A student loan is a type of loan offered to current and prospective students enrolled in an academic programme at universities and colleges. Students can apply for student loans to pay for their tuition fees and other costs of their studies including textbooks, transport and accommodation.
Absa bank offers student loans called study loans for students to finance full or part-time studies. Students can borrow a minimum of R15,000 to pay for their tuition fees or borrow a higher amount to cover most of the expenses they may accrue while they are studying.
Their study loans will only cover one year’s tuition fees and associated costs. Students will need to re-apply the following year if they choose to proceed with their studies and require funding. For second and subsequent years of study, proof of the previous years’ academic results to ensure students are permitted to continue studies.
To qualify for an Absa student loan, applicants must be South African citizens or living in South Africa permanently and earn more than R3,000 a month.
The loan applicant will be required to nominate a surety in whose name the loan will be. This surety can be a parent/sponsor/guardian who has proof of income. Part-time students who are employed on a full-time basis and have proof of income can also apply for an Absa student loan.
Here’s How Absa Calculates Student Loan Interest
Absa says they will beat any lower interest rate offered to students by competing credit institutions.
This amount of interest you or your surety will pay on an Absa study loan will be 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.
