Since 2018, the National Student Financial Aid Scheme (NSFAS) changed from being a student loan to being a bursary. Should you have started your NSFAS funding after 2017, you would not have to pay back anything.
However, for those students that have taken out loans with NSFAS before the change was implemented, they will need to repay the money they borrowed.
Students borrow the money to cover their study costs. The loan only needs to be repaid after completing your qualification.
One you have left and/or graduated from a University or College, and have found employment/in business, earning R30,000 or more annually, then you begin repaying your NSFAS loan.
Every cent of a loan repayment goes towards helping other students with funding.
When those students were accepted for funding (before 2018, they signed a legal contract that has a focus on the loan. NSFAS also works with organisations such as the South African Revenue Services (SARS) to find out the NSFAS beneficiaries who are employed and earning more than R30 000 per year.
According to NSFAS Spokesperson, Slumezi Skosana, SARS would report those students who are now earning money, therefore compelling them to repay their NSFAS loans.
The repayments are worked out at a rate that will not place a great burden on you and is based on your salary. A total of 40% of a general loan is converted into a bursary if you pass all of the courses you were registered for in that year.
If you do have to pay back a loan to NSFAS, all deposits and transfers need to be into the NSFAS bank account using your ID number as your reference number.
