How to apply for a study loan

 

Contact Details:

  • ABSA Contact details: 0860 008 600       absa.co.za  

  • FNB Contact details: 087 575 0147 fnb.co.za

 

Student Loan

 What you need to know about student loan?

 

 

what is a student loan

Financial institutions will lend you the money to pay for your studies – you will then be required to service the interest while you are studying, and pay back the capital once you have graduated.

A student loan is paid directly to the financial institution where you are undertaking your studies (they will require proof that you have been accepted and registered to study).

If you are studying full-time (thus not employed), someone will be required to stand surety for you and service the interest on your loan while you study – usually a parent or guardian.

How do I qualify for a student loan?

 You will have to provide that you have been accepted to study and that you have someone to stand surety for paying back the loan

What loan amount can I apply for?

This depends on the financial institution and the cost of your tuition and other study expenses

What expenses can a study loan cover?

 

The loan can be used to cover your tuition fees, as well as accommodation for full-time students, textbooks, equipment and other education related expenses.

This may differ between financial institutions.

 

Where can I get a student loan?

We have compiled a comparison of the top financial institutions in South Africa that offer student loans:

Standard Bank Student Loan
ABSA Student Loan
FNB Student Loan
Nedbank Student Loan

 

TWO TYPES OF LOANS YOU SHOULD KNOW

Student Loans

NSFAS student loans

There are ones which are available via the National Student Financial Aid Scheme (NSFAS) which is managed by the government.

There are also student loans from private lenders including the big four banks and some independent credit providers.

NSFAS Student Loans – Financial Aid

The NSFAS loans are available to South African students who are enrolled in one of the 25 public universities of the country. They are designed to help you cover all of your expenses including tuition fees, accommodation cost, food and travel expenses and spending on books and materials.

The granted loan amount is determined on an individual basis. The interest rate is 80% of the repo rate. This makes it considerably lower than the interest rates charged by banks.

You can apply for a NSFAS student loan directly online.

In order to qualify, you have to pass the NSFAS Means Test and to have good academic performance.

There are no financial or collateral requirements which parents, guardians or sponsors have to meet.

The repayment of the government student loan begins only after you graduate and start earning an income which is higher than R30,000 per year.

If your annual income is lower than R59,000, the payments will be 3% of your yearly salary. If it is higher, then they will be equal to 8%.

Student loan from one of South Africa's Banks.

These student loans are also intended to cover all of your expenses as a student including tuition fees, accommodation expenses and expenses on textbooks, study materials and travel.

However, they work slightly differently.

A surety has to apply on your behalf. This is typically a parent or a guardian, but it can be a sponsor who agrees to support you. The surety has to have sufficiently high income and sufficiently low debt plus clear credit history in order to secure the loan.

The loan amount is determined individually based on the needs of the student. The disposable income of the surety is also taken into account. The interest rates are higher than those on the NSFAS loans.

However, they vary from one lender to another so it is important for you to compare as many different offers as possible.

Rates will depend on the creditworthiness of the surety as
well.

The repayment structure of the bank student loans is divided into two periods.

The first period encompasses the time while the student is in school. During this period, your surety will have to make interest payments only. When you graduate, you will have to pay back the remainder of the interest and the principal in the form of monthly instalments.

The repayment term will be fixed in advance.

This investment account offers you competitively high market-related interest rates. It is similar to a savings account, but you need to maintain a higher balance and a minimum deposit is usually required. This flexible, short-term investment accounts benefits vary according to each bank, so speak to a consultant.

ABSA Student loans

 

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ABOUT THE ABSA STUDY LOAN

FNB Life Start Student Loans range from R4 000 to R80 000 (depending on the amount you need and your affordability criteria). You will also receive a personalised interest rate for your loan.

 

The student loan covers the cost of tuition fees, accommodation on campus and textbooks.
 

 

Students must reapply for the student loan each year, and credit is awarded based on affordability and credit assessments.

