National Student Financial Aid Scheme: A Guide

Explore NSFAS, a South African government financial aid scheme providing support to undergraduate students in need, enabling access to public university and TVET college education.

The National Student Financial Aid Scheme (NSFAS) is a South African government financial aid scheme providing financial aid to undergraduate students who demonstrate financial need. NSFAS is a model public entity that offers financial assistance to all eligible public university and Technical and Vocational Education and Training (TVET) college students. The mission of NSFAS is to transform into an efficient and effective provider of financial aid to students. 

NSFAS is a financial scheme for needy tertiary students established through the National Student Financial Aid Scheme Act of 1999. The scheme provides students with bursaries to cover the cost of tuition, accommodation, and books. The aid is available to South African citizens and permanent residents studying at a public university or TVET college. 

Are you in need of financial assistance to study at a tertiary institution? If so, you can apply for a National Student Financial Aid Scheme (NSFAS) bursary. The application process is straightforward and can be done online. NSFAS is committed to ensuring that all eligible students have access to financial aid, regardless of their background or economic circumstances. 

Who is eligible for the National Student Financial Aid Scheme?

The National Student Financial Aid Scheme (NSFAS) is a South African government student financial aid scheme which provides financial aid to undergraduate students who need assistance to pay for their studies. The scheme offers bursaries to students who are financially needy and academically deserving. 

To be eligible for the NSFAS bursary, you must meet the following requirements:

• You must be a South African citizen or permanent resident.
• You must enrol or plan to enrol at a public university or TVET college in South Africa.
• You must come from a household with a combined annual income of R350 000 or less.
• You must have passed Grade 12 or an equivalent qualification.
• You must be studying towards your first undergraduate qualification.

It is important to note that meeting these requirements does not guarantee you receive an NSFAS bursary. The scheme gets many applications yearly, and the selection process is competitive. The scheme prioritizes students from households with a combined annual income of R122 000 or less, students with disabilities, and students who are orphans or from child-headed homes. 

Students who have already completed a previous qualification are not eligible for the NSFAS bursary. Still, they may qualify for other financial aid forms, such as loans or scholarships. 

How to Apply for the National Student Financial Aid Scheme

If you need financial assistance to study at a tertiary institution, you can apply for a bursary from the National Student Financial Aid Scheme (NSFAS). The application process is simple and straightforward, and you must follow the guidelines carefully to ensure your application succeeds.

The following are the steps to follow when applying for financial assistance from NSFAS:

• Step 1: Register on the NSFAS website at www.nsfas.org.za and complete the online application form. Ensure you have all the required documents before you start the application process.
• Step 2: Once you have completed the online application form, submit it online. You will receive an email confirming that your application has been received.
• Step 3: NSFAS will assess your application and determine whether you qualify for financial assistance. If you meet the requirements, you will be notified of the outcome of your application.
• Step 4: If your application is successful, NSFAS will pay your tuition fees directly to the institution where you study. You will also receive a monthly allowance to cover your living expenses.

It is important to note that appeals will only be considered for students who have applied to NSFAS for financial aid. If you have been unsuccessful in your application, you can appeal the decision by following the guidelines on the NSFAS website.

Make sure you apply for financial assistance from NSFAS well before the start of the academic year to avoid any delays in processing your application. If you have any questions or need help with your application, you can contact NSFAS directly at 08000 67327 or visit their website for more information.

What are the types of financial aid available through the National Student Financial Aid Scheme?

Grants

The National Student Financial Aid Scheme (NSFAS) provides grants to students who cannot pay for their studies. These grants cover the cost of tuition fees, accommodation, and study materials. The student’s financial needs and academic performance determine the grant amount. The grant does not have to be repaid.

Loans

The NSFAS also provides loans to students who cannot pay for their studies. These loans cover the cost of tuition fees, accommodation, and study materials. The student’s financial needs and academic performance determine the loan amount. The loan must be repaid after the student has completed their studies and started working. The interest rate on the loan is low, and students have up to 20 years to repay the loan.

Bursaries

The NSFAS provides bursaries to students who are academically talented but unable to pay for their studies. These bursaries cover the cost of tuition fees, accommodation, and study materials. The student’s financial needs and academic performance determine the bursary amount. The bursary does not have to be repaid.

It is important to note that the NSFAS does not fund postgraduate studies, except for the Masters and Doctoral studies in social work. 

Students who receive financial aid from the NSFAS must meet specific academic requirements to continue receiving funding. These requirements include maintaining a minimum academic average and completing their studies within a particular time frame.

Allowances

The National Student Financial Aid Scheme (NSFAS) provides allowances to eligible students to help cover the costs of their studies. These allowances include a meal, living, and incidental/personal care allowance.

Meal Allowance

The meal allowance is provided to students to cover the cost of meals during the academic year. The meal allowance amount varies depending on the institution and the type of accommodation offered. For students living in university residences, the meal allowance is paid directly to the institution and covers the cost of meals provided by the institution. For students living off-campus, the meal allowance is paid directly to the student and is intended to cover the cost of meals that the student prepares themselves.

Living Allowance

The living allowance is provided to students to cover the cost of accommodation, transport, and other living expenses. The amount of the living allowance varies depending on the institution and the type of accommodation provided. For students living in university residences, the living allowance is paid directly to the institution and covers the cost of housing and other living expenses provided by the institution. For students living off-campus, the living allowance is paid directly to the student and is intended to cover the accommodation and other living expenses that the student incurs.

It is important to note that the living allowance is only intended to cover basic living expenses. Students are expected to manage their finances carefully to ensure that they do not run out of funds before the end of the academic year. Students who require additional financial assistance should contact their institution’s financial aid office for advice and support.

What are the requirements for maintaining financial aid from the National Student Financial Aid Scheme?

Once you receive financial aid from the National Student Financial Aid Scheme (NSFAS), you must maintain certain requirements to continue receiving the funding. The following are the requirements you need to meet:

• Academic performance: You must pass at least 50% of your modules or subjects to maintain financial aid eligibility. If you fail a module or subject, you must repeat it at your own expense. 
• Attendance: You must attend at least 80% of your classes to maintain your eligibility for financial aid. 
• Progression: You need to progress to the next academic level within the prescribed period to maintain your financial aid eligibility. You may lose your financial aid eligibility if you repeat a year or take a gap year. 
• Course duration: You must complete your course within the minimum period specified by your institution. You may lose your financial aid eligibility if you exceed the time period. 
• Change of course: If you change your course, you must inform NSFAS and your institution. NSFAS will assess your eligibility for financial aid based on the new course. 

If you fail to meet these requirements, NSFAS may suspend or cancel your financial aid. You must re-apply for financial aid if your funding is suspended or revoked.

It is important to note that NSFAS may also conduct regular reviews of your eligibility for financial aid. You must provide updated information about your academic progress and financial status to NSFAS when requested.

What are the consequences of defaulting on National Student Financial Aid Scheme payments?

Defaulting on your National Student Financial Aid Scheme (NSFAS) payments can have serious consequences. If you fail to make payments on time, you will be considered to be in default. This means that you had broken the agreement you made when you signed the loan agreement, and the consequences can be severe.

Here are some of the consequences of defaulting on your NSFAS payments:

• Your credit score will be negatively affected. A default will be recorded on your credit report, which can make it difficult to obtain credit in the future.
• You may be charged additional fees and interest on your outstanding balance.
• Your wages may be garnished. This means that a portion of your salary will be deducted to pay off your outstanding balance.
• You may be taken to court. NSFAS may take legal action against you to recover the outstanding balance of your loan.
• You may be ineligible for future financial aid. If you default on your NSFAS loan, you may not be eligible for financial aid.

If you are struggling to make your NSFAS payments, contacting NSFAS as soon as possible is essential to discuss your options. You may be able to apply for a payment plan or deferment, which will allow you to postpone your payments temporarily.

It is important to remember that defaulting on your NSFAS loan can have serious consequences. If you are having trouble making your payments, it is crucial to take action as soon as possible to avoid defaulting on your loan.

How can I check my NSFAS status?

If you have applied for NSFAS funding, you may wonder how to check your application status. Here are some ways to do it:

• Online: One of the easiest ways to track your NSFAS status is to log in to your myNSFAS account online. Once you have logged in, you will be able to see the progress of your application and any updates related to your funding.
• WhatsApp: You can also add NSFAS on WhatsApp by dialling *120*67327 or adding 078 519 8006 to your contacts. This will allow you to track your application status and receive updates on your funding.

It’s important to note that your application may take some time to process, and you may need to be patient while waiting for updates. If you have any questions or concerns about your NSFAS application, you can contact the NSFAS call centre at 0800 067 327.

Checking your NSFAS status is an integral part of ensuring that you receive the funding you need to complete your studies. By using the online portal or WhatsApp service, you can stay up-to-date with the progress of your application and ensure that you are on track to receive the financial assistance you need.

Conclusion

The National Student Financial Aid Scheme (NSFAS) is a vital program that provides financial assistance to academically deserving but financially needy students in South Africa. The program was established in 1999 as an income-contingent student loan and bursary scheme, to enable young people from poor households to obtain a higher education.

Over the years, NSFAS has undergone significant changes to improve funding management to students. The program has introduced better systems to ensure that funds are allocated fairly and efficiently and that students receive the financial support they need to complete their studies.

Despite these efforts, NSFAS has faced challenges in recent years, including issues with the disbursement of funds and the identification of eligible students. However, the program remains an essential tool for promoting access to education and addressing issues of inequality in South Africa.

In the future, NSFAS must continue to evolve and adapt to meet the changing needs of students and the education sector. This includes ensuring that funds are distributed fairly and efficiently and that students receive the support they need to succeed in their studies.

Overall, the National Student Financial Aid Scheme is a vital program that is critical in promoting access to education and addressing issues of inequality in South Africa. With continued support and investment, NSFAS has the potential to significantly impact the lives of students and their families and contribute to the development of a more equitable and prosperous society.