- TUITION FEE LOANS
Pursuing further education is not cheap and some of us may have obtained a tuition fee loan to finance our studies. Upon graduation, we will have to repay that loan - plus interest. So how do we handle that debt?
Upon graduation, you will receive an interest commencement letter, which gives you the following options:
- Repaying in full
Repaying your loan in full at once saves you the most money as no interest is incurred.
- Repaying partially
If you are not able to repay the loan in full, you can choose to repay partially. But the amount cannot be less than $500 at a time.
- Repaying by monthly instalments
Alternatively, you can set up a basic monthly instalment plan to repay your loan with a minimum amount of $100 a month. You can take up to 20 years to repay the loan but, remember, interest accumulates.
- Do not put off your repayment.
- If you do not begin repayments in two years, you will be charged an additional 1 per cent late fee.
- Plan ahead. Decide how many years you want to take to repay your loan and set aside an appropriate amount every month for repayment.