January is the most stressful time of the year for most parents. School fees, varsity fees, problems with finding residence for varsity students, etc… I hope this article will give you some guidance if you need to borrow money to pay fees.
My favourite saying is that a personal loan will make you personally poor because it carries a very expensive interest rate and on top of that, many consumers are also forced to take credit life with it. So if you must borrow money to pay fees, keep away from a personal loan.
A student Loan is better than a personal loan because;
- You pay interest and service fees only while you are still studying – unless you can afford to pay back the capital amount and you actually want to pay it back while you are still studying.
- Once you have completed your studies, you have 6 to 12 months grace period to find a job before you are required to pay back the loan amount.
- You have 4 to 5 years to pay the student loan, after you start working.
What different banks offer – contact the banks directly if you have any questions on their student loans.
*Remember that credit life is NOT compulsory – you don’t need it if you have life cover. Also, you can shop around for credit life as you do NOT have to take credit life offered by the same bank that you take your student loan with.
Take proof of admission / registration, 3 months’ payslips, proof of address and a copy of your ID to fast track the application process.
Tip – Apply to at least 3 banks, ABSA and Nedbank must be part of the banks you apply to, then compare the quotes and take the loan that most suits your needs.
How can you invest for the school and varsity fees of your children?
I believe tax free investments [not tax free savings accounts] are the best way to invest for varsity fees for your children. If you want to invest and require some assistance feel free to email us on firstname.lastname@example.org to get more advice.