As a student in South Africa, managing your finances can sometimes feel overwhelming, especially when you’re on a break or away on an internship with little or no income. If you’ve taken out a student loan to support your studies, you might be wondering, can I freeze my loan repayments during academic breaks or internships?
The positive news is that, in many cases, yes, you can. Some loan providers offer flexible repayment options to help students who are not earning consistently during breaks or unpaid internships.
What It Means to Freeze Loan Repayments as a Student
To freeze loan repayments means you temporarily stop making payments towards your student loan for a short period of time. This is often done during academic holidays, gap years, or when students are undergoing unpaid internships.
Conventional Reasons Students Request a Repayment Freeze
- Academic holidays with no part-time work
- Unpaid internships or work experience placements
- Family emergencies or temporary financial difficulty
- Transition periods between school and employment
Freezing your loan does not mean your debt disappears—but it gives you room to breathe until you’re back on your feet.
Is It Possible to Pause Loan Repayments in South Africa?
Yes, many South African loan providers, including banks and private institutions, allow temporary repayment relief under certain conditions. However, the availability and terms depend on who issued your loan and what’s written in your loan agreement.
How Student Loan Providers Handle Repayment Breaks
- NSFAS Loans (for those who studied before 2018): You generally don’t need to repay until you’re employed and earning above a set threshold.
- Bank Loans (like those from ABSA, Standard Bank, FNB): These may allow deferral options during studies and short grace periods.
- Private Education Loans: These often offer more flexible terms but usually require you to make interest-only payments during the study period.
It’s essential to communicate with your loan provider as early as possible before assuming you’re eligible for a repayment freeze.
Steps to Take If You Want to Pause Your Student Loan Repayments
Applying for a freeze on loan repayments involves a few important steps. You should never ignore your payments or skip them without informing your lender. Here’s how to do it right:
1. Check Your Loan Agreement Terms
Before anything else, read your loan agreement. Look for clauses that talk about:
- Payment deferrals
- Grace periods
- Interest-only payments
- Conditions for academic break coverage
This tells you what’s allowed and what isn’t.
2. Contact Your Loan Provider Early
Don’t wait until the payment is due. Reach out to your loan officer or the customer care line and explain your situation. Be clear, honest, and polite.
Ask questions like:
- “Can I pause my repayment for two months during my internship?”
- “Is there a grace period built into my loan agreement?”
- “Will interest still accumulate during the freeze?”
3. Submit a Formal Request with Valid Proof
In most cases, your loan provider will need some kind of official proof, such as:
- A letter from your university showing academic break dates
- An internship offer letter stating that it’s unpaid
- A signed form requesting temporary relief
Once your request is submitted, your lender will review it and let you know their decision.
What Happens to Interest While Your Loan Is Frozen?
In many cases, even if your monthly payments are paused, interest still builds up during the freeze. That means when you start repaying again, your loan balance could be slightly higher.
However, some providers offer a true “payment holiday” where interest doesn’t accumulate during the break. This is why it’s important to ask questions and understand your lender’s policy.
Alternatives to Freezing Loan Repayments
If your loan provider doesn’t offer a repayment freeze, don’t worry. There are still options to reduce your monthly burden.
Adjusting Your Repayment Plan
You can ask for a lower repayment amount during your academic break, especially if you’re working part-time or earning a stipend.
Switching to Interest-Only Payments
Instead of freezing your full repayment, ask if you can pay just the interest for a while. This keeps your loan balance from growing while reducing pressure on your pocket.
Taking a Payment Holiday
Some banks offer a 3–6-month payment holiday, usually once during the life of your loan. You still need to apply for it officially, but it can offer relief when you need it most.
Expert Recommendations for Managing Student Loans During Internships or Breaks
- Plan ahead: Before your academic break or internship begins, check your loan dates and monthly dues.
- Stay in touch: Maintain regular contact with your loan provider.
- Track your expenses: Use free budgeting apps to manage spending during breaks.
- Save all documents: Keep proof of internships and university letters in case you need to support a future request.
- Consider part-time work: If your internship is unpaid, a weekend job or freelance gig can help you stay on track.
Conclusion
Can I freeze my loan repayments during academic breaks or internships?
Yes, you can often freeze your student loan repayments during academic breaks or internships—especially in South Africa, where many student-friendly loan providers understand the financial challenges students face.
The key is to act early, communicate clearly, and follow the proper steps to request temporary relief. Whether you’re taking a break from lectures or gaining experience through an internship, pausing your repayments can offer breathing space when your income is limited.
Student life is already full of pressure. If you need a moment to refocus financially, don’t hesitate to explore your repayment freeze options. It’s not just smart—it’s responsible.