Demand for student loans increases in SA
by MTHULISI SIBANDA
JOHANNESBURG – FIRST National Bank said it had noted an 8 percent increase in student loan applications for the 2014 calendar year to date, compared to 2013.
The majority of loan applications are generated from Gauteng with 39 percent, followed by the Western Cape at 15 percent.
According to FNB, the statistics also revealed that the majority of applications received were for students studying towards a qualification at a traditional university.
“Most universities have closed their undergraduate applications, making it the ideal time for prospective students to start the process of gathering information about student loans while awaiting admission confirmation,” says Pieter du Toit, CEO of FNB Personal loans.
The bank has noted that the most applications are made during January and February.
Student loans normally amount to between R4 000 and R50 000 and is granted annually.
Once the funds have been deposited into the parent or guardian’s account, it can be used to cover the cost of tuition fees and books. The student’s parent or guardian must earn more than R6 000/month and meet the NCA criteria in order to qualify for a student loan.
Interest rates are linked to prime and will be based on each individual’s credit profile.
– CAJ News
Short URL: http://cajnewsafrica.com/?p=2001