The Problems With Study Loans

Everyone dreams of studying further after high school. We think about the day that we get handed our degree up on stage in front of a hall full of people watching your big day. The sad reality is that for many people this dream will always remain out of reach. The reason for this is simply because of the high cost of education in this day and age. 

There are some options available of course such as registering with organisations that offer financial support for students. The problem with this is that these institutions only have a certain number of opportunities available each year and the number of applicants vastly outnumbers this.

The other option, of course, is to take out a study loan. Study loans, however, come with their own set of problems. Most study loans are not handled by the university or educational institution that you are registering at. Usually, these loans will go through regular banks.

The problem with this is the disconnection between customer and service provider. As Jan Badenhorst explains in his article “Student Loans are the Real Problem”, this means that there is no pressure on the provider to offer a good service. The student, however, has to start paying back the loan immediately regardless of the service they do, or don’t, receive.

Study Loans are a ProblemAnother problem is that many educational institutions will withhold things like qualifications until such time as a study loan has been fully paid. You might finish your studies successfully but instead of receiving your degree you will be handed your bill. This is one of the things that Jan tries to address with the business model he adopted when he created Skills Academy.


How the Skills Academy Business Model is Different

In this model, students can stop paying if they are not receiving the services they are paying for. Skills Academy also doesn’t make its students enter into any kind of credit agreement when they join. Students pay a monthly fee for their studies. If they study quickly and finish their studies in less time than the course generally takes, then they don’t keep paying once they are done.

These are just a few of the ways that Skills Academy sets itself apart from other education providers.

Written by: Clifford Ekron
Last Updated: April 30, 2019

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