Is NSFAS A Bursary Or A Loan?

Are you a student in South Africa seeking to obtaining adequate funding to pursue a higher education at a postsecondary institution? One of the greatest ways to acquire financial aid is through the National Student Financial Aid Scheme (NSFAS) bursary. One common question among students is whether NSFAS offers bursaries or loans. Let’s delve into this topic to provide clarity and guidance.

What Is NSFAS Loan

NSFAS Loan is a financial assistance to any students who wish to pursue higher education but are unable to pay for their time in college or university.

NSFAS Funding

NSFAS is a government entity aimed at providing financial aid to eligible students to access higher education. It plays a pivotal role in supporting students from financially disadvantaged backgrounds in pursuing their academic aspirations.

A government agency, the National Student Financial Aid Scheme (NSFAS) is managed by the Department of Higher Education and Training. Students who lack the funds to attend tertiary institutions (public universities or TVET colleges) can apply for financial help from NSFAS.

Also Read: Does NSFAS Charge Interest On Study Loans?

Is NSFAS A Bursary Or A Loan?

Up until December 2017, NSFAS was a loan program; starting in 2018, it has been a bursary program.

You can obtain a study loan from NSFAS to help pay for your education at any public university or technical and vocational school (TVET) in South Africa. Tuition fees, living expenses (private or shared), books, food, and necessary travel expenses are all covered by the loan. Once your studies are complete and you obtain work, you must return your loan to NSFAS. Your ability to convert up to 40% of your NSFAS study loan into a bursary, which you are not required to return, is contingent upon your academic standing.

Bursaries vs. Loans

NSFAS offers both bursaries and loans to students, depending on their financial circumstances and academic performance.

Bursaries

A bursary is a form of financial aid that does not require repayment. It is awarded based on financial need and academic merit. Students who receive NSFAS bursaries are not obligated to repay the funds received. Instead, the bursary covers tuition fees, accommodation, and other educational expenses.

Loans

In addition to bursaries, NSFAS also provides study loans to eligible students. Unlike bursaries, loans must be repaid after completing studies. However, NSFAS loans feature favorable terms, including low or zero interest rates and income-contingent repayment plans.

Interest-Free Loans

One of the significant advantages of NSFAS loans is that they are typically interest-free during the period of study. This means that students do not accrue interest on their loans while actively pursuing their education, easing the financial burden associated with repayment.

Income-Contingent Repayment

NSFAS implements an income-contingent repayment model, where repayments are based on the individual’s income level after graduation. This approach ensures that loan repayments remain affordable and aligned with the graduate’s financial capacity.

Application Process

To access NSFAS funding, students must meet specific eligibility criteria and submit an application through the NSFAS online portal. The application process involves providing detailed information about household income, academic performance, and other relevant details.

Conclusion

NSFAS provides both bursaries and loans to eligible students, offering financial support tailored to individual needs. Whether you receive a bursary or a loan depends on various factors, including financial need and academic performance. By understanding the distinction between bursaries and loans offered by NSFAS, students can make informed decisions regarding their financial aid options and pursue their educational goals with confidence.