With students around South Africa beginning tertiary study in February the global credit crunch looks set to make accessing a student loan a tough task.
The economic climate has seen banks tighten up on lending and two major banks, FNB and Standard Bank, have confirmed that their approval rates for student loans are down year-on-year.
This is despite an increase in the number of matriculants from the class of 2008 who qualified for entrance to tertiary education.
'Bad debts have increased due to higher expenses and lower incomes'
According to reports, 107 000 candidates achieved matric exemption in 2008 compared to 85 000 in 2007.
Francois Naude, FNB national product manager of student loans, said the bank was "tightening up" as bad debts had increased due to higher expenses and lower disposable income levels over the previous 12 months.
Read full article on IOL.
No comments:
Post a Comment