There is a common misconception that the word borrow has become directly related to debt among young people. Young people need to realize that there is actually nothing wrong with borrowing provided that you do it the right way and carefully plan how to pay it back.
As a student, getting a loan to finance your education is a great idea, this is because investing in yourself is a sure way to open doors in your future. Therefore, if you are thinking about it, go ahead, do your research and follow the guidelines. Note that there is a difference between good and bad credit and work extra hard to ensure that as you borrow you work up a good credit score.
The various options for borrowing money for education are:
- HELB: The Higher Education Loans Board is a body that lends students money for their tuition fees. This is a body that offers loans, bursaries, scholarships, training revolving funds and Afya Elimu Loans. Further reading on the subject can be obtained on our link herewith: What is HELB?
- Banks: Banks such as Bank of Africa and NIC Bank lend to students with some particular terms and conditions therewith. They offer what is called Bank Education Loans. Further reading can be obtained on our link herewith: Bank Education Loans.
- Insurance policies: An education insurance policy is a life insurance product specially designed as a savings tool to provide an amount of money for your child so that when they reach the age of 18 years, the funds can be accessed for their higher education expenses. Further reading on the subject can be obtained in our link herewith: Insurance Lending Policies for Financing Education.