The National Student Financial Aid Scheme (NSFAS) published the Eligibility Criteria and Conditions for the NSFAS Student Loan Scheme. The document reveals how long students will have to repay their NSFAS loan.
NSFAS provides comprehensive student loans to deserving students enrolled in approved courses at universities and TVET colleges. This funding covers tuition and registration fees, as well as several allowances for food, accommodation, transport and learning materials.
All About The NSFAS Loan
Introduced in 2024 as part of the Comprehensive Student Funding Model, NSFAS loans are designed to assist missing-middle students.
Missing middle refers to students whose household income exceeds the R350,000 household income threshold for the NSFAS bursary but cannot afford the costs associated with pursuing tertiary education studies.
To qualify for NSFAS loans, students must have a household income between R350,000 and R600,000 per annum.
The government bursary scheme 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 loan beneficiaries receive the same funding as NSFAS bursary recipients. However, they need to repay NSFAS.
How Long You Have To Pay Your NSFAS Loan Back
Many students want to know how long they will have to repay their NSFAS loan.
The scheme confirmed that students will have five years to repay their NSFAS loan. It's important to note that this five-year period begins when the student has started working.
The term of the loan repayment is determined at a maximum period of (60) months from the date of employment.
Students must inform NSFAS of their employment status within 90 days. Monthly installment amounts depend on income, with higher earners paying more.
Repayments can be postponed until employment is secured, and students can settle the loan early without penalties.
Failure to report income increases while working may be considered intentional non-disclosure, preventing loan prescription.
NSFAS may demand full repayment if a student provides false information, is expelled, receives undisclosed funding, fails academically, commits a crime, or deregisters.
Legal costs due to non-compliance will be added to the loan balance.
