These FAQ’s cover questions that we receive most often. If we have not answered your question, you can send it through to us online or call us on 0860 55 55 44.
Who can apply for a student loan?
Anybody in full time employment who wants to finance his/her studies or who wants to sponsor a student's studies (e.g. that of your child, relative or friend). Applicants must be over the age of 18, and have a valid South African identity document and a South African bank account.
How much can I afford?
Eduloan will do an affordability assessment by using the income and expenditure information provided on your loan application form, and by looking at your accounts on the Credit Bureau and a register called the National Loans Register. Based on this, Eduloan will determine whether you can afford the full loan amount you’ve requested, or alternatively the amount that you would qualify for. Please note that Eduloan will not grant a study loan that is more than the amount that you owe the institution, as the money is paid directly to your account at the university.
How do I repay my loan?
Study loan repayments are generally made over a period of 10, 16 or 22 months. Your monthly instalments may be deducted from your / your sponsor's salary, or from your / your sponsor's bank account, depending on the instruction that you gave on your applications form. Your repayments remain fixed throughout the period of repayment.
What happens if my loan is approved?
Eduloan will notify you of the approval, and the credit granted for your studies will be paid directly to the institution. If you have an outstanding debt at the institution and you want to pay the registration fees or study fees for a new year of study, you can apply for the full amount (outstanding fees, registration and study fees) all in one. You should note that when Eduloan pays the money to the institution, they will credit it first against your outstanding balance, then your registration fee and lastly, your study fees. Should you not qualify for the full loan amount, Eduloan will advise you on the amount that you will qualify for
What happens if the payer of my loan passes away or gets retrenched?
If the borrower (you, your parent or guardian) passes away, Eduloan will require a copy of the death certificate or a letter from the company in cases of retrenchment. In both cases Eduloan will write off the outstanding balance of the loan if we are satisfied with the documentation we have received
What happens if I can’t repay my instalment?
If you do not have enough money in your bank account, you must contact Eduloan to arrange a direct deposit into our bank account. If there is not enough money in your account to pay the debit order, your bank may charge you a return debit fee.
If you do not pay your account on time, the full amount at the time of your default could become payable and you could get charged a penalty fee and/or interest, based on the outstanding amount on your loan.
Eduloan will be forced, in terms of the National Credit Act, to report your default to a Credit Bureau, which could have a negative impact on any new loan applications that you may want to make. Eduloan could further cancel your loan and implement legal action against you. The negative consequences of a bad credit record can be very unpleasant and could influence your access to credit for a long time. Therefore, it’s important to ensure that you pay all your instalments in full and on time each month. This will guarantee a good credit record and all the positive consequences relating to such a good record.
What happens if I become over-indebted? What must I do?
If you fall behind on payments, we recommend that you contact Eduloan to discuss alternative payment arrangements. Alternatively, Eduloan will notify you of your default, and refer your problem to a debt counsellor, alternative dispute resolution agent or a consumer court. These agencies will help you develop a financial plan to bring your instalments up to date.
Can I cancel my loan with Eduloan?
A study loan can only be cancelled if it has not yet been approved. Where the loan has been approved and Eduloan has already made the payment to the institution in terms of the loan agreement, termination can only occur by arranging a refund from the institution back to Eduloan or by paying the agreed settlement amount. Please note, when you terminate the loan agreement you will still be held liable for the initiation fee, a portion of the interest and service fee.
How will I know at any given time how much I still owe Eduloan?
You can contact Eduloan at any time to request a loan statement, which will set out the payments that Eduloan has received from you thus far, and reflect how much you still owe. You can also request a settlement balance should you wish to repay your full outstanding balance at any time.
You can also register on www.myeduloan.co.za and view your statement online at any time.
Do other companies have access to my personal details and payment information?
As a registered provider with the National Credit Regulator (NCR), Eduloan is forced to submit your payment information to Credit Bureaus on a monthly basis. This information includes the details of your credit agreement with Eduloan, termination or settlement information etc. What’s more, if you have provided permission on your credit application form to participate in defined Eduloan marketing activities, your personal information may be shared with other companies.