I just read Sunny Ntayombya’s column about the student loan situation in Rwanda which appeared in yesterday’s issue (Banks, this is your opportunity!). I want add my own input.
I did my university degree in Canada and the system here is very similar to the one in USA, banks don't provide student loans. There are institutions that are owned by both the government and private sector that provide students loans; these loans are paid back with low interest rates of around 4% and these institution can't ask you to pay before you have a permanent job that pays at least $2500 per month.
Before you have such job they won't pressure you to pay and the interest won't add up because the government takes care of the interest until you get a decent job.
I don’t think a commercial bank will be able to avail student loans because it is a very risky business that only the government can take. Otherwise the bank will have to ask for some collateral and the majority of students who need these loans don't have the collateral.