Congrats, boo – you did it! You are ready to get that higher education and you are not going to let anything get in your way. Respect, respect.
Now because we don’t all have Kardashian-like bank balances, we have to do some hustling to achieve our dreams. At this point, you usually have two options: the first is a bursary and the second is a student loan. In today’s edition of #GetSchooled we will talk about student loans.
What exactly is a student loan?
Student loans cover all of your study-related expenses. These include tuition fees, accommodation expenses, textbooks, study materials and travel costs.
But, remember that the loan amount will still need to be paid back. Make smart choices, friends; you don’t want to start off your working life with huge amounts of student loan debt.
So, how does a student loan work then?
Your parent, guardian or sponsor will have to sign surety for the loan. They will then start paying back the interest portion of the loan, while the capital amount (the cash money) stays in your name. Once you graduate, you will resume paying the capital amount of the loan.
The bank will give you a six to eight month ‘grace period’ after you’ve completed your studies, before you have to start paying back the capital amount.
Now slow your roll, you won’t be ballin’ with all this cash; the bank will pay it directly to the university!
What to look out for when obtaining a student loan
It’s all in the fine print! Always look at the interest charged, because a student loan is still a loan.
Also, something to note is that since banks differ, they will give you different rates. It's better to do your homework and shop around (like you do for shoes) to see which one can offer you the best interest rate.
The bank will need:
- Proof that you have been accepted into, and registered at, a tertiary institution
- A copy of your valid identity card/document and that of your parent/guardian/sponsor
- The latest payslip or other proof of income of your parent/guardian/sponsor
- Your proof of address.