Funding your studies at a tertiary level is very expensive, which remains one of the biggest challenges to the youth around the world achieving their dreams and changing their home situation. The most popular types of funding for tertiary studies include: bursaries, scholarships, and student loans.
What is a bursary?
A bursary is a form of financial assistance given to a student for further studies by a sponsor organization. Bursaries may differ in terms of the amount of cover and duration period. In terms of types of cover offered by Career Wise administered bursaries, we categorize cover as follows:
- Fixed/Capped bursary (tuition only);
- Top-up bursary ( based on student’s needs);
- Partial bursary (tuition & books);
- Full bursary (tuition, accommodation, meals, books, etc).
Bursaries are awarded to deserving students selected according to various criteria set by the sponsor organization. It is important to note however that academic performance or merit is a vital requirement of any bursary. Some of the requirements may include the following:
- Work-Back, this a clause in the bursary contract that obligates that student to work for the sponsor organization upon successful graduation. The contract is usually on a year-for-year basis, which means that if the bursary is awarded for 3 years of study, then the work-back period will be for the same period i.e. 3 years. Sponsored students (i.e. bursars) who don’t ahead to the bursary contract condition are liable for repayment of the funds spend on them.
- A minimum overall grade point average e.g. 60%.
- Vacation work within a division at the sponsor organization to ensure that the bursar obtains relevant industry experience prior to graduation.
What is a scholarship?
Scholarships differ from bursaries in that there is usually no contractual obligations between the student and the sponsor organization. They are usually from Trusts that have been set up by private individuals, families, or companies: to fund students who usually come from financially disadvantaged backgrounds/families with high academic performance.
Requirements for scholarship also may include:
- A minimum overall grade point average e.g. 60%.
- Community engagement or involvement reach academic year.
- Society involvement during the course of studies.
What is a student loan?
A study loan is funding made available to students who cannot fund their studies due to their financial circumstances. In order to apply for a loan, proof of the financial background at home (of your parents/guardians) is of the utmost importance:
- Proof of income (i.e. payslip) or lack thereof (affidavit from the police station);
- ID documents of parents/guardian;
- Proof of address or lack thereof (affidavit from the police station).
Loans are repayable upon completion of your studies (with interest) and once you can prove that you are employed. Some loans e.g. bank loans may even require a surety, which is a person who takes the responsibility of repayment if the student does not.
The most popular student loans are the following:
- Fundi: Available at most Higher Education Institutions. Their loans are able to cover your full studies or partial parts of your studies.
- All major South African Banks have various student loan packages, but repayment rates are depended on a credit profile.