Student loan options have provided many students with the necessary funding that they may require to complete their tertiary studies. Although students will have to repay their loans with interest once they complete their studies, student loans still offer the advantage of allowing students the temporary financial ease that they might need to earn their degree with their best efforts.
What is a student loan?
A student loan is a loan which goes towards funding your studies, it's a less ideal way of funding your studies because it has to be repayed with interest. If you don't qualify for grants, scholarships, bursaries, or if the funding that you have is not enough to cover your tuition and other school related costs, then a student loan is another funding option you can consider.
Which banks offer student loans?
All major South African banks offer student loans to South Africans with valid study permits.
- ABSA - Offers cover of tuition fees, accommodation and learning materials. This student loan is renewable for each year of study (through yearly reapplication) and is compiled with interest payable over the 12 months on loan, while the actual repayment only begins from the 13th month.
- Capitec Bank - Offers a Credit for Education option which is only available for students going to Capitec partner schools.
- FNB - Offers students loans of up to R300 000, with personalised interest rates. This loan covers tuition fees, accommodation, as well as learning materials and equipment for students.
- Nedbank - Offers customised loan packages with customised repayment options for both part-time and fulltime students. This loan option also covers tuition, accommodation and learning materials and equipment.
- Standard Bank - Offers a loan package without a maximum tuition limit and an accommodation limit of R60 000 per annum, with R20 000 dedicated to textbooks and equipment.
Students looking to take out one of these loan options should take note that each bank has their own sets of conditions and requirements to be met for students to be considered for funding.
Who qualifies for a student loan?
The Absa, FNB, Nedbank and Standard Bank student loans are open to part time and full time students.
What do I need to apply for a student loan?
Each bank has specific documents that you need to submit along with your application, so have a look at their websites if you want to know more information. The common documents banks need are:
- Certified copy of your ID
- Acceptance letter/proof of registration from the institution you will be attending
- Proof of residence
- Payslip
- Latest academic results
- 3 months' bank statement
- Proof of tuition costs
What do student loans cover?
Absa - registration fees, tuiton fees, accomodation, text books and computer equipment.
FNB - tuition fees, textbooks, devices, equipment and accommodation
Nedbank - tuition fees, textbooks and accommodation
Standard Bank - registration fees, tuition fees and accommodation
Although the loans these banks offer may seem like they cover a wide variety of costs, the downside is the fact that the loans have to be repayed with interest. If you do enough research, you'll be able to find a student loan that is tailored to your needs and what you can afford to repay.
