What is a student loan and should I get one?

Mar 07, 2016

Student loans are designed to help cover the costs of university tuition fees, accommodation and study material. Student loans differ from other types of loans as they may have substantially lower interest rates and the repayment schedules may be deferred whilst the person is completing their education. Student loans enable individuals to get a degree, diploma or other formal qualifications that they would not have been able to if it were not for the loan.

With most student loans, the length of study will be directly proportional to the loan's’ repayment period. You may also have the beneficial option of paying off the interest that accumulates within the duration of the loan, or you could let it mount up and be added to the remaining balance after the completion of your studies. After graduation, to help you get on your feet, most student loans offer a gap of a few months before the repayments start, known as the grace period.

Student loans are a great way of funding your studies, provided you are familiar with all the terms and conditions, and you know that you undeniably need the loan to get the degree you want. In most instances, a new student loan application is required every year of study and you will be subject to credit and affordability assessment which will determine how much funds you qualify for. It is therefore wise to keep a tight budget and to keep your finance needs as low as possible, to avoid the risk of insufficient funds for the entire duration of your studies. All the major banks in South Africa offer student loans with good rates and terms, you can also apply online if you are looking for a more specialised loan offering.

Whether you are a first-time student or looking to further your qualification, and if there are no other options of financing your education, then get a student loan. We know that it can be a daunting process in dealing with the future debt of a student loan, you might be thinking, is a student loan worth years of horrible debt and stress?

If you have set your mind to getting that qualification, and you need a student loan, here at Fincheck, we want you to make the best decision possible, cause we’re in for the long-haul. Head on over to the Fincheck student loan comparison Page to get the best options, here’s to cracking that bottle of bubbles at your graduation!

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