Getting an education has never been so important, but how does one go about financing such an expensive investment?A student loan is probably the first and last dread of every student! It’s the endless thought of debt hanging over your head with a little factor called interest still playing with your mind…
However it is still probably the most utilised option and this method has helped thousands of South Africans achieve successful qualifications! So how do you go about sorting out your student loans?
It’s quite a procedure but it’s quicker if you do your preparation first.
Step 1: You need to have been accepted into a South African Qualifications Authority (SAQA) accredited institution.
Step 2: You need a valid ID.
Step 3: Proof of Registration at the institution.
Step 4: A set of your previous results (this can be matric, varsity, college etc, wherever you last studied)
Step 5: Life insurance: If you haven’t had a life insurance policy made for you, the bank will arrange one for you.
Step 6: Proof of residence not more than three months old.
Step 7: You need to find someone to stand surety for your loan, this person needs to have a full time job and not be black listed. The person will be responsible for paying the monthly interest on the loan during the period of study as well as stand guarantor for the loan. The person needs to provide a copy of their ID, a salary slip not older than three months and marriage status documents (i.e. if the individual is married in community of property etc). Finally the individual standing surety will also need to provide proof of residency and again not older than three months old.
Hectic we know, you are pretty much providing everything except a sample of your DNA.
Okay here are some quick tips and details:
1.The individual who is taking the loan can actually stand surety for themselves! Provided they have a full time job and a salary slip not older than three months.
2.Compare options that various banks and financial institutions have to offer, you may be able to negotiate a better interest rate.
3.Once you start paying off your loan, speak to your bank about an extension in the case of you not being able to make the full payment in the allocated time.
Banks and financial institutions offering student loans:
Standard Bank: www.standardbank.co.za
First National Bank: www.fnb.co.za
National Student Financial Aid Scheme: http://www.nsfas.org.za