Nedbank Student Loan Application Faqs 2023-2024… Here are the answers to what most people ask us about Nedbank loans.
This article contains answers to the frequently asked questions (Faqs) on Nedbank Student Loan Application.
With Nedbank, you can know that your fees, books, accommodation, and other costs are covered while you focus on your studies.
What documents do I need to submit for my student loan application?
You must submit the following:
- For first-year applications, a matric certificate. If you’re already a student, your previous college or university exam results.
- Proof of registration at a tertiary institution that is accredited by the South African Qualifications Authority (SAQA).
- An invoice or statement for university fees, textbooks and accommodation (for campus or university-accredited accommodation only). If you need specific study-related equipment, a letter from your tertiary institution to confirm that.
- A Nedbank Account. We will open an account for you once we have approved your loan application.
Can I apply for a student loan without someone standing in for me (guarantor)?
Yes and no. Yes, if you want to study part-time, have an income, and can make monthly payments towards your student loan. But if you plan to study full-time and cannot make the repayments yourself, you will need someone who will pay for your loan. That person is called a guarantor.
How is the monthly interest calculated?
We offer fixed and variable interest rates based on whether you are applying as a full-time or part-time student.
For full-time students, interest on student loans is linked to your academic performance. If you earn and maintain high grades, we will reward you with lower interest rates. Part-time students will already be making monthly repayments, which will have been fixed in agreement with us during the application.
A great advantage of a student loan is that a much lower interest rate is charged than for a traditional loan. The interest rate on a normal personal loan can range from 10% to 24%, with most towards the higher end of the scale.
Interest on a student loan, by contrast, is prime plus 1% or 2%. Prime is the base interest rate used by all local banks, which they in turn base on the lending rate set by the South African Reserve Bank. With prime at 7% in 2021, this means the interest rate on a student loan could be as low as 8%.
What if I don’t find a job after I have become qualified and cannot pay my loan?
The person who signs as your loan guarantor will pay the interest on your loan every month until you can take over.
Can I apply for a loan if I am not studying towards a degree?
As a practice, student loans are granted for courses geared at NQF level 5 or higher and presented by a SAQA-registered institution.
What if I don’t have my latest exam results?
Your application for a student loan and/or renewal of your student loan must be accompanied by your latest exam results. Contact your college or university to get the relevant documents. If you are applying for a first-year loan, you can get your results by following the instructions on Fundi.com
Do I need to apply for a student loan every semester?
No. You must apply only at the beginning of every academic year. We will need to see proof of your academic results from the previous year.
What would prevent me from getting a student loan?
If you cannot meet the qualifying requirements for a student loan, you are disqualified automatically from applying. Other factors that could affect your application are the following:
- You can’t be in arrears on any other student loan, and you cannot owe money on a grant.
- You must agree to use your loan funds for educational purposes only.
- You may lose your eligibility if you’re imprisoned, or you’ve been convicted of a drug offense.
- While there’s no minimum credit score requirement for student loans, we can turn down your application if your credit history shows you have been an irresponsible borrower.
What will a student loan help me pay for?
You can use your student loan to pay for the following study-related expenses:
- Tuition and fees.
- On-campus accommodation.
- Off-campus housing provided it’s university-accredited.
- Transportation, if you live at home.
- Books, supplies and equipment related to your course of study.
- Miscellaneous personal supplies, including toiletries and medication.
- Groceries.
- Fees for professional testing, licensing and certificates.
- Study abroad programme costs.
- Accredited online study programmes.
When do repayments begin?
If you are a part-time student, you will start repaying your loan amount and interest at the start of your studies. If you choose to study full-time, your guarantor will need to make monthly repayments only on the interest of the loan. You’ll start repaying both your loan amount and interest only once you’ve completed your studies and have a source of income.
How do I find the best student loan repayment option?
If you are a part-time student, you will start repaying your loan amount and interest at the start of your studies. If you choose to study full-time, your guarantor will need to make monthly repayments only on the interest of the loan. You’ll start repaying both your loan amount and interest only once you’ve completed your studies and have a source of income.
What are the age limits for student loans?
There are no age limits. You can apply for a student loan for as long as you qualify to attend a full-time or part-time programme at an accredited institution.
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