 

Please Note: it is mandatory that the student and sponsor have insurance cover in place in the event of permanent disability or death prior to settlement of the loan. FNB offer the Customer Protection Plan, alternatively you may use an insurance policy of your choice (to be approved by FNB).

 

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ELIGIBILITY

Applicants must satisfy the following minimum entry criteria before applying:

  • South African citizen
  • 18 years or older
  • Registered to study at a recognised tertiary institution in SA
  • Sponsor must earn at least R6000/month

 

 

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PAYING BACK THE STUDY LOAN

There are 2 options to paying off the loan:
1) You can choose to pay back the interest as well as the capital as soon as you start studying
2) You can choose to pay back the interest only for 12 months, and the capital and remaining interest after the 12 months.

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HOW TO APPLY

Apply in person at your nearest FNB branch.

Alternatively, you can apply online at: https://www.fnb.co.za/Sales/salesmain.jsp (Please Note: FNB may require hard copies of your documentation after online application).
 

You will be required to submit the following supporting documentation:

  • ID document (plus a copy)
  • Parents/ sponsors ID document (plus a copy)
  • Parents/ sponsors Latest payslip (1 month if FNB customer OR 3 months if not an FNB customer)
  • Recent utility bill
  • Proof of registration at tertiary institution
  • Breakdown of fees due to tertiary institution

 

FNB Student loans

 

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ABOUT THE FNB STUDY LOAN

ABSA study loans can be used to cover the cost of tuition, textbooks, study equipment and accommodation. Additionally, you will receive a max discount of 15% on your study equipment.

Please note that students must reapply for a student loan each year.

ABSA guarantees that they offer the best interest rates on student loans – if you receive a lower interest rate from another financial institution, they will better it. To find out more, download and read the following documents: How it works (pdf),Terms and Conditions (pdf) and Claim form (pdf).
 

 

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ELIGIBILITY

Applicants must satisfy the following minimum entry criteria before applying:

  • Full-time or part-time student
  • Studying at one of the following institutions: University, University of Technology, Technical Vocational Education Training College (TVET), Agricultural College, Sector Education and Training Authority (SETA) registered institution
  • Student or their sponsor must earn at least R3000/month

 

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PAYING BACK THE STUDY LOAN

There are 2 options to paying off the loan:
1) You can choose to pay back the interest as well as the capital as soon as you start studying
2) You can choose to pay back the interest only for 12 months, and the capital and remaining interest after the 12 months.

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HOW TO APPLY

The best way to apply is by visiting your nearest Absa branch

Alternatively, you can apply at your institution’s student bureau.
 

You will be required to have the following supporting documentation on hand for your application:

  • Identity Document
  • Parents/ Guardians Identify Document (minors only)
  • Proof of tertiary registraion or acceptance
  • Proof of study expenses (tuition, accommodation, books etc)
  • Student or sponsors latest payslip

If you have any further questions which were not covered on this page, you can call 0860 100 372 to speak to a friendly Absa consultant.

 

NETBANK Student loans

 

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ABOUT THE NEDBANK STUDY LOAN

The Nedbank student loan will cover tuition fees, textbooks, on campus accommodation and various other study-related equipment.
 

 

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ELIGIBILITY

Applicants must satisfy the following minimum entry criteria before applying:

  • South African citizen
  • Accepted to study (part-time or full-time) at a recognised tertiary institution
  • Surety/ sponsor must have a Nedbank transactional bank account
  • Surety/ sponsor must have a good financial standing/ credit record

 

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PAYING BACK THE STUDY LOAN

Nedbank offer flexible repayment terms and competitive interest rates on their study loans.

Once you start your studies, your sponsor (or yourself if you are a part-time student) will start paying the interest on your student loan.

A repayment grace period may be applicable if students partake in articles/ community service or internship programmes upon graduation.

