As a result of the financial difficulties that students face while going to school, student loans were put in place to ease this burden. In this article, we will discuss how to get a student loan in South Africa.
Student Loans
Student loans are financial assistance or support that students can seek and obtain to cover their tuition. These loans are relatively low, have fewer conditions, and students can pay after their studies.
How Does Student Loan Work
Student loan requires the accompanying of you and your parents or guardian to a financial institution. Your parents or guardian would be the person to repay the loan every month while you’re still in school. Some loans allow for repayment after your studies.
Things to Consider Before Taking a Student Loan
There are certain things that an individual must consider before deciding to take a student loan. They include;
- Interest Rate
One of the significant things to consider before taking a student loan is the interest rate to be charged. Ensure that the specific interest will not be too much for you.
- Studying Far is More Expensive
Studying far from home is expensive and would further increase your student loan. Ensure you make findings and apply for an institution that will not skyrocket the loan.
- Repayment Period
Another thing to consider is the repayment period for the loan you want. Usually, one is accorded 3-6 months after one’s graduation to pay up the loan, or else their parent or guardian covers for it.
- Use the Money Wisely
Once the loan has been granted, it would go straight to the student’s account. Ensure to pay your tuition fee upfront and don’t spend any remaining amount on irrelevant things.
Requirements for Student Loans in South Africa
Below are some mandatory requirements before eligible for a student loan in South Africa. They include;
- One must be up to the age of 18.
- One must be registered as a student at a recognized South African tertiary institution.
- The principal debtor (your parents or guardian) meant to pay the loan must earn a certain amount monthly.
Documents Required for Student Loan
Like other loans that require the presentation of certain documents, student loans have their own. They include;
- The student’s identity card.
- The parent’s or guardian’s identity card.
- The parent’s or guardian’s proof of income.
- Proof of the student’s admission into a well-known institution.
Financial Institution that offers Student Loan
Numerous financial institutions consider and offer student loans to interested individuals. They include;
- Absa
Absa is one of the popular and well-to-do banks in South Africa that offers numerous services. Their loan seeks to cover one’s tuition fee, accommodation, and diverse materials.
Features
- Better interest rate.
- A parent or guardian must have a minimum of R3000 (monthly income)
- Approval is based on risk and affordability.
- Standard Bank
Standard Bank is another financial institution that considers providing loans to students to help with their education. Their loan covers tuition, textbooks, and accommodation.
Features
- Its loan is for part-time and full-time studies.
- There is no maximum on tuition, but R60,000 is a loan for accommodation, and R20,000 is a textbook loan.
- 9.75% interest.
- Loans are granted for studies at SAQA-approved institutions.
- First National Bank (FNB)
First National Bank (FNB) is a great option to get a loan facility as a student. They offer loan packages that cover study materials, tuition, and accommodation.
Features
- Interest rate of less than 0.5%.
- Flexible payment option.
- Loan of up to R300,000.
- Nedbank
Nedbank is another reliable option for banks that offer student loans. You can take out a student loan and cover your tuition, accommodation, and other school-related expenses.
Features
- Full-time and part-time studies.
- Pay while studying or after graduation.
- The interest rate depends on one’s academic performance.
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