For many university students, graduating is only half the battle. Outstanding tuition debt can prevent graduates from receiving their qualification, delaying their entry into the job market and limiting future opportunities.
The WaFunda Income Share Agreement (ISA) offers an alternative funding solution designed to help eligible students settle their final-year university debt and graduate without the burden of a traditional student loan.
What Is The WaFunda ISA?
The WaFunda Income Share Agreement (ISA) is an alternative form of student finance that enables eligible graduates to have their outstanding university fees paid directly to their university.
Instead of making repayments immediately or taking on a traditional interest-bearing loan, students agree to repay a fixed percentage of their future income once they are employed and earning above a minimum income threshold.
According to WaFunda, the programme is designed to provide a fair and ethical way for students to settle their historical university debt while reducing financial pressure during the transition from university to employment.
How Does The WaFunda Income Share Agreement Work?
Under the ISA model, WaFunda settles a student's approved outstanding university debt directly with the university.
Once the student graduates and secures employment, repayments only begin after they are earning at least R7,000 per month. Rather than paying fixed instalments with interest, graduates repay a fixed percentage of their net income, making repayments more manageable as their earnings grow.
WaFunda also places a cap on total repayments, ensuring graduates are not required to repay indefinitely. If a graduate becomes unemployed or earns below the minimum income threshold, repayments are paused, although a monthly service fee applies while they continue receiving support services.
Who Can Apply For The WaFunda ISA?
Applicants must meet several eligibility requirements to be considered for funding.
These include:
- Being a South African citizen or permanent resident.
- Having completed a university qualification in 2025.
- Having outstanding university debt of between R15,000 and R200,000.
- Having an annual household income of R600,000 or less, or R850,000 or less for persons with disabilities.
Students who have received a partial bursary may still qualify if they have outstanding university debt that falls within the funding limits.
Which Universities Are Supported?
The WaFunda ISA is currently available to graduates from these partner universities:
- University of Cape Town
- University of Pretoria
- University of KwaZulu-Natal
- Stellenbosch University
- University of the Witwatersrand
WaFunda says applications are considered across a wide range of faculties and degree programmes offered by these institutions.
What Costs Does The ISA Cover?
The funding covers the full value of a student's approved outstanding university account as reflected on their official fee statement.
This may include tuition fees, accommodation, books, study equipment and other approved university charges appearing on the student's account. Funding is paid directly to the university rather than to the student.
More Than Just Student Funding
In addition to helping graduates settle outstanding fees, WaFunda provides support aimed at improving long-term career success.
Successful applicants gain access to services such as:
- Financial literacy training.
- Career readiness support.
- Recruitment assistance.
- Student support resources.
WaFunda says repayments made by graduates are reinvested into the ISA fund, allowing future students facing financial barriers to benefit from the programme.
Why The WaFunda ISA Matters
Thousands of South African graduates are unable to receive their qualifications because of unpaid university fees. Without their certificates, many struggle to secure employment, despite having completed their studies.
The WaFunda Income Share Agreement aims to bridge this gap by helping eligible graduates clear their debt, obtain their qualifications and begin their careers before repaying their funding based on what they earn in the future.
Students interested in the programme should review the latest eligibility criteria and application requirements on the WaFunda website before applying.
CLICK HERE FOR THE WAFUNDA ISA WEBSITE
