Does the NSFAS Loan Cover Historical Student Debt?

In 2023, NSFAS introduced the NSFAS Missing Middle Loan as part of its Comprehensive Student Funding Model.

This loan targets both undergraduate and postgraduate students who do not qualify for NSFAS bursaries.

Unfortunately, this loan does not cover historical debt.

According to Strategic Enablement Executive at NSFAS, Vuyokazi Mafilika, the loan is designed for new registrations only and cannot be applied to previous debt.

Once students are approved, they must sign a loan agreement, and up to 50% of the loan may be converted into a bursary based on academic performance.

Additionally, rejected bursary applicants will be automatically reassessed for the Missing Middle Loan. The loan prioritizes 70% of its funding for Science, Technology, Engineering, and Mathematics (STEM) programs, while 30% is allocated to Humanities and social sciences.