Students who do not qualify for NSFAS but cannot self-fund — the group usually described as the missing middle — face the hardest funding position in South African higher education. Several products and programmes exist for them, and they work very differently from each other.

This page sets out the options, what each requires, and how to tell a legitimate student funding product from one that will cost you more than the degree is worth.

Eligibility Requirements at a Glance

What student funding generally requires.

Income and Affordability Requirements

The National Credit Act 34 of 2005 requires an affordability assessment before credit is granted: the provider must verify gross income, subtract statutory deductions, subtract the prescribed minimum living expenses and subtract existing debt repayments. Lending without that assessment is reckless lending and is prohibited.

A student loan is assessed on the surety, not the student. A student with no income cannot satisfy an affordability assessment, so most student loans require a parent, guardian or other person with verifiable income to stand as surety and, in many cases, to service the interest during study. That person is legally liable, and they should understand that before signing.

Check NSFAS first, every time. NSFAS funds qualifying students at public universities and TVET colleges within a household income threshold, and it is not a loan for most recipients under current arrangements. Confirm the current eligibility criteria, threshold and closing dates on nsfas.org.za, because they are set by the scheme and revised annually.

Bursaries are the best funding there is and the most under-applied for. Companies, government departments, professional bodies, sector education authorities and foundations all fund students, and many bursaries close months before the academic year. Start looking a year ahead, apply to many, and read the work-back conditions before accepting — a work-back obligation is a real commitment, not a formality.

Institutional aid exists. Universities have their own bursary and hardship funds, merit awards and payment arrangements, administered by the financial aid office. Ask that office directly; it is the single most useful call a struggling student can make and it is free.

Credit and Financial Requirements

Compare student loans on the total repayable. Ask for the interest rate, the initiation fee, the monthly service fee, whether interest is capitalised during study, when repayment starts, and what the total will be. A loan where interest accrues unpaid through a four-year degree grows substantially before the first repayment.

Ask what happens if you fail a year. Funding conditions commonly require academic progress, and a failed year can suspend funding while the debt continues. Establish the position before you need to know it.

Ask what happens if you do not find work. Repayment terms differ, and some products have grace periods after graduation. Know the terms.

Verify every provider at ncr.org.za before sharing documents. Student funding attracts predatory products, and a registered credit provider is identifiable and checkable.

Never pay a fee to receive funding. Bursaries and government funding are free to apply for, and initiation fees on regulated credit are deducted or added — never paid up front. Any demand for payment to secure a bursary, a loan or a study place is fraud.

Be careful with study-now-pay-later offers from private colleges. Where a college arranges the credit, ask whether the agreement is regulated by the National Credit Act, what the total repayable is, and what happens if you withdraw. The cancellation clause matters, because dropping out does not usually cancel the debt.

Accommodation and living costs are the hidden gap. Tuition-only funding leaves students unable to eat or travel, which is a common reason people drop out. Budget the full cost and ask the financial aid office what support exists.

Documents and Verification Required

What is generally required to apply.

How to Apply and Improve Approval Readiness

The order that works: apply to NSFAS if you may qualify, apply to every bursary you are eligible for a year ahead, speak to the institution’s financial aid office, and treat a commercial student loan as the last option rather than the first.

If a loan is the answer, take the smallest amount over the shortest term with the clearest repayment terms, and make sure the surety understands exactly what they are signing.

Frequently Asked Questions

What if I do not qualify for NSFAS?

Apply for bursaries a year ahead, speak to the institution’s financial aid office about institutional aid and payment arrangements, and treat a commercial loan as the last option.

Why do student loans need a surety?

A student with no income cannot satisfy the affordability assessment the law requires, so a person with verifiable income must stand as surety and is legally liable.

What should I compare loans on?

The total amount repayable, whether interest is capitalised during study, when repayment starts, and what happens if you fail a year or cannot find work.

Should I pay a fee to secure a bursary?

Never. Bursaries and government funding are free to apply for, and any demand for payment to secure funding or a study place is fraud.

Funding criteria, income thresholds, interest rates and closing dates are set by NSFAS, the institutions, the bursary providers and the credit providers, and are revised annually. Confirm current requirements with each directly.

Related Requirements