Bursary conversions
Depending on your results, up to 40% of your NSFAS study loan may be converted into a bursary and you do not need to repay that amount.
Students in their final year of study, who will qualify to graduate at the end of the year, are eligible to be funded through the Final Year Programme. This is a special funding programme which was launched by the President in 2011. If you graduate in your final year, the loan is converted to a 100% bursary. Students can only benefit from the Final Year Programme once.
Interest
Interest is only charged 12 months after you have completed your studies by either graduating or dropping out.
Interest is charged at 80% of the repo rate, which is the repurchase rate at which the Reserve Bank lends to commercial banks. NSFAS will continue to charge interest on all outstanding balances. It is therefore very important to start repaying your loan as soon as possible.
In the case that the Repo Rate changes, the interest rate charged will be updated annually on the 1 April.
Repayment terms
NSFAS has made repayments affordable for you. Repayments of your student loan are based on the salary that you earn, and start once your salary is R30 000 or more per year.
Payments start at 3% of your annual salary, increasing to a maximum of 8% when your salary reaches R59 300 or more per year. For example, this means you will pay back R900 a year on a salary of R30 000 a year, or R84 per month.
Where your salary is not provided to NSFAS subsequent to the completion of your studies, you will have 60 months to repay your loan.
2. Grace period
This will be considered on a special request basis only.
3. Interest rates
Interest is charged on a compound basis at 80% of the Repo Rate. In the case that the Repo Rate changes, the interest rate charged will be updated annually on the 1 April.