Tertiary tuition can be expensive and daunting; that’s why the student loan is introduced. A student loan helps you lessen the financial burden of tuition and other academic-related costs.
A student loan is of different types. What are they? How does the student loan work? What expense can the loan cover? How can I get a student loan in South Africa? How do I qualify for it? Answers to these will be provided In this article.
How To Get Student Loan In South Africa
A student loan is just like every other loan you get from the government or banks, and you are asked to pay it back with interest after a certain period.
Student loans take care of tuition, textbooks, food, boarding, and other student expenses.
Some get scholarships/bursaries/ grants and student loans mixed up. Well, all do the same thing, which is to take care of the financial responsibilities of students. Just that you are required to pay back the student loan with some interest, but you are not required to pay back the scholarships/bursaries/ grants given to you.
You can apply through your college when you need financial aid as a student. They will now calculate how much you’d need. They will do so according to your family’s income and other factors. Then you’d be offered aid through a loan, scholarship, or bursary.
Student loans can also be applied for through your bank. You must sign an agreement to pay back the loan with interest every month.
Types Of Student Loan
As said earlier, student loans are of different types. Here are they;
Bank-issued Loans
This type of student loan is to be applied for through your bank; among the most popular bank student loans are Nedbank, First National Bank, Absa, and Standard bank. Each of them has the type of student loan it offers. So, to know the optimal one for you, do your research.
Government-issued Loan
The National Student Financial Aid Scheme (NSFAS) is the most popular student loan provider.
The loan process with NSFAS is quite easy and simple as they will help you with every step.
Independent Loan Providers
They are likes Eduloan, RCS, and Fundi. However, it’s advisable to
assess each provider’s offers to determine which loan would be optimal for your future.
What Expense Can Student Loan Cover
Your student loan should cover your tuition, housing, meals, transportation, clothing, campus activities fee, books, and other school-related expenses.
Where Can I Get A Student Loan
You can get your student loan from any of the below top financial institutions in South Africa:
- Standard Bank
- ABSA
- FNB
- Nedbank
- Fundi
- Sanlam student loan
How Do I Qualify For A Student Loan
To qualify for a student loan, you must be a South African citizen or a person who stays there permanently and has proof of income.
Students Loan Requirements South Africa
To apply for a student loan in South Africa, you must have some documents. The document is proof to the financial institutes that you are or will be attending a university.
The required documents include:
Acceptance letter
The original copy of your acceptance letter from your college will be required. You could also present your proof of registration or the proof of enrollment from the college if the original copy of the acceptance letter is not available.
Academic Results Proof
Proof of your academic result is among the required documents when applying for a student loan. Suppose you are in matric; you will need to send your National Senior certificate to the bank. This mostly comes out in January after the final exam. But, if you’re a current student and want to continue your studies, you can apply again. You will present your current academic result to the bank.
Proof Of Expenses/ Costs
Before the financial institutions can approve your student loan, they will need to see proof of costs. Here, you will list all study materials (textbooks, laptops, etc.) and their costs. Tuition fees and accommodation costs should be included too with the application.
FICA Documents
Lastly on the list of requirements are the FICA documents.
The financial institution will require FICA documents from you(the student) and the person standing surety. The FICA documents are as follows:
- Proof of residence of you and surety( should not be older than 3 months)
- ID documents (yours and surety)
- 3 months pay slip (surety alone)
- 3 Months bank statement (surety alone)
Student Loan without Surety In South Africa
Normally, student loans require surety. However, the amazing information here is you can get some student loans without surety.
How does such work?
You do not need a surety or any income to qualify.
Just like the ones that required surety, the money can be used to pay for tuition, accommodation, books, and educational necessities.
The tuition money will be deposited directly into the university’s account with your details as a reference.
There will be no pressure to start repaying the loan before you complete your studies.
You have an option of settling your loan account earlier than the prescribed term with no penalties.
You start to repay the loan after 6 months of completion of your studies.
You have flexible repayment options based on your affordability.
The qualifying criteria are as follows:
- You must be a South African citizen
- It would help if you studied at a participating university.
- Your course of study must be on the list of approved courses per the participating university for the pilot.
- Your yearly household gross income must be less than R 600 000
- You must have a Standard Bank transactional account.
Best Student Loan In South Africa
Compiled below is the list of the best student loans in South Africa. Applying for a student loan from a reputable financial institution is important. Each institution has a different repayment period and plan. So, It is important to choose the optimal education loan for you.
Standard Bank Student Loans
Standard Bank student loans allow students to take out part-time or full-time student finance. Furthermore, they also offer laptops and study equipment at R20,000. A maximum loan allowance of R60,000 is put aside for accommodation. Lastly, tuition fees are fully based on how much fees are required by the college.
Standard Bank allows students to increase their loan limit. This is for students who want to further their studies or study something else upon graduating.
FNB Student Loans
FNB is popularly known for its services in South Africa. Also, they offer great student financial support to those looking to study. FNB student loan offers students a maximum amount of R300,000 in tertiary funding studies. These funds include tuition fees, accommodation, equipment, other study material, and devices. Additionally, they allow clients to apply for annual funding if they have been studying for more than a year.
ABSA Student Loans
ABSA bank offers students loans to help them ease their financial burden. They offer low-interest rates, which is ideal when taking out a loan. To qualify for an ABSA student loan, you need to earn more than R3000.
Nedbank Student Loans
Nedbank offers great options to both full-time and part-time students. As a full-time student, you will be required to pay the monthly interest on the loan. After completing your study, you will then commence the payment of the loan and interest, but part-time students will pay the loan along with interest from the beginning.
Conclusion
Before applying for a student loan, try to do some research. Certain banks may offer better interest rates and better options. It’s also important to understand the repayment methods and when they will be due.
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