Paying for university in Lesotho: NMDS, banks and alternatives
In Lesotho, higher education is funded mainly through the loan-bursary of the National Manpower Development Secretariat, which covers fees and an allowance for admitted students and must be repaid after graduation, while bank student loans remain marginal.
The loan-bursary, backbone of student funding
The National Manpower Development Secretariat, a government body, runs the main funding scheme for Basotho students. It is not a free grant: the support received is a debt owed to the state, repayable once the graduate starts working.
Who qualifies for the NMDS scheme
Applicants must be Basotho citizens, admitted to a recognised institution and meet the academic criteria set each year. Programmes considered priorities for national development are generally favoured when funded places are allocated.
Universities and colleges in Lesotho
The National University of Lesotho in Roma takes most of the funded students. Other institutions, such as Limkokwing University and Lerotholi Polytechnic in Maseru, also train students, some of whom receive the loan-bursary as well.
Studying in South Africa with Basotho funding
Some programmes not offered in Lesotho, particularly in medicine or specialised engineering, lead students to South African universities. NMDS can fund these courses, and the parity between the loti and the rand makes paying fees simpler.
What the loan-bursary covers
Depending on the institution and programme, the support covers tuition fees, part of accommodation and a living allowance paid in maloti. Amounts and conditions are set by the secretariat and may change from one academic year to the next.
Repayment rules after graduation
Repayment normally begins once the graduate is employed, often through payroll deduction. Recovery rates stayed low for years, which led the authorities to tighten checks and trace former beneficiaries who had not repaid.
The 50% rule and its relaxation in 2023
Previously, a student had to repay half of the loan-bursary debt before receiving new support. A government decision in September 2023 allowed top students in priority fields to benefit without meeting that condition first.
Bank loans for students and parents
Basotho commercial banks offer few dedicated student loans. Employed parents tend to fund studies with a personal loan repaid by payroll deduction, or with savings built up during the high school years.
From secondary to tertiary: planning the costs
Families who have already borrowed for boarding and secondary school fees must take those debts into account before taking on new ones. The page on school loans in Lesotho covers financing high school and back-to-school costs.
Foreign scholarships and alternatives
Scholarships from foreign governments, foundations or mining companies complement the public scheme. They are often announced by the Ministry of Education or by NMDS, and genuine schemes never charge a fee to submit an application.
How student debt affects future borrowing
An unpaid loan-bursary debt can strain the relationship with a public employer and eventually affect access to other credit. Settling your position before applying for a first mortgage or car loan is therefore strongly recommended.
The model in neighbouring Eswatini
Eswatini also funds its students through a state-run system of repayable scholarships, with similar debates about recovering money from graduates. The page on student loans in Eswatini presents this neighbouring scheme in more detail.
Applying for the NMDS loan-bursary
- Secure admission to a recognised institution in Lesotho or in South Africa.
- Check the priority fields and the timetable published by the National Manpower Development Secretariat.
- Submit your application with transcripts, admission letter and ID card before the deadline.
- Sign the loan-bursary contract after reading the repayment conditions carefully.
- Inform the secretariat of any change of programme, institution or address during your studies.
- Arrange repayment as soon as you start your first job to avoid reminders and penalties.
What funding studies costs in Lesotho
| Item | Situation | What changes the amount |
|---|---|---|
| Tuition fees | Set by each institution | University, programme, country of study |
| Accommodation and living costs | NMDS allowance or family budget | City of study, residence or private rental |
| Loan-bursary repayment | According to NMDS rules | Amount received, length of studies, salary |
| Parent's personal loan | Bank rate above prime, indicative | Parent's profile and loan term |
Loan-bursary file for a Basotho student
- National ID card or birth certificate
- Secondary (LGCSE) or university transcripts
- Admission letter from the institution
- Recent passport photos
- Contact details and ID of parents or guardians
Missteps Basotho students make with the loan-bursary
- Treating the loan-bursary as a gift and ignoring the obligation to repay it after graduation.
- Changing programme without telling NMDS, which can suspend funding in the middle of the year.
- Paying a fake agency on social media that promises a guaranteed scholarship at a foreign university.
- Letting student debt build up with no contact with the secretariat after joining the civil service.
Lenders to contact
- Nedbank Lesotho: Lesotho subsidiary of the Nedbank group providing retail banking services to individuals, including borrowing and credit solutions.
- Nedbank Lesotho: Lesotho subsidiary of the Nedbank group offering personal loans as well as home loans to individual customers.
- Letshego Lesotho: Lesotho subsidiary of the Letshego inclusive financial services group, specialising in loans to individuals, including loan consolidation.
Questions about Lesotho's loan-bursary
Does the NMDS bursary have to be repaid?
Yes, the National Manpower Development Secretariat scheme works as a loan-bursary: the money received is a debt owed to the state. Repayment comes after studies, usually once the graduate is employed, according to the terms of the signed contract.
Can I get a new bursary without repaying the previous one?
Previously, half of the debt had to be settled first. Since a decision in September 2023, the best-performing students in priority fields can receive support without that condition and repay after they graduate.
Does NMDS fund studies in South Africa?
Yes, for certain programmes, particularly those not available in Lesotho. The conditions, number of places and accepted institutions are set each year by the secretariat and should be checked before you apply.
Are there bank student loans in Lesotho?
Banks offer few loans designed for students. Families rely instead on a personal loan taken by an employed parent or on savings, and some companies or foundations offer bursaries targeted at their own sectors.