Student Loans

Higher education is often seen as the key to unlocking better opportunities and a brighter future, but for many South Africans, the cost of tuition, accommodation, and other expenses can be a major obstacle. With limited financial resources, student loans have become a vital lifeline for many aspiring students.

• Multiple loan offers
• Get approved today
• Free application – no commitment

Apply now!

Compare top lenders

Together with our partners, we provide access to up to 19 reputable banks and lenders. Explore offers tailored to your needs and choose the most suitable offer. Each lender abides by the regulations outlined by the South African National Credit Regulator (NCR).

How much do you need?

R 100R 200R 300R 400R 500R 600R 700R 800R 900R 1 000R 1 100R 1 200R 1 300R 1 400R 1 500R 2 000R 2 500R 3 000R 3 500R 4 000R 4 500R 5 000R 6 000R 7 000R 8 000R 9 000R 10 000R 11 000R 12 000R 13 000R 14 000R 15 000R 16 000R 17 000R 18 000R 19 000R 20 000R 25 000R 30 000R 35 000R 40 000R 45 000R 50 000R 60 000R 70 000R 80 000R 90 000R 100 000R 110 000R 120 000R 130 000R 140 000R 150 000R 160 000R 170 000R 180 000R 190 000R 200 000R 210 000R 220 000R 230 000R 240 000R 250 000R 260 000R 270 000R 280 000R 290 000R 300 000R 310 000R 320 000R 330 000R 340 000R 350 000

Repayment period

6 months7 months8 months9 months10 months11 months12 months13 months14 months15 months16 months17 months18 months19 months20 months21 months22 months23 months24 months25 months26 months27 months28 months29 months30 months31 months32 months33 months34 months35 months36 months37 months38 months39 months40 months41 months42 months43 months44 months45 months46 months47 months48 months49 months50 months51 months52 months53 months54 months55 months56 months57 months58 months59 months60 months61 months62 months63 months64 months65 months66 months67 months68 months69 months70 months71 months72 months

Monthly repayment

R 211

Email

Cellphone number

I accept the terms and privacy policy.

Yes please! Arcadia Finance can inform me about loan offers by email, SMS and Whatsapp.

Your email address seems invalid. Write the email again or use some other email address.

Continue

✔ Over 2 million South African's have chosen Arcadia Finance

*Representative example: Estimated repayments of a loan of R30 000 over 36 months at a maximum interest rate including fees of 27,5% APR would be R1232.82 per month.
Loan amount R100 - R350 000. Repayment terms can range from 3 - 72 months. Minimum APR is 5% and maximum APR is 60%.

We work with Myloan.co.za. A leading loan marketplace in South Africa.

What Are Student Loans?

Student loans are financial products designed to help students pay for the costs associated with higher education, such as tuition fees, accommodation, textbooks, and other academic-related expenses. These loans are specifically tailored for individuals pursuing tertiary education who may not have the financial means to cover their educational costs upfront.

Types of Student Loans in South Africa

Government-Funded Loans

The National Student Financial Aid Scheme (NSFAS) is a primary option for South African students from low-income families. This government-funded programme provides financial assistance to students at public universities and TVET colleges. NSFAS loans are income-based, meaning only those with a combined household income below a certain threshold are eligible. One major benefit is that a portion of the loan can be converted into a bursary based on academic performance, reducing the repayment burden.

• Application Process: Applications are completed online through the NSFAS portal. Students must meet income and academic criteria and submit documents during the application period. 
• Approval and Disbursement Timeline: NSFAS typically processes applications over several weeks, with results announced before the academic year begins.
• When Repayment Begins: Repayment typically starts only once the student has graduated and secured employment with an annual income above a certain threshold. This ensures repayment is tied to the borrower’s earning capacity.
• Repayment: Repayment terms may begin immediately after disbursement, during studies (interest-only payments), or shortly after graduation. These terms vary by lender and loan agreement.  The repayment amount is income-contingent, meaning graduates only pay a small percentage of their salary (e.g., 3%-10%) once they earn above a certain income. NSFAS also offers forgiveness options for exceptional academic performance.

Private Bank Loans

Several South African banks, including Standard Bank, FNB, ABSA, and others, offer private student loans tailored to cover educational costs. Unlike NSFAS, private loans are typically available to students from middle to high-income families. These loans often require a guarantor and come with interest rates that vary based on the lender and repayment plan. While private loans can cover broader expenses, such as textbooks, accommodation, and even study abroad opportunities, they lack the subsidy benefits associated with government loans.

