Conversations around student loans in South Africa highlight how expensive education is in the country. The cost of registration fees, tuition fees, studying material and accommodation is not cheap. Furthermore, today's society can hardly accommodate an uneducated fellow. These factors call for the conversation on the best student loans in South Africa.
While bursaries and scholarships might sound like great options to finance your studies, their demand makes most students feel left out. This dire situation leaves you with fewer options, and most students opt for debts from willing financial institutions in the country. Are student loans a viable option? Read on for more details.
Student loans in South Africa
Financial institutions offer to lend students funds to cater for their studies. As a student, you are required to service the loan and interest as you study and pay back the capital by the time you complete your programme. You are required to pay the loan directly to the financial institution. If you are studying full-time and cannot secure a job to service the loan, your parent or guardian can service it for you.
Some financial institutions insist on the benefactor clearing the debt by the time they finish their studies. However, others are flexible enough to allow the benefactor to settle the debt once they secure a job opportunity. While some have a set interest rate, others rely on the applicant's credit score to determine their interest rates. These details unpack that and more information.
How does a student qualify for a loan?
What is a study loan? The debt caters for a student's tuition and any other education-related expenses. Therefore, for you to qualify, you should prove to have been accepted to an institution. You also need to prove that you have a reliable person who will service the loan for you.
Best student loans South Africa
Financial institutions like banks offer study loans. However, before settling on one, you should be conversant about the terms that the financial institution is offering. It would also be prudent to go with the one with favourable interest rates. Being knowledgeable on the repayment plan is also essential.
A student can utilize the FNB loan for accommodation, tuition fees, equipment and any other academic material and devices. The funding ranges between R4,000 to R80,000. Any student from a recognized tertiary institution qualifies for the loan.
The FNB student loan has a personalized interest rate, which can be as low as the prime interest rate based on your credit profile. The bank also offers a flexible repayment plan. The plan only requires you to service the interest while studying and clear the capital upon completing your studies.
2. Standard Bank South Africa
Standard Bank South Africa offers student loans for both full-time and part-time students. SBSA offers a 7% interest rate, and it covers educative devices like laptops. It also provides easy payouts as the funds are remitted to the relevant parties.
Standard Bank South Africa student loan has no limit to the maximum amount of money it allocates to tuition. It allocates up to R60,000 for accommodation and R20,000 for textbooks and equipment. Standard Bank South Africa is one of the most reliable options. It allows a student the option to confirm whether they qualify online.
Nedbank offers to fund full-time students and interns. For you to be a benefactor, your guarantor should commit to paying the monthly interest on your loan. Once you have completed your studies, you will start repaying your loan, capital and interest.
Nedbank offers part-time students access to the loan, although on different terms. As a part-time student, you will need to service the loan and interest once you commence your studies. Nedbank offers favourable interest rates based on your credit scores. It also provides a life cover in case of death or a disability. The Nedbank study loan covers tuition, accommodation, study-related equipment and books.
ABSA offers students the opportunity to access low-interest study loans. The package provides a full tertiary experience ranging from tuition fees, study books, accommodation, and other study-related material. As a beneficiary, you will pay interest only for the 12 months and start repaying the capital on the 13th month.
5. Sanlam student loans
Sanlam offers student loans that are tailored to the needs of the student and their parents and guardians. The package has a more flexible repayment plan. As a student, you can only start worrying about repaying it once you are done with your studies. Sanlam study loans have a lower interest rate, unlike personal loan interest rates.
What are the 4 types of student loans? Fundi offers three out of the four types to potential students who are financially disadvantaged. The funds cater for study fees, registration and exam fees, study-related material and accommodation. No deposits are required to access the funds. However, as a benefactor, you ought to service it by paying the fixed monthly charge.
Where can you get loans in South Africa? The options mentioned above provide a wide range of financial institutions at your disposal. Therefore, they make your dream to access higher education more attainable. However, before settling on one, you should conduct extensive research to determine what option is convenient for you. Furthermore, you could lessen your financial burden by applying for student bursaries.
The health care sector is one of the most lucrative fields in the 21st Century. Therefore, pursuing a nursing course is a smart move in ensuring you secure a well paying job. This list of colleges in South Africa offering nursing colleges will be instrumental in determining which programme to study and where to enrol. Read more here!
DISCLAIMER: This article is intended for general informational purposes only and does not address individual circumstances. It is not a substitute for professional advice or help and should not be relied on to make decisions of any kind. Any action you take upon the information presented in this article is strictly at your own risk and responsibility!
Source: Briefly News