Loans to academically able, financially needy students

The National Student Financial Aid Scheme (NSFAS) was established to bridge the gap between academically able, but financially needy learners and the opportunities that exist through tertiary education. NSFAS funds eligible students enrolled at any of the 23 public universities and 50 Further Education and Training (FET) Colleges in South Africa.

Students qualify for a NSFAS loan if they are South African citizens pursuing their first undergraduate degree or diploma at a public higher education institution, such as the University of Pretoria. These loans have a preferential interest rate and are only repayable once the student starts his career. On the basis of the student’s academic success, up to 40% of the loan may also be converted into a bursary.

How is this bursary component of the loan calculated?

If a student registers for four subjects and passes all four, the student will receive a 40% bursary, but if the student fails all four courses, the student will receive no bursary at all.

If the student passes three quarters of the subjects for which the student is registered, a 30% bursary will be awarded, and if only a quarter of the courses are passed, then 10% of the loan will be converted into a bursary.

Good news for final year students

As of 2011, NSFAS also administers a special pool of funds which is specifically aimed at final year university students. This funding is made available to all final year students who qualify for NSFAS funds according to the means test and who are expected to graduate at the end of 2011, on successful completion of all their courses.

At the University of Pretoria, over 1 000 students are expected to qualify for this final year funding in 2011. These students will not only receive a loan equivalent to the full cost of their studies, which is the full tuition fee and necessary living expenses, but upon graduation they will also receive a 100% conversion of this loan amount into a bursary, for the final year only. For those who fail to graduate, however, the loan will remain a loan, and when they exit the university, they will be expected to repay the full loan amount.

Taking into account the nationwide high university drop-out rates the aim of this new pool of NSFAS funds is to incentivise students to work hard and to achieve academic success and the qualifications they deserve.

For more information, contact the NSFAS Call Centre on 021 763 3232 or send your question via SMS to 32261 (Standard SMS rates apply). Email [email protected] or visit www.nsfas.org.za.