The National Student Financial Aid Scheme (NSFAS) has published the Eligibility Criteria and Conditions for its student loan scheme, detailing the repayment period for beneficiaries.
NSFAS provides comprehensive student loans to deserving students enrolled in approved courses at universities and TVET colleges. This funding covers tuition and registration fees, along with allowances for food, accommodation, transport, and learning materials.
About the NSFAS Loan
Introduced in 2024 as part of the Comprehensive Student Funding Model, NSFAS loans assist missing-middle students—those whose household income exceeds the R350,000 threshold for the NSFAS bursary but who cannot afford tertiary education costs.
To qualify, students must have a household income between R350,000 and R600,000 per annum.
The government prioritises Science, Technology, Engineering, and Mathematics (STEM) fields, allocating 70% of the loan scheme to these programmes. The remaining 30% supports students in Humanities and Social Sciences.
NSFAS loan recipients receive the same funding as bursary beneficiaries but must repay the loan.
Loan Repayment Period
Many students wonder how long they have to repay their NSFAS loan.
NSFAS confirms that students have five years to repay their loan, starting from when they secure employment.
The repayment period is capped at 60 months from the date of employment. Students must inform NSFAS of their employment status within 90 days. Monthly instalments are income-based, with higher earners paying more.
Repayments can be postponed until employment is secured, and students may settle the loan early without penalties.
Consequences of Non-Compliance
Failure to report income increases may be considered intentional non-disclosure, preventing loan prescription.
NSFAS may demand full repayment if a student:
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Provides false information
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Is expelled
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Receives undisclosed funding
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Fails academically
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Commits a crime
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Deregisters
Legal costs due to non-compliance will be added to the loan balance.
