The 50/50 Structure
When AKF talks about covering your tuition and living expenses, the total award is split in half. If your total award is $20,000 for the year, $10,000 is a grant and $10,000 is a loan. The 5% service charge applies to the loan portion only — not the total.
GRANT
Non-repayable. Free. Yours to keep. No service charge, no repayment schedule, no guarantor liability on this half.
On a $20,000 total award
$10,000 you keep
LOAN
5% annual service charge. Repaid over 5 years. Repayment starts 6 months after graduation. A guarantor co-signs this component.
On a $20,000 total award
$10,000 to repay
Key point: The scholarship is not described as half-grant, half-loan in the headline materials — it is described simply as a scholarship. Most applicants only learn the full structure when they read the detailed programme documentation. Understand this before you apply.
What Is Covered
AKF covers the core costs of postgraduate study. The award is not designed to fund a comfortable life abroad — it is designed to make study possible.
Covered
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Tuition fees
Paid directly to the university, or reimbursed to the scholar after payment
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Living expenses
Monthly stipend covering accommodation, food, and local transport
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Health insurance
Covered in some cases — confirm with your local AKF office
Not Covered
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International travel (flights to and from your study destination)
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Clothing, furniture, and personal effects
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Books and course materials
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Any costs for family members or dependents
If you have a spouse or children, AKF does not support their costs. This is a practical consideration if you plan to relocate your family.
The Service Charge — Not Interest, But Functionally Similar
AKF uses the term "service charge" rather than "interest rate." The distinction is theological in origin — but the practical effect on repayment is similar to a 5% annual interest rate on the loan portion.
Annual Rate
5%
on the loan portion only
Repayment Period
5 yrs
from start of repayment
Grace Period
6 mo
after programme completion
Example Calculation
Total AKF award for your programme: $30,000
- Grant portion (50%): $15,000 — no repayment
- Loan portion (50%): $15,000 — this is what you repay
- Annual service charge at 5%: $750 per year on the outstanding balance
Whether the service charge compounds is not publicly documented. The practical advice: treat it as a simple annual percentage and plan repayments accordingly. Contact your local AKF office for the precise calculation methodology.
The "Last Resort" Principle
AKF explicitly describes the scholarship as a "resource of last resort." This phrase has real implications for how you structure your application and your funding plan.
What "last resort" actually means
You are expected to have exhausted other funding options before approaching AKF. University fellowships, assistantships, fee waivers, other scholarship programmes relevant to your profile, family contributions — all of these come first. AKF covers the remaining gap.
Document the gap, not just the need
Strong applications show exactly what funding has been secured elsewhere and what the remaining gap is. Candidates who have already secured partial funding — a university fellowship covering 30% of costs, for example — and request only the balance from AKF are viewed more favorably than candidates requesting full funding with no other sources explored.
Family contribution is expected
Your family is expected to contribute what they reasonably can. The financial need assessment considers total family income, not just your personal resources. A comfortable family with liquid assets is unlikely to be assessed as genuinely needing AKF support — regardless of the applicant's own financial situation.
The Multi-Source Funding Plan
A well-structured AKF application typically includes a breakdown of: (1) total programme cost, (2) funding secured from other sources with evidence, (3) family contribution with documentation, and (4) the precise remaining gap that AKF would cover. This structure demonstrates that you understand and have acted on the last resort principle — not just read it.
What Repayment Looks Like
The repayment process follows a structured sequence. Understanding it before you accept the scholarship prevents surprises later.
Programme completion
You graduate or your AKF-funded programme period ends.
6-month grace period
No repayments are required during this period. Use it to establish employment and financial stability.
Repayment begins
Repayment period: 5 years. You pay down the principal plus the 5% annual service charge on the outstanding balance alongside each payment.
Guarantor remains liable
The co-signer you provided is legally bound to the loan agreement throughout the repayment period. If you default, the guarantor is responsible.
Special provision: deferred start
If you are continuing further studies or working in a developing country immediately after completing your programme, repayment may begin 2 years after course completion rather than 6 months. This provision exists but requires direct arrangement with your AKF office — it is not automatic.
The Guarantor Requirement
This requirement is not prominently featured in most AKF scholarship summaries, but it is a real part of the application and the loan agreement.
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A guarantor must co-sign the loan agreement before funds are disbursed.
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AKF does not publicly specify who qualifies as a guarantor or what financial standing they must have. Requirements vary by country office.
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In practice, this is typically a family member — a parent or sibling — who agrees to be legally responsible for the loan if you are unable to repay.
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Confirm the specific guarantor requirements with your local AKF office before applying. Do not assume a family member is eligible — verify.
Having an eligible guarantor is not optional. If you accept the scholarship and cannot secure a guarantor who meets AKF's requirements, the loan agreement cannot be executed. Identify your guarantor before you receive an offer — not after.
Comparing to Other Scholarships
Context matters. AKF's hybrid structure looks different alongside full-grant alternatives.
| Scholarship | Structure | Repayment | Geographic Scope |
|---|---|---|---|
| Chevening | 100% grant | None | UK only, open most countries |
| Erasmus Mundus | 100% grant | None | EU focus, multi-country |
| Commonwealth | 100% grant | None | Commonwealth countries only |
| AKF ISP | 50% grant + 50% loan | 5% service charge, 5 yrs | 13 countries, broader university scope |
Why choose AKF given this comparison?
AKF's hybrid model is less attractive purely on financial terms than a full grant scholarship. The reason to choose it over those alternatives: AKF funds are available when those other scholarships are not. It covers more countries and more universities. The combination of partial grant with a deferred-repayment loan at 5% is still vastly better than taking a commercial education loan at 8–15% with immediate repayment obligations. If you have exhausted the full-grant options and AKF fits your profile, the loan component should not be a reason to decline.