Do You Pay NSFAS Money Back?

Do You Pay NSFAS Money Back? What is NSFAS money for?

In South Africa, the National Student Financial Aid Scheme (NSFAS) gives many students access to higher education, acting as a lifeline. One question that NSFAS recipients frequently have, though, is if they have to repay the money they get. We will explore the nuances of NSFAS in this post, elucidating whether or not students must return the funds and, if so, under what conditions. The National Student Financial Aid Scheme (NSFAS) is a government initiative designed to provide financial support to eligible South African students who wish to pursue higher education. NSFAS offers various forms of financial assistance, including loans and bursaries, to cover tuition fees, accommodation, and study materials.

NSFAS Bursaries: What is NSFAS money for?

You are exempt from repaying the money if you are fortunate enough to be awarded an NSFAS bursary. A bursary is essentially a grant of money awarded to students according to their academic standing, financial need, and other factors. This implies that you won’t have to worry about repaying the money you receive if you meet the eligibility requirements because it will be a gift.

What does the bursary cover?

Amounts indicated for accommodation, living allowance, transport and learning materials need to be aligned with the approved latest DHET guidelines.

UNIVERSITY

Accommodation: As per the actual costs charged by the university (costs for private accommodation must not exceed costs for university residence)
Transport (up to 40 km from the institution) R7 500 per annum
Living allowance R15, 000 per annum
Book allowances R5200 per annum
Incidental/personal care allowance of R2900 per annum for students in catered residences

TVET

Accommodation in an urban area is R24,000 per annum
Accommodation in a peri-urban area is R18,900 per annum
Accommodation in a rural area is R15,750 per annum
Transport (up to 40 km from the institution) R7,350 per annum
Transport R7000 per annum
Incidental/personal care allowance R2900 per annum

NSFAS Loans

The issue of loan repayment frequently comes up because NSFAS also provides loans to students. While it is expected that you will repay any NSFAS loans you receive, there are a few key points to remember:

Income Cutoff Point

For students from low-income families, NSFAS loans are intended to be accessible and affordable. Once your education is finished and your income surpasses a specific threshold, repayment can only start. In order to make sure you are financially stable before beginning repayment, the threshold is set at a reasonable amount.

Interest-Free Loans

NSFAS loans are interest-free, which means you won’t be charged any interest on the loan amount. This policy makes the loans more affordable and less burdensome for beneficiaries.

Income-Dependent Paybacks

Due dates are based on a portion of your income and are arranged as income-contingent repayments. Your repayment will increase in proportion to your income, making sure it’s manageable.

Cancellation of Loan

Your NSFAS loan may in certain situations be cancelled for particular reasons. Your loan might be turned into a bursary, in which case you won’t be required to repay it if you achieve academic excellence, finish your studies in the allotted time, or fulfil additional requirements.

Whether you were awarded a loan or a bursary for NSFAS funds will determine whether you are required to repay the funds. As a grant determined by financial need and academic achievement, bursary recipients are exempt from repaying the money. Even though the conditions of an NSFAS loan are intended to be fair and manageable, you will have to pay it back once your income exceeds a particular threshold. It is important to keep in mind that NSFAS provides an essential lifeline to a great number of South African students, facilitating access to higher education for those who most require it. APPLY NOW

RELATED LINKS:

Contact NSFAS

For general, student and NSFAS Wallet enquiries

For all other queries regarding students:

Tel No.: 08000 67327

Email: info@nsfas.org.za

Physical Address

The Halyard, 4 Christiaan Barnard St,

Cape Town City Centre, Cape Town, 8001

Naa