As important as a tertiary education is, it can be extremely expensive and unfortunately, many cannot afford it. This is where student loans come in. These student loan tips will help finance studies by allowing a student to pay back the monthly installments after graduating and the know how on how to find the best student loan provider.
How exactly does it work
The way a student loan works, is that a student and his/her parent, who is earning an income, will apply for the loan together, and the parent will need to pay for the interest portion of the loan while the student is studying.
Once the student graduates, he/she is usually allowed up to 6 months to find a job and start paying back the monthly installments. However, if this term expires and the student still doesn’t have a job, the parent will have to cover the repayments.
How does one know if a student loan is necessary?
If you are debating whether or not you should take out a student loan, think about your personal circumstances. Remember, that paying off your student loans may take a while and prove expensive, so you should only take one out if it means that without one you can’t study.
How to prepare
If you decide to take out a student loan, you need to apply at the bank by giving them the following documents:
There are many banks which offer student loans, including Nedbank Student Loans, FNB Student Loans and Standard Bank Student Loans. There are also private companies that specialize in student loans like Eduloan.
Remember to be prepared to pay back these loans when the time comes, or otherwise make sure that your parents are prepared to help.
Education is so important in South Africa, so if a student loan will help you attain the education you desire, then go for it!