How Will NSFAS Loans for “Missing Middle” Students Work?

Many students dream of obtaining a qualification but lack the financial means to pay for tuition. However, not all of them qualify for NSFAS bursaries due to financial ineligibility. To address this gap, the National Student Financial Aid Scheme (NSFAS) has introduced loans aimed at assisting the “missing middle” student group.

Who Are the Missing Middle?

The “missing middle” refers to students whose families earn too much to qualify for NSFAS bursaries but not enough to afford the full cost of tertiary education. These students fall into a financial gap that the NSFAS loan scheme is designed to bridge.

What Programmes Does the Loan Cover?

NSFAS places particular focus on STEM (Science, Technology, Engineering, and Mathematics) fields, allocating 70% of loan funds to students in these areas. The remaining 30% is directed towards those studying in the Humanities and Social Sciences.

Eligibility Criteria for NSFAS Loans:

You must be a South African citizen with a valid ID.
Your household income should range between R350,001 and R600,000 per year.
You need to maintain at least a 60% average in your coursework to continue receiving funding.
You must be enrolled in a full-time undergraduate or postgraduate programme at a public university or TVET college.
What Does the Loan Cover?
Like the NSFAS bursary, the loan covers tuition, registration fees, and provides allowances for essential expenses such as accommodation, transport, learning materials, and other student needs. The disbursement process for loans is the same as for bursaries.

How to Apply for an NSFAS Loan:

Visit the NSFAS website and click on “myNSFAS.”
New users should create a profile by selecting “Create a profile” and filling in the required information.
Existing users can log in with their credentials.
Complete and submit the electronic application form.
Understanding Your Application Status:

If your status shows “provisionally funded,” it means your application has been initially approved. However, NSFAS requires further steps before confirming the funding:

You’ll receive a pre-agreement form with the loan’s terms and conditions, which you’ll need to sign.
NSFAS will then collect your full registration details from your institution.
A final loan agreement will be sent to you for your signature after these steps are complete.

Loan Conversion to a Bursary:

NSFAS offers an incentive for academic excellence—up to 50% of your loan can be converted into a bursary if you maintain a 70% average, giving students a valuable reward for their hard work.

This NSFAS loan scheme provides crucial financial support to students in the “missing middle,” helping them access higher education without being overwhelmed by financial constraints.