Many Papua New Guinean families begin looking for financial support when school fees start rolling in. Whether you’re a parent or a grandparent wanting to ensure your child gets the best education possible, finding the right loan matters.

Two common options available are school loans and personal loans. But which one is better for covering education expenses? 

Let’s break it down in simple terms so you can make the best decision for your family.

What Are School Loans?

School loans are specially designed to help families pay for school-related costs. This includes tuition fees, uniforms, textbooks, boarding, and other educational expenses.

At National Finance, our school loans are tailored with a clear purpose – to help you send your child or grandchild to school without putting too much pressure on your everyday budget.

What Are Personal Loans?

Personal loans are more flexible and can be used for various needs, from buying household items to covering unexpected medical bills. They’re not designed specifically for education but can still be used to pay school fees, if needed.

Key Differences: School Loans vs. Personal Loans

Let’s compare them side by side so you can see which one suits your situation:

Why is a School Loan the Better Choice?

If your goal is to manage school expenses without affecting your day-to-day living too much, a school loan from NF may be a better choice. Here’s why:

• Fixed repayments make budgeting easier
  With a school loan from NF, your repayments stay the same every month. There are no surprises or sudden changes in what you owe. This makes it much easier to plan your household budget and manage your income without extra stress during the school year.

• Matched with your income
  At NF, we carefully assess your income and living expenses before approving the loan. This way, we make sure your repayments are realistic and affordable so you’ll still have enough take-home pay for groceries, bills, and other essentials.

• Tailored loan terms that work for your situation
  Whether you’re paying for one child’s school fees or multiple, our loan terms are structured to fit your needs. Repayments are spread out over a manageable timeframe, so you’re not overwhelmed financially and can focus on what matters most — your family’s education.

• Focuses on responsible lending and affordability
  We don’t just hand out loans without thinking long-term. Our lending process is designed to make sure you’re not taking on more debt than you can handle. This protects your financial well-being and helps ensure you’re able to meet both your school fee obligations and daily household needs.

When a Personal Loan May Be Useful?

A personal loan could work if you have multiple financial needs beyond just school fees. For example, if you also need to cover other household costs at the same time. But keep in mind, it might not be structured with the same level of affordability planning as a school loan from us.

What to Consider Before Taking Any Loan?

Before you decide which loan to go for, ask yourself:

• Can I comfortably manage the repayments with my current income?
• Is the loan for a specific purpose, like school fees, or do I have other costs to cover?
• Do I understand the full cost of the loan, including interest and fees?

Remember, with National Finance, there’s no benefit for early repayment, so it’s important to choose a term and repayment plan that works for you from the beginning.

Need Help Paying for School Fees?

At National Finance, we’re here to support parents and grandparents who want to invest in their children’s future. Talk to us today about our school loans, and we’ll help you find a repayment plan that fits your income and keeps your household running smoothly.

Apply now or speak to your nearest NF branch for more information. Let’s take the stress out of school fees together.