Some useful lessons on using a loan for your education
Finding a way to finance your education can be a daunting task. Getting a loan is one way to further your education. And, so long as you follow some basic guidelines, it doesn’t have to become a burden. In fact, you should think of an education loan as an investment. And investing in your education is one of the best investments you can make.
But, firstly, you need to think carefully about the career you want to follow, and which educational institutions offer the best qualifications for your chosen career. The better the institution, the better the qualifications they’ll offer. And the better your qualifications are, the easier it’ll be for you when it comes to looking for employment.
Make sure that the institutions are legitimate and that they are properly accredited. To do this you can visit the website of the South African Qualifications Authority (SAQA) and follow the Qualifications and Part Qualification link. The site reflects the institutions’ accreditation and registration status.
After you’ve narrowed down your choices, research the courses that are offered, how long it will take you to qualify, and what the ultimate cost is likely to be. This is an important part of determining how much you will need to borrow.
Once you have secured a loan, you should aim to pay it off as soon as you possibly can. You can do this by drawing up a monthly budget and including your loan repayments are part of your monthly expenses. Should your monthly income increase, you should try and increase your loan repayments accordingly.
And finally, never skip a payment because you’d prefer to splash out on clothing or luxury items. This could result in you incurring more debt before you’ve paid off your loan and your credit rating will be negatively impacted, which may affect your ability to borrow in the future.
It might seem like a very big commitment to make, but in the long term your education loan will help you reap the rewards of having a respectable qualification behind your name.