Knowledge is always empowering, and tertiary education can be the gateway to a promising career and a better life for you and your family – but it comes at a cost. Scholarships and sponsorships offer more opportunities, but not everyone qualifies for them. However, a lack of finances shouldn’t discourage you from following your educational dreams.

If you’ve had the ability and discipline to complete 12 years of schooling and achieve a matric pass mark that qualifies you to study further, it’s a sad waste to let a lack of money shut down your options. A student loan could be the lifeline you need to set you on the road to a brighter, more prosperous future.

 

What does a Nedbank Student Loan cover?

A Nedbank Student Loan provides financial support for various study-related expenses. It covers essentials like tuition fees, on-campus or accredited off-campus housing, and even transport to get you to and from classes. You can also use the money to buy textbooks, stationery, and other course-related material. The loan also pays for personal needs, groceries and fees for accredited professional exams or certificates. Student loans are usually granted for 1 academic year at a time, so you will need to reapply every year.

There is no age restriction. You can qualify at any age, provided you meet the requirements to enrol in a full-time or part-time course at an accredited institution. Whether you’re studying locally or abroad, through traditional or online programmes, a student loan means that financial worries won’t distract you from your academic goals, giving you the peace of mind to focus on your studies.

Do I qualify for a Nedbank Student Loan?

All loan applications are assessed individually, and the criteria vary for part-time and full-time students. Application does not guarantee that your loan will be approved.

Loan approval could depend on the following conditions:

• First, make sure that the course you want to study qualifies for a loan. It must be at least an NQF level 5, which is equivalent to a higher certificate, and be offered by an institution accredited by the South African Qualifications Authority (SAQA). You can check whether your proposed course and institution qualify with the Nedbank Student Loans team before you begin the application process.
  
  
• You must not have outstanding debt on any other student loans or owe money related to a study grant.
  
  
• You will need a guarantor – someone who signs the Guarantee Agreement and legally commits to repaying any outstanding amounts if you fail to make payment. In most cases the guarantor will be responsible for the monthly loan payments until you are able to take over payments yourself.
  
  
• The loan funds must be used for educational purposes only.
  
  
• Eligibility may be affected if you are jailed or have been convicted of a drug offence.
  
  
• While there’s no specific minimum credit score requirement for student loans, a history of irresponsible borrowing behaviour could lead to your application being rejected.

How to apply for a Nedbank Student Loan
 

• Download the loan application form and complete it accurately.
  
  
• Email your application along with all the necessary documents to us or hand it in at your nearest branch.
  
  
• We will review your application and if you meet the requirements and we approve your student loan, we will deposit the money into your account.

You’ll need the following documents:
 

• Matric certificate for first-year applicants or previous exam results for existing students.
  
  
• Proof of registration at an accredited institution.
  
  
• An invoice for fees, textbooks, and campus accommodation (if applicable), along with a confirmation letter for study-related equipment.
  
  
• A Nedbank account (you can open 1 when your loan has been approved).
  
  
• Latest exam results or academic results from the previous year for renewals.

How do repayments and interest work?

Make sure that you understand all the terms and conditions before you apply for a student loan. The repayment structure for Nedbank Student Loans varies according to your student status. While you’re a full-time student or completing an internship, you or your guarantor will need to cover only the monthly interest on your loan. Once you’ve completed your studies, you’ll begin repaying the principal loan amount and interest every month.

If you’re a part-time student, the repayment structure includes both principal and interest every month, right from the start of the loan. If you’re planning to study part-time, have a source of income, and can manage your monthly payments, this arrangement can work for you.

Interest rates for full-time students are tied to academic performance. High grades can lead to lower interest rates as a reward. Part-time students pay fixed interest rates agreed on during the application. A key advantage of student loans is that they have significantly lower interest rates than other personal loans.

Manage your student loan effectively

Managing a student loan properly takes discipline and responsibility. It might be your first time dealing with such a large sum, but you have to budget to cover all your study-related expenses throughout the year. It’s easy to feel like you have newfound financial freedom to splurge, but remember, it’s not a lottery win. It’s money you will have to pay back, with interest, and the sooner you can start, the better.

If you rely on a student loan, managing your finances well is non-negotiable. Not only because tertiary education and the cost of living are so expensive, but also because poor money management will also put you at risk of not getting your loan renewed for the next academic year.

Here are some tips to manage your student finances:

Pay more than the minimum

If you can, pay more than the minimum monthly loan payment. If you have a part-time job or extra cash, consider using it to pay more towards your student loan, even while you’re still studying and are liable for the interest payments only. This will help you clear your principal loan amount faster and reduce the total amount of interest you’ll pay.

Budget wisely

Make your monthly loan payment a fixed part of your budget, to ensure that you always have the funds available to make payments on time.

Live within your means

Keep your end goal in mind and resist the peer pressure to spend on non-essentials. Manage your spending wisely. Don’t waste your loan on a party lifestyle and then run out of money for textbooks or rent.

Focus on academic performance

If you’re a full-time student, the better your results, the lower your interest rate could be. Aim to excel in your studies.