If you ask a child what he or she wants to be when they grow up, you will get an array of answers, be it a teacher, veterinarian, doctor or pilot. What these youngsters don’t understand yet is that, apart from hard work and good marks, they will need funds to go to a proper university. The #FeesMustFall protests this year and as well as last year created awareness about the exorbitant university fees in South Africa. For most students and their parents, or those responsible for paying their fees, tertiary education is highly expensive. Let’s take a look at personal loans for students and what the best options are.
A personal loan is generally given by the bank, which you pay back monthly over a fixed period. The fixed interest rates on a personal loan are usually much higher than that of a student loan but are lower than a credit card. Personal loans create stability as the fixed amount enables you to budget in advance. If you are under the age of 18, a parent or someone who meets the qualifying criteria must co-sign on your behalf. You can compare and obtain personal loans from Likemoney.
Student loans are designed to help you pay for your tertiary education and associated fees involved; such costs include tuition, books and living expenses. Student loans differ from personal loans in the sense that the interest rate could be considerably lower and repayment begins when you complete your studies. Many institutions offer student loans. Compare student loans here.
Please take note; in a lot of cases, young working adults do not consider the money they have to pay back when they start earning a salary. These ex-students commit themselves to other credit agreement, such as car financing. Unfortunately for these young adults, the institution that provides the student with the loan, expect payment.