Pursuing a university or college qualification in South Africa is a significant financial investment. With tuition fees at public universities ranging from R20,000 to over R100,000 per year, plus accommodation, books, and living costs, most students and their families require some form of financial assistance.
NSFAS: Government Funding for Qualifying Students
The National Student Financial Aid Scheme (NSFAS) is South Africa's primary vehicle for funding tertiary education for students from low-income households. NSFAS provides bursaries (not loans) to students whose household income falls below R350,000 per year. Recipients at public universities receive funding for tuition, accommodation, meals, and a living allowance.
Key facts about NSFAS:
- Available at all 26 public universities and 50 TVET (Technical and Vocational Education and Training) colleges
- Applications open annually (typically August to November for the following academic year)
- Funded students who earn above R30,000 per year after graduation are expected to repay a portion of their funding
- Apply via the NSFAS online portal (nsfas.org.za)
For students who qualify for NSFAS, this is almost always the best first option — it is not a commercial loan and carries no commercial interest rate.
Bank Student Loans
For students who do not qualify for NSFAS (typically because household income exceeds the threshold), commercial bank student loans are the main alternative.
Standard Bank Student Loan
Standard Bank offers student loans up to R400,000 for registered students at accredited South African institutions. A parent or guardian acts as surety. Interest rates are linked to prime (currently ~11.75%) and repayment can be deferred while studying (interest capitalises during this period).
FNB (First National Bank) Student Loan
FNB offers student loans through the FNB Student Account product. The loan is linked to academic progress and disbursed per semester. A guarantor (parent or guardian with income) is required.
Absa Student Loan
Absa's study loans cover tuition, textbooks, and approved residence fees. Repayment is deferred during full-time study, with capital and interest repayments beginning after graduation or when the student earns income.
Nedbank Student Loan
Nedbank's personal loan range can be used for education purposes by parents financing a dependent's studies, with standard personal loan rates and terms.
Capitec Bank
Capitec does not offer a dedicated student loan product but does offer personal loans to individuals with income. Recent graduates or part-time students with income may qualify for a personal loan that covers education-related costs.
Bursaries and Scholarships: Free Money First
Before taking any loan, exhaust bursary options:
- Funza Lushaka (Department of Education): Teaching bursaries for students committing to teaching in public schools
- SETA bursaries: Sector Education and Training Authorities fund studies in their respective industries
- Corporate bursaries: Many South African companies (Investec, Old Mutual, Sasol, etc.) offer merit-based bursaries
- Institutional bursaries: Universities offer merit and need-based bursaries directly
Tips for Student Loan Applicants
- Apply for NSFAS first, regardless of how confident you are about qualifying — the assessment criteria shift annually.
- If taking a commercial loan, understand the interest capitalisation during study years and model the total repayment obligation at graduation.
- Borrow only for tuition and essential costs — avoid borrowing for lifestyle expenses.
- Maintain satisfactory academic progress, as most bank student loans require continued enrolment to remain active.
Frequently Asked Questions
What is the income threshold to qualify for NSFAS funding in South Africa?
The NSFAS means test uses a combined gross household income threshold of R350,000 per year. Students whose households earn below this amount may qualify for NSFAS bursaries covering tuition, accommodation, meals, and a living allowance at public universities and TVET colleges.
Do I need a parent as surety to apply for a bank student loan?
For students without independent income, most commercial banks (Standard Bank, FNB, Absa) require a parent or guardian to act as surety or guarantor. This means the surety is liable for repayment if the student defaults. Capitec and some other lenders may consider applications from students with part-time income without a surety.
When do I start repaying a bank student loan in South Africa?
Most South African bank student loans defer repayments during full-time study. Interest typically continues to accrue on the outstanding balance during the deferment period (a process called capitalisation), which means the balance you owe at graduation is larger than the original loan amount. Repayments usually begin after graduation or once you start earning income.
Can I apply for NSFAS if I am studying at a private college?
NSFAS funding is only available at registered public universities and accredited TVET colleges. Students at private institutions are not eligible for NSFAS and must explore bank student loans, private bursaries, or employer funding.
What happens to my student loan if I fail or drop out?
Commercial bank student loans typically require continued enrolment to remain active. If you fail or withdraw, the bank may require you to begin repayments immediately rather than waiting until graduation. Always read your loan agreement's academic progress conditions before signing.
Are there bursaries available for working adults studying part-time?
Yes. SETA (Sector Education and Training Authority) bursaries are available in specific industries for part-time and full-time students. Employer study assistance, SAICA and other professional body bursaries, and university part-time bursaries are also available — exhausting these options before taking a commercial loan is strongly recommended.
