The National Student Financial Aid Scheme (NSFAS) has clarified the impact of qualification changes on loan beneficiaries. Students altering their institution type, such as moving from a university to a Technical and Vocational Education and Training (TVET) college, will have their existing loan agreements terminated. This necessitates a fresh application for funding.
NSFAS provides loans to eligible "missing-middle" students pursuing approved courses at universities and TVET colleges, covering tuition, registration, and allowances for living expenses. However, a shift in institution type alters the funding landscape.
Reapplication Mandatory After Institutional Change
"Students who change institution types from TVET College to University or vice versa) would terminate their loan agreement and a new application would have to be made to be considered for loan fund eligibility at another institution type," NSFAS confirmed.
This means that a student's previous loan agreement is nullified, requiring a complete reapplication process. The scheme is not obligated to grant a new loan to former beneficiaries who switch institution types. The decision to consider a "reconsolidated loan agreement" rests solely with NSFAS.
Course Deregistration Also Requires New Application
Furthermore, students who deregister from their current course of study will also be required to submit a new application should they wish to resume their studies at a later date. This measure ensures that NSFAS maintains control over its funding distribution and assesses each student's eligibility based on their current circumstances.
