Education is consistently cited as the most valuable investment a South African can make — in themselves, or in a dependent. Yet the cost of tertiary education continues to rise well above inflation, placing enormous pressure on families. Understanding all available funding options — from government schemes to commercial bank loans — is the first step to making an informed decision.
Tier 1: Government Funding — NSFAS
The National Student Financial Aid Scheme (NSFAS) is the first port of call for South African students from households earning below R350,000 per year. NSFAS provides bursaries (not loans) that cover:
- Tuition fees
- Accommodation (on-campus or an accommodation allowance)
- Meal allowance
- Book and learning material allowance
- Personal care allowance
- Travel allowance (where applicable)
NSFAS covers students at all 26 public universities and 50 accredited TVET (Technical and Vocational Education and Training) colleges. Students funded through NSFAS who earn above R30,000 per year after graduation contribute a portion of their income back to the scheme.
Apply at nsfas.org.za — applications typically open in August for the following academic year.
Tier 2: Bank Study Loans
For students who exceed the NSFAS income threshold, commercial bank study loans are the primary alternative.
Standard Bank Student Loan
Standard Bank offers student loans up to R400,000 for registered students at South African institutions. Key features:
- Repayment deferred during full-time study (interest capitalises)
- Parent or guardian surety typically required
- Available for undergraduate and postgraduate studies
- Interest rate: prime-linked, personalised
Absa Study Loan
Absa's study loan covers tuition and approved residential accommodation fees. A surety (parent or guardian with income) is generally required for students without independent income. Repayment begins after graduation or employment, whichever comes first.
FNB Student Loan
FNB student account holders can apply for a study loan linked to their degree programme. Disbursement is typically made directly to the institution per semester. A guarantor with FNB account is ideal but not always mandatory.
Nedbank
Nedbank's study loan facilities for parents financing children's education offer amounts up to R400,000, with repayment deferred during the study period.
Tier 3: Employer and Corporate Bursaries
Many South African companies and state-owned enterprises (SOEs) offer bursaries to employees or community members in specific fields:
- Sasol: Engineering, science, and technology bursaries
- Eskom: Electrical engineering, technology bursaries
- Department of Education - Funza Lushaka: Teaching bursaries (with teaching commitment)
- Old Mutual, Sanlam, Discovery: Finance and actuarial bursaries
- SETA bursaries: Sector-specific, available via sector education and training authorities
Professional Qualifications: Short Courses and Part-Time Study
For working adults pursuing professional qualifications (CA(SA), CFP, CIMA, LLB, MBA, etc.), options include:
- Personal loan from your bank (most flexible)
- Employer study assistance (check your employment contract or HR policy)
- Professional association bursaries (SAICA, SAIPA, etc.)
- University payment plans: Many institutions offer instalment-based fee payment
Tips for Education Financing in South Africa
- Apply for NSFAS regardless of how confident you are about qualifying — the threshold changes.
- Bursaries are strictly better than loans — they don't need to be repaid. Exhaust bursary options first.
- If taking a bank loan, understand interest capitalisation during deferment periods — the outstanding balance can grow significantly over a 4-year degree.
- A R200,000 study loan at 13% APR with 4 years of interest capitalisation and a 10-year repayment term results in significantly higher total repayment than the original loan amount — model this before committing.
Frequently Asked Questions
What is NSFAS and who qualifies for it?
NSFAS (National Student Financial Aid Scheme) is a government bursary programme for South African students from households earning below R350,000 per year. It covers tuition, accommodation, meals, and living allowances at all 26 public universities and 50 TVET colleges. Crucially, NSFAS provides bursaries — not loans — to qualifying students.
What happens to interest on a bank student loan during my years of study?
Interest typically continues to accrue on the outstanding balance during the deferment period while you are studying. This process is called capitalisation — the accrued interest is added to your principal balance. A R100,000 loan at 13% APR over a 4-year degree could grow to approximately R160,000 by graduation before repayments begin.
Can I get a student loan without a parent surety?
For students without independent income, a parent or guardian surety is required by most commercial banks. Capitec does not offer a dedicated student loan product but provides personal loans to individuals with qualifying income — students who earn part-time income may apply without a surety.
Are there bursaries that do not need to be repaid?
Yes. NSFAS bursaries do not need to be repaid for most recipients (a small repayment contribution is expected from graduates earning above R30,000 per year). Corporate bursaries, SETA bursaries, Funza Lushaka teaching bursaries, and university merit/need bursaries are also fully non-repayable.
How do I apply for NSFAS in South Africa?
Applications open annually, typically from August to November for the following academic year. Apply online at nsfas.org.za using your South African ID number. You will need to upload your parents' or guardians' income documents as part of the means test.
Can a bank student loan be used for living expenses in addition to tuition?
It depends on the bank and loan structure. Standard Bank and Absa typically fund tuition and approved accommodation fees. For living expenses, students may need to apply for a separate personal loan or seek support through SASSA grants, university support programmes, or part-time employment.
