The National Student Financial Aid Scheme (NSFAS) has strongly condemned recent claims made by a Member of the Portfolio Committee on Higher Education and Training, who alleged that “NSFAS confirmed that Minister Nzimande’s 14 January 2024 announcement of funding for missing middle students was a hoax.”
These averments are regrettable and not consistent with the facts shared by the NSFAS Administrator, Mr Freeman Nomvalo, at the PCHET meeting held on 21 August 2024
NSFAS Administrator Freeman Nomvalo stated that these claims are unfounded and inconsistent with the facts presented at the PCHET meeting on 21 August 2024.
Launch of the Comprehensive Student Funding Model
In January, former Higher Education Minister Blade Nzimande introduced the Comprehensive Student Funding Model, a move that was met with enthusiasm from students who previously did not qualify for NSFAS bursaries.
While NSFAS already supports over a million students from poor and working-class backgrounds with comprehensive bursaries, many students fall into the "missing middle" category—those who do not qualify for government funding but also cannot afford the high costs of tertiary education.
Under this new model, "missing middle" students would receive the same financial support as NSFAS bursary holders, but in the form of a student loan.
Benefits of the NSFAS Student Loan
One significant advantage of the NSFAS student loan, beyond its favourable terms compared to traditional credit providers, is that students who excel academically may see their total repayment amount reduced by up to 50%.
How Many Students Were Approved for NSFAS Loans?
As of 15 August 2024, NSFAS reported that 1,300 applicants had met the academic and financial eligibility criteria for the NSFAS Loan Scheme. This is a small portion of the 31,000 loans NSFAS initially planned to fund.
NSFAS also announced that 70% of the loan scheme will be allocated to students in Science, Technology, Engineering, and Mathematics (STEM) fields, with the remaining 30% going to Humanities and Social Sciences programs. The final list of successful applicants is expected to be shared with institutions by 5 September 2024.
Eligibility Requirements for the NSFAS Loan
- Must be a South African citizen with a valid ID.
- Annual household income between R350,001 and R600,000.
- Must maintain a minimum average of 60% in coursework to retain funding.
- Must be registered for full-time undergraduate or postgraduate studies at a public university or TVET college.
What Does the Loan Cover?
Similar to the NSFAS bursary, the loan covers tuition, registration fees, and allowances for essential expenses such as accommodation, transport, learning materials, and other student needs. NSFAS will use the same disbursement channels as those for bursary recipients.
