How should I choose a student loan?


Thinking of applying for a student loan? Maya Fisher-French looks at the things you need to consider before and while applying.

Understand the full cost of the loan, not just the monthly instalment.Plan for the full course: By taking out a loan over one year and repaying it during the year, you can ensure you are able to afford a new loan for the next year of study.So, although the interest rate may seem reasonable, the all-in cost is much higher. Most banks issue student loans at the prime interest rate.

Both Absa and FNB enter into agreements with the parent or sponsor directly, and the loan is issued in terms of the principal debtor’s name.Student loans are issued for each year of study, so you need to reapply for a loan each year. With a student loan, most banks offer a six-month grace period to find work, but this can be extended to up to 12 months as long as interest on the loan is serviced.

According to Absa, the average annual loan requested is R55 000 and the average duration of study is 35 months, with an average payback (post-study) time of between 40 and 45 months.

Read more: City Press

Hong Kong banks face coronavirus toll on asset quality, loan growth - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.Hong Kong's banks face at least two quarters of worsening asset quality and slowing loan growth as the coronavirus outbreak hits trade and consumer banking, analysts and bankers said.

Hong Kong to give big cash handouts as economy reels from virusOther measures announced in the budget included profits and salary tax breaks as well as low interest loans for businesses struggling to pay staff wages.

UKZN appeals for funders to help students settle R72m historic debtThe University of KwaZulu-Natal's council has implored stakeholders to help 1,435 students settle their R72m historic debt before they are allowed to register These students are going to burn our businesses when we hire them.

UKZN SRC not bothered about source of ‘undisclosed amount’ Duduzane Zuma donated to studentsUKZN's SRC says it is not its place to question or investigate where the money Duduzane Zuma donated to students comes from. It's UKZN. That bastion of ethical student governance. Is anyone surprised they're not concerned about the proceeds of crime ? SRC&ancYL samewhattsup group akusekho mkondo they are captured mnxm Good call anyway duduzani is business man

Cele says lockdown will only end early if we behave

Ramaphosa still undecided on lockdown extension

WATCH: No kissing in Mzansi, says Cele

Khoisan group defies lockdown to camp at Union Buildings

‘We won’t be stopped by anyone,’ says Bushiri as he explains what the money is for

Santaco wants R250 a day compensation for taxi drivers

DA accuses govt departments of racialising Covid-19 relief measures

Write Comment

Thank you for your comment.
Please try again later.

Latest News


27 February 2020, Thursday News

Previous news

Police hunt for woman wanted in 'international child abduction case'

Next news

Sandilands: The focus has to be on three points, not the occasion