Your investment in your tertiary education is one of the most significant you will ever make and the foundation of a successful career. In years gone by, tertiary education was not something that was affordable to all. However, with the financial options that are available today tertiary study is available and accessible to everyone.
The aim of this section of the website is to illustrate various options that are available to you in terms of financing your studies and also to demonstrate just how manageable it is to pay towards your studies.
Terms with your Tertiary Institution
Students studying at one of our Varsity College campuses may elect to pay fees up front or to pay a deposit at the beginning of the year and the balance of the fees over the stipulated period. Students also have the option of paying a larger deposit which will either reduce the monthly payment or reduce the number of months in the payment period.
FINANCING YOUR STUDIES
A number of finance options are available to eligible prospective students and their parents. This section will guide you through these options and demonstrate just how possible it is to finance your studies.
At Varsity College there are three options for paying for your studies:
- Pay all fees up front.
- Pay a deposit at the beginning of the year and the balance of the fees over a specified period.
- Pay a fixed instalment over a specified period of time (no deposit payable).
Programme fees at Varsity College vary depending on the programme you have registered for. The Schedule of Fees provides details of the fees payable for each programme, and is available from any Varsity College campus. All fees exclude text books, the cost and purchase of which you are responsible for.
HOW DOES A STUDENT LOAN WORK?
Student loans are provided by registered financial institutions such as banks. These loans are structured in such a way that, during the time you are studying, all that needs to be paid on a monthly basis is the interest accrued on the amount you have borrowed. Only once you have completed your studies and enter the working world will the capital and interest on your loan need to be repaid. The amount of R60 000 has been used for illustrative purposes only and is not for a specific Varsity College programme. Interest rates, chosen deposits and monthly repayments will vary in accordance with different lending institutions’ policies and repayment terms.
|Months||Programme Cash Fee ||Interest Rate||Bank Monthly Payment|
* The amount of R60, 000 has been used for illustrative purposes only and is not specific for any Varsity College programme. Interest rates and monthly repayments will vary in accordance with different lending institutions’ policies and repayment terms. For illustrative purposes we have not accounted for fee increases
To qualify for a student loan, you will need to provide your bank with certain information, so that they can assess whether they are willing to grant the loan. The bank will insist that there is someone (normally a family member or a guardian) who will stand surety for the debt, and will also require proof that they have sufficient income to cover the monthly repayments. The interest rate that the bank offers may vary depending on the bank’s assessment of the surety.
As with student loans, personal loans are widely available from financial institutions to finance full programmes or short learning programmes on either a full-time or part-time basis. A personal loan differs from a student loan, in that the person responsible for taking out the loan must immediately start paying off the capital amount of the loan as well as the interest. Personal loans can be repaid over a period of up to 60 months, thus making the repayments affordable on a monthly basis. As in the case of student loans, it is important to remember that, to qualify for a personal loan, the person applying for the loan will have to provide the bank with certain information in order to be assessed for credit worthiness. Interest rates that are applied to the loan may vary as a result of the institution assessing the risk attached to the approval of the loan. The table below illustrates how a personal loan works:
|Months||Programme Cash Fee||Interest Rate||Bank Monthly Payment|
|Months 1-60||Payment of interest & capital|
*The amount of R60 000 has been used for illustrative purposes only and is not for any specific Varsity College programme. Interest rates and monthly repayments will vary in accordance with different lending institutions’ policies and repayment terms. The illustration is based on year 1 of study only.
How much should I borrow?
You will need to get sound advice from a qualified advisor to find out how much you can afford to borrow. Only borrow what you need to as there is no such thing as easy finance. Keep in mind that the less you borrow, the less interest you will pay and the less it will cost you at the end of the day. Example: If your programme costs R60 000 and you have R23 000 accessible to you, then only borrow the balance of R37 000. This way your studies will cost you less, and you’ll be able to pay off any outstanding debt more rapidly.
Working to pay for your studies?
At Varsity College we make every effort to structure time efficient timetables to allow students to take on part-time work. Not only do we believe that this will offer our students great experience within the work environment, but will also allow them the opportunity to contribute to paying towards their own studies. The table below gives you an idea of working to pay towards your studies:
|Job Description||Minimum Estimated Earning per Shift||Maximum Estimated Earning per Shift||Number of Shifts per Month||Calculated Monthly Income|
- Varsity College is not an authorised financial services provider.
- Varsity College is not a representative or agent or any financial services provider
- Varsity College does not intend to provide financial advice and nothing in this brochure should be construed as constituting a recommendation, guidance, proposal or advice of a financial nature.
- All students and parents should obtain sounds financial advice from authorised persons or entities before arranging for financial assistance.