• Application Process: Applications are submitted directly to the bank, either in person or online. The process involves credit checks, co-signer assessments, and verification of submitted documents.
• Approval and Disbursement Timeline: Bank loans may be approved within days to weeks, depending on the institution’s evaluation process. After approval, funds are disbursed directly to the institution for tuition or to the student for other educational expenses, ensuring timely access to resources for the academic year.
• When Repayment Begins: Repayment terms may begin immediately after disbursement, during studies (interest-only payments), or shortly after graduation. These terms vary by lender and loan agreement.
• Repayment: Repayments are typically fixed and include both the principal amount and accrued interest. Unlike NSFAS, these loans are not income-sensitive, which can lead to higher repayment amounts regardless of the borrower’s financial situation.

Scholarships and Bursaries

For students looking to avoid debt altogether, scholarships and bursaries are valuable alternatives. Scholarships are often merit-based, rewarding academic excellence, while bursaries are frequently need-based or offered by companies in exchange for work commitments after graduation. These options, though competitive, provide financial relief without the burden of repayment, making them an ideal choice for eligible students.

Who Can Apply for a Loan?

• You are over 18 years old
• You are employed and employment has lasted for more than 6 months
• Your loan should not be more than 8 times larger than your monthly income

How to Apply for a Student Loan

Before applying for a student loan, it’s essential to gather all the necessary documentation. This typically includes:

• Proof of identity (ID documents or passport).
• Proof of income for the applicant or their parents/guardian (e.g., payslips or bank statements).
• Admission confirmation from an accredited institution.

Academic records (for some loans). For private loans, a co-signer or guarantor is often required to provide financial security. This person, usually a parent or guardian, agrees to take responsibility for repayment if the borrower defaults.

Compare Loans in 3 Easy Steps

Fill in our application

Complete our loan application in minutes. Just enter your details and choose your desired loan amount.

Choose a loan offer

Based on your responses, you will receive a variety of personalized offers from up to 19 lenders.

Get your money

You are free to accept or decline the offers as you please. The offers are non-binding.

What is Arcadia Finance?

Arcadia Finance helps South Africans in the search for loans from different banks and lenders through our loan broker partners. We provide access to up to 19 reputable banks and lenders. By filling our loan application you will get multiple loan offers, which you can compare and select the most suitable offer. The service we offer is completely free of charge and you will not commit to anything by requesting for loan offers via Arcadia Finance. We only work with trusted loan brokers who collaborate with NCR licensed banks and lenders in South Africa.

Apply now

Pros and Cons of Student Loans

6 Strategies for Managing Repayments

• Create a Budget and Stick to It: Develop a clear monthly budget to track your income and expenses. Allocate a specific portion for loan repayments and stick to it, ensuring you prioritise your financial obligations.
• Set Up Automatic Payments: Automate your repayments to avoid missing deadlines. This not only ensures consistency but may also qualify you for interest rate discounts with some lenders.
• Pay More Than the Minimum: Whenever possible, make extra payments toward your loan to reduce the principal balance faster. This helps save on interest and shortens the repayment period.
• Refinance for Better Rates: If eligible, refinance your loan to secure a lower interest rate or more favourable terms. This is especially helpful with private loans if your financial circumstances have improved.
• Take Advantage of Income-Driven Plans (If Applicable): For loans like NSFAS, opt for repayment plans tied to your income. This ensures payments remain manageable, especially during periods of lower earnings.
• Cut Unnecessary Expenses: Review your spending habits and eliminate non-essential expenses. Use the extra funds to boost your repayments and reduce your debt more quickly.

Alternatives to Student Loans

Government Scholarships and Grants

Government scholarships and grants provide a debt-free way to finance higher education. These funds are typically awarded to students who demonstrate exceptional academic performance, financial need, or a combination of both. Programmes like the Funza Lushaka Bursary for teaching students or the DHET bursaries for certain fields help alleviate financial burdens. Unlike loans, scholarships and grants do not require repayment, making them an attractive option for eligible students.

Work-Study Programmes

Work-study programmes allow students to earn money while pursuing their education. These initiatives, often facilitated by universities, provide part-time employment opportunities on or near campus. Jobs may include tutoring, administrative support, or research assistance, enabling students to fund their education while gaining valuable work experience. Work-study programmes are particularly helpful for students who wish to minimise debt while maintaining their academic responsibilities.

Crowdfunding and Family Contributions

For students who don’t qualify for scholarships or loans, crowdfunding and family contributions can be vital resources. Crowdfunding platforms like GoFundMe or BackaBuddy have become popular for raising money for tuition and related costs. Many students share their personal stories online to gain support from their communities. Family contributions, where possible, can also play a role, either through direct financial support or pooling resources within extended families to invest in the student’s education. These methods, while informal, can provide crucial financial relief without the long-term commitment of loans.

Conclusion

Financing higher education in South Africa can be challenging, but with the variety of options available—ranging from government-funded loans and private bank loans to scholarships, work-study programmes, and crowdfunding—students can find solutions tailored to their needs. Each choice comes with its own advantages and challenges, making it crucial for students to carefully assess their circumstances and explore all available opportunities. By making informed decisions and planning ahead, students can pursue their educational goals without compromising their long-term financial stability.