A study loan in South Africa requires proof of registration or acceptance at a recognised institution, proof of the study costs, and a creditworthy applicant. That last point is the one that surprises students: most study loans are granted against a parent, guardian or sponsor income rather than the student own.
A study loan is credit, unlike a bursary. It carries interest and must be repaid, and defaulting affects the credit record of whoever signed for it. Exhaust bursary and NSFAS options before taking one on.
Eligibility Requirements at a Glance
Lenders generally assess the following.
- Proof of acceptance or registration at a recognised institution
- A quotation or invoice showing the study costs to be funded
- A creditworthy principal debtor, commonly a parent, guardian or sponsor
- That person verifiable income and credit record
- The affordability assessment required by law
- Identity documents for both the student and the principal debtor
Income and Affordability Requirements
Because most students have no income, the assessment centres on the sponsor. Their income, existing debt and credit record determine whether the loan is granted and on what terms.
Credit providers in South Africa are required to complete an affordability assessment before granting credit. It looks at your actual income and expenditure rather than declared figures, and lending without it is reckless credit, which is unlawful.
Credit and Financial Requirements
Study loans commonly require interest to be serviced while you study, with capital repayment beginning after you complete or leave the qualification. Confirm which arrangement applies, since it changes the monthly cost during study substantially.
Some lenders release funds directly to the institution rather than to you, and may fund tuition, accommodation, books and equipment differently. Confirm what is covered before relying on it.
Documents and Verification Required
Applications normally require the following.
- Proof of acceptance or registration at the institution
- A quotation or invoice for the study costs
- Identity documents for the student and the principal debtor
- Proof of income for the principal debtor
- Bank statements for the principal debtor
- Proof of residential address
How to Apply and Improve Approval Readiness
Apply for NSFAS and bursaries first. A study loan should be the option you take when grant funding is unavailable, not the first port of call. See NSFAS requirements for the means-tested route.
Compare what different lenders fund and how interest is treated during study. The difference between servicing interest from the start and capitalising it is significant over the life of the loan.
Frequently Asked Questions
Can I get a study loan without a sponsor?
It is difficult. Most study loans are granted against a parent, guardian or sponsor income and credit record, since students usually have neither.
Do I repay while studying?
Commonly you service interest during study with capital repayment starting afterwards. Confirm which arrangement applies.
What does a study loan cover?
It varies. Tuition, accommodation, books and equipment are treated differently by different lenders. Confirm before relying on it.
Should I take a loan or apply for NSFAS?
Apply for NSFAS and bursaries first. A loan is credit that must be repaid and affects the sponsor credit record.
This page is general information and not financial advice. Confirm current criteria, rates, fees and terms with the provider directly, and consider free debt counselling if you are struggling with repayments. See loan requirements and browse all finance and funding requirements.