Disadvantages of National Student Financial Aid Scheme
The National Student Financial Aid Scheme is a government-run loan-based funding program. This program aims to provide deserving students with low-interest loans, so they can fund their higher education. Though a good opportunity, it comes with some loopholes discussed below.
So, give it a read and learn all about the disadvantages of NSFAS. It can help you decide whether to apply for loans or not.
Insufficient Funding
The funding model of NSFAS is inconsistent and it is often criticized by the students. Often, applicants face issues of restricted funds, administrative issues, and requirements surpassing the available funding. Thereby, even students who are eligible and well-qualified for the funding are unable to receive the grant money.
Administrative Delays
The NSFAS application process is quite extensive and complex, resulting in a lot of technical errors, confusion, and miscommunication among applicants. Over the years, these issues have influenced the effectiveness of the scheme, causing dissatisfaction among students and institutions. The authorities have made certain reforms and interventions to resolve these issues and restore accountability.
Limited Funding
The current NSFAS funding system partially covers your tuition fees, leaving other essential costs to be managed by undergraduates and graduates themselves. In this case, the burden of accommodation costs, meals, transport, textbooks, and other material costs is on your shoulders. It increases financial stress and impacts student’s academic performance.
Repayment Obligations
According to NSFAS policy, students are obligated to repay the funding money to the agency once they have completed their studies and achieved secure employment. However, there is an increasing pattern for graduates where they cannot repay their loans, much of which is their limited financial progress after graduation. Hence, there is no guarantee of how you will be able to repay the NSFAS funding.
Delayed Disbursements
Another significant issue faced by the NSFAS beneficiaries is the delay in the distribution of funds. It is especially challenging for those who are solely relying on NSFAS for financial assistance and have no other means of income to cover their expenses. In this case, unnecessary delays and financial stress can add up, given the immediate need to cover personal and educational costs.
Academic Pressure
NSFAS has strict policies for students to maintain their academic results. According to the current NSFAS policy, students are required to pass most of their modules with an average passing of 50%, aside from the criteria set by the institution. It creates a lot of stress and anxiety among students who are already going through academic difficulties.
Lack of Postgraduate Funding
The recent NSFAS policy focuses mostly on undergraduate students and TVET colleges, which leaves graduate students with limited funding opportunities. It restricts access to higher education for anyone who wishes to pursue advanced degrees. That said, it does not mean postgraduate students will not receive any funding; rather ones with higher academic achievements will be given preference.
Who Should Not Apply for NSFAS Funding?
Here are the following people who are not eligible for NSFAS funding.
- Learners who are receiving bursaries from another agency.
- Students who have a combined household higher than R350,000 per year.
- Students currently enrolled at a private institution.
- Learners taking a short course at a university.
Do We Have to Pay NSFAS Back?
When applying for the NSFAS program, it is important to note that the scheme is a loan-based funding scheme, which means the students are required to pay back the money. Hence, once the student graduates from college and secures employment, he/ she starts paying the money back. It is an advantage, as you are not required to worry about finances during your study.
- Plus, the loans provided to students have low interest rates and flexible repayments. Hence, applying for them is better than other loan programs.
Conclusion
NSFAS is undoubtedly a great opportunity for students who require loans to fund their education. However, everything comes with a cost