Government student loans in South Africa fulfil an important role in the lives of many students who otherwise wouldn’t be able to afford tertiary education.
These loans are often more favourable than bank student loans mainly because of the more lenient repayment requirements and lower interest rates.
In South Africa, Government Student Loans are offered by the National Student Financial Aid Scheme (NSFAS). This scheme is funded by the Department of Higher education and training for those who don’t have the financial means to fund their studies and/or cannot access bank funding, study loans or bursaries.
As the biggest student loan issuer in South Africa, NSFAS is often willing to work with you if you don’t have surety.
What you need to know about Government Student Loans in South Africa:
The money is paid directly to the student’s educational institution. The money can then be used to pay for tuition and textbook costs.
When you apply you need to know what interest rates apply and you need to understand how you will repay.
You need to know the methods of payment required by the borrower.
Why choose Government Student Loans?
They are more lenient in terms of repayments.
They don’t have strict credit checks, but often require a good academic performance.
They often offer repayment flexibility.
In most cases, approval is based on the affordability of the obliged payer.
Documents required during the application process:
- Valid IDs
- Proof of residence
- Bank statements
- Payslips
Student proof of enrolment and proof of annual course fees
Insurance cover is recommended so that your student loan debt is paid off in the event of your death, critical illness or permanent disability.
To contact NSFAS, call: 0860 067 327 or send an email to info@nsfas.org.za
