User:Kfbd/Going to university

Suppose a child is accepted for a BSc in Engineering at UCT. Suppose both of the child's parents work and each earn R4,500 a month. Suppose that the child has two siblings, both still at school, and that the household is just these five members.

The family's total nett annual income is R108,000.

Their General Household Subsistence Allowance and a Personal Allowance is R39,360.

So their Disposable Income is R68,640.

Their Expected Family Contribution is a third of this: R22,280.

A BSc in Engineering is R46,000 a year.

A bed in a double room in residence is R30,000

3 meals per day for seven days per week is R14,000

That's R90,000 in total.

The family will have to pay R22,280 of this per year. NSFAS will give them a loan for R60,000 of it. UCT will pay the remaining R7,200.

Staff tuition discount
Suppose one of the parents works at UCT, as a security guard. There's a staff tuition discount of 75% of the tuition fees. So the BSc tuition fees become R11,500.

Thus the total to be paid is R55,500 per year.

The family will have to pay R22,280 of this per year. NSFAS will give them a loan for the rest of it.

UWC
At UWC a BSc costs R27,820, and residence R16,840.00. Meals are an additional R18,000. That's R62,660 in total. The family would have to pay R22,280 per year, and NSFAS would give them a loan for the rest.

Paying back the loan
The student (not their parents!) only pay back the loan in years when they earn more than R30,000. In such years they must pay 3-8% of their salary towards the loan. The interest on the loan is 80% of the repo rate.