Education is key to building a better future and a comfortable life. Even before you finish high school, you have to determine which degree you want to pursue. This means working hard towards getting admission to the right college or university.
But as a student, your job to make your future bright just doesn’t end there. Once you get admission to your preferred college or university, you need to pay the course fees. Now, not everybody can bag a scholarship. This means you have to prepare your finances so that you can pay the fees on time and start pursuing your higher education.
And student loans are the best way to tackle this situation. Yes, that’s right! Student loans are the right kind of finances that can get you through your college education without any issues. But before you apply for loan online there are a few things you must consider.
Things to Consider Before Applying for Student Loan
Let’s start with breaking the biggest misconception regarding student loans. Most people will tell you that student loans are “good debt”. Sure, if you compare it with going into debt for a smart phone, a student loan is certainly a “good debt”. But always remember, you have to repay the loan eventually.
So, before you apply for a loan, get to know the following things:
- How much you can afford?
This is certainly the first question you must ask yourself before applying for a student loan. Remember, that you have to repay the loan eventually. So, make sure that the total repayment amount is payable and you can afford it.
If you think that you can’t afford the repayment amount, it is best to stay away from making an application.
- Student loan Vs Other Types of Debts
When compared to other forms of debt such as personal loan, you can’t declare bankruptcy on a student loan if you fail to pay.
Let’s get one thing straight! No matter what, you have to repay your student loan. Even if you fail to repay your student loan, the lender will make sure that they get their money back in full.
This will be done by taking your wages and there is literally nothing you can do about it!
Also, in personal loans, if you fail to repay, the lender will ensure that they get something from you such as an asset that you will keep as collateral.
But in student loans, YOU are the collateral!
- Student Loan Application Checklist
Now, if you want to apply for a student loan, here is a checklist for responsible borrowing:
- Make sure to calculate how much money you will need to pay for your college years. Include not just your college fees but also your living expenses. This is how you will get a rough idea of how much need to loan.
- Remember that student loans have varied interest rates depending on the plan and the lender. Make sure to use a calculator for determining your overall interest rates.
- Always make sure to check any hidden or additional charges by clicking “view additional charges and information” on the lender’s page.
- Calculate the repayment amount after you finish your graduation
- Don’t just choose the first student loan plan you see. Compare different student loan plans to make an informed decision.
- Determine that how much you will be able to make after you graduate. This will give you an idea of whether you can afford the student loan.
How to Apply for Loan Online
Now that you know what things you must consider before applying for a student loan online, let’s move forward to the process of application.
You can either get loan online or you can visit the nearest branch of the loan provider to get the forms and understanding the different plans available.
- Requirements for Application
So, when you are applying for a student loan in South Africa, most loan providers will have the following requirements:
- You must be at least 18 years of age or above
- You have to provide proof of registration from a tertiary institution in South Africa
- You have to provide the latest examination results from the Department of Education
- You need to produce a proof of invoice detailing your college fees, living expenses, and books expenses
- You might have to open an account with the loan provider
- Specify whether you are studying part-time or full-time
- Specify the years of study
- Things to avoid
Always remember, when you take a student loan, you have to repay it after your graduation. So, take on a loan only if you can afford it. Other than this, try to avoid the following things:
- Don’t use your student loan money for any other purpose other than the intended purpose, i.e. your education.
- If you determine that you can’t afford to take a student loan, avoid taking one at all costs.
- Don’t jump on the first student loan option you see. Compare different plans. Several plans will be suitable for you.
- Student loans: Good or Bad?
Ah! This is an age-old question! Most people wonder whether getting a student loan is good or bad. But truth be told it completely depends on your circumstances. If getting a student loan is the only way for you to pursue your education, then go for it!
- When Does a Student Start Repaying the Loan in South Africa?
Most student loan lenders will give each student a grace period of 3-6 months. This period is intended to give the student a chance to find a job and start earning an income.
Once your grace period ends, you need to start repaying your student loan based on your plan.
Before we leave you here with a lot to think about the next step, you can check out the latest student loan offers on our website Snappy Loan.
All the lenders are operating under National Credit Act. So, you don’t have to worry about getting duped. Compare different loan plans you see on our website to make an informed decision.