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HOW TO APPLY

Applications must be done at your nearest Nedbank branch. Those who are studying full-time and have a sponsor, must apply in person with their sponsor.
 

You will be required to submit the following supporting documentation with your application:

Document

Full-time student

Part-time student

Surety/ Sponsor

Identify Document (plus a certified copy)

YES

YES

YES

Marital status declaration

YES

YES

YES

Latest academic record/ Matric results

YES

YES

NO

Proof of study expenses (tuition, accommodation, books etc) – Invoice/ Statement

YES

YES

NO

Proof of tertiary registration or acceptance

YES

YES

NO

Proof of life insurance cover

YES

YES

NO

Proof of residence (FICA)

YES

YES

YES

Cohabitation form from Nedbank branch

YES

YES

NO

3 months latest bank statements (non Nedbank clients only)

NO

YES

YES

Latest payslip

NO

YES

YES

Income and Expenses statement

NO

YES

YES

 

STANDARD BANK  Student loans

 

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ABOUT THE STANDARD BANK STUDY LOAN

SB student loans are used to pay for tuition, books, study equipment and accommodation (this only applies to full-time students who are not residing with their parents).

The money for tuition fees will be paid directly into the institutions account and accommodation fees will be paid to the place of residence. The balance of the funds for other study expenses will be paid into the students Standard Bank transnational account

Study loans are only granted for a certain amount of time, therefore students must reapply each year.
 

 

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PAYING BACK THE STUDY LOAN

Full-time students: the surety must pay back the monthly interest while studying, and the student must pay back the loan on completion of studies.
Failure to complete your studies will result in immediate pay back of the loan.

Part-time student: student must pay back the loan upon starting studies. Payment must be made by monthly debit order.

 

 

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WHAT IS A “SURETY”

This is someone who will be liable for your debt should you not be able to pay it back. This is usually a parent or guardian.

You will need a surety if:

  • you are under 18 years old
  • you are studying full-time
  • you are studying part-time and earning less than R5000/ month
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ELIGIBILITY

Applicants must satisfy the following minimum entry criteria before applying:

  • Have registered to study at an accredited tertiary institution in South Africa
  • Studying towards a certificate/ diploma/ degree/ postgraduate degree or diploma qualification
  • Passed the previous year of study (usually Matric)
  • For diploma and degree studies, your surety must earn at least R3000/ month
  • For certificate and other studies, your surety must earn at least R5000/ month
  • If you are a part-time students earning more than R5000/ month, you do not need a surety
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HOW TO APPLY

Apply online at: https://youth-applications.standardbank.co.za/mystudentloan/
Alternatively, you can apply in person at your closest branch.

You will be required to submit the following supporting documentation with your application:

Document Full-time student Part-time student Surety
Identify Document YES YES NO
Parents/ Guardians Identify Document (minors only) YES YES NO
Proof of study expenses (tuition, accommodation, books etc) YES YES NO
Proof of tertiary registraion or acceptance YES YES NO
Latest academic record YES YES NO
Proof of residence YES YES YES
3 months latest bank statements (non SB clients only) NO YES YES
Latest payslip NO YES YES

 

If you would like to find out if you qualify for a Standard Bank student loan before applying, please visit: https://youth-applications.standardbank.co.za/mystudentloan/apply/pre-approval

 

Another way is through government loans or bursaries e.g. NUFAS. Whereas it doesn’t require surety and payment terms usually have less interest and are paid over a longer period of time.

 

 

Student Loans

FUNI student loans

FYI: Interest rates and repayments will vary according to the institution and the applicant’s profile.

