ABSA Student Loan – Complete Guide

Are you facing challenge accessing your higher education due to financial constraints? ABSA Student Loan is the best solution for your educational and financial needs.

It is a service rendered by the ABSA group subsidiary ABSA bank across South Africa.

ABSA believes that one’s financial situation should not hinder his or her dream to pursue higher education of choice.

The world has become very competitive and has made it necessary for one to acquire the necessary skills and expertise in every changing working environment.

A Quick ick Overview of the Student Loan

The loan covers tuition fees, accommodation, study materials and tools.

It offers the best and lowest interest rates compared across the board. Once again, you only for the interest in the year of study (12 months) and start actual repayment in the 13th month.

Who Qualify for the ABSA Student Loan

To qualify for the loan, you must be a South African citizen or person living in South Africa permanently and earn more than R3 000 a month. The loan can be in the name of:

  • A parent, who has proof of income
  • A sponsor or guardian, who has proof of income
  • A part-time student, who is full-time employed and has proof of income

An Absa Study Loan can be taken out by a student studying full-time or part-time at any of the following institutions:

  • University, university of technology, agricultural college, technical vocational education and training college (TVET)
  • Any private study institution registered at a Sector Education and Training Authority (SETA) and accredited by the South African Qualifications Authority (SAQA)
  • Online study courses accredited by the United States Department of Education or the UK Government of Higher Education Quality Assurance Agency (QAA). The borrower is required to be based in South Africa. 
  • Aviation training from an approved training organisation (ATO) which has been approved by SA Civil Aviation Authority (SACAA).

Requirements for Application

  • A valid South African ID document or Smart card
  • Proof of residential address such as a municipal or rates bill
  • Your last three months’ payslips or bank statements
  • Proof of study in the form of a final letter of acceptance or proof of registration 
  • Proof of course costs for the year of study (invoices/statements); for
    • Tuition fees
    • Accommodation for full-time students not living with parents or relatives
    • Text books
    • Study-related technological devices
  • For second and subsequent years of study, proof of the previous years’ academic results to ensure student is permitted to continue studies.

How To Pay Back The Loan

  • You can opt to make capital and interest repayments or;
  • You can repay interest only for a period of 12 months.

When topping up an existing study loan, you may repay interest only for a further 12 months.

  • Be prepared for the unexpected and have peace of mind knowing that you are covered. The Absa Credit Protection Plan will cover you in the event of death, disability, critical illness or retrenchment. Credit life insurance is mandatory for all study loans. You also have the option to take out Absa life credit protection to cover the student in case of death. 

What You Need To Know Before Applying

Yes, a study loan can be taken out for each year of study.

  • We finance both undergraduate and postgraduate qualifications – the duration of the course must be more than two months
  • You can apply for a minimum amount of R15 000
  • The study loan will only cover one year’s tuition fees and associated costs. You will need to re-apply the following year if you proceed with your studies
  • A study loan is awarded based on each customer’s risk and affordability
  • You may include the following with your loan:
    • Prescribed text books
    • Tuition fees including your registration
    • Accommodation (Only full time students who is not living with family)
    • Computer equipment required for your studies

Mode of Application

  • You can apply at any nearest Absa branch,
  • Absa Student Bureau,
  • Or you can call 0860100372

For Terms and Conditions and how it works please click here for more information

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