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Thinking of studying further but do not have the funds? If you do not have money in your reserves or are not a bursary recipient, another option is to apply for a student loan.

There are several options where South African students can access loans for academic purposes - ranging from government organisations, banks and private financial institutions. Unlike receiving a bursary, student loans are meant to be repaid with interest once you have completed your qualification and earning a salary.

The application process may be daunting if you are not aware of the ins and outs. However, here are a few tips to help you understand how student loans work.

In most cases, when applying for a loan as a full-time or part-time student earning an income lower than a set limit stipulated by the organisation or are under the age 18 years, you will need to have a legal guardian to sign for collateral. 

Most importantly one needs to be registered with an accredited academic institution before everything else.

You will also have to supply the establishment where you have applied for funds from with the following documents:

• Three Months Bank Statement

• Latest Payslip

• Identity Documents 

• Proof of Costs (Tuition, Accommodation, Books and Equipment)

• Proof of Residence (e.g. utility bill)

• Proof of Registration or Acceptance Letter, and

• Latest academic Results  

Upon approval, terms of settlement are discussed and in normal cases a grace period is provided for repayments to take place when you have completed your qualification and found employment. However, if you fail your course, you will need to pay it back somehow.

Lebogang Mdlankomo