For more information go here or phone 0860 55 55 44

Fundi has the following student loan options for:

 

  • Study loans (school and tuition fees, registration fees, exam and outstanding fees)
  • Study tools (textbooks, technology, study equipment)
  • Accommodation (covered during studies)

Details:

 

  • Fixed monthly repayments
  • You need four documents to apply and will receive a response in 48-72 hours.
  • No deposits
  • The study loan is paid directly to the institution
  • No limits
  • Anyone can apply on your behalf (they need to be fully employed and meet the criteria stated on their website)

FNB Student loans

 

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ABOUT THE FNB STUDY LOAN

1. You must be over 18 years of age.

2.  Principal debtor must earn R6 000+ per month.

3.The student must be registered with an SA tertiary institution. 

What you need to apply:

A copy of the applicant’s SA green bar-coded ID or Smart Card ID

Latest payslip

Proof of residence not older than three months

Proof of enrollment from the educational institution

If you do not bank with FNB, your latest three months bank stamped statements reflecting three months salary deposits.

If you are self-employed, the latest six months bank stamped statements, Personal Tax assessment (ITA34) and your latest business financials.


 

 

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HOW TO APPLY

Call 0860 100 762

Visit your nearest FNB branch

 

ABSA Student loans

 

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ABOUT THE ABSA STUDY LOAN

What you need to apply:

A valid South African ID document or Smart card. 

Proof of residential address such as a municipal or rates bill.

Your last three months’ payslips or bank statements.

Proof that student or sponsor earns a minimum of R3 000 a month.

Student or sponsor’s approval based on affordability and risk profile.

Proof of income from the person taking out the study loan.

Proof of study in the form of a final letter of acceptance or proof of registration from the institution. 

Proof of course costs for the year of study (invoices/statements); for tuition fees.

Accommodation for full-time students not living with parents or relatives.

A proof of cost for text books.

Proof of cost or need for any study-related technological devices.

For second and subsequent years of study, proof of the previous years’ academic results to ensure student is permitted to continue studies.

 

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HOW TO APPLY

You can apply at any Absa branch.

You can also call Absa on 0860 100 372.

 

 

STANDARD BANK  Student loans

 

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ABOUT THE STANDARD BANK STUDY LOAN

You will need proof of a certificate;  a diploma; a degree; ora postgraduate degree. 

In order to be considered for a Student Loan, you need to provide academic results showing that you have passed your previous year of study.

keep in mind that outstanding fees owing to your academic institution cannot be financed by a student loan. 

Income Criteria

Degree and Diploma: Your surety (parent/guardian/sponsor) should earn a minimum income of R3 000 per month.

Other Courses: Your surety should earn a minimum of R5000 per month.

Part Time students who earn R5000 or more do not require a surety.

What you need to apply: 

You will need your final academic results before applying for a student loan to finance your next academic year. 

You can apply online at youth-applications.standardbank.co.za/mystudentloan

You will need to have someone who is acceptable to us to sign as surety, if you are a: full-time student, part-time student earning an income of less than R5 000 a month; or a minor.


 

 

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HOW TO APPLY

Three months bank statement

Latest Payslip

ID

Proof of costs (tuition, accommodation, books and equipment)

Proof of residence

Proof of registration or acceptance letter

Latest academic results

NETBANK Student loans

 

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ABOUT THE NEDBANK STUDY LOAN

What you need:

South African ID (or valid passport is a non-resident).

Matric results/Last academic results

Proof of earnings or latest payslip (parent/guardian)

Proof of current residential address (FICA)

Three months’ bank statements (non-Nedbank clients)

Income and expenditure statement

Invoice/Statement of fees owed from tertiary institution

Invoice of other study-related costs (if applicable)

Cohabitation form obtained from a branch (FICA)

Proof of life insurance cover in case of death or disability (can be arranged through Nedbank or clients can provide their own)

Marital status declaration

Proof of registration


 

 

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HOW TO APPLY

To apply for a Nedbank Student Loan, the student and guarantor(if any) must bring the relevant to their nearest Nedbank branch.

Anyone with sound financial standing may stand as guarantor. The guarantor will be responsible for interest repayments during the course of the studies.

Fulltime students must be supported by a guarant. 

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