Loans from the National Student Financial Aid Scheme (NSFAS)

If you qualify for financial aid, your institution could award you funds from NSFAS, the government’s National Student Financial Aid Scheme. The scheme provides loans, which you start to repay once you are employed.

NSFAS can convert up to 40% of your loan into a bursary if you perform well – so the more you excel, the less you pay.

For more information about NSFAS go to www.nsfas.org.za or call (021) 797 8161.

Loans from Edu-Loan

It is also important to know that Edu-Loan, a privately owned commercial organisation, specialises in the provision of student loans. Most students who do not qualify for a bank loan would in most instances qualify for a loan from Edu-Loan. Like commercial banks, Edu-Loan charges interest.

Remember; always consider both the interest rate and repayment period in assessing your best options.

For more information go to www.eduloan.co.za or call the Department of Education on 0860 555 544.

Student loans from banks or financial institutions

Applying for a student loan from a bank is another option. But it is important to keep in mind that most banking institutions require that:

• You are a South African citizen.
• Somebody stands surety on your behalf, which means the person will need to repay the loan if you cannot.
• You hold your bank account at the bank that grants the loan.

Student loans are, in fact, very common, and all South Africa’s major banks have a student loan department. The downside is that banks tend to charge higher interest rates than NSFAS.