Standard Bank is one of the largest banks in South Africa, and it also offers some of the best student loans in the country. The Standard Bank student loan covers all of a student’s needs while at school, making it appealing to anyone in need of financial assistance to further their education.
The Standard bank student loan is also available to those who have outstanding college debt. The student loan has its own set of requirements, as broad as it is. The student loan comes with an interest rate that must be paid overtime. However, if you plan to work after graduation, you won’t have to worry about this.
The fact that the Standard Bank student loan is an unsecured loan makes it appealing to many South Africans. This means you won’t have to put up any assets as security that can be seized if you don’t pay back the loan on time. This allows people from low-income families to pursue higher education.
Let’s have a look at some of the highlights of the Standard Bank student loan before we get into the details of what it has to offer.
Standard Bank Student Loan Summary
Standard Bank Student Loan is a student loan with a maximum amount of R120,000.00 which is issued each year of study. The interest rate on a student loan starts at 7.75%. The loan also comes with a monthly service fee. This loan can only be repaid six months after the student has completed their education.
Only South African citizens studying at a participating South African university are eligible for a Standard Bank student loan. This loan has additional requirements, including the completion of a course at a participating university that has been approved. The following universities are the ones approved by Standard Bank:
- University of Pretoria,
- Stellenbosch University,
- Sefako Makgatho Health Sciences University,
- Northwest University,
- University of Limpopo, and
- The University of the Free State.
Each of the universities has a course list that the Standard Bank student loan approves of. Click here for a list of university courses to see if you qualify for a Standard Bank student loan.
The Standard Bank student loan is intended to assist people who want financial support in order to continue their higher education. As a result, the applicant’s household income is taken into consideration. Applicants with a household income of less than R600,000.00 are eligible for a Standard Bank student loan. However, if the applicant’s household income exceeds R600,000.00, his or her application will be rejected.
An existing transactional account with Standard Bank is also a key application requirement. To begin their student loan application, those without an account will need to open an account with Standard Bank.
How the Standard Bank student loan works
An application for the loan, like any other student loan, must be submitted. The application can be completed either online or through the Standard Bank app. Alternatively, an application can be completed at a Standard Bank branch; consequently, the application method used will be determined by the applicant’s convenience.
Before submitting an application, the following requirements must be met:
- An official university registration letter,
- Proof of household gross income such as pension receipts, payslips etc,
- Proof of residence that is not older than 3 months at the time of application,
- Those already at university will have to provide proof of the latest academic results,
- If funds will be used for accommodation, a lease agreement reflecting the cost of accommodation will be required,
- Statement of the university tuition or residence cost, and
- A valid South African Identity Document.
These documents must be supplied when applying for a student loan because they will determine whether or not you qualify for one and the amount you will need. The Standard Bank student loan, on the other hand, has a limit of R120,000.00. As a result, the application must be for a sum of less than R120,000.00, including textbooks.
Following approval of the application, the requested amount will be paid according to one’s financial needs. Tuition payments, for example, will be made directly to the university, while accommodation payments would be made directly to the landlord or real estate agent.
If the cost of books and educational equipment, such as a calculator or a laptop, exceeds R6000.00, evidence of purchase will be needed. Along with the application documents, proof of cost for these goods and services will be required.
Advantages of the Standard Bank student loan
- The loan covers not only tuition fees but also textbooks, study equipment, and living expenses.
- The loan’s repayment terms are flexible, allowing the account holder to repay the loan without putting too much strain on their finances.
- Depending on one’s credit score, the loan’s interest rate may be low.
- There is no requirement for collateral in order to qualify for the loan.
- There are no penalties if the loan is paid off early.
- Those who already have college debt might apply for a student loan and use it to pay off their previous debt.
Disadvantages of the Standard Bank student loan
- Those with a student and/or work permit are not eligible for the loan.
- The number of university courses that are eligible for a Standard Bank student loan is extremely limited.
- To obtain the loan, one must have a Standard Bank account.
- The amount owed will grow as a result of the monthly service cost.
The Standard Bank student loan provides financial assistance to those coming from low-income families who cannot afford post-secondary education. The loan also aids in the purchase of additional items required to complete one’s qualification. This loan can also be used to finance those who owe fees, making it more accessible to more South Africans.
The Standard Bank student loan is excellent for students who are unable to obtain financial aid under the National Student Financial Aid Scheme (NSFAS) and have a combined household income of less than R600,000.00. The Standard Bank student loan is better because it is open to everybody who is a South African, including previously advantaged individuals.