If you’re a student, you’ve had to visit a moneylender. You probably don’t want to talk about it, but if you have to borrow money from a moneylender, there’s no shame in doing so. Here are some reasons why students turn to them.

Late grants

Students go to moneylenders because they have not been awarded their full grant yet, or have not yet received their first installment of the franchise.

There are three types of grants: the Higher Education Grant (HEG), the National Student Financial Aid Scheme (NSFAS), and the Graduation Fee Waiver Scheme (GFWS).

The HEG is awarded based on financial need, while NSFAS considers academic performance and personal circumstances.

The GFWS is only available to students from poor households who have completed matric with an A pass and are studying at universities in South Africa.

It provides free tuition for all approved subjects for up to three years when your studies must be completed.

Nothing to sell

You may be wondering: Why do students have to go to moneylenders? They need money for their school fees, books, and food.

These are the things that they feel they should have access to, and they don’t have any other way of getting them.

Students are under a lot of stress shoulders at this time in their lives, so you can understand why many students turn to moneylenders.

However, if you are one of those students who have no choice but to borrow from a moneylender because it’s the only way for you or your family members (parents) to pay off debts that may be due now or sometime soon after graduation day – then what do we suggest?

There are other alternatives besides borrowing from financial institutions like banks and credit card companies.

One alternative would be selling something valuable like jewelry or even an old phone, which might not be worth much but could still help pay off some debt interest payments before graduation day arrives.

No credit history.

If you don’t have a credit history, that means no credit score. And if you don’t have a credit score, banks will most likely turn down your loan application.

Without the ability to borrow money from the bank, it will be much harder for students to get the loans they need to pay for their education and living expenses.

Some students may decide not to wait around with their fingers crossed; instead, they’ll go straight into getting an education loan from a moneylender who doesn’t care whether they have any history whatsoever.

Not enough time to apply for financial aid.

Knowing what documents are required and what deadlines apply is also essential. You should understand the process, how to fill out the forms, and how much money you will get.

Most importantly, it would help if you had time to apply for financial aid early enough so that it could be processed before your college or university starts classes.

If you don’t have enough time to go through all of these steps because of work duties or family obligations (or any other reason), then this is when going to a moneylender might be a good idea.

Not comfortable talking about money.

We all know that talking about money is a very personal topic. It isn’t easy to talk about our financial situations, especially with people we don’t know very well or at all.

Talking about how much money you have, how much debt you have, and whether or not you can pay your bills on time can be embarrassing and often leads to many uncomfortable feelings.

It’s easy for people to feel embarrassed when talking about their finances and what they do with their money because it’s such a personal issue.

If someone asks you, “how much do you make?” or “what kind of car do you drive?” it could make them feel like they are being judged just based on those facts alone.

People are concerned about being judged based on their appearance, the type of car they drive or where they live, and the job title listed on their resume, even if this has nothing to do with judging them.

I don’t know what options there are besides the moneylender.

You could be in the same situation as these students and don’t know the options besides the moneylender.

Here’s why that’s a problem student loans are not cheap, and most students will have to borrow money to study.

If you don’t pay off your student loan monthly, it will grow with interest until it is enormous! And that means paying more money back each month than when you first took out the loan.

It can take years before they’re paid off completely, and even then, they’ll still cost you every time someone checks your credit score or wants to see if you’re trustworthy enough for them to lend money themselves (like getting an apartment).


Hopefully, we’ve clarified that there are better options than going to a moneylender. It’s up to you to figure out what they are and how to get them, but don’t let your desperation cloud your judgment.