What Happens with NSFAS Loan Repayment If a Student Exceeds the N+1 Rule?

In 2023, NSFAS introduced the NSFAS Missing Middle Loan under their Comprehensive Student Funding Model for undergraduate and postgraduate students who do not qualify for NSFAS bursaries.

Regarding students who exceed the NSFAS N+1 rule, the rule determines the number of years a student can receive NSFAS funding based on their registration duration. The “N” represents the minimum number of years required to complete a qualification, while “+1” allows an additional year of funding.

Strategic Enablement Executive at NSFAS, Vuyokazi Mafilika, explained that the N+1 rule is considered when assessing a student’s loan repayment likelihood. If a student has exceeded this timeframe and completed an undergraduate qualification, they will only be funded for a postgraduate qualification.

Once approved, students sign a loan agreement, and up to 50% of the loan may be converted to a bursary if they perform well. Rejected bursary applicants are automatically re-assessed for the Missing Middle Loan, with 70% of funding focused on STEM programmes and 30% on Humanities and social sciences.