Nsfas provides both bursaries and loans to students to help them get higher education. The NSFAS loan application submission process is as same as for funding. You have to apply before the deadline, NSFAS will verify your details and provide you loan. Students enrolled in the old funding model are provided some part of their funding as a loan, which they have to repay after getting job.

How NSFAS Processes Loan Applications?

NSFAS application for funding goes through multiple checks to verify that you are eligible for funding. NSFAS application for loan goes through the process below:

Verification of Personal Details and Academic Records NSFAS goes through your personal verification and academic records to verify that you qualify for the NSFAS loan.
Loan Agreement Before giving you any loan, they make a loan agreement to bind you that you have to repay the loan when you start employment.
Approval NSFAS verifies all your details and will grant you the loan if it sees that you qualify for a loan.
Disbursement Loan is transferred directly to your institute.

If your loan status is showing ‘Loan in Progress’. “Loan in Progress’ NSFAS means that they are processing your loan request. Keep checking your portal to stay updated about your loan application.

Why Some Students Receive Burseries and Some Loans?

NSFAS bursaries, such as academic fees, accommodation, transport, and others, are given to students who qualify for NSFAS funding. The NSFAS loan is given to students of the following categories:

Students enrolled in the NSFAS old funding as per 2018.
Postgraduate students under specific conditions.
Certain applicants who do not qualify for NSFAS funding are provided NSFAS loan.

Do We Need to Accept an NSFAS Loan?

Yes, after approval of your NSFAS loan application, you have to accept the loan for disbursement. Follow these steps to accept your loan:

Log in to the NSFAS Students Portal Log in to your account and review your loan agreement.
Read the Terms and Conditions Read the terms and conditions for the loan carefully.
Digital Acceptance of Agreement You have to sign the acceptance of the loan electronically.
Confirm the Transfer of funds Confirm with the institute whether funds have been received or not.

Without accepting, you won’t receive the loan from NSFAS.

Repaying an NSFAS Loan

The NSFAS student loan is to be repaid under specific conditions. Once you get employment and your salary is above R30,000 per year, you have to repay this loan. Amounts are deducted from your salary. You will be given A flexible repayment option so as not to burden you with large payment installments. Repayment percentage starts at 3% for a minimum annual salary, it varies with salary, and the maximum is 8%. Click here to contact NSFAS.

Common Problems and Their Solutions

If your NSFAS loan application is stuck on ‘Loan in progress’ that can be due to the following reasons:

Missing documents such as an income certificate or an academic transcript.
Delay in processing the application due to a large number of applications.
University registration delays, missing banking details, or verification issues.

Follow these guides to boost the process of application acceptance process.

Double-check that all required documents are uploaded.
Keep checking the NSFAS portal to make sure that you do not miss any updates.
Make sure academic registration has been confirmed by your institute and your banking details are correct.

Keep checking your NSFAS student loan application status, and if there is a delay for a long time without any mistake, you can contact NSFAS to proceed with your application.

FAQs

What does ‘Loan in Progress’ mean in NSFAS?

‘Loan in Progress’ NSFAS means your loan application is under process for verification before approval.

Is NSFAS a bursary or loan?

NSFAS is a bursary, but under specific conditions, loans are provided to students, such as students enrolled in old funding models or postgraduate students.

Can my loan be converted to a bursary?

In some old funding models, a part of the loan could be converted to funding based on behalf of your academic performance. To confirm this, contact NSFAS and learn about their policies on loans.

How do I check my loan balance or repayment status?

Visit the NSFAS portal and log in with your login details. Check your loan balance and repayment status. You can call on 0800 067 327.

What documents are required for the NSFAS loan application?

Your ID card copies
Income Certificate
Academic Transcript

When do I have to pay back the NSFAS loan?

You have to pay when you get employment with a minimum R30,000 annual salary. They make flexible repayment installments, easy to repay.

Final Thoughts

The NSFAS loan application is submitted by some postgraduate student or students in the old funding model, such as pre-2018. They need to verify their details to avail of the loan. Once their loan is approved, they have to accept and sign the legal agreement for repayment. They have to repay it when they start employment.