Rédaction Africa Links 24 with Neesa Moodley
Published on 2024-03-17 21:55:44
This year, the National Student Financial Aid Scheme (NSFAS) has introduced a new loan scheme to address the needs of the “missing middle” – students whose families earn between R350,000 and R600,000 per year. This marks the first time that NSFAS has acknowledged the financial gap faced by this group of students who do not qualify for traditional financial aid but still require assistance to fund their education.
The criteria for the NSFAS loan scheme are clear and specific:
– An annual household income between R350,000 and R600,000
– Acceptance to study at a TVET college or public university for under- or postgraduate studies
– Eligibility to apply in any of the first four years of study
– Requirement to sign a loan agreement if qualified for the loan
While NSFAS offers a loan option tailored to the “missing middle,” there are alternative ways to finance a student’s education. Ayanda Ndimande, a strategic business development manager at Sanlam, suggests that bank loans may also be a viable option. She emphasizes that student loans typically have lower interest rates compared to personal loans, making them a more favorable choice for financing education expenses. Parents or guardians can act as sureties for the student loans, minimizing the financial burden on the student during their academic years.
In considering bank-financed education, there are key points to bear in mind:
– Loan repayment terms change post-graduation, with premiums likely to increase
– Graduates can negotiate loan settlements with employers, exchanging service for debt clearance
– Documentation requirements include proof of registration, academic results, and fee breakdowns
– Repayment obligations kick in promptly post-graduation or employment, with immediate repayment for part-time students
In addition to financing concerns, parents may also worry about safeguarding their child’s belongings and assets during their college years. Insurance coverage can help mitigate risks associated with theft, loss, or damage to valuable items. Key considerations for insuring student children include:
– Disclosure of primary and secondary locations for belongings to insurers
– Supplementary content cover policies for items stored off-site
– Collaboration with institutions for customized insurance to address specific risks
– Car insurance updates if the student has their own vehicle
– Specification of high-value items in the policy at replacement value
As students embark on their tertiary education journey, it is crucial for parents to address both financial and security aspects to ensure a smooth and protected academic experience. Proper planning and insurance coverage can alleviate concerns and provide peace of mind for both students and their families.
Read the original article on Daily Maverick
