.

  1. What repayment options are there?

We only offer one type of repayment option. Interest-only payments during school.  Once you graduate, there is a 6 month grace period when interest-only payment will be required.  At the end of the grace period, full principal and interest payments are due. Any payment larger than the amount due made before the due date will be applied directly to the loan’s principal balance.

  1. When will my first payment be due? Is there a deferment period?

Your first payment is due 30 days after the loan disburses. 

  1. How long is my cosigner jointly responsible for my loan?

Your cosigner is jointly responsible for your loan for the life of the loan. We recommend that you choose your cosigner wisely and make sure that you can manage all the payments. Missing loan payments will also damage your cosigner’s credit.

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Find More Answers

Do you still have questions? Contact us directly:

email   [email protected]

WhatsApp   8B WhatsApp +256 761 083 927