FNB Student Loan Changes

Student loan changes I recently tried to apply for a top up amount on a existing student loan for my sister. When the loan department called me to process the loan, they told me that they could not do a top-up and that I must apply for a new loan. Could not give me a better reason than "The system doesn't allow a top-up". Very confused I tried to contact my Private Banker to ask what was going on. The explanation being that there was a rule changes November 2021 regarding student loan lending. How was I supposed to know that??

Key changes : 1. Existing account goes on as is but need to open a new account with a new interest rate, startup fees and insurance costs. 2. The new loan amount only interest is payable for the first 12 months, thereafter, capital and interest is payable.

Now the second rule I really don't understand. How is it expected of a student in a 4 year course to start paying capital from the second year of studies. I'm am quite happy to pay the interest for the duration of her studies, but to start paying back capital during studies is a new one.

I have made an complaint on FNB`s website, to which someone called me, told me this is the new rules and apologized. They will see if they can do something about it next year. My concerns was also discussed in detail with my private banker. My sentiments was noted is the best I got.

This is the 3rd year I am applying for money on the student loan and each year the whole process has raised my blood pressure. The incompetence of the loan department is shocking!

I now see no other way than to apply for a student loan at another bank and consequently moving all my other products with. Even if it comes with a cost, the manner of this situation has left a sour taste in my mouth.

No wonder FNB was the bank the last two years with the most complaints according to Business Inder South Africa. https://www.businessinsider.co.za/first-national-bank-sees-a-spike-in-ombud-complaints-while-absa-does-much-better-2021-5