Student Loans in South Africa?
Where can I apply for a student loan? I've already applied once at FNB and they denied it because of the new credit law. If I apply at another bank, will they do the same? Are there any companies that specialise in student loans like overseas?
South Africa - 3 Answers
Random Answers, Critics, Comments, Opinions :
1 :
There's a company called Eduloan that specialises in student loans. But first try applying for financial aid from the university you're applying to. This is cheaper, because the interest only begins when you graduate. Find out about bursaries from the financial aid office: if this is postgraduate study, there are lots of bursaries you could qualify for (although some are reserved for South Africans). If you can get someone to stand surety, you ought to be eligible for a student loan at a bank. Phone a bank and ask exactly what the requirements are to qualify for a student loan. Then maybe there's something you can do to meet those requirements. Also, bear in mind that you only need to pay the deposit up-front. The rest of the fees you can pay at the end of the year (you don't get your qualification until you've paid them). So that gives you a bit more time to come up with funding. Whatever you do, don't go to a loan shark (the kind of 'instant cash' shops you see in the city centre). They charge exhorbitant interest, and take your ATM card (with pin) and ID book until you pay back the full amount - and they can send thugs round if you don't pay. If there really is no other option, you can postpone registration at university for another year (your acceptance will still be valid) and work to save up.
2 :
My sister is currently studying at Potchefstroom with a student loan from standard bank. The banks usually requires some form of surety that the loan will be paid once you have finished your qualification, in my sisters case my parents signed as surety for her loan and are currently paying only the interest portion of the loan. In addition to this you need to prove to them that you are serious about your studies, by giving them good matric results or results from another tertiary institution, because many students call it quits after the first year because of too much pressure.The loans from standard bank amounts to a Maximum of R30 000, which basically means it's just enough to cover your course, your lodging will have to be financed by another means unless you can obtain a scholarship from the university. I suggest you try the other local financial institutes before turning to an overseas company.
3 :
Do not trust an overseas company that will give you a loan, they are loan sharks and the interest will kill you. No respectable UK or US bank will loan to an SA student unfortuneately. As said in a previous answer, try Standard Bank. It is best if you go with your parents, and you need proof that you can pay it back, eg good matric results will prove you wont leave the course half way through, and if your parents have a house, that is insurance for the bank that, if you dont keep up the repayments, they can sell the house.
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