Is NSFAS A Bursary Or Loan?

Is NSFAS A Bursary Or Loan?

The National Student Financial Aid Scheme (NSFAS) is a program in South Africa that helps students pay for their university or college fees. Many people wonder whether NSFAS is a bursary or a loan, and the answer is a bit of both. NSFAS mostly offers bursaries, which are financial aids that you do not have to pay back. These bursaries are meant for students from families with low incomes, usually earning R350,000 or less per year. If you qualify, NSFAS will cover your tuition fees, accommodation, textbooks, and sometimes even meals.

The best part is that as long as you meet your study requirements, such as passing your courses, you don’t need to repay this money. However, if your family earns a little more between R350,001 and R600,000, NSFAS might give you a loan. Unlike bursaries, loans have to be paid back, but usually only after you finish your studies and start earning a decent salary. For most students, this means once you get a job and make over a certain amount, you will begin paying back the loan gradually.

In short, NSFAS provides both bursaries and loans depending on your family’s financial situation. If you get a bursary, it helps you without adding a debt burden. But if you get a loan, it’s important to plan ahead since you’ll need to repay it later. Either way, NSFAS is designed to make higher education more affordable and accessible for many South African students.

Learn more: NSFAS Loan Or Bursary 2026

Is NSFAS A Bursary Or a Loan?

South Africa’s National Student Financial Aid Scheme (NSFAS) primarily provides financial support in the form of a bursary. This implies that the student does not have to repay a major percentage of the NSFAS funds as long as they achieve specific educational requirements and complete their studies within an acceptable time limit. NSFAS consists of a load component and a Bursary component.

NSFAS Loan Component:

This loan component is interest-free while the student is in educational institutions, and the interest rate is income-contingent, which means it is determined by the student’s projected earnings after graduation.
Repayments for the loan part begin whenever the student earns more than a specified income level, and the conditions are often more advantageous than regular loans.

NSFAS Bursary Component:

The bursary component of NSFAS covers tuition and registration fees, and provides students with a living allowance.
The best aspect is that this portion of NSFAS funds is not reimbursed if the student achieves specific educational requirements and completes their education on schedule.

What Does NSFAS Cover?

NSFAS is a bursary that helps cover many costs for students who qualify. This includes:

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 institution) R7,500 per annum
Living allowance R15, 000 per annum
Book allowances R5200 per annum
Incidental/personal care allowance R2900 per annum for students in catered residences

TVET

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

Required Documents To Apply for the NSFAS Bursary

Applying for a bursary/loan requires applicants to submit supporting documents. The following documents must be submitted to apply for NSFAS;

Copy of student ID / Birth certificate
Copy of parent/s or guardian/ spouse ID
Smart card: both sides of the card are required
Proof of income (where applicable)
Persons living with disability (Disability Annexure A form)
An applicant who is recognised as a vulnerable child by the Department of Social Development must provide a completed Vulnerable Child Declaration form completed by a social worker
An applicant who has indicated that s/he has no family member details and or an abridged birth certificate, must complete the Declaration: Non-SASSA.

Learn more: Coinvest NSFAS Login

How To Apply For the NSFAS Bursary

NSFAS Applications must be done online on the official website of the agency. Follow the steps below to apply for the NSFAS bursary/loan;