Securing funding for further studies need not be daunting.
Student Hero, a student finance facilitator, serves as a single point of contact to help current and prospective students learn about, and apply and qualify for funding from multiple educational finance providers.
The finance facilitator is one of four different funding options available to Moonstone Business School of Excellence (MBSE) students. Thanks to partnerships formed with Student Hero, Fundi, Capitec, and Manati Alternate Student Funding, 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.
Click here to find out more about what these four funding providers offer.
Each brings a different offer to the table, tailor-made to suit a student’s individual needs. In the articles weeks, Moonstone explored the key features of the Capitec Education Fund and Manati Alternate Student Funding.
Johan Wiggins, the co-founder and chief executive of Student Hero, says their service is offered at no charge to applicants and is a commitment-free way to learn about and explore multiple options.
Student Hero’s is to inform applicants of the funding avenues available to them and to explore these options on their behalf to find a funder that is willing to assist them.
“Funders will only approve or decline the application. They do not advise the customer where else they can go, to possibly qualify for a loan. Student Hero bridges this gap between the funders,” he says.
The funders for which Student Hero facilitates funding include the five major banks (Absa, Capitec, First National Bank, Nedbank, Standard Bank), Manati Alternate Student Funding, and Fundi.
“There are various levels of engagement with each funder depending on their own process, capabilities and software integrations with Student Hero,” Wiggins says.
Student Hero’s loan facilitation process is in two phases. First, they check whether an applicant qualifies for a loan based on his or her affordability and credit score, and then they do a soft check with funders that provide pre-approval.
“If the customer qualifies, they’ll provide us with an offer. This is called pre-qualification. At this stage, we discuss the offer that we already have with the customer and advise about the next steps if they want to move forward with the application or how to obtain an offer from the funders who do not offer pre-approval,” he says.
Wiggins says a finance provider will look at mainly two things to determine whether an applicant can qualify for finance: the applicant’s affordability and the applicant’s credit score.
“A funder will want to see that an applicant can afford the monthly finance instalments. Affordability is calculated by deducting your fixed expenses, such as rent, essential living expenses, and other credit commitments, from your net income. The surplus has to be more than the finance instalment.”
He says funding providers also consider your additional income – a commission, a bonus or rental income – and, in some cases, allow you to add a second person’s income as part of the affordability calculation.
“So, remember to notify Student Hero about the availability of additional or a second household income,” he says.
Wiggins says applicants’ credit records do not have to be perfect to qualify for study finance.
“Student Hero is partnered with multiple funding providers, and each has unique qualifying criteria, some more relaxed than others.”
Factors when considering funders
Student finance is generally priced at an interest rate of prime to prime plus 7%. Wiggins adds that the option is there to assist applicants with obtaining multiple offers to compare rates. However, he says, some funders require the applicant to submit a complete application with a full set of supporting documents to receive an offer.
Besides the repayment terms on offer, other factors influence which funder the customer may opt for.
“Some clients prefer their bank, even though it is not the lowest offer. Others prefer to be assisted telephonically, which is not something that all the funders offer. Some funders require the student to submit their latest academic results or NSC (National Senior Certificate). So, clients who do not want to wait to obtain these documents before finalising their application will choose a funder that does not require them.”
There are other factors that may limit an applicant’s choice to apply for certain funding options, such as being self-employed, needing two applicants to qualify for the loan, or having arrear fees as part of the loan amount.
“Each funder has different rules regarding these factors,” Wiggins says.
Once approved, the educational funding providers pay the tuition portion of the loan amount directly to MBSE. Wiggins says loans from Fundi, Absa, FNB, Nedbank, and Standard Bank can include funding for accommodation or equipment, such as a laptop or textbooks.
You do not have to wait until you are enrolled in an MBSE course to reach out to Student Hero.
“We recommend that customers reach out to us as soon as possible to see if they qualify for a loan so that they can engage with Moonstone with the peace of mind that they can afford their fees,” Wiggins says.
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
