The most important investment that you can make in yourself or invest in knowledge.
Learning is the key to succeeding in life and that is why studying and education is so important. However, tuition fees are expensive and therefore you need a loan that can cover all your costs while you work towards building your future.
A student loan can fund your dreams
Many students realize that their parents will not be able to afford to pay for their education or want to help alleviate some of the financial pressure placed on their parents. As a result, many decide not to further their qualifications.
A student loan can be used to pay for your tuition fees, buy your books and other course material or any equipment you may need as well as pay for student accommodation.
How does a student loan work?
Student loans are approved if the applicant meets all the criteria set out in the application process. The student will be lent the money in order to pay for their study fees, and other related costs involved. The student will be responsible for paying the interest fees while they complete their studies. Once they have graduated they will need to pay back the loan amount. If the student is unemployed then they will need someone to sign surety on their behalf. A parent or guardian will be able to sign surety and will be held responsible in the event that there is a repayment default on the student loan.
If a student can’t afford to apply for a loan on their own they will apply with their parent, the parent will then be responsible for paying the interest portion of the loan every month. Once the student has graduated the loan provider will allow the student three to six months to get settled into to their new job before they need to begin paying back the capital loan amount. This allows the student to get on their feet before they need to start with repaying the loan.
What do I need to apply?
To apply for a student loan, you will need to supply the following documentation:
- You will need to provide a copy of ID document. In the case that you are signing as surety for a student you will need to provide a copy of the person that is signing as surety’s ID.
- The person responsible for the account/loans proof of income
- The person responsible for the loan’s latest three bank statements or six months bank statements if the person is self-employed
- Proof of address in the form of utility bill, for example, in the name of the person who will be responsible for payment
- A copy of the students’ matric results or latest tertiary results
- Proof of registration at the particular school or institution
The loan agreement will need to be signed by all parties involved.
Things to remember when applying for a student loan
- Interest fees on student loans can be very high. You should ensure you choose a lender that offers a competitive interest rates and no or low additional charges.
- You will need to pay back the loan as soon as you find employment.
- An education will increase your earning potential.
- An average degree costs about R200,000 if the university that you choose is close by, this amount can almost double if the university that you chose is situated far away from home.
- The money will be paid directly into your account and you will be held responsible for using the money correctly. It is very tempting to waste the money on items you don’t need. If there is an option for the loan to be paid directly to the institution rather take this option.
- The interest rate and repayment terms will vary depending on the lender
- A new online application will be needed after every year that you start studying
Student loans for part time students
If you are looking to further your education and you would like to apply for a part time studies student loan you will need the following:
You will need to proof that you are registered at an accredited university and provide your relevant qualifications such as your tertiary certificate, diploma or degree. You will need to provide proof of your academic results.
- If you earn less than R5 000 a month then you will need someone to sign surety on your behalf
- The loan will need to be repaid by a monthly debit order that will be attached to your account
- If you pay back the loan early there are no penalty fees charged
- If you decide to quite your studies – you will be required to pay back the full amount immediately
- The loan must be insured in case of your death, disability or in the event of your ill-health
A student loan is your ticket to a successful future. Finding a loan in South Africa is easy, and you have many reputable lenders to choose from.