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Student Loan in South Africa

Online study loan application

Does student loan matter in South Africa, the cost of education is expensive which leads to some students would not afford. This has brought about the financial institutions thinking of ways to assist the student with education loan.

Both student and parent earning income can apply for a student loan. The parent will be asked to pay interest part of the loan monthly while the student’s studies continue. The loan can also be applied by student’s that are employed and the student will be asked to repay the loan in monthly installments. You need to go through the loan pre-approval stage to see if you qualify.

Student loan application form

It is a circumstance where the student could not have means of payment that the option of loan should come. A education loans is a neither good nor bad idea depending on the situation of the student. If the loan is the only means that can make you continue your education why not go for it. If you refuse to get a education loan at that point your education might not be possible. Sometimes it is not ideal to start a life with debt but if it is the debt we have as the only choice to move forward, there will be no choice that to take it. It is not people’s wish to be a debtor but circumstances have caused it.

What you should know about student loan in South Africa

student loanIf you want to apply for a education loan in South Africa, you should have it in mind that there will be interest rate charges. People think there is nothing like interest rate in study loan but there are a huge interest rate charges on the loan. This is even higher than another type of loans in South Africa.

You need to think about it before you apply for a education loan.

The financial institutions normally offer student three to six month (3-6 month) after they have graduated before they can repay their loan and the financial institution can also decide to extend the terms if you make them happy. This offer has given the student time to look for jobs to repay your loan. If the free pass period ends, the parent who stood as a guarantor will be liable for the repayment.

Study loan application

It should be known that loans are usually paid into the student account. The student shouldn’t use the money for other things except for the tuition fee or study material. You can even make an upfront payment to avoid spending the fees.

We will suggest you check if they qualify for free education which should be another option for not getting a education loan.

These are the things you should have in mind before you get a loan so that there will not be any problem for you in  the future as you will be prepared for it.