Do you have to pay back NSFAS Funding?

The National Student Financial Aid Scheme is a major source of help for many South African students.

NSFAS provides financial support to pursue their education. But a common question most students ask is: do you have to pay back NSFAS funding?

The answer depends on the specifics of your award.

Is NSFAS a Loan or a Bursary?

It’s very important for you to understand the type of NSFAS funding you’re awarded.

Traditionally, NSFAS offered loans that required repayment upon graduation or leaving your studies.

However, since December 2017, the majority of NSFAS funding has shifted to bursary status, meaning it does not need to be repaid.

When Do I Have To Start Repaying NSFAS?

If you received NSFAS funding before December 2017, or under specific bursary programs like Funza Lushaka, repayment kicks in once you meet certain criteria.

The main factor is your income. Repayment begins when your annual income exceeds a threshold set by NSFAS.

Currently, there is no obligation to repay if you are unemployed or earning below this threshold.

Do I Still Have To Pay Back NSFAS If I Don’t Graduate?

Yes, even if you don’t graduate, you might still have to repay a loan portion of your NSFAS funding (pre-December 2017 awards).

However, there are exceptions. NSFAS offers debt relief programs for students facing genuine hardship.

Also, some bursary programs may convert a portion of the loan into a bursary upon completion of a specific academic year.

How Much Do I Have To Repay NSFAS?

The repayment amount for NSFAS loans depends on the total amount received and your income bracket.

NSFAS uses a sliding scale, meaning those earning more contribute a higher percentage.

It’s important to note that only the loan portion requires repayment.

Bursary portions are considered a gift and do not need to be paid back.

What Are The Consequences of Not Repaying NSFAS?

Defaulting on NSFAS repayments can leave you with very serious consequences.

NSFAS may take legal action to recover the debt, and this may impact your credit rating and potentially lead to garnished wages.

Consistent non-payment could also restrict you from accessing future government funding opportunities.

How to know if My NSFAS Funding Is a Loan or a Bursary?

If you’re unsure about the type of NSFAS funding you received, there are a few ways to find out.

You can access your NSFAS account online or contact the NSFAS call center directly.

Also, reviewing your original NSFAS award letter will clarify whether it’s classified as a loan or a bursary.

How Can I Check My NSFAS Funding Type and Repayment Status?

There are a few ways to check your NSFAS funding details:

1. NSFAS Online Portal: You can access your online NSFAS account and review your funding agreement and award letter. These documents specify the type of funding awarded (bursary or loan) and any repayment conditions.
2. NSFAS Contact Center: Also, you can contact the NSFAS contact center at 0800 067 323 for assistance with checking your funding type and repayment status.