Does NSFAS Charge Interest on Study Loans? NSFAS loan is the study loan you borrow from NSFAS to cover the costs of your studies at any of the public universities or TVET’s in South Africa. The loan covers: tuition fees, residence or private accommodation, food, books and travel costs were applicable. This loan must be repaid to NSFAS when you finish studying and secure employment. Up to 40% of your NSFAS study loan may be converted into a bursary, which you do not need to repay, the bursary conversion is dependent your academic performance.
NSFAS offers a lot of help to those who are seeking access to tertiary education by providing financial assistance in the form of loans and bursaries.
Knowing the repayment terms of NSFAS funding, particularly regarding interest charges, is necessary for students in making informed decisions about their financial future.
What is the difference between an NSFAS loan and a bursary?
NSFAS offers two primary funding options: loans and bursaries.
Bursaries are essentially free grants awarded to students based on financial need and academic merit.
These funds do not need to be repaid unless the student fails to meet specific eligibility criteria, such as academic progress requirements.
On the other hand, NSFAS loans are financial advances that must be repaid with a grace period after graduation or exiting the education system.
While interest-free during studies, interest does apply under specific circumstances during the repayment phase.