In 2024, the National Student Financial Aid Scheme (NSFAS) will begin providing much-needed financial support to students whose families earn between R350,000 and R600,000 annually. Students who fall within this bracket can apply for NSFAS student loans..
Minister of Higher Education and Training Blade Nzimande Launched the Comprehensive Funding Model in January which will allow students who do not qualify for NSFAS bursaries supported by the government.
NSFAS Loan Scheme
Nzimande revealed that this funding will be made available to not only undergraduate students, but the NSFAS loan scheme will be available to Postgraduate students as well.
However, I must upfront indicate that the scheme will fund both undergraduate and postgraduate students.
NSFAS is accepting 2024 student loan applications. Students are encouraged to submit their applications during the 2024 NSFAS application period.
The "missing middle" demographic, refers to students who are deemed too rich for bursaries yet financially unable to afford tertiary education expenses.
The minister announced that in phase 1 (2024) R3,8 billion will be available to support the loan scheme. R1,5 billion will come from the National Skills Fund with an additional R2,3 billion coming from the Setas. This amount is expected to fund 47% of missing middle students.
Emphasising the importance of prioritising scarce skills programmes for the country's National Development Plan, the allocation of NSFAS loans will prioritise loans for science, technology, engineering, and mathematics (STEM) disciplines.
STEM programmes will be allocated 70% of the available funding. The remaining 30% will be geared towards humanities and social sciences qualifications.
Requirements for student loans
- Students who apply for the new scheme must meet the following criteria:
- Annual household income between R350,001 and R600,000
- Studying at a public university
- Must achieve an average of 60% in their coursework to continue funding
One major distinction between an NSFAS student loan and a traditional student loan is that, If students achieve over 70% and complete their courses within the prescribed timeframe, they can apply to have 50% of the loan forgiven.
