Is NSFAS a bursary or a loan?

The National Student Financial Aid Scheme (NSFAS) plays a major role in supporting South African students from disadvantaged backgrounds in pursuing their tertiary education.

Understanding the distinction between these two funding options is vital for making informed decisions about your education.

The Difference between Bursary and Loan

A bursary is a form of financial aid that doesn’t require repayment.

Awarded based on financial need and sometimes academic merit, bursaries help students cover tuition fees, accommodation, and other educational expenses.

Essentially, it’s a grant that doesn’t need to be paid back.

On the other hand, a loan is a sum of money borrowed that must be repaid with interest over a specific period.

Student loans provide financial assistance, but repayment obligations exist.

What Does NSFAS Funding Cover?

NSFAS funding aims to provide comprehensive financial support for your tertiary education journey.

It typically covers the following expenses:

  1. Tuition fees: This ensures your university or TVET college fees are settled directly by NSFAS.
  2. Accommodation: Funding is allocated for on-campus or off-campus housing, depending on your situation.
  3. Living allowance: You’ll receive a monthly stipend to cover basic living expenses like food, transport, and personal needs.
  4. Learning materials: An allocation is provided for textbooks and other essential course materials.
  5. In some cases: Depending on your specific needs, NSFAS might offer additional support for travel costs, disability allowances, or childcare expenses.

It’s important to note that the exact amount of funding you receive can vary based on several factors, including your chosen field of study, institution, and household income.

Eligibility Criteria for NSFAS Funding

To qualify for NSFAS funding, you must meet specific criteria. Here’s a general overview:

  1. South African Citizenship: You must be a South African citizen.
  2. Financial Need: Your household income must fall below the NSFAS threshold (currently set at R350,000 per year).
  3. Academic Merit: While not always mandatory, demonstrating good academic performance in your previous studies can strengthen your application.
  4. Registration Status: You must be registered for a full-time undergraduate degree or diploma program at a public university or TVET college in South Africa.

Documents Required to Apply for NSFAS

The application process for NSFAS funding involves submitting various documents to verify your eligibility.

These typically include:

  1. Completed NSFAS application form
  2. South African identity document (ID) or birth certificate
  3. Proof of income for all individuals financially supporting the applicant
  4. Proof of disability (if applicable)
  5. Acceptance letter from a public university or TVET college

Repayment Terms for NSFAS Loans

NSFAS loan repayment begins one year after graduation or when the student ceases their studies.

The repayment period varies depending on the loan amount and the student’s chosen repayment plan.

NSFAS offers different repayment options with varying interest rates.

You must carefully review the terms and conditions before accepting an NSFAS loan.

How NSFAS Works

Prior to 2018, NSFAS functioned solely as a loan scheme.

However, the current structure offers both bursaries and loans depending on the student’s financial circumstances and academic performance.

  1. NSFAS Bursary: Students from families with a total household income below the NSFAS threshold (currently R350,000 per year) are generally eligible for a full bursary. This means they won’t be required to repay the funds received.
  2. NSFAS Loan: Students from households exceeding the bursary threshold but falling under a specific income limit (currently R600,000 per year) may qualify for a loan. These students are expected to repay the loan after completing their studies and securing employment.