Manati’s alternative student funding opens doors to education

Students whose loan applications have been declined often give up on their studies because they think a bank loan is the only way they can get funding.

Lynne Grisdale of Manati, an alternate student funding organisation, says this does not have to be the case.

Manati is one of four different funding options available to Moonstone Business School of Excellence (MBSE) students. Thanks to partnerships formed with Manati Alternate Student Funding, Fundi, Student Hero and Capitec, students who are enrolled in any of MBSE’s accredited qualifications have the option to apply or pre-qualify for funding via these leading education funding providers.

Each brings a different offer to the table, tailor-made to suit a student’s individual needs. Last week, Moonstone explored the key features of the Capitec Education Fund.

Manati was established in 2015 by Riaan Jonck, its chief executive. Jonck, who has been in the education industry for 20-plus years, noticed a decline in the bank’s approval rate for student loans because of stricter application criteria, which disqualified a large population of students from obtaining funding.

Jonck started Manati to bridge this gap. Although the organisation’s services are accessible to anyone who meets the criteria, Manati specialises in assisting students who were unsuccessful in their bank loan applications.

Grisdale says statistics show that banks decline student loan applications more often than not and that many are unaware that there exists an alternative funder such as Manati.

Universities SA, which represents the country’s 26 public universities, estimates that 40% of young people in South Africa who want to study further are part of the so-called “missing middle”. These students are not eligible for the National Student Financial Aid Scheme scholarships for the needy.

“So, that’s where our clients find themselves, in the middle, where they can afford it but there is just a credit score issue.”

A poor credit record is one of the most common reasons loan applications are declined.

Grisdale says, in the past 20 years, it’s become more prevalent that people have issues with their credit scores.

She explains the minute someone applies for a bank loan, a credit report is pulled.

“If there are any issues on your credit report, the banks will be inclined to not offer a loan. We all have blips in our credit report. We’ve all gone through stages where life happens, and you miss something.”

To apply for funding, students enrolled with MBSE can either follow the link on MBSE’s website or click here.

Grisdale says the online process is very quick. Applicants are asked to answer a few questions and to upload documentation, such as a pay slip and bank statements. She says applicants are notified within roughly an hour whether their application has been successful.

“We don’t ask you to come in or to come and see us, and all the documents are signed online,” she says.

What makes Manati unique is that it accepts joint household income on its application. Banks usually only accept one person on an application, either the mother or the father. Manati accepts two people. Grisdale says this aids applicants’ affordability.

“So, the household, mom and dad combined (or if earning an income, the applicant and a secondary party), need to have a regular income of at least R5 000. Even if they are self-employed, if they’re doing Avon, for example. As long as they can show that they get a regular income between the two of them.”

Once approved, Manati will transfer funds into MBSE’s account directly. This can be done within 24 to 48 hours after application approval.

According to the partnership agreement with MBSE, Manati’s repayment term is double the course duration, giving students a longer repayment term. Applicants can also apply for funding to settle arrears at MBSE. Repayment terms are the same in both instances.

“So, if it’s a 12-month course, then it will be 24 months. If it’s six months, you can pay over 12 months.”

Grisdale says that, on average, Manati matches the interest rates of the major banks.

“And in some instances, lower than that. It depends on the individual’s credit score. We look at each person individually.”

In the case of most conventional student loans, the applicant is responsible for covering the interest payments during the student’s education. Once the student graduates, the loan is transferred to the student, and they must repay both the principal and the interest. With Manati, repayment of capital and interest begins immediately once the loan has been activated.

Grisdale says this eases the burden on the student. She explains that with a traditional bank loan, you pay much less in the first year, but at the end of the studies, you’re left with a substantial balance and a much higher monthly instalment, which continues to accumulate during the up to seven years that it might take to repay the loan.

“From Manati’s perspective, we work to keep instalments steady. Except for possible interest rate changes, the instalment from beginning to end is fairly the same,” says Grisdale.

“From Manati’s perspective, we’d rather say this is your instalment. It won’t change, obviously, except for interest rate changes, but other than that your instalment from beginning to end is fairly the same,” Grisdale says.

Click here to find out more about what these four funding providers offer.

Accredited qualifications

A reminder that there’s still time to apply to study for one of MBSE’s accredited qualifications in the first semester of 2024. These qualifications are:

• Postgraduate Diploma in Financial Planning (NQF 8)
• Advanced Certificate in Financial Planning (NQF 6)
• Occupational Certificate: Compliance Officer (NQF 6)
• Higher Certificate in Wealth Management (NQF 5)
• Higher Certificate in Short-term Insurance (NQF 5)

Applications for the first semester close on Monday, 29 January 2024.

Apply today at www.mbse.ac.za

For more information, contact us at help@mbse.ac.za