Bursary or Loan? Understanding South Africa’s Financial Aid System for Students:

NSFAS offers financial support to qualified students in South Africa, assisting them in covering tertiary education costs. The assistance provided by NSFAS is flexible, and tailored to individual student situations. The type and conditions of aid from NSFAS are influenced by factors such as the student’s financial status, academic achievements, and the educational institution they are enrolled in.

It is important for students to thoroughly examine the terms of any financial aid received from NSFAS, ensuring clarity on whether it constitutes a bursary, a loan, or a blend of both. The National Student Financial Aid Scheme (NSFAS) is a South African government-funded organization committed to providing financial support for underprivileged students pursuing higher education.

With the 2025/2026 academic year approaching, many students and their families may be wondering whether NSFAS is a bursary or a loan. This article aims to clarify the distinction between these two types of financial aid and provide insight into what NSFAS offers for South African students.

Read: Nsfas bursary requirements

What Is The Difference Between Bursary And Loan 2025/2026

Before delving into the specifics of NSFAS, it is essential to understand the differences between bursaries and loans:

 Bursaries:

• Bursaries are non-repayable grants provided to students based on financial need, academic merit, or other qualifying criteria. They are designed to cover tuition fees, books, accommodation, and other living expenses. Bursaries often come with conditions, such as maintaining a minimum academic performance or participating in community service.

Loans:

• Student loans are financial aid that must be repaid with interest, usually after graduation. Loans can come from banks, private lenders, or the government. Repayment terms and interest rates vary depending on the loan provider and the borrower’s financial situation.

Is Nsfas A Bursary Or Loan For 2025/2026

Historically, NSFAS provided financial aid in the form of loans, but the organization has since transitioned to offering bursaries for most students. In 2018, the South African government announced that NSFAS would be converted into a bursary scheme for first-time entry and continuing students from families with a combined annual household income of R350,000 or less.

As a result, for the 2025/2026 academic year, NSFAS primarily offers bursaries, meaning that eligible students do not have to repay the financial aid received, provided they meet specific academic and post-graduation requirements.

NSFAS Bursary Application Requirements and Conditions 2025/2026

To qualify for an NSFAS bursary, students must meet the following criteria:

• Be a South African citizen.
• Have a combined annual household income of R350,000 or less.
• Be accepted or enrolled at a public university or TVET college in South Africa.

Also, NSFAS bursary recipients are required to maintain satisfactory academic performance and may need to fulfil other obligations, such as community service or internship requirements, depending on the specific bursary guidelines.

How To Apply For An NSFAS Bursary 2025/2026

To apply for an NSFAS bursary for the 2025/2026 academic year, follow these steps:

• Visit the official NSFAS website (www.nsfas.org.za) and click on “Register” to create an account.
• Complete the registration form with your personal information and create a secure password.
• Log in to your account using your email address and password to access the MyNSFAS Portal.
• Click on “Apply” and fill out the online application form with all the necessary information.
• Upload the required supporting documents.
• Submit your application and keep track of the application reference number for future reference.

Read Also: Nsfas Bursaries For 2024/2025

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