NSFAS funding has taken two forms over time, and conflating them causes real confusion. The current scheme for students from low-income households is a bursary, not repayable if academic requirements are met. Historically, NSFAS operated as a loan scheme, and those older loans remain repayable.
Separately, government has been developing loan-based funding for the so-called “missing middle” — households earning too much for the NSFAS bursary but too little to afford fees. Confirm the current status, criteria and thresholds of any such scheme with NSFAS directly, as this has been evolving.
Eligibility Requirements at a Glance
Which arrangement applies to you depends on when and how you were funded.
- Current NSFAS bursary: South African citizens from households at or below the applicable income threshold, at public universities and TVET colleges — not repayable if academic requirements are met
- Historical NSFAS loans: funding granted under the earlier loan-based scheme, which remains repayable under the terms of the original agreement
- Missing middle funding: loan-based support for households above the bursary threshold but below a higher ceiling — confirm current availability and criteria with NSFAS
- Registration at a public institution is required in all cases
- Academic progression requirements apply to continued funding
- Applications must be made within the annual window
Income and Affordability Requirements
The bursary and the loan are assessed on the same basic thing: household income. The bursary threshold sets the boundary, and loan-based support is aimed at households above it.
Where you sit relative to the threshold determines which route applies, and the thresholds are revised. Confirm the current figures with NSFAS rather than relying on a number from an earlier year.
If you have an old NSFAS loan, it does not disappear. Repayment under the historical scheme was income-linked, becoming payable once you earned above a defined amount, with the rate rising as income rose. If you were funded under a loan agreement, contact NSFAS to establish your balance and your repayment position — unaddressed balances create problems later, including in credit applications.
Do not assume an old loan was written off. Confirm your status in writing.
Credit and Financial Requirements
The critical difference between a bursary and a loan is not the money but the obligation. A bursary imposes an academic condition; a loan imposes a financial one that follows you into employment.
If you are offered loan-based funding, treat it as credit: ask for the interest rate, the repayment terms, when repayment starts, what happens if you do not complete the qualification, and what the total repayable is. Get those answers in writing.
Whether a scheme is regulated under the National Credit Act affects your protections as a borrower. Ask, and ask who administers the loan and to whom you complain if something goes wrong.
Compare any loan-based option against commercial student loans from banks and education finance providers before accepting. Those are also credit, but the terms differ and comparison is worth doing.
Whatever the route, exhaust non-repayable funding first. Bursaries, institutional financial aid, SETA funding and corporate bursaries do not have to be repaid. Every rand of those is a rand you never repay with interest.
Bursary applications are always free. No legitimate funder charges an application fee, a “processing” fee or a fee to release funding. Anyone asking for payment to secure funding is defrauding you. Apply only through the funder’s own official channel, and never share your login details.
Documents and Verification Required
Documentation follows the NSFAS pattern, with additions where a loan is involved.
- A valid South African ID or birth certificate
- Certified copies of the IDs of parents, guardian or spouse, and household members who earn
- Proof of household income for every earner in the household
- Affidavits where a parent is unemployed, self-employed or untraceable
- Death certificates where a parent is deceased
- Proof of acceptance or registration at a public institution
- For loan-based funding: whatever additional financial documentation the scheme requires
- For an existing historical loan: your student number, the loan agreement and any correspondence
How to Apply and Improve Approval Readiness
Apply within the window. Whatever the funding form, late applications are not considered.
If you are in the missing middle band, apply for everything: any NSFAS loan scheme currently available, institutional financial aid, SETA funding, corporate bursaries and, if necessary, a commercial study loan. This band is the least well served in South African student funding and it takes more applications to solve.
- Confirm the current income thresholds and which scheme applies to you with NSFAS
- If you hold an old NSFAS loan, establish your balance in writing
- Treat any loan-based funding as credit — get the full terms in writing
- Ask whether the scheme is regulated under the National Credit Act
- Compare against commercial student loans before accepting
- Exhaust non-repayable funding first — bursaries, institutional aid, SETA and corporate funding
- Apply within the window and track your status yourself
Frequently Asked Questions
Is NSFAS a loan or a bursary?
The current scheme for low-income households is a bursary, not repayable if academic requirements are met. NSFAS historically operated as a loan scheme, and those older loans remain repayable.
What is missing middle funding?
Support aimed at households earning above the bursary threshold but unable to afford fees. Confirm current availability, criteria and terms with NSFAS, as this has been evolving.
I have an old NSFAS loan. What now?
It does not disappear. Contact NSFAS to establish your balance and repayment position, and get the answer in writing.
Should I take a loan or keep applying for bursaries?
Exhaust non-repayable funding first — institutional aid, SETA funding and corporate bursaries. Loans should be the last resort, and their terms compared before accepting.
Income thresholds, scheme availability and loan terms are set by NSFAS and the Department of Higher Education and Training and have been changing. Confirm the current position directly with NSFAS before relying on it.