Although South Africa is home to many world-class universities and colleges, studying at one, either full time or part time, is very expensive. Parents and students should therefore carefully consider their options before deciding which degree to pursue and how to pay for the studies.

To borrow or not to borrow?

In America a debate is raging about rising tuition costs and the so-called student loan debt bubble. Billionaire entrepreneur Mark Cuban points out that years of subsidising loans has caused college tuition costs to rise to ” obscene” levels and has created yet another bubble that is bound to burst. He adds that the government grants student loans to individuals who will probably never be able to pay back the loans, are ill-equipped to handle the current marketplace and simply will not be able to find work after graduating in a 21st century economy that’s imploding on all sides. He warns parents and students to consider their options carefully before deciding which degree to pursue and how to pay for the studies.

This is sound advice that South African parents and students should take note of before applying for any loan or bursary for which they might be eligible.

Financial aid

According to the Department of Higher Education and Training, funding options available to South African students include the following:

    • University financial aid. Check with your university’s financial aid or client services office whether you are eligible for any university bursaries. Apply before October of the year preceding the start of your studies but do make sure of the dates as they may vary from institution to institution.
    • National financial aid. If you are a South African citizen, you may be eligible for a National Student Financial Aid Scheme (NSFAS) loan. NSFAS, a statutory body, funded by the Department of Higher Education and Training, provides study loans to academically deserving but financially needy students. Apply at your university’s financial aid or client services office. NSFAS loans do not cover registration fees, except for students who qualify for full NSFAS awards. National Skills Fund bursaries are available for students with a study focus in a scarce skills area as determined by the university or university of technology. Bursaries for students with disabilities are also available and application forms can be obtained from the NSFAS website, www.nsfas.org.za, or by phoning 086 006 7327.
    • Bursaries for teachers. Funza Lushaka is a full cost government-funded bursary scheme that promotes teaching in public schools. Students planning to complete a teaching qualification (in a subject area identified as a national priority by the Department of Basic Education) can apply for full-cost bursaries. Apply for a Funza Lushaka bursary through your university. See the Funza Lushaka website http://www.funzalushaka.doe.gov.za/ for more information.
    • Bursaries for social workers. Apply for a full-service bursary from the Department of Social Development at department offices in the provinces or contact Ms Vuyelwa Mngadi at 012 312 7294.
    • External bursaries. Many South African companies as well as provincial government departments offer bursaries to promising students. The terms of these bursaries vary tremendously. A booklet known as the Bursary Register is published every year and includes a full list of bursaries available. Copies are available at most high schools and universities’ financial aid and client services offices. You can also order a copy from: The Bursary Register, tel 011 672 6559.
    • Eduloans. Eduloans cover tuition, textbooks, a laptop and accommodation fees. Anyone can apply on a student’ s behalf provided he or she is permanently employed, earns a minimum of R2000.00 per month and is between the ages of 18 and 63 years old. Eduloan offices can be found on most higher education campuses or you can contact them at: https://www.myeduloan.co.za/olamain.aspx.
    • Student bank loans. All of South Africa’s major banks offer student loans, both to South Africans and to non-South Africans with valid study permits. They require proof of registration at an educational institution and someone (parent or mentor) to sign surety for you. Although you will only need to start repaying your bank loan once you’ve completed your studies, you will need to keep up the interest payments throughout the term of the loan.

Paying your own way

You can also choose to pay your own way by first finding a job and saving the money you will need for your studies or by studying part-time while you work. In this way you can gain valuable work experience while earning to finance your degree. You can also study full-time and work part-time. Whatever you decide to do, know that it will take a lot of self-discipline and very hard work. On the positive side, you will graduate with less or no study loan debts and will already be fully employed!

 

Sources
Bursaries and study loans information pack. 2014. Retrieved from: http://www.saqa.org.za
Ruffel, D. Billionaire Mark Cuban just dropped the biggest truth bomb about student loans…Retrieved from: http://www.youngcons.com
SA student loans and bursaries. Retrieved from: http://www.southafrica.info