R1,6bn in the kitty for student loans
The National Student Financial Aid Scheme (NSFAS) has allocated R1,3-billion this year for student loans to enable young people to study at higher educational institutions.
Since its inception in 1991, the NSFAS has lent R6,2-billion, helping about 450 000 students to graduate from higher education institutions.
NSFAS chief executive Alan Taylor said students should realise the importance of repaying their loans so the fund could help other students. He said the collection this year of money owed had been better than that last year.
"Of the R6,2-billion, about R3,1-billion is due for collection. The balance is owed by students who are studying and those who haven't yet found employment," he said.
"In previous years commercial banks have charged as much as 23 percent interest on student loans. If you had one of these loans, you would be required to pay back the loan within a specific period, regardless of whether you were employed.
"By comparison, NSFAS's interest rate is equal to the rate of inflation plus two percent. This two percent helps sustain the loan scheme."The size of repayments to the NSFAS depended on the borrower and payments began when the former student was earning R26 300 or more a year.
Taylor said the fund was trying to ensure that money was lent only to those who qualified. Of the R1.3bn lent this year, R320-million was money repaid by former students.
To qualify, students must be South African citizens, registered at a South African university or technikon, and be studying for their first tertiary qualification or for a second qualification necessary to practise in their chosen profession, such as law.
Students must be able to demonstrate their potential for academic success, and be financially needy.
Source: http://www.iol.co.za/index.php?set_id=1&click_id=13&art_id=vn20060810024744713C430446
Since its inception in 1991, the NSFAS has lent R6,2-billion, helping about 450 000 students to graduate from higher education institutions.
NSFAS chief executive Alan Taylor said students should realise the importance of repaying their loans so the fund could help other students. He said the collection this year of money owed had been better than that last year.
"Of the R6,2-billion, about R3,1-billion is due for collection. The balance is owed by students who are studying and those who haven't yet found employment," he said.
"In previous years commercial banks have charged as much as 23 percent interest on student loans. If you had one of these loans, you would be required to pay back the loan within a specific period, regardless of whether you were employed.
"By comparison, NSFAS's interest rate is equal to the rate of inflation plus two percent. This two percent helps sustain the loan scheme."The size of repayments to the NSFAS depended on the borrower and payments began when the former student was earning R26 300 or more a year.
Taylor said the fund was trying to ensure that money was lent only to those who qualified. Of the R1.3bn lent this year, R320-million was money repaid by former students.
To qualify, students must be South African citizens, registered at a South African university or technikon, and be studying for their first tertiary qualification or for a second qualification necessary to practise in their chosen profession, such as law.
Students must be able to demonstrate their potential for academic success, and be financially needy.
Source: http://www.iol.co.za/index.php?set_id=1&click_id=13&art_id=vn20060810024744713C430446
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