The National Student Financial Aid Scheme (NSFAS) has refuted claims that the funding announcement for "missing middle" students was a hoax. These claims were made by a member of the Portfolio Committee on Higher Education and Training.
These averments are regrettable and not consistent with the facts shared by the NSFAS Administrator, Mr Freeman Nomvalo, at the PCHET meeting held on 21 August 2024.
In January 2024, former Higher Education Minister Blade Nzimande introduced the Comprehensive Student Funding model. This model was met with enthusiasm by students who previously didn't qualify for government-funded NSFAS bursaries.
While NSFAS supports over a million students from disadvantaged backgrounds, many others fall into the "missing middle" category. These students face significant financial burdens but cannot qualify for government funding.
The Comprehensive Student Funding Model aims to address this gap by offering NSFAS loans to missing middle students. These loans provide similar benefits to NSFAS bursaries, including more favorable terms than commercial loans and potential repayment reductions for high-achieving students.
Progress on NSFAS Loan Scheme
As of 15 August 2024, NSFAS approved 1,300 applicants for the loan scheme. This is a fraction of the 31,000 loans planned. The scheme prioritizes Science, Technology, Engineering, and Mathematics (STEM) fields, allocating 70% of funds to these programs.
NSFAS is finalising the Science, Technology, Engineering and Mathematics (STEM) requirement as per the guidelines and it is anticipated that details of all successful applicants will be shared with Institutions not later than 5 September 2024.
Eligibility Requirements for the NSFAS Loan
To qualify for the NSFAS loan, applicants must:
- Be South African citizens with valid IDs.
- Have a household income between R350,001 and R600,000.
- Maintain a minimum average of 60% in their coursework.
- Be registered for full-time undergraduate or postgraduate studies at a public university or TVET college.
Loan Coverage
The NSFAS loan covers tuition, registration fees, and allowances for essential expenses like accommodation, transport, learning materials, and other student needs. Disbursement channels will be the same as those used for NSFAS bursaries.
