NSFAS offers both a bursary and a loan. The NSFAS student loan, often called the missing-middle loan, is for students at public universities and TVET colleges whose gross combined household income is between R350,000 and R600,000 a year (up to R600,000 for postgraduate university study). Unlike the bursary, it must be repaid (NSFAS FAQs, student loans).
Applications for the 2027 academic year open on 18 September 2026 and close on 31 October 2026 at 23:59 South African time, and late applications are not accepted (how to apply). The most recent loan guidelines NSFAS publishes are for 2025, so confirm figures such as the interest rate with NSFAS before you rely on them.
Eligibility Requirements at a Glance
- A South African citizen or permanent resident with a valid SA ID number, registered at a public higher education institution. Private institutions are not funded
- Gross combined household income between R350,000 and R600,000 a year for undergraduate study; R600,000 or less for postgraduate university study
- A signed consent form, which is mandatory for a loan application
- A signed Loan Agreement Form, with a parent or legal guardian signing as surety
- No loan, bursary or scholarship from a non-NSFAS source that already covers your study costs
- Keeping to the academic rules: the 2025 guidelines require a 60% module pass to keep funding
Loan funding depends on the budget, and the 2025 guidelines earmark 70% of it for STEM programmes and 30% for other fields (2025 loan guidelines). If you change qualification you are no longer eligible for the loan, and N+1 applies.
Income and Affordability Requirements
NSFAS looks at gross (before tax) household income, combined. The loan band sits above the bursary limit:
- R350,000 or less: the bursary route, with SASSA grant recipients qualifying automatically
- R350,000 to R600,000: the undergraduate loan
- R600,000 or less: the postgraduate university loan
The loan covers registration and tuition, learning material and accommodation where applicable. It does not cover the living allowance, personal care or transport, which is the main practical difference from the bursary and answers the common question about a loan allowance.
Credit and Financial Requirements
NSFAS verifies income against third-party sources, which is why the consent form is mandatory. The loan guidelines do not describe a credit-record test, but they do set out what you take on when you sign:
- Interest-free while you study. Interest accrues from 12 months after you exit, at the prime lending rate on 1 April each year minus 100 basis points (2025 guidelines)
- A maximum repayment term of 60 months, with instalments that scale with income
- Notifying NSFAS of your employment within 90 days, then repaying monthly from your first month of work
- Early settlement without penalty
- A 50% discount on the total loan for a student who averages 70% in all modules and finishes in minimum time, once 50% has been paid first
Loans granted before the President’s December 2017 announcement were not converted into bursaries and remain repayable (repayments).
Documents and Verification Required
The loan application is similar to the bursary application, so prepare the same document set for the 2027 cycle:
- Your SA ID or smart ID, or an unabridged birth certificate if you are under 18
- Payslips or an IRP5 for everyone who earns in the household, plus a SASSA letter or a no-income affidavit if applicable
- ID copies of your parent(s) or legal guardian, and a death certificate where a parent has died
- The signed and dated consent form (APP2027), in black ink with no electronic signatures
- The Loan Agreement Form, once your loan is approved
Phone photos are acceptable if every corner is visible and the text is readable. You can apply before you have been accepted by an institution. Matric results are not on NSFAS’s document list.
How to Apply and Improve Approval Readiness
- Create your myNSFAS profile at my.nsfas.org.za or in the NSFAS app
- Log in, click APPLY and complete the form
- Attach your documents and the signed consent form, then check and submit before 31 October 2026
- If approved, sign the Loan Agreement Form with a parent or guardian as surety
Repayments are made by EFT using your 13-digit SA ID as the reference, by payroll deduction or by debit order. Repayment queries go to [email protected] or 08000 67327 (NSFAS repayments).
Frequently Asked Questions
Is NSFAS a loan or a bursary?
Both. The bursary is for households up to R350,000 (R600,000 with a disability, and automatic for SASSA recipients). The loan is for the R350,000 to R600,000 band and must be repaid.
What is the difference between the NSFAS bursary and loan?
A bursary generally does not need to be repaid if its conditions are met; a loan does. The bursary can also cover the living allowance, personal care and transport, which the loan does not.
How does the NSFAS loan work?
You apply on myNSFAS, sign a Loan Agreement Form with a parent or guardian as surety, pay no interest while studying, and repay within 60 months of starting work, with instalments scaled to income.
What is the NSFAS interest rate?
Under the 2025 guidelines it is the prime lending rate on 1 April each year minus 100 basis points, calculated daily and compounded monthly, and it accrues from 12 months after you exit. It moves with prime, so confirm the current rate with NSFAS.
What is the NSFAS loan agreement?
The Loan Agreement Form is the contract you sign when the loan is approved. It sets out the repayment terms and requires a parent or legal guardian to sign as surety.
Can I get an NSFAS loan if I was funded by NSFAS?
NSFAS’s published pages do not say whether a bursary-funded student can switch to a loan. The loan guidelines exclude students whose costs are covered by other bursaries or loans, and apply N+1 and a no-change-of-qualification rule. Ask NSFAS before you plan around a switch.
Do I repay if I fail?
Yes, the loan stays repayable on its terms. Failing also puts your funding at risk: the 2025 guidelines require a 60% module pass for university students and 3 of 4 subjects for TVET (Report 191).
Confirm the current rules with NSFAS through myNSFAS. See the finance and funding requirements hub and browse all loan requirements, or read our NSFAS requirements guide.