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 are meant to assist students to pay for tuition fees and other associated costs related to their studies including textbooks, transport and accommodation.
Standard Bank offers student loans which allow individuals to finance full or part-time studies. Students can choose to loan money to pay for just their tuition fees or they could choose to loan money to pay for accommodation and study equipment.
Standard Bank will pay tuition fees directly to the institution and accommodation fees will be paid directly into the landlord’s account. Money for textbooks and equipment will be paid directly into the surety’s transactional account or the account of the student if they are self-assured.
Full-time students will only be required to start repaying their student loans once they completed their studies. They are also granted a grace period of six months after completing their studies before taking over the loan repayments. Part-time students are required to pay the loan while they study.
Students will require a surety to co-sign their student loan agreement and will be required to pay interest and bank fees while the student is completing their studies. A surety is an individual who assumes responsibility for the debt obligation of a borrower if that borrower does not pay their debt.
Here’s How Standard Bank Calculates Student Loan Interest
Standard Bank calculates student loan interest rates starting from 9.75% (prime lending rate) to a maximum of 15.75%.
The amount of interest you or your surety will pay is based on your credit risk profile and you may be required to pay higher interest rates than the prime lending rate based on your risks. An individual's credit risk profile is based on their credit record, capacity to repay debt, capital and the conditions of their loan.
A student loan can have lasting effects on your finances when you complete your studies. Be sure to do your research before signing up for one.
