Education is a critical aspect of personal and societal development, and it is a fundamental human right. However, pursuing higher education often comes with significant financial obligations that can be challenging to fulfill. To address this, students can apply for study loans and bursaries to help fund their education. In this article, we will justify the financial obligations that one needs to fulfill when taking out a study loan or receiving a bursary.
Study Loans
A study loan is a type of financial aid that students can obtain to help fund their education. It is essentially a loan that is repaid with interest after the student completes their studies and starts working. The following are some of the financial obligations that students need to fulfill when taking out a study loan:
Repayment of the Loan
The primary financial obligation that students need to fulfill when taking out a study loan is the repayment of the loan. Typically, students have a grace period of six months to a year after completing their studies before they start repaying the loan. The repayment period can range from several years to over a decade, depending on the amount borrowed and the terms of the loan.
Payment of Interest
Another financial obligation that students need to fulfill when taking out a study loan is the payment of interest. The interest rate on study loans can vary depending on the lender and the terms of the loan. Interest is charged on the outstanding balance of the loan and can significantly increase the amount that needs to be repaid.
Meeting Minimum Payment Obligations
In some cases, students may face financial difficulties that prevent them from meeting their loan repayment obligations. However, failing to make payments can result in penalties, such as late fees, default charges, and damage to credit scores. Students must meet their minimum payment obligations to avoid these penalties.
Bursaries
A bursary is a type of financial aid that is awarded to students based on academic or other achievements. Unlike study loans, bursaries do not need to be repaid, but they do come with financial obligations that students need to fulfill. The following are some of the financial obligations that students need to fulfill when receiving a bursary:
Meeting Academic Requirements
Bursaries are typically awarded based on academic merit or other achievements, such as sports or community involvement. As such, students who receive bursaries must maintain a certain level of academic performance or continue to meet the criteria for the bursary. Failing to meet these requirements can result in the cancellation of the bursary and the loss of financial support.
Fulfilling Obligations
Some bursaries come with obligations, such as working for a specific employer or fulfilling a service requirement after graduation. These obligations can be financial or non-financial, and failure to fulfill them can result in penalties or the loss of the bursary.
Tax Obligations
Bursaries are considered taxable income, and students who receive them may be required to pay taxes on the amount received. Failing to pay taxes on bursaries can result in penalties, fines, and legal consequences.
Justifying Financial Obligations
The financial obligations that come with study loans and bursaries may seem daunting, but they are necessary to ensure that students can access education and improve their future prospects. Education is an investment in oneself, and study loans and bursaries provide students with the means to make that investment.
Moreover, the repayment of study loans and the fulfillment of bursary obligations can help students develop financial responsibility and discipline, which are critical skills for success in any career. It also ensures that financial aid is available to future generations of students.
Conclusion
In conclusion, study loans and bursaries are essential forms of financial aid that enable students to pursue higher education and improve their future prospects. While they come with financial obligations, such as repayment of loans and meeting academic or service requirements for bursaries, these obligations are necessary to ensure that students can access education and develop financial responsibility.