There are a number of banks and financial aid schemes that are able to offer student loans to those who are unable to afford the cost of studying .
However, with so many excellent funding options available, it can be difficult to choose which one will be best for you. That’s why, in this article, we outline the application process of South Africa’s most popular loan providers to help you apply for your student loan.
A student loan is when you borrow funds to help pay for your educational fees , such as tuition, accommodation, textbooks, food and other expenses.
When applying for a student loan, you’ll only be getting funds for that specific year of study and will have to re-apply the next year to pay for the rest of your studies.
Once you’re granted a student loan, you’ll have to pay back the money you’ve borrowed from your loan provider—along with any interest rates and fees that have built up over time.
Unlike bursaries or scholarships, a student loan needs to be repaid by the student. If you are studying full-time, you may need to get someone to sign a surety agreement .
Whoever signs for surety will be responsible for paying your interest rates and fees while you study and are unable to pay for it. This is usually a parent or guardian earning a minimum income of roughly R3 000 to R6 000.
You’ll then be able to take over the payments when you’ve secured a steady job. If you can’t find a job or are unable to pay back your student loan, having that surety will ensure that your student loan is still repaid. That’s why it’s important to make sure that whoever signs your surety is someone you can trust and who has a stable income.
If you don’t have someone to sign surety for you, don’t worry, there are other funding options out there that will allow you to get a student loan without it. The National Student Financial Aid Scheme (NSFAS) and Standard Bank are great examples of loan providers that allow students to get a loan without surety.
If you’re a part-time student, you might be expected to pay back the loan from the get-go as you’ll be able to work a part-time job while you’re studying.
Be sure to check with your loan provider to see how it all works, and don’t forget to read the fine print so that you know what you’re getting yourself into.