Does NSFAS Charge Interest on Study Loans? Interest is charged one year after a student has successfully graduated or exited the system. Students who qualify and receive NSFAS funding are not required to pay registration fees at universities. Up to 40% of the loan may be converted into a bursary dependent on the student’s year-end results.
NSFAS offers a lot of help to those who are seeking access to tertiary education by providing financial assistance in the form of loans and bursaries.
Knowing the repayment terms of NSFAS funding, particularly regarding interest charges, is necessary for students in making informed decisions about their financial future.
What is the difference between an NSFAS loan and a bursary?
The National Student Financial Aid Scheme (NSFAS) is primarily known for providing loans, bursaries, or both to applicants.
In straightforward terms, Bursaries can be defined as monetary assistance projects targeting certain students who, due to either financial or academic policies, are eligible for such funds.
These resources do not have to be repaid unless, for instance, the student does not comply with certain eligibility criteria such as being academically active.
Besides, students can take out NSFAS loans which are cash disbursements provided to students which have to be paid back after one has graduated or left school.
While no interest is charged during studies, there are certain conditions during repayment when interest will apply.
