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Erika H

1 reviews | Active since Feb 2010

15 Nov 2017, 12:50

Student Loan

When we took the student loan we were informed that we will be paying off the interest on this student loan account initially as parents and when my daughter is finished studying she will pay off the capital. We have been paying a hefty amount every year for the last 3yrs "supposed" interest on this loan". When my daughter finished studying and she is now paying the student loan back we find that Standard bank is still charging 12,5% interest on the whole amount for the student loan. So it means interest on Interest are charges and this loan will be 4x the amount of the original student loan! Asking someone to help her they just keep saying its right and she has to pay! Now I as the parent try and call and trust me no one seems to understand what I am trying to explain to them. All acting dumb or none the wiser and don't want to understand!! When are banks going to stop taking consumers for a ride. Please can you advise what is going on here and why we are paying interest again. What happened to all that money we paid over the 3yr period when my husband and I was supposed to be paying "interest on the loan amount" whilst she was studying? Why has that money that was supposed to be “Interest not taken off the amount we initially Borrowed for the STUDENT LOAN????? How is this possible that AGAIN you are charging interest on an amount we as parents paid interest for 3yrs?????? It would mean that we are paying off 4 x the initial amount for the student loan. Who is doing ***** business practices here?

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Replies (3)
Standard Bank
Standard Bank's reply15 Nov 2017, 14:32
Official

Dear Erika

Thank you for posting your comments.

The matter is receiving attention and we will be in contact with you shortly.

Regards

Complaint Resolution Centre

Tel: ***

Email: ***

Standard Bank
Standard Bank's reply20 Nov 2017, 12:25
Official

Dear Erika

Thank you for taking the call and allowing us the opportunity to discuss the matter.

Regards,

Complaint Resolution Centre

***

EH
Erika H's update20 Nov 2017, 13:32
Reviewer Update
So in the words of the Standard Bank official that just called me "It is what it is" So you take out a Standard Bank Student loan they charge "Service Fees and Interest" when you take out the loan and every time you take out for the next year "Interest and SERVICE FEES" are recalculated. Then when the period is finished "Student" has to repay the amount a whole new calculation is done and INTEREST OF 12,5% IS lumped on AGAIN!! So you take out the loan of 50K for first year + Interest, (You supposedly pay for interest on that amount + Service fee) then second year 100k then interest on that, 3rd year 150K interest on that. Loan in the end becomes R180K and interest is calculated on that, and all that interest you paid BEFORE OVER THE 3 YRS becomes NULL - NADA - ZIP! Does not even get taken off the initial amount. So Students out there beware you will pay 3 times the amount with INTEREST and SERVICE fees you paid when you took the loan NOT taken off but calculated again! So all the money was paid for the initial 3yrs period on the amount goes up in smoke and **** it's gone, just for Standard Bank to recalculate the loan amount again and then make the STUDENT pay off the deflated amount and INTEREST AGAIN, "IS AS IT IS" AS THE STANDARD BANK CONSULTANT TELL'S ME - POTENTIAL STUDENTS BEWARE OF STANDARD BANK STUDENT LOANS!!! YOU END UP PAYING 3 X AS MUCH FOR THE INITIAL PERIOD AND DOUBLE THE INTEREST