Government Student Loans South Africa

Government Student Loans South Africa

Government student loans in South Africa are accessible through the education funding scheme NSFAS. The National Student Financial Aid Scheme (NSFAS) is funded by the Department of Education in South Africa.

This scheme is specifically created to provide financial assistance for tertiary education.

The South African government values the importance or higher education. Citizens who are able to further their education are not only able to contribute to better economic growth, but are also able to make wiser decisions, which have positive ramifications on healthcare, safety and the crime rate. An educated nation is one that strives to improve socio-economic standing. NSFAS is one way of helping to facilitate this process, mainly because many South Africans are unable to access tertiary education due to crippling fees.

These loans are provided to academically able but financially needy students. Loan amounts range from R2000 to R30 000.

How do government student loans work?

This particular student loan is offered to students who are enrolled in one of the 25 public universities of the country.

The loans are designed to help student cover expense including tuition fees, accommodation, food, travel expenses as well as books.

Students are required to repay the loan on completion of their studies. Once they are earning more than R30 000 a year, they will be required to start repaying the loan.

Interest on the loan is 80% of the repo rate, which means that it is considerably lower than interest rates charged by banks.

Academic excellence may qualify students for a 40% bursary.

To apply, you can simply visit the Financial Aid Bureau at your tertiary institution or directly through the online application. NSFAS will inform you on the progress of the application by SMS and email.

You can contact the NSFAS by calling: 086 006 7327

Categories: Student loans