In hopes of finding a solution for the funding gap seen in higher education and the lack of funding for missing middle students, the National Student Financial Aid Scheme (NSFAS) introduced the NSFAS Loan Scheme. The Missing Middle refers to students who are considered too rich to qualify for a NSFAS bursary but are unable to pay their fees without any financial aid.
NSFAS has published the Eligibility Criteria and Conditions for the 2025 academic year's Student Loan Scheme. These NSFAS loans are for students who have a household income between R350 001 and R600 000.
NSFAS financial loans are specifically intended for students from the "missing middle" group who satisfy the eligibility criteria specified. NSFAS provides ongoing financial aid in the form of a loan, contingent upon the student's continued eligibility and available budget. Continued funding is not guaranteed; students must consistently meet eligibility criteria to retain financial aid.
NSFAS Loan Eligibility Criteria
- South African citizens and permanent residents with a valid South African ID number will be considered
- Students must be studying at a Public TVET College or University
- Students must be enrolled in qualifications that are included in the approved list for loan funding
- Household income must come to between R350 001 and R600 000 per annum
When NSFAS Loans Will Be Discontinued
NSFAS will discontinue a student's loan in the following instances:
- Changes in household income, not within the threshold
- Failure to meet academic requirements
- University: A student is required to maintain an average of 60% academic performance to keep the loan funding
- TVET College: A student must pass 3 out of the 4 subjects for the Report 191 level/passed at least 5 subjects in the previous N-Level
- Student changes to a qualification that does not align with the approved criteria of the loan scheme
- If a student receives a full bursary or loan from another source
- Student no longer complies with the University N+ Rule or TVET College N+ Rule
- The student has been found to have committed fraud against NSFAS.
- The student was funded in error.
- Incorrect information provided by the institution led to erroneous funding.
- Incorrect or false information submitted by the student was used to assess funding eligibility.
- Dual registration records have been received from different institutions for the same student, and the issue remains unresolved.
NSFAS has however said, "the student may appeal for reconsideration based on their circumstances".
