NSFAS does offer a student loan. It is the Missing-Middle Loan Scheme, for undergraduate students whose gross combined household income is between R350 000 and R600 000 a year, and for postgraduate university students with household income of R600 000 or less. You must be at a public university or TVET college and sign a loan agreement. See the NSFAS student loan page.
Below R350 000, NSFAS funding is a bursary that is generally not repayable if you meet the conditions. Loans granted before the President’s December 2017 announcement were not converted into bursaries and remain repayable. The loan guidelines described here are the 2025 academic year edition; confirm anything that matters to you for 2027 with NSFAS.
Eligibility Requirements at a Glance
The loan is aimed at the “missing middle”, households that earn too much for the bursary but may still struggle to pay fees.
- Gross combined household income of R350 000 to R600 000 a year for undergraduate study; R600 000 or less for a postgraduate university loan
- Registration at a public university or TVET college
- A signed Loan Agreement Form, and a parent or legal guardian signing as surety
- Not having received loans, bursaries (including NSFAS funding) or scholarships from other sources that already cover your study costs
- Academic progression: a 60% average pass rate across modules to keep funding, with the N+1 rule applying
- Applying within the NSFAS window; loan applicants can apply in years 1, 2, 3 or 4
NSFAS applications for the 2027 academic year open on 18 September 2026 and close on 31 October 2026 at 23:59, and late applications cannot be accepted. Check the NSFAS how-to-apply page for the current position.
Income and Affordability Requirements
The income band decides which route applies. Under R350 000 (or R600 000 for applicants with disabilities, and automatically for verified SASSA grant recipients) you are assessed for the bursary. Between R350 000 and R600 000 for undergraduates, you are assessed for the loan. Household income is the combined gross income of the household, not only your own.
The loan covers registration and tuition, learning material and accommodation where applicable. It does not cover a living allowance, personal care or transport. NSFAS explains the bursary and loan difference in its FAQs.
Loans are interest-free while you study. Interest starts to accrue from 12 months after you exit, at the prime lending rate on 1 April each year minus 100 basis points, calculated daily and compounded monthly.
Credit and Financial Requirements
A loan is an obligation that follows you into work, so read the terms before signing. Under the NSFAS loan guidelines:
- Repayment runs for a maximum of 60 months
- You must tell NSFAS about your employment within 90 days and repay monthly from your first month of employment
- Instalments scale with your income
- You may settle early without penalty
- A student with an average of at least 70% in all modules who finishes within the minimum time can receive a 50% discount on the total loan, subject to having paid 50% first
NSFAS is a registered credit provider, and the guidelines include a section on default and credit bureaus. Treating the loan as credit, and getting the full terms in writing, is sensible. The eligibility criteria above do not include a credit-score cut-off; confirm with NSFAS if you want certainty.
Applying to NSFAS is free. Anyone charging a fee is committing fraud, and you should use only nsfas.org.za and my.nsfas.org.za.
Documents and Verification Required
The loan application is similar to the bursary application, and the consent form is mandatory. NSFAS lists these documents on its how-to-apply page:
- Your South African ID or smart ID (an unabridged birth certificate if you are under 18)
- Payslips or an IRP5 for everyone who earns in your household, a SASSA letter if applicable, or an affidavit if there is no income
- ID copies of your parents or legal guardian, and a death certificate where a parent has died
- A signed and dated NSFAS consent form
- The signed Loan Agreement Form and surety if you are offered a loan
NSFAS accepts phone photos if every corner is visible and the text is readable.
How to Apply and Improve Approval Readiness
- Create a myNSFAS profile online or in the NSFAS mobile app at my.nsfas.org.za, log in and click APPLY
- Complete the form and attach your documents, including the signed consent form
- Check everything and submit before the window closes
- Track your status on your myNSFAS profile
If your application is unsuccessful you can appeal through your myNSFAS profile within 30 working days of the outcome; see the NSFAS appeals page.
Frequently Asked Questions
Is NSFAS a loan or a bursary?
Both. A bursary generally does not have to be repaid if you meet its conditions, while a loan must be repaid under its terms. Which one applies depends mainly on household income.
Does NSFAS offer student loans for the missing middle?
Yes. The Missing-Middle Loan Scheme covers undergraduates with household income of R350 000 to R600 000 a year, and postgraduate university students at R600 000 or less. It covers tuition, learning material and accommodation, but not a living allowance, personal care or transport.
How and when do I repay an NSFAS loan?
Repayment is capped at 60 months and starts in your first month of employment. You can pay by EFT using your 13-digit ID number as the reference, by payroll deduction or by debit order. Queries go to [email protected] or 08000 67327. See the NSFAS repayments page.
I have an old NSFAS loan. What now?
Loans granted before the December 2017 announcement were not converted into bursaries and remain repayable under their loan agreements. Contact NSFAS to establish your balance and repayment position, and get it in writing.
Should I take a loan or keep applying for bursaries?
Bursaries do not have to be repaid, while a loan does, so the decision turns on what you can qualify for. Note that NSFAS does not provide loans to students whose study costs are already covered by loans, bursaries or scholarships from other sources.
Confirm the current criteria and your own position with NSFAS through myNSFAS. See loan requirements and browse all finance and funding requirements, or compare the NSFAS requirements.