Majority Of NSFAS Loan Applicants Qualify For Bursaries. The National Student Financial Aid Scheme (NSFAS) plays a critical role in funding tertiary education for South African students.
While NSFAS is widely known for offering bursaries, it also provides student loans. However, out of the thousands of NSFAS loan applications received, only a small percentage—approximately 2%—have been approved for funding in 2025.
Majority Of NSFAS Loan Applicants Qualify For Bursaries
In a recent update during the National Council of Provinces Committee (NCOP) Education, Sciences, and Creative Industries meeting, NSFAS revealed that only about 1,300 students had been approved for loan funding for the 2025 academic year. This has sparked discussions among students and stakeholders regarding the accessibility of financial aid.
NSFAS remains a vital financial aid provider, ensuring that deserving students can pursue higher education without financial constraints. The funding options available include:
- Bursaries: These cover tuition and registration fees for students from low-income households who meet the financial criteria.
- Loans: Introduced in 2024, these are tailored for “missing middle” students—those who do not qualify for bursaries yet still require financial assistance.
- Allowances: These cover essential expenses such as accommodation, food, and learning materials to ensure students can focus on their studies.
NSFAS Loan Applications and Approval Rate
For the 2025 academic year, NSFAS received an overwhelming 65,000 loan applications, yet only 1,321 applicants were deemed eligible for loan funding. This low approval rate raises concerns about accessibility and eligibility criteria. The key reasons behind the high rejection rate include:
1. Preference for Bursaries Over Loans
A significant factor in the low approval rate is that over 41,000 loan applicants actually qualified for bursaries. NSFAS prioritizes awarding bursaries to students who meet the financial eligibility criteria before considering them for loans.
2. Loan Eligibility Requirements
To qualify for a NSFAS loan, applicants must meet strict financial and academic requirements. The following groups were disqualified:
- 800 applicants were rejected due to previous NSFAS loan defaults.
- Over 1,000 students exceeded the “N+ rule,” which limits funding to a set number of years based on a student’s qualification duration.
- 2,380 applicants did not meet the required academic standards.
- Approximately 8,770 applications are still under academic verification.
- Around 328 applications are currently being processed by NSFAS’s ICT department.
These stringent requirements ensure that loans are allocated responsibly, preventing financial mismanagement and ensuring funding sustainability.
NSFAS Loan Payments for 2024 and 2025
The Department of Higher Education and Training (DHET) has confirmed that NSFAS is in the process of finalizing payments for the 2024 loan applicants. According to the latest statement, all 2024 loan payments will be made by no later than 31 March 2025, provided that institutions submit the necessary documentation on time.
Additionally, NSFAS has reassured students that all approved 2025 loan recipients will receive their payments by the end of March 2025. This ensures that students can focus on their academics without financial uncertainty.
Impact of NSFAS Funding on Higher Education
The financial aid provided by NSFAS has transformed the lives of thousands of students, allowing them to access higher education opportunities that would otherwise be unattainable.
However, the recent loan approval figures highlight a need for greater clarity on eligibility requirements and alternative funding solutions for students who fall outside of the bursary criteria.
With ongoing discussions about funding models for the “missing middle,” NSFAS may need to explore more inclusive strategies to bridge the financial gap. In the meantime, students are encouraged to stay informed about eligibility requirements and submit all required documentation promptly to avoid delays or disqualifications.
Conclusion
While NSFAS remains a cornerstone of financial aid for South African students, the low loan approval rate in 2025 underscores the importance of bursary prioritization.
With over 41,000 applicants qualifying for bursaries instead of loans, it is evident that many students can still access financial aid. However, for the “missing middle” students who do not qualify for bursaries, alternative funding solutions may be necessary.
