A NEED FOR AFFORDABLE STUDENT LOANS?

Thursday, November 12, 2015

 

The recent public debate and nationwide student protests that transpired as a direct result of impending price hikes of tertiary education fees, has set in motion the scrutiny of the price – and ultimately the value – of many things. Because not only does unattainable price hikes affect individuals who can afford to pay for their tertiary education in cash, it also increases the financial burden of those with study loans even further.

“We all know that cash is king, but the reality is that not everyone can afford to pay upfront for something as expensive as tertiary education, and as a result have to opt for a study loan,” says Derek Wilson, Head of Hippo.co.za, South Africa’s leading online insurance and financial services comparison website. “Because of fluctuating interest rates and inflation, and especially due to drastic fee increases, students often find that the amount they ultimately have to pay back to the bank just keeps on rising year on year.”

Planning on applying for a personal or study loan? Here are some pointers to consider:

  1. Stay on top of the total amount that you owe. Make sure you get your monthly statements, and keep track of all payments made to and received by the loan institution/credit provider.
  2. Investigate all the options first and then choose wisely. Opt for a payment plan that best meets your financial needs and capacity.
  3. Fast is good. The faster you can repay your loan, the better. Investigate which loan option will give you the least interest to repay, over a shorter repayment period.
  4. Don’t skip payments. In fact, if you’ve got cash to spare that you can pay into your loan, it will only benefit you in the long run.
  5. Do your homework before signing on the dotted line. There are many financial institutions in South Africa who provide personal or study loans. Choose wisely whom you want to entrust with your future, and with your money.

“The good news is that Hippo.co.za now also offers the services of a range of Personal Loan providers on the site, which means that potential students or individuals who want to apply for a Personal Loan can compare and apply for loans directly on the site,” adds Derek. “All you have to do is go to Hippo.co.za, complete a few questions online and within minutes you will have real-time results indicating the interest rate as well as the monthly repayment amount on your potential loan.”



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