If you’re a South African student wondering whether to go for an NSFAS bursary or loan, you’re in the right place. We know, it’s confusing, especially when you just want to focus on your studies and not stress over money.
Let me break it down for you, by the end of this article, you’ll understand exactly what the difference is between a NSFAS bursary and an NSFAS loan, and most importantly, which one is right for you.
First, What Is NSFAS?
NSFAS stands for National Student Financial Aid Scheme. It’s a government-funded system that helps students from poor or working-class backgrounds pay for university or TVET college. If your household earns R350,000 or less per year, you’re likely to qualify. Check Top Companies In South Africa Awarding Bursaries Annually
It pays for:
- Tuition fees
- Registration fees
- Accommodation
- Transport
- Learning materials (including laptops!)
- Meal allowances
What Is a NSFAS Bursary?
A bursary is free money for your studies, you don’t pay it back if you meet the conditions. Think of it as a reward for showing potential but not having the financial means. NSFAS gives this to students who qualify based on financial need and academic performance.
Here’s the good part:
- It covers all your study-related costs.
- You don’t repay a cent, if you finish your studies.
- You can focus on school without worrying about where fees will come from.
- You get monthly allowances for food, books, and accommodation.
If you fail your modules or drop out, NSFAS might stop funding you. So, if you get the bursary, take it seriously. It’s not free money to waste, it’s a chance to change your life.
What Is a NSFAS Loan?
Before 2018, NSFAS used to operate mainly as a loan system. That means you’d get money to study, but you’d have to pay it back after graduating and earning a certain amount (usually more than R30,000 a year).
However, since the government restructured NSFAS, the loan model mostly applies to postgraduate students or missing middle students (those who earn slightly above the bursary threshold but still can’t afford fees).
Key things to know about the NSFAS loan:
- You repay after graduation.
- It comes with interest, but it’s low compared to commercial loans.
- There’s a repayment plan, you won’t be chased by debt collectors.
- You might still get full coverage (fees, accommodation, food).
NSFAS Bursary vs NSFAS Loan – Which One Should You Go For?
You’re probably thinking: “So which one is better for me?”
Here’s the honest truth:
Go for the NSFAS Bursary if:
- You’re an undergrad at a public university or TVET college.
- Your family income is R350,000 or less.
- You’re serious about passing and completing your qualification.
- You want peace of mind knowing you won’t owe money after school.
This is the best option for most students in South Africa today. No stress of paying back, no debt hanging over your head when you finish school.
Consider the NSFAS Loan if:
- You’re doing postgraduate studies (e.g., Honours, Master’s, etc.)
- You’re in the “missing middle” (income slightly above R350,000/year).
- You’re committed to your field but have no other funding.
The loan is still far better than taking out a private bank loan or getting into debt with high interest rates. It’s designed to be flexible and fair.
So Why Not Just Take a Bank Loan Instead?
Here’s why: banks don’t care if you pass or fail. You’ll owe them regardless. They charge high interest. And they don’t offer allowances or care if you have food. NSFAS, on the other hand, wants to see you succeed, not sink
Listen, I know the pressure. You want to study, build a future, and not become a burden to your family. That’s exactly why you must choose wisely.
- If you qualify for a bursary, grab it with both hands.
- If you only qualify for a loan, don’t feel bad. It’s still an opportunity. Study hard, graduate, and repay it proudly when you’re earning.
- Don’t let the fear of debt stop you from going after your goals. Education pays for itself.
At the end of the day, whether it’s a bursary or a loan, NSFAS is designed to give you a fighting chance. Use it. Respect it. Don’t take it for granted. Some of us wish this kind of help was available earlier.
If you’re still unsure which one you qualify for, go to the NSFAS website or speak to your school’s financial aid office. They’ll guide you based on your unique situation.
Also, keep checking bursaryforms.co.za, we break down bursary options, deadlines, and tips in a way that makes it easy for you to make decisions
