Education is a high priority in South Africa and student loans have been made available by various institutions to aid in the development of the population as a whole. Financial institutions as well as State funded Tertiary Education Institutions have funds to enable students to access funds for further education but what are student loans and what are the best student loans available is always the question.
What are student loans?
Student loans are financial assistance loans given to student to cover the costs of their education. This is not to be confused with a bursary where living expenses, transport books and other incidental expenses are covered by the sponsoring company or institution. Student loans offered by the banks or authorized financial institutions essentially cover the fees.
These loans are generally granted on an annual basis and like all other loans are granted on the basis of your ability to repay the loan over a period of time dependent on your performance.
So what are student loans? They are loans granted to a student based on his/her abilities in the classroom as well as the ability to repay the loan and need to be applied for on an annual basis.
How must a student loan be repaid?
A student loan needs to be repaid over a pre-determined period at an interest rate which is favourable and in some cases is linked to inflation which at this time is very low when compared to the personal loan rates charged by banks.
In most cases monthly payments are required and for those who require a study loan over a number of years, student loan consolidation is a very wise option. Read more on student loan consolidation.
What Interest rate is charged on student loans?
The best student loans are those that have a flexible repayment schedule and offer low interest rates. You want to be able to sit your exams without worrying about needing to make a payment and the best student loans are those which offer a temporary respite during exam times. If this is not possible it is important to make the student loan you are approved for, work for you by making additional payments toward the loan before exams, giving you the freedom to study and effectively making the facility the best student loan for you.
Student financial Aid is also available from Government funded financial institutions which may be the best student loan option for you. Consider all of the options before you jump into a commitment. There are many student loan services that assist you to apply for your student loan and will advise you of the best student loan for your circumstances.