The National Student Financial Aid Scheme (NSFAS) has confirmed that students who receive NSFAS loans may qualify to have part of their loan converted into a bursary—provided certain conditions are met.
NSFAS offers comprehensive financial support to qualifying students enrolled in approved programmes at universities and TVET colleges. This funding covers tuition and registration fees, along with allowances for food, accommodation, and learning materials.
Thousands of students are expected to benefit from the NSFAS loan scheme, with the opportunity to reduce their loan debt through academic performance.
When Can an NSFAS Loan Be Converted Into a Bursary?
Students who achieve strong academic results may be eligible for a partial loan-to-bursary conversion.
A student who achieves at least a 70% average in all registered modules in the programme and completes their studies within the minimum time as prescribed by the curriculum of the Higher Education Institution will be eligible for a 50% discount on the total loan amount.
However, this 50% discount will only be applied once the student has repaid at least 50% of the loan.
This provision is subject to the student having paid 50% of the loan amount first.
This means an NSFAS loan cannot be fully converted into a bursary—it can only be partially reduced based on the set conditions.
NSFAS Loan Eligibility Requirements
To qualify for an NSFAS loan, students must meet the following criteria:
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Be registered or intend to register for a designated programme eligible under the NSFAS loan scheme.
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Have a combined household income between R350 000 and R600 000 per year.
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Be studying at a public university or TVET college.
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Be a South African citizen or permanent resident.
In addition, students must maintain an average academic performance of 60% to retain their NSFAS loan funding. Falling below this threshold may result in the loan being withdrawn.
