Student on spending spree after receiving over $1m in error

850,000 Pounds Student Loans Received in Error

I know it is no longer news that a South Africa Student (named withheld) who is currently studying accountancy at the Walter Sisulu University in Mthatha, South Africa was mistakenly paid 850,000 Pounds instead of 85 Pounds she usually receives as grants on a monthly basis. The 85 Pounds serves as financial aids allowances for food and books. It was reported that instead for the 27 year old undergraduate to report the excess payment to the school authority, she decided to go on spending spree buying expensive clothes, phones and throwing birthday parties around.

Well, the mistake has been made but that is not the end of the story. The lady involved will have to pay back the money. How the repayment will be structured is not yet known. I am writing this article so that other students especially those who that depend on financial aids to sponsor their education can learn from it. Your own may not involve such a huge amount. The truth of the matter is that, you will have to repay the student loans you are getting whether you spend it wisely or not. Spending loans can be very easy; but it may not be that easy to pay back.

Read Also: Student Loans: How to Minimize Your Student Debts

Therefore, before you collect any student loan, it is better to first think about how you are going to repay the loan. Will your salary support the repayment after graduation? Is there any way you can cut back the loan amount so that the burden will not be too much on you when it comes to repayment? Supposing you don’t get job immediately after graduation while the loans continue to accrue interest, do you have any alternative means? These are the questions you may need to ask yourself before embarking on your own spending spree. Of course, you may have good justification for your spending; it is always safer to minimize your student loans.

I want to close this article by asking you, what would you have done if you were the student paid £850,000 instead of £85? Would you report the matter or go on spending spree? Add your comment below.

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