The National Student Financial Aid Scheme (NSFAS) does not provide financial help to every South African for their higher education. Those who do not qualify for NSFAS assistance have another alternative that is open to all South Africans, regardless of their previous economic status. The Nedbank Student Loan provides South African students with another alternative to get financial aid regardless of their economic status.
Students studying part-time at a South African higher institution can apply for a Nedbank Student loan. In addition, the loan can be used to pay down an overdue tuition bill. As a result, many people pursuing a tertiary education can make use of the loan.
The Nedbank student loan is designed to help students who can’t afford tertiary education, which can cost hundreds of thousands of rands each year depending on the program. Many South Africans, particularly those who were formerly disadvantaged during the apartheid era, do not have access to such funds.
You’ll need to read on to learn more about the Nedbank Student Loan, as the topic is explored in greater detail.
Nedbank Student Loan Summary
The Nedbank Student Loan is a student loan for students in South Africa who are pursuing tertiary education. The loan covers up to R100,000 in tuition and other course-related expenditures. The loan also has an annual interest rate of 10.25 percent, which is compounded monthly.
The repayment of the Nedbank student loan begins once the student has completed their studies. Should one take longer to settle the loan account, however, interest will be charged. From the time you finish your education, you can repay the loan in 6 to 36 months.
Tertiary students can apply for a Nedbank Student Loan, which can be used for both full-time and part-time studies. Those who are full-time students will require a guarantor, who must be named on the application.
Part-time students, on the other hand, will be required to repay the loan amount plus interest after it has been approved. If a student is studying part-time, repayments or instalments will be due during the course of their studies.
How the Nedbank Student Loan work
The Nedbank Student Loan provides a funding option for those who are unable to meet the financial obligations of tertiary education. To be eligible for the loan, you must submit an application that is accompanied by the necessary supporting documentation. The application can be completed entirely online or in-person at a Nedbank location.
The supporting documents that are required include:
- The applicant’s latest exam results for those that are already doing a tertiary program.
- Official registration letter from a tertiary institution that is accredited by the South African Qualifications Authority (SAQA).
- An invoice or statement for university fees.
- Lease agreement for campus or university accredited accommodation for those that want finance for accommodation.
- Invoice for textbooks and other items such as laptops or calculators.
To begin the application process, all of the above-mentioned documents must be supplied with the application form. Different candidates have different needs.
Additional information and papers are needed for:
Part-time students will be required to provide additional financial information. They will be required to detail their monthly costs as well as their monthly income. This will assist Nedbank in determining the amount of loan a part-time student is eligible for.
It will also be necessary to show proof of income. Payslips, bank statements showing where the salary is deposited, or a provisional tax return for individuals who are self-employed will be required as proof of income.
When applying as a full-time student, a guarantor will be required. A guarantor must be listed on the application as the guarantee and have a Nedbank transactional account. Nedbank will assist customers in opening a transactional account if they do not already have one.
When applying for a student loan with Nedbank, the guarantor must provide the following documents:
- guarantor’s latest payslip.
- three-month bank statement where their salary is deposited if they don’t bank with Nedbank, and
- A valid South African ID book or smart card.
Payments from Nedbank will be made to the valid accounts after a successful application. Every application, however, is subject to approval, with approved applications being considered successful.
Advantages of the Nedbank Student Loan
- Part-time and full-time students can apply for the loan.
- Any South African who is enrolled in a SAQA certified higher institution is eligible for the loan.
- The loan amount is large enough to pay most or all of the fees associated with attending a tertiary institution.
- Loans are available for each year of study. However, they must be applied for separately each year.
- The Nedbank Student Loan can be returned once you have completed your studies.
- With a flexible repayment arrangement, the loan can be repaid in as little as three years.
- The loan includes credit life insurance, which pays off the loan in the event of an insured event.
Disadvantages of the Nedbank Student Loan
- When compared to market rates, the student loan’s minimum interest rate is quite expensive.
- Part-time students are not allowed a repayment holiday in order to complete their education before making loan repayments.
- Given the interest and monthly service fee due, the loan repayment may be more than anticipated.
The Nedbank Student Loan is one of the best student loans available in South Africa from a bank. The loan is open to anyone studying part-time or full-time at a SAQA certified institution, making it accessible to many students who have previously been barred from student lending.
The most significant disadvantage of the Nedbank Student Loan is the minimum interest rate of 10.25 percent that must be paid. Consumers with a good repayment history are not given interest reductions below the minimum interest rate, although competing lenders offer customers with a good credit rating interest rates of 8% or less.