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Benefits of Using NSFAS Student Loan

As an alternative to student loans through banks, NSFAS student loans is known as a government student loan, should be your next choice when it comes to financing your education.

It is less costly and more generous than private student loans, on the whole.

For these loans, you do not need strong credit or a cosigner.

Fees And Rates Are Reduced.

The interest rates for NSFAS student loans are usually lower than those on private loans.

New loan rates are also fixed, which means they won’t change throughout the course of your loan.

Variable rates are common in private loans, and they rise anytime the Federal Reserve raises the interest rate benchmark.

A fixed-rate private loan is typically the preferable option if you have a choice.

If you have good credit and a steady income after graduation, you may be able to refinance your student loans at a cheaper interest rate.

It can also assist you in converting variable-rate private loans to fixed-rate loans.

Unlike Normal Loans, Good Credit is Not Required.

Getting a private loan requires proof that you can repay it on time, which is determined by your credit history.

When determining the interest rate, they’ll also look at your credit score.

As a result of their lack of credit history, most undergrads will have poor or no credit ratings.

All enrolled undergraduates, on the other hand, are eligible to apply for NSFAS loan.

For graduate students and parents, direct PLUS loans are the only federal student loans that require a credit check.

A few lenders may cooperate with you if you need a private loan to bridge a financing gap for school but don’t have strong credit.

You Don’t Need a Co-Signer

Without a significant credit history, high school seniors and college students can still qualify for private loans provided they have a co-signer, often a parent or another adult who promises to pay the loan sum if the student is unable to.

However, the co-signer may feel burdened by this obligation.

Look for a private loan that allows you to get rid of your co-signer after making a set number of payments.

Because NSFAS loans aren’t based on credit, they don’t require a co-signer, so your family won’t have to worry about paying the loan if you can’t.

Subsidized Loans Have Lower Interest Rates

Federal direct subsidized loans are available to students with a severe financial need.

When subsidized loans are in deferral – while you’re in school, during your grace period, or if you stop making payments – the government covers the interest.

This advantage is not available with private borrowing.

Private loans — as well as subsidized government loans — accrue interest as soon as they are paid to you.

Before A Student Loan Defaults, There Will Be More Time.

When you miss a payment on a private student loan, it may default very immediately.

While private lenders don’t have the same legal authority as the NSFAS government when it comes to collecting debts, skipping payments can harm your credit and lead to a lawsuit from the borrower.

If you get behind on your payments, NSFAS loans allow you extra time to catch up.

Your debts aren’t deemed “delinquent” until you’ve missed three months of payments, and you won’t be reported to the credit bureaus until then.

After nine months of missing payments, your debts will default, and the government will be able to collect money from your income or tax return to repay you.

To Combine Your Debts, You Don’t Need Strong Credit.

Consolidating student loans is simple if you have several NSFAS loan.

Public Service Loan Forgiveness and income-driven repayment programs are also made available to select borrowers who consolidate their loans with the federal government.

Since its interest rate is based on a weighted average of your earlier loans, it will not save you money.

You can also consolidate and refinance your student loans with a private lender, who may provide cheaper interest rates based on your credit and income history.

The downside of refinancing is that you may lose access to federal student loan perks.

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