Education Financing Solutions by 8B

What is a partially guaranteed loan?

Partially guaranteed loans are an innovative guarantee mechanism to facilitate the access of African students to affordable financing, both directly from investors and through third-party lenders."

Why partially guaranteed loans?

African students looking to attend universities outside their home countries typically need a cosigner, in part because they have little credit history. Moreover, because student loans are unsecured, i.e. they do not have collateral, they tend to be very expensive when available.

How are partially guaranteed loans financed?

African students looking to attend universities outside their home countries typically need a cosigner, in part because they have little credit history. Moreover, because student loans are unsecured, i.e. they do not have collateral, they tend to be very expensive when available.

How do partially guaranteed loans work?

1. Students apply for a partially guaranteed loan to fund the gap in financing the cost of university attendance (tuition, room and board). Students are encouraged to exhaust scholarship and grant options before making an application to 8B for financing.
2. Students are scored using 8B’s proprietary credit scoring algorithm, which considers factors such as subject of study, university from which you have an offer, past record of scholarship, and the amount of financing needed.
3. Qualifying students are invited to provide additional documents, and may be required to speak to a member of the 8B team. If successful, they are informed about the conditional terms of financing.
4. Qualifying students are invited to provide additional documents, and may be required to speak to a member of the 8B team. If successful, they are informed about the conditional terms of financing.
5. Approved students receive an offer, which they review. The offer includes the interest rate, the grace period, and the expected monthly payments. If they accept and sign the contract, money is transferred directly to the university.

How are repayments made, once a student graduates?

8B is partnered with a servicing firm who specializes in cross-border credit for loan origination, servicing, and collection. Repayments can be made electronically from most geographies. Students are informed that non-repayments will have consequences on their own credit score, and affect the ability of future students from their country and university and discipline to receive funding.