Why you need to pay back NSFAS?

The National Student Financial Aid Scheme (NSFAS) is vital for many South African students as it provides financial support to those facing economic hardship.

However, for students funded before the 2018 free education announcement, understanding the repayment terms of NSFAS funding is very necessary. 

Why Repay NSFAS?

There are several key reasons why repaying your NSFAS loan is important:

1. Sustainability of the Scheme: NSFAS relies on repayments from past beneficiaries to fund future generations. Every rand repaid goes towards supporting new students in need of financial assistance to pursue their educational goals. By fulfilling your repayment obligations, you directly contribute to the continuation of this vital program.
2. Fostering a Culture of Responsibility: Repaying your NSFAS loan instills a sense of financial responsibility and accountability. Meeting your financial commitments demonstrates a strong work ethic and a commitment to honoring agreements. This sense of responsibility will benefit you in all aspects of your life, including future financial endeavors.
3. Access to Future Opportunities: Defaulting on your NSFAS loan can have negative consequences that extend beyond financial strain. A bad credit rating resulting from non-payment can limit your access to future loans, credit cards, and even certain government services. Responsible repayment builds a positive credit history, opening doors to opportunities you might otherwise miss.
4. Moral Obligation: NSFAS funding is an investment in your future. The financial backing you received allowed you to pursue an education and potentially secure a brighter economic future. Repaying your loan demonstrates gratitude for the opportunity provided and ensures the program can continue to support deserving students.

Who Needs to Repay NSFAS?

Not all NSFAS funding is a loan.

Since December 2017, a portion of NSFAS funding has been converted to a bursary, meaning it does not need to be repaid.

However, if you received NSFAS funding before this date, you likely have a loan component that requires repayment.

When Does NSFAS Repayment Start?

The repayment period for NSFAS loans begins when your annual income exceeds a specific threshold set by NSFAS.

Currently, this threshold sits at R30,000 per year. If you are not earning above this amount, you are not obligated to make repayments.

How Much Does NSFAS Repayment Cost?

The amount you repay depends on several factors, including the total amount you borrowed, your income level, and your repayment plan.

NSFAS offers flexible repayment options that take your financial situation into account.

What Happens if I Don’t Pay Back NSFAS?

Defaulting on your NSFAS loan can lead to serious consequences.

NSFAS may take legal action to recover the debt, which could include court appearances and judgments against you.

Additionally, a bad credit rating resulting from non-payment can have a significant negative impact on your financial future.

Can My NSFAS Loan Be Converted to a Bursary?

There are limited situations where your NSFAS loan can be converted to a bursary.

For instance, if you were a final-year student in 2017 and graduated with all your courses passed, your NSFAS loan may be eligible for conversion.

It is important to contact NSFAS directly to inquire about the specifics of your situation and potential eligibility for bursary conversion.