Matriculants looking to study and obtain a student loan to do so, should understand the best practice when it comes to getting and managing a loan. While the value of education far outweighs the amount you pay for it, it’s a good idea to shop around before signing any dotted line.
When applying, understand exactly how much you will pay. This is not just the monthly cost and the amount you’re applying for, but how much the total interest you’re paying will add up to on top of the capital amount you’ll pay off. Multiply the number of interest installments that you will pay by the number of months you’ll pay it over. Ordinarily you’ll pay off the interest during your studies and the capital once you’ve finished your degree, so this will probably be between 36 and 48 months. Make sure you’re comfortable paying this amount on top of the capital. Shop around to see what interest different institutions offer.
You will need to pay the interest installments while you’re studying, so make sure you can afford this before you apply. Complete a budget with this
expense as a priority. Being blacklisted before you’ve had the chance to work is a bad way to start any career. Your income should exceed all your expenses by 15%. If not, then chances are the installments are too expensive for you.
If you find it difficult to pay. Don’t wait for your creditor to contact you. Call them to make alternate arrangements. If creditors will not help you or lower the payments, then consult a
debt counselor who will assist you in terms of the National Credit Act.
You can learn your rights as a borrower by visiting the National Credit Regulators website.