Find the best school fees loans in South Africa
School fees are one of life’s unavoidable expenses: From pre-school up to tertiary studies and whether you’re a student, parent, guardian, or sponsor. The costs can add up even if it’s for a good cause. Luckily, with a variety of school fees loans, you can finance any stage and type of education, including private school and college.
Getting a school fees loan in South Africa can be an easy and fruitful process if you have all the information on hand. At CompareLoans.co.za, we’ve done your homework for you. Get informed and be prepared to apply for a school fees loan that works for you today.
Types of school fees loans
We’ve come up with several options for you if you’re thinking of taking out a school fees loan:
- Student loans. These are usually meant to cover tertiary studies. They have a flexible repayment structure where you pay back interest only while you study. Once you start working, you repay the rest of the loan.
- Personal loans. Personal loans are a common way of coming up with school fees. They’re popular because of their flexibility when using them. You can use the cash advance to pay for tuition, uniforms, books, or any school-related expenses.
- Home equity loan. These are also called second mortgages, and they allow you to borrow against the value you own on your house. That means you can borrow some of your mortgage payments back and use the lump sum of money to cover school fees either for yourself or your child. The good thing is, home equity loans are secured, and therefore have lower interest rates. On the bad side, you risk losing the house if you fail to make repayments as agreed.
- Credit card. These offer convenient lines of credit but are easily maxed out so you might not be able to cover all the necessary tuition costs. It’s best to find a credit card with a low interest rate. If you shop around and research, you might even be able to find a lender who offers a 0% interest rate over a reasonable repayment period that you can easily cover.
Personal loans vs. student loans
When it comes to school fees loans, the two top options are personal loans and student loans. So, which one is right for you? We consider the main differences between personal loans and student loans to help you answer this question:
- Student loans have lower interest rates and cheaper fees. This is compared to unsecured personal loans. Otherwise, you can apply for a secured personal loan to get the same benefits. However, you might not be able to completely avoid the additional loan charges and fees that typically come with personal loans.
- Personal loans have shorter terms. Student loans have longer repayment periods since you initially pay interest only. You first have to graduate and find work before you can finish your loan payments. This might be a more comfortable arrangement but keep in mind that while personal loans have higher interest rates and you have to start repayments right away, they might end up being cheaper when paid off quickly.
- Personal loans are more flexible. You can use them to consolidate any other student loans, or for other non-related expenses. Some school fees loans might be limited to paying tuition only.
Can you use a school fees loan for any stage of education?
In South Africa, you’ll find that schools are either classified as independent/private schools or state/public schools. Furthermore, the education system ranges from primary education to secondary and further education. You should be able to get a school fees loan to cover any stage of education from the types of loans mentioned above. Depending on the loan, you can cover many school-related costs, including:
- Tuition;
- Textbooks;
- Transport;
- Food and accommodation;
- Stationery – Pens and writing materials;
- Learning equipment such as a smartphone or laptop; and
- WiFi or airtime for data.
Compare the best school fees loans in South Africa
The following checklist can help you choose a school fees loan that is best for your situation:
- Eligibility requirements. You might not be able to qualify for some loans based on the requirements. Find out which loan has the most flexible requirements as well as an easy application process.
- Interest rates. A good credit score can help to guarantee a low-interest rate loan. Even if your score is less than average, shop around for the lowest fixed or variable rate loan you can get. For the lowest rates, try a secured loan.
- Loan charges and fees. A school fees loan can come with all sorts of charges, from initiation fee to monthly service fees. Check if the terms and conditions of your loan contract contain any hidden fees. For example, there might be penalty fees for early or additional repayments.
- Allowable uses. Find out if the loan type allows you to pay for the expenses you have in mind. For example, some lenders restrict the use of personal loans for school fees.
- Loan amount and term. Look for a lender that gives you the loan amount and term you need as long as you can afford it. Also, use our school fees loan calculator to find out which loan gives you the best monthly repayment as outlined below.
School fees loan calculator: Find affordable monthly repayments
School fees loans provide parents and students with a way to stay on top of increasingly costly educational expenses. However, they can result in a massive amount of debt that can be difficult to manage. To help you avoid this, CompareLoans has created a school fees loan calculator to help you understand what you’re getting into in advance of your loan application.
Simply input the amount of money needed for school fees and the length of time you need to finish making repayments. The results in our comparison tables will show the expected monthly instalment for each of our featured lenders and registered credit providers. Ideally, this amount should fit nicely into your monthly budget, so feel free to keep using the calculator until you get the best results.
Ready to apply for a school-fees loan?
Once you have found an option with details that works for you, you can make your loan application for school fees by first clicking the “Go to Site” button in our comparison table. Depending on the lender and type of loan you choose, you might be required to supply the following:
- Personal details. Include your ID number, email address and other contact details.
- Proof of income. Usually, 3 months of payslips and bank statements.
- Details of your assets. If you’re applying for a secured loan, you’ll need to provide proof of ownership for any assets you’re using to guarantee the loan.
- Proof of enrolment. A letter of acceptance, proof of registration, or any other suitable official document detailing the expenses to be covered for that school year.
In addition, you must be at least 18 years of age and a South African citizen (or permanent resident) with a good credit score. If you’re adding a cosigner, their details will also be required.
Frequently asked questions
Can I get a K-12 education loan in South Africa?
In other countries like America, you can use a K-12 education loan to finance your child’s private school education. K-12 education loans might not be specifically available in South Africa, but you can still use a school fees loan to pay for private school tuition and expenses.
Do I need a cosigner on my school fees loan?
It depends. You can include a cosigner to strengthen your personal loan application and improve your chances of approval.
Can my parents take out a school fees loan for me?
If you have a regular, acceptable income and a good credit score, you can apply for a loan in your name. However, if you rely on your parents for finances, they’ll have to take out the loan in their name, which means they’ll be responsible for making repayments.
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