Not a Student Loan

When my daughter needed a Student Loan for university, ABSA was so helpful and obliging. Within 1 1/2 hours I was out of the branch knowing that the full amount for studies and residence had been paid. I wrote down notes to questions which I personally asked the consultant. One of these was that I would pay the interest for the full 3 year term of the loan, and the capital amount would only need to be paid after that. This is the standard repayment base for a Student Loan across all banks.

After one year, I realised with horror that my repayment had jumped from R900 to R4000 per month! With no warning either. On querying this, I was told that the ABSA policy for a Student Loan is that the principal debt will also be paid back after one year, and that the consultant would have explained that to me. When I disputed this, I was referred to the small print of the loan document.

My warning to others is to beware of the wolf who comes in sheep's clothing. This is no Student Loan!