Tertiary education is a crucial stepping stone to a successful future. However, the high costs associated with obtaining a qualification can be a challenge for many students. Fortunately, there are various funding options available to help South African students further their studies without worrying about costs. In this blog post we will explore Scholarships and Student Loans as funding options.
Different Types of Tertiary Funding in South Africa: Scholarships VS Student Loans
What is a student loan?
A study Loan is a loan designed to help students pay for post matric education. A study loan can cover tuition fees, books, transport, accommodation, food and living expenses. The loan has to be paid back by the student or the parents over a period of time or in monthly instalments. Loans are usually paid back with interest. If you are studying full time, you might need to have someone sign a surety agreement. In this agreement, they agree to be responsible for paying your interest rates and fees while you are studying. It's important to choose someone you trust and who has a stable income."
Types and Examples of Study Loans
1. Student loans from the banks
Banks in South Africa can offer qualifying learners student loans to further their studies in public and private higher learning institutions. The following four major banks offer student loans:
2. Student loans from the independent credit providers
Independent credit providers are entities that offer loans and credit services outside of traditional financial institutions like banks and credit unions. Here are examples of student loans from the independent credit providers:
Student Loan Requirements
Student Loan Requirements may vary between lenders but here are some general requirements of student loans in South Africa:
Student Loan required documents
The majority of Student Loan Lenders, require the following documents to accompany your application:
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What is Scholarship?
A scholarship is a grant or a payment made to support a student’s education. Scholarships come from a variety of different sources such as organisations, charities, foundations, companies, government, universities and colleges. It is usually awarded based on high academic performance or other achievements or conditions. Many scholarships that are awarded in South Africa allow students to study in an international university (another country). There are both undergraduate and postgraduate scholarships.
Types of Scholarships
Some scholarships are awarded based on the following:
Scholarships Requirements
The requirements for scholarships can vary depending on the sponsors. Here are some examples of the requirements that sponsors might ask candidates to meet when applying:
Scholarships Required Documents
Required documents for the scholarships vary from sponsors. Below are examples of some of the documents that may be required from applicants.
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Scholarships VS Student Loans
Before making a decision on which funding option you will consider to fund your tertiary education, have a look on the advantages and disadvantages of both student loans and scholarships, to make informed decisions.
Advantages of Student Loans
Disadvantages of Student Loans
Advantages of Scholarships
Disadvantages of Scholarships
When exploring tertiary funding options, it's important to research the specific requirements for each type of funding. Additionally, consider the terms and conditions of any loans or bursaries you may receive, as these can have a significant impact on your financial future.
By carefully considering the available funding options and planning ahead, you can increase your chances of successfully financing your tertiary education and achieving your academic goals.