What is a Study Loan and How to Get One in South Africa
Overview
A study loan is a financial tool that gives you, as a student, the ability to study further, even if you don’t have the immediate funds to pay for yourself.
Generally, a student and a parent or guardian applies for a student loan from a bank or other registered financial institution. The parent or guardian acts as surety (if the student is underage or unemployed) and is responsible for paying the interest portion of the loan while the student is studying. The student is responsible for paying the capital portion of the loan after graduating.
The loans are generally used to cover tuition costs, accommodation and books.
Some student loan lenders give students a grace period after they have completed their studies. At the end of the grace period, the capital portion of the loan becomes payable.
How to get a study loan in South Africa:
The major banks in South Africa currently offer study loans. FNB, Absa, Standard Bank and Nedbank all have dedicated study loan finance for qualifying South African students. You can approach any of these banks once you have the necessary documentation and someone to act as surety.
There are also other registered institutions that specialise in offering study loans, such as EduLoan and the South African government-backed National Student Financial Aid Scheme (NSFAS.)
Documents you may need to apply:
- You and your surety’s South African ID
- Proof of income
- Proof of address
- Proof of enrolment at a qualified tertiary institution
When applying for a study loan, it’s important to consider which study loan issuer is best for your needs. Interest rates are often personalised and the loan amount granted is dependent on the creditworthiness and affordability of the individual acting as surety.
