Is NSFAS a Bursary or a Loan? The Clear Answer for Students

The biggest question students ask when they apply is, “Will I have to pay this money back?” You need a clear answer on whether the National Student Financial Aid Scheme (NSFAS) gives you a bursary or a loan.

The simple answer is that the main NSFAS funding for students who started studying from 2018 onwards is a full bursary. However, NSFAS now also offers a separate loan scheme for a specific group of students.

You need to understand both options to know exactly where you stand with your funding.

NSFAS Bursary (For Household Income Below R350,000)

If your combined annual gross household income is R350,000 or less, NSFAS gives you a bursary, which is essentially free money from the government.

A bursary is different from a loan because you do not repay it after you graduate. The government funds your studies because you come from a poor or working-class family and you meet the academic criteria.

What the Bursary Covers:

The NSFAS bursary provides full financial support for your public university or TVET college studies. It covers all the major costs you face:

• Tuition Fees: NSFAS pays your full registration and tuition fees directly to your institution.
• Accommodation: You receive an allowance for approved accommodation, whether you stay in campus residences or private student accommodation.
• Living Allowance: You get a fixed amount for personal care items and other necessities.
• Learning Materials: You receive money for prescribed textbooks and learning tools, often provided as a digital allowance.
• Transport Allowance: If you live at home and commute, you receive a travel allowance instead of the accommodation allowance.

Action-Oriented Tip: You must pass at least 50% of your registered modules to continue receiving this full bursary funding the following year. Pass your modules and keep your funding secure.

The NSFAS Student Loan Scheme (For “Missing Middle” Students)

If your family’s combined annual gross household income falls between R350,001 and R600,000, you are considered a “Missing Middle” student. These students usually do not qualify for the full bursary but need financial help.

For this group, NSFAS now offers a Student Loan. A loan means you must repay the funds after you finish your studies and find employment.

How the Loan Works:

1. Funding Split: The loan covers part of your study costs, but the allowances (like living or personal care) are typically limited or not included, unlike the bursary.
2. Repayment: Once you graduate or leave your studies, you begin repaying the loan when you earn above a certain income threshold (currently R30,000 per annum).
3. Loan Conversion: You must maintain a minimum academic standard (e.g., a 60% pass rate) to keep your loan funding each year. If you achieve a very high academic standard (e.g., above 70% average), a portion of your loan may convert into a non-repayable bursary.

If you qualify for the loan, review the loan agreement form (LAF) carefully. Accept the terms only when you understand your full repayment obligation.

The Key Difference: Pre-2018 Funding

If you started your studies before 2018, your NSFAS funding worked differently. NSFAS primarily provided an Income-Contingent Loan during that period.

• Pre-2018 Loans: This funding was a loan that you had to repay once you started working.
• Loan Conversion: However, up to 40% of that loan could convert into a bursary for each academic year you passed. If you passed all your modules, you paid back less money.

The Takeaway: If you started your studies from 2018 onward and meet the R350,000 income threshold, you receive a full bursary. Do not worry about repaying it. If your income falls between R350,001 and R600,000, you will receive a loan and you must plan for repayment.

Application Portal and Contact Details

Use the official channel to apply and manage your funding.

Service	Detail
Application Portal Link	myNSFAS Portal
Email for Enquiries	[email protected]
Telephone Number (Toll-Free)	0800 067 327
Physical Address	10 Brodie Road, Wynberg Mews, Wynberg, Cape Town