If you have plans to pursue your studies either full-time or part-time, there are a number of options that will help subsidise your tertiary education, this includes student loans.
The Nedbank student loan covers tuition fees, books and stationary, housing expenses, and other additional costs associated with your studies.
When it comes to repayments, part-time students start repaying their loan amount and interest at the beginning of the academic year.
Full-time students, on the other hand, will need a guarantor that will make monthly repayments only on the interest of the loan. The student will start repaying both the loan amount and interest only once they've completed their studies and have a source of income.
According to Nedbank, the person who has signed to become a loan guarantor will pay the interest on student loan every month until you are financially able to take over.
As per the bank's terms and conditions, the interest rate will fluctuate based on changes in the prime rate (basic interest rate that commercial banks charge creditworthy borrowers who borrow money for large purchases like a home or a car). However, lenders will be notified by the bank of any change in the interest rate within thirty (30) days of the change.
The bank charges interest on the balance of the loan amount together with all other amounts owing to the bank.
Should you default on your repayment obligations, further interest will be charged on overdue amounts and this ultimately negatively impacts your credit score, limiting the number of offers that you might be able to access from financial institutions.
Should you pay on time or make regular payments as agreed, in some instances, loan providers may lower the interest rate and also improve your credit score.
