When Do I pay Back My Student Loan?

To obtain a student loan can be difficult but to pay student loans is easier once you have been approved. First National Bank understands that an education is very important.

Here is more information regarding student loans.

When a student applies for a FNB student loan, the principle debtor (the person who pays the loan), must earn R6000 or more per month, and show proof of employment. If the debtor is self-employed, the latest six months bank statements will be required.

The principal debtor can be a parent, a sponsor, or guardian applying. Other criteria include that the students must be registered with a tertiary institution that are accredited. The application of a loan is subject to a credit and affordability assessment. This will determine what amount the debtor qualifies for.

A student loan can be used for tuition fees, books, or accommodation. Other financial institutions pay the place of accommodation and the institution directly from the loan.

With FNB, the loan is payed directly in to the debtors provided bank account and no payment is done directly into other bank accounts. It is therefore the obligation of the debtor to make sure that tuition fees are payed.

When taking out a loan, insurance is an obligation. It is a lot of money and therefore, the bank wants to make sure that in the event of death or disability, the client’s debt are settled. The Customer Protection Plan is a product offered to clients by FNB that helps ensure that principle debtor is covered. A similar plan can also be taken out elsewhere.

The payback of the loan is simple. Only the interest is payed back as the student completes their studies. After completion of studies, students start paying interest and the capital borrowed. Keep in mind that the loan is only valid for the specific academic year and reapplication is needed each year.