Paying for higher education in South Africa
In South Africa, students from households earning less than 350,000 rand a year receive an NSFAS bursary, those between 350,000 and 600,000 rand can apply for the missing middle loan, and the rest rely on bank loans backed by a parent.
The NSFAS bursary, which is not repaid
Since 2018, the National Student Financial Aid Scheme has covered tuition, accommodation and allowances for students from low-income households. The threshold is set at 350,000 rand of annual household income, raised to 600,000 rand for students with disabilities.
The NSFAS missing middle loan
Launched in 2024, this loan targets households earning between 350,000 and 600,000 rand. For 2026, only 1,561 of the 26,538 applicants were accepted, and NSFAS is considering a review of the income ceiling and the criteria.
Priority for science and technology courses
About 70% of the missing middle loan funds are set aside for STEM programmes. The falling number of learners who write mathematics in matric, however, limits the pool of candidates who qualify for these courses.
Funza Lushaka for future teachers
The Funza Lushaka bursary from the Department of Basic Education funds teaching degrees in priority subjects. In return, the graduate commits to teaching in a public school for a period equal to the number of years funded.
ISFAP and corporate bursaries
The Ikusasa Student Financial Aid Programme combines private funding with support for missing middle students in occupations in high demand. Mining, banking and industrial groups also offer bursaries that come with a commitment to work for them.
Bank student loans
FNB, Absa, Standard Bank and Nedbank lend to students enrolled at a recognised institution, but almost always require an employed surety, usually a parent. During the studies, the surety often pays only the interest on the loan.
Fundi and paying for fees
Fundi, an education finance specialist, funds university fees, equipment and accommodation, paying the institution directly. For school fees before university, our guide to school fee loans in South Africa sets out the options.
Universities and TVET colleges
Funding covers public universities such as Wits, UCT, Stellenbosch or the University of Johannesburg, as well as public TVET colleges. Private institutions are not eligible for NSFAS, which makes paying for them considerably more expensive for families.
Registration fees in January
Universities ask for a first payment at registration, before most financial aid is paid out. For NSFAS-funded students, this upfront payment is generally covered or deferred, depending on the rules of each institution.
Accredited student accommodation
NSFAS accommodation allowances apply only to accredited residences. In Braamfontein, Hatfield or Observatory, the rent for a private room can exceed the allowance, which pushes some students towards consumer credit to close the gap.
Repayment and the first job
A bank student loan is usually repaid as soon as the studies end. Graduates need to build it into their first budget as young employees, even before buying a car, as our guide to credit in South Africa reminds readers.
NSFAS compared with Zambia's loans and bursaries system
In Zambia, a public loans and scholarships board funds students at public universities under different rules. Our guide to student loans in Zambia explains how repayment through salary deductions works in that system.
Applying for study funding in South Africa
- Submit the NSFAS application online while the window is open, with proof of household income.
- Apply at the same time for corporate bursaries, Funza Lushaka or ISFAP, depending on your field of study.
- If household income is above 600,000 rand, compare student loans from banks and Fundi.
- Name an employed surety and provide their payslips and bank statements.
- Send the admission letter and the institution's invoice so that fees are paid directly.
Study funding available in rand
| Scheme | Income condition | Repayment |
|---|---|---|
| NSFAS bursary | Household below 350,000 ZAR a year | Not repayable |
| NSFAS missing middle loan | Between 350,000 and 600,000 ZAR a year | Repayable after studies |
| Funza Lushaka | Based on merit and a teaching qualification | Service in a public school |
| Bank student loan | Employed surety required | Interest during studies, capital afterwards |
| Corporate bursary | Depends on the sponsor | Work-back commitment |
Documents for student funding in South Africa
- Student's South African ID
- Identity documents of parents or guardians
- Proof of household income or a statement of unemployment
- Admission letter from the university or TVET college
- Matric results or university academic records
- Surety's payslips for a bank loan
Frequent missteps when funding studies
- Waiting for NSFAS results without applying elsewhere, then missing the deadlines for corporate bursaries.
- Paying a middleman who promises to get an NSFAS application approved, when applying is free and done online.
- Enrolling at an ineligible private institution while counting on public aid that will never arrive.
- Underestimating the rent at a non-accredited residence and covering the difference with consumer credit.
NSFAS, the missing middle and bank loans
Does the NSFAS bursary have to be repaid?
No. Since the switch to a bursary system in 2018, aid given to students below the income threshold does not have to be repaid, provided they meet the academic progression requirements set by NSFAS.
Who can get the missing middle loan?
Students whose household earns between 350,000 and 600,000 rand a year and who are enrolled at a public university. The number of beneficiaries remains small, and NSFAS has announced a public consultation on the criteria.
Can a foreign student receive NSFAS funding?
No, the aid is reserved for South African citizens and, under the current rules, some permanent residents. Foreign students need to look to scholarships from their own country, foundations or family funding.
What happens if I fail some modules?
NSFAS applies progression rules: taking too many years or failing repeatedly can lead to the loss of funding. Bank loans, on the other hand, generally keep running with the interest that is due.