Students seeking loans to finance their studies are bound to have numerous questions throughout the process. They’re everything from “what documents do I need to provide?” and to “what happens if I repay early?”, to questions about the Prodigy Finance processing fee and how to increase student loan amounts.
Prodigy Finance loans and borrowers are no different.
Whilst our knowledge base is extensive and you’re likely to find the answer to almost any question you may have, you may want to check out this list of the top 5 FAQs to gain insight on how Prodigy Finance works.
Can I change my student loan amount after accepting my conditional offer?
You can change your loan amount after you’ve received and accepted conditional approval from us.
Reducing your loan amount
You can reduce your Prodigy Finance loan amount any time before you sign the final loan agreement, which happens when you arrive on campus for the start of class.
And, the administration fee will also be reduced accordingly.
Increasing your loan amount
You may also request an increase in your Prodigy Finance loan amount; however, it isn’t guaranteed. Our credit committee will need to approve your new loan amount.
Keep in mind that the associated admin fee will also increase.
What documents are required as part of the loan application process?
There are quite a few documents that we require from you - some will need to be uploaded when you apply for your loan, while others may only be needed later. However, as the loan approval process is speedy, it’s best to get everything together from the beginning.
How do Prodigy Finance loan interest rates work?
There are 3 different types of interest rates that apply to your Prodigy loan. But, it’s critical that while they all apply, they’re not separate interest rates; they’re different ways of looking at your interest costs.
Simple interest rate
This is the interest rate you receive for your loan, plus the Euribor / Libor base rate, which varies every 3 months. For example, if you receive a loan offer of €40 000 at 7.2%, and the 3 month Euribor is 0.12%, your simple interest rate is 7.32% (7.2% + 0.12%). One twelfth (1/12) of this is added to your account balance at the end of each month.
Annual effective interest rate
The effective interest rate (EIR) also includes the effect of compounding during your study and grace periods (where you aren’t making payments). For this example, the EIR is 7.62%.
APR (annual percentage rate)
While the EIR takes the effect of compounding into account, the APR also takes all fees associated with your loan (ie, administration fees) into account. For this example, the APR of your Prodigy loan would be 8.09%.
Students who are considering different loan options should use the APR for the purposes of comparison.
When do the funds get disbursed?
Disbursement dates of Prodigy Finance loans vary from school to school. And, you can rest assured that Prodigy Finance is in continuous communication with every school, and we have agreements in place that allow students to defer payment until the date on which the funds are disbursed.
Please note that Prodigy Finance loans cannot be used to pay any acceptance deposits or reservation fees required to secure your place at your school.
What happens if I repay my loan early?
You don’t need to make any repayments during the grace period (which lasts for six months after you graduate). However, there are no charges or penalties if you do decide to make early repayments or settle your loan early.
Want to start repaying your loan while you’re still studying? No worries there either.
Ready to apply for a loan to your dream grad school?
We’ve got a hassle-free, fully online application process that takes most applicants a mere half an hour to complete. Just see how easy it is.
Prodigy Finance Ltd is authorised and regulated by the Financial Conduct Authority.
Post updated for accuracy and freshness on April 16 2021. Originally published on December 9, 2016.