Is NSFAS A Loan or Bursary?

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

But is NSFAS a loan or a bursary?

Learning the difference between these two types of financial aid is very important and can help you in making informed decisions about your studies.

Is NSFAS a Loan or a Bursary?

As of 2024, NSFAS primarily functions as a bursary scheme.

This means that qualifying students receive financial aid without the obligation to repay the funds after graduation.

However, there are some nuances to consider:

1. Income Threshold: The majority of NSFAS funding goes towards students from households with a combined annual income below R350,000. For these students, the funding is awarded as a full bursary.
2. Missing Middle Student Loans: In 2024, NSFAS introduced a missing middle student loan scheme. This targets students from families with a combined annual income between R350,000 and R600,000. These students can qualify for a loan to cover their studies, with repayment only starting after graduation and securing employment that pays above a certain threshold (currently R30,000 per annum).

Does NSFAS Give Full Funding?

NSFAS funding covers a range of expenses related to your studies, including:

1. Tuition fees
2. Accommodation costs (residence or private rentals)
3. Living allowance for food and other necessities
4. Learning materials (books and stationery)
5. Travel allowances

The exact amount you receive depends on your specific needs and chosen institution.

While NSFAS strives to provide comprehensive support, it’s important to remember that managing your finances effectively is better.

Budgeting skills will help ensure the NSFAS funding covers your essential expenses throughout the academic year.

How Much Does NSFAS Pay Per Month?

NSFAS disburses funding in instalments throughout the academic year.

The exact amount you receive per month will vary depending on the cost of your chosen institution, your accommodation situation, and your living expenses.

NSFAS provides a bursary calculator on their website that allows you to estimate the potential funding you might receive.

What Happens to My NSFAS Debt if I Don’t Graduate?

The best part of the bursary system is that there’s no debt to repay if you don’t graduate.

However, NSFAS may require you to participate in pro-active measures to help you get back on track with your studies.

It’s important to note that if you receive funding designated as a loan, such as the missing middle student loan scheme, you’ll still be obligated to repay the outstanding amount even if you don’t graduate.

Can I Get a Bursary and a Loan at the Same Time?

While NSFAS funding prioritizes bursaries, there might be instances where you qualify for additional financial aid alongside your NSFAS award.

These are some possibilities:

1. University or TVET College bursaries: Many institutions offer their own bursary programs for students with specific academic achievements or facing particular financial challenges. You can inquire about these opportunities directly from your chosen institution.
2. Private bursaries: Certain organizations or companies may offer bursaries in specific fields of study. Researching these opportunities can help supplement your NSFAS funding.

You must check the terms and conditions of any additional bursary or loan you might consider.

Some funding sources might have restrictions on how the money can be used or may require repayment under certain circumstances.

What is the Difference Between NSFAS and SASSA?

Both NSFAS and the South African Social Security Agency (SASSA) play vital roles in supporting South Africans.

However, their areas of focus differ:

1. NSFAS: They provide financial aid specifically for students pursuing higher education at public universities and TVET colleges.
2. SASSA: They administer various social grants for South African citizens facing financial hardship.