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 student loans may differ, depending on several factors. These factors include the amount borrowed, the interest rate and when the loan will be repaid.
To apply for a student loan, you and your parent or guardian (someone with an income) will need to apply through a financial institution, such as a bank. Your parent or guardian will be required to pay the interest portion of the Student Loan on a monthly basis whilst you are studying.
Some banks that offer student loans in South Africa include:
- Standard Bank
- Capitec
- ABSA
- FNB
- Nedbank
- Investec
Part-time students are required to start repaying their loans 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 begin working.
Students are encouraged to do their research and understand what taking out a student loan from any financial institution will entail. Other funding options like the National Student Financial Aid Scheme (NSFAS) can also be considered.
Information about the latest bursaries can be found on the Bursaries Portal.
