Student loans are a well-known option for aspiring tertiary students who are unable to afford to pay for their academic studies. Although attaining it can make a notable difference in a student’s ability to complete their studies, a student loan and bursary scheme cannot be received at the same time.
A bursary is a form of funding assistance you can use to finance your studies. The one aspect that makes a bursary distinct from student loans is that it doesn't require repayment. When you are awarded a bursary, it is a result of your effort and commitment to your studies.
A student loan, on the other hand, has an additional requirement which includes the applying candidate's ability and commitment to paying it back, with interest and within the specified period.
This is primarily because, as part of its specified eligibility requirements, a student loan applicant needs to be a South African citizen, or someone permanently residing in South Africa and earning at least R3 000 per/month.
This is in stark contrast to eligibility requirements stipulated in a bursary scheme such as the National Student Financial Aid Scheme (NSFAS), which does not require an applicant to earn any monthly income for repayment.
It's also vital for student loan applicants to understand how much interest will increase the overall amount they pay because the borrower of a student loan will not only be repaying the principal they borrowed, but also interest.
Several factors, including whether or not the loan is subsidised, the interest rate on the loan, the amount they borrow, and the loan period, affect how much interest is paid.
