The National Student Financial Aid Scheme (NSFAS) introduced the NSFAS loan in 2024 to support students who do not qualify for a bursary but still require financial assistance. This loan is part of the Comprehensive Student Funding Model and helps cover essential education costs.
What Does the NSFAS Loan Cover?
The NSFAS loan provides funding for:
- Tuition fees
- Book allowances
- Accommodation costs
However, it does not include a transport allowance.
Who Is Not Eligible for an NSFAS Loan?
NSFAS has outlined specific cases where students will not qualify for a loan:
- Students receiving funding from other sources (loans, bursaries, or scholarships) that cover tuition or allowances.
- Students enrolled at private institutions (only public universities and TVET colleges qualify).
- Those studying programmes not eligible for NSFAS loan funding.
- Students who qualify but fail to sign the loan agreement form.
- Anyone who does not meet the general eligibility requirements.
NSFAS Loan Eligibility Criteria
To qualify for an NSFAS loan, students must meet the following conditions:
- Be registered or planning to register for an eligible programme at a public university or TVET college.
- Have a household income between R350,000 and R600,000 per year.
- Be a South African citizen or permanent resident.
- Maintain a 60% academic average to retain funding.
Students who maintain a 70% average across all registered modules and complete their studies within the prescribed time can receive a 50% discount on their total loan amount. However, they must have already paid 50% of the NSFAS loan to qualify for this discount.
Alternatives to NSFAS Loans
If you do not qualify for an NSFAS loan, consider these alternative funding options:
- Bursaries and Scholarships: Many universities, private companies, and organizations offer bursaries and scholarships based on academic performance or specific fields of study. Unlike loans, these do not require repayment.
- Bank Loans: Some banks provide student loans with flexible criteria. While these loans may offer more options, they often come with higher interest rates and strict repayment terms.
- Work-Study Programmes: Many institutions offer work-study opportunities, allowing students to work part-time in exchange for financial aid or reduced tuition costs.
Understanding NSFAS loan eligibility is crucial for students planning their higher education journey. If you do not meet the NSFAS criteria, explore alternative funding sources such as bursaries, bank loans, or work-study programmes to secure financial support for your studies.
