5 Things to Think About When Taking Out a Student Loan
Tertiary education costs a lot of money and for someone without the funds it can cause them to miss out on getting an academic qualification. However, there are options available such as taking out a student loan.
Tertiary education costs a lot of money and for someone without the funds it can cause them to miss out on getting an academic qualification.
However, there are options available to help those students to achieve their goals at a tertiary level. These options include taking out a student loan, such as the Standard Bank Student Loan.
Before committing to a Student Loan, it is essential for students and guardians to take the consequences into consideration.
A loan is a big commitment for any person and can be a heavy load to bare, however if students manage them prudently there should not be any problems.
Magdeline Thidiela of Standard Bank has given students some advice.
“Nobody wants to start their working lives with debt hanging over their head, but the reality is that tertiary education in South Africa is expensive, and many young adults will need to explore financial help available to them. The cost of foregoing those studies could be far greater than the cost of the loan itself,” says Thidiela.
“Ultimately, you don’t want to forego the opportunity to study. A loan may seem daunting now, but it can bring rewards later in life such as entry into a professional career that earns a good income. Those with a tertiary degree typically end up increasing the amount they can earn than those who don’t when considering the formal employment sector,” says Thidiela.
Not everyone is able to receive a bursary, scholarship, or financial assistance from the institution, which is why considering a student loan is a good idea.
However, there are a few things to consider before committing to a student loan.
5 Things to Consider:
Do not stress
Loans often have negative connotations associated with them; however, this should not be if it is taken out for a good reason.
Like taking out a home loan, student loans fall into the same ‘good loan’ category.
Which is why you should not stress about having debt because studying will secure your future forever.
Do your research
Since this is a new adventure, it is important to do some research so that you know what to expect.
Research is also important, because you want to ensure that you get the best possible loan for you. One that provides you with enough money to cover tuition, accommodation, and textbooks.
When researching be sure to check which documentation is required to obtain the loan.
Compare interest rates
All loans come with its own interest rates and this depends on your personal profile.
It is important to find interest rates that will suit you.
Keep in mind that the higher the interest rates, the higher the loan repayment will be.
Get a surety
Before getting approved for a Student Loan, you will need to have a surety.
Someone who will be able to cover the cost of the loan in case you are unable to. They share equal responsibility for the debt.
It is best to ask someone who you can trust, preferably someone in your family.
However, if there is somebody else who can assist you outside of your family, go ahead and ask them.
Prepare yourself to pay it back
Always keep in mind that as a student you also have debt to pay, so do not live beyond your means.
It would be best to avoid taking out any other loans. If you do, it will make it difficult to pay back your loan as quickly as possible.
“It’s important to remember that a Student Loan is not a bad loan. It is there to help you fulfil your dreams. So, go ahead and consider your options so that you can get a head start on the new year,” concludes Magdeline Thidiela.
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