The National Student Financial Aid Scheme (NSFAS) has condemned a Member of the Portfolio Committee on Higher Education and Training after they alleged that “NSFAS confirmed that Minister Nzimande’s 14 January 2024 announcement of funding for missing middle students was a hoax”.
These averments are regrettable and not consistent with the facts shared by the NSFAS Administrator, Mr Freeman Nomvalo, at the PCHET meeting held on 21 August 2024
In January, former Higher Education Minister Blade Nzimande launched the Comprehensive Student Funding model. The launch of this was greeted with excitement by students who did not previously qualify for government-funded bursaries from NSFAS.
While NSFAS funds more than one million students from poor and working-class backgrounds through the provision of comprehensive bursaries, many students do not qualify for government funding. However, they also come from homes that cannot afford to absorb the costs associated with tertiary education.
Under the Comprehensive Student Funding Model, these “missing middle” students would be provided with the same funding provided to NSFAS bursary holders, in the form of a NSFAS student loan.
One of the benefits of the NSFAS student loan, besides offering more favourable terms than loans from credit providers, is that students who achieve high marks may have their total repayment amount reduced by up to 50%.
How Many Students Got Approved For NSFAS Loans
NSFAS revealed that as of 15 August 2024, a total of 1300 applicants had satisfied the NSFAS Loan Scheme Academic and Financial Eligibility Criterion for funding. This is only a fraction of the 31,000 loans that NSFAS planned to fund.
The government bursary scheme said they will prioritise Science, Technology, Engineering, and Mathematics (STEM) fields, allocating 70% of the loan scheme to these programmes. The remaining 30% is aimed at students enrolled in Humanities and Social Sciences programmes.
NSFAS is finalising the Science, Technology, Engineering and Mathematics (STEM) requirement as per the guidelines and it is anticipated that details of all successful applicants will be shared with Institutions not later than 5 September 2024.
What Are The Eligibility Requirements For The NSFAS Loan?
- South African citizen with a valid ID.
- Annual household income must fall between R350,001 and R600,000.
- Maintain a minimum average of 60% in your coursework to retain funding.
- Registered for full-time undergraduate or postgraduate studies at a public university or TVET college.
What Does The Loan Cover?
Similar to the NSFAS bursary, the loan provides funding for tuition, registration fees, and allowances for essential expenses like accommodation, transport, learning materials, and other student needs. NSFAS will utilise the same disbursement channels as those used for bursary recipients.
