A student loan is a type of loan offered to current and prospective students enrolled in an academic programme at a tertiary education institution. They aim to help students cover the costs related to their studies which include tuition fees, learning resources, accommodation and transportation.
Students can apply for student loans from various banks and financial institutions. The terms of these students may differ depending on several factors. These factors include the amount borrowed, the interest rate and when the loan will be repaid.
Here Are Some Of The Best Student Loans In South Africa
Fundi Educational Loans
The Fundi Educational Loan covers a host of costs related to a student's studies. This includes expenses related to registration fees, outstanding balances, tuition fees and learning material costs. More information on the Fundi Education Loan can be found on the Careers Portal.
Standard Bank
Standard Bank provides student loans for students enrolled in part-time and full-time academic programmes. Students determine how much money they require based on their needs.
Some students opt only to take enough money to pay their tuition fees while others take enough to cover extra costs like accommodation and learning materials.
Part-time students must pay their loans while they study while full-time students are required to pay once they complete their studies.
ABSA
Absa offers study loans to students financing their full and part-time studies. Students must borrow at least R15,000.
The student can begin repaying their loan once they completed their studies. However, they are required to nominate a surety who will be required to pay interest on the loan while the student obtains their qualification.
First National Bank
Students who secure a First National Bank (FNB) student loan will benefit from a personalised interest rate and an interest-only repayment, for 12 months. Students can borrow up to R300,000 to cover the costs of their studies.
Capitec
Capitec offers loans to students enrolled in a select group of tertiary education institutions who partnered with them. They call their financial offering a Credit-for-education system.
Students must check if their university has partnered with Capitec. If the institution is a partner, they can apply through their institution. All students will be directed to the same page where they receive an estimate for their loan to determine if they qualify.
Nedbank
The Nedbank student loan covers tuition fees, books, stationary, housing expenses, and other additional costs associated with tertiary education.
The terms of repayment for a Nedbank student loan differ between full time and part-time students.
Part-time students are required to start repaying at the beginning of the academic year. Full-time students are required to nominate a surety to make monthly payments on the interest of the loan. The student will be required to start repaying the loan when they start working.
Students are encouraged to do their research and understand what taking a student loan from any financial institution will entail. Students can also consider other funding options like bursaries. Information about the latest bursaries can be found on the Bursaries Portal.
