Student loan: what you need to know before you borrow

Need money for college but worried about being trapped in debt? That’s normal. A student loan can open doors, but the wrong choice can cost years. This page gives practical steps you can use right now: how loans work, what to check before signing, and simple repayment moves that save cash.

How student loans work (fast breakdown)

A student loan covers tuition, fees, and sometimes living costs. You get a principal (the amount borrowed) and pay interest on top. Governments offer state-backed loans and grant programs; in South Africa NSFAS helps many students, and Kenya has HELB. Private banks and fintech lenders also offer loans but usually charge higher rates. Know whether interest starts while you study or after graduation — that changes the total you’ll repay.

Smart steps before you borrow

Ask these questions: Do I qualify for grants or scholarships? How much will I actually need? What’s the interest rate and fees? Can payments wait until after I graduate? Compare offers side by side. Borrow only what you can't cover with scholarships, part-time work, or family help. Remember: small monthly savings reduce interest over time.

Use this quick checklist when applying:

• Search for grants and bursaries first — they don’t need repayment.
• Get quotes from government schemes and two private lenders.
• Read the full contract: look for penalties, early repayment rules, and variable rates.
• Keep copies of ID, admission letter, fee statements, proof of address, and bank details ready.

Apply early and watch deadlines. Many schemes run yearly windows or term-based disbursements.

Repayment doesn’t have to be painful. Start by setting a realistic budget and automate payments to avoid late fees. If you can, pay a bit extra on high-interest loans — that cuts years off your term. If your income is low at first, check for income-driven or stepped repayment plans. Stay in touch with your lender if you struggle; many offer temporary relief or restructuring.

Worried about default? Missing payments can harm your credit score, block future funding, and lead to legal steps in some places. Don’t ignore notices — call the lender and propose a plan. Keep records of all communication.

Final quick tips: track what you borrow in one place, avoid payday-style offers, and prioritize scholarships before loans. Want help checking a specific offer? Gather the rate, fees, and repayment term and compare it to your expected starting salary — that gives the clearest picture of affordability.