Medical Student Loan Guarantee Fund

Objectives of the Fund

• To financially support medical students from the second to sixth year (graduation) of their course.
• To provide surety for student loans up to R100 000 each. This represents 70% of the total required annual costs per student.*

Principles for the awarding of loan guarantees

• Students must submit a new application for each year of study. Applications will be subject to agreed criteria.
• Repayments on the interest (which will be at a preferential rate) and the capital loan amount will start once students graduate and enter the workplace. At such time, additional funding can be made available for student loans.
• No initiation fee will be charged. Interest and administrative fees will apply.
• Only open to students enrolled for studies towards a medical degree at the University of Pretoria. Students receiving assistance through the Medical Student Loan Guarantee Fund who change to a different field of study, will no longer qualify for such assistance.

• Students must submit a new application for each year of study. Applications will be subject to agreed criteria.
• Repayments on the interest (which will be at a preferential rate) and the capital loan amount will start once students graduate and enter the workplace. At such time, additional funding can be made available for student loans.
• No initiation fee will be charged. Interest and administrative fees will apply.
• Only open to students enrolled for studies towards a medical degree at the University of Pretoria. Students receiving assistance through the Medical Student Loan Guarantee Fund who change to a different field of study, will no longer qualify for such assistance.

Discovery Foundation: The Discovery Foundation’s role will be to provide the capital to stand surety and to assist with the administration of the Discovery Foundation Medical Student Loan Guarantee Fund.

Standard Bank: Standard Bank of South Africa has acknowledged the need to reassess the traditional approach to student loans, mainly with regard to surety requirements. This has become an imperative in the quest to provide more access to student funding. Standard Bank's purpose is "Africa is our home, we drive her growth". In line with this purpose, and to build a leading African financial services organisation, they want to contribute to the long-term viability and success of communities they operate in by facilitating economic growth and social development. The Fund will enable Standard Bank to increase the number of loans they provide to students.

University of Pretoria: The University of Pretoria will manage the loan administration process and selection of candidates.

Who is eligible?

Medical students who meet the BEE criteria of the Discovery Foundation and are South African citizens are eligible to apply. Eligibility is defined by the Medical Student Loan Guarantee Fund as:

• Medical students who are citizens of the Republic of South Africa by birth or descent
• Medical students who became citizens of the Republic of South Africa by naturalisation before 27/04/1994
• Medical students who became citizens of the Republic of South Africa after 27/04/1994, but would have been entitled to become citizens by naturalisation prior to that date

Permanent residents and refugees are NOT eligible.

A credit check will be performed on all qualifying applications to assess a history of sequestration, debt review or insolvency, and to identify existing student loans. All applications will be subject to a full verification process.

• This application only applies to the 2018 academic year. A new application with supporting documentation will have to be submitted each year.
• Applications without the required supporting documentation will not be considered.
• Applications for living expenses will not be considered.
• The applicant must provide a half-page motivation, and include any additional information or special circumstances that could be of importance for this loan application.
• Applicants who are shortlisted will be required to attend an information session where the terms and conditions of the loan will be explained before final confirmation is given.

To ensure successful completion of studies and the sustainability of the Medical Student Loan Guarantee Fund, applicants whose applications are accepted will receive the following support:

• Academic support in the form of access to tutors employed through the Discovery Foundation funding
• Psychosocial support, such as through access to psychologists, coaches or other mentors supported by the Discovery Foundation
• Partnerships with external providers
• Additional financial support in the event of crisis situations.

During their course, students will not be required to service the loan, as the interest and fees will accrue to the loan. Participation in the support programme will be mandatory and academic progress will be monitored.

Students will have an obligation to repay the loan after they graduate. An agreement will be signed upfront between each student and Standard Bank to acknowledge the obligation to pay back the loan amount. Arrangements will be available to repay the loan in line with future income and expenses.

The deadline for submission of applications is midnight on Wednesday, 31 January 2018.
No late applications will be considered.

  Medical Student Loan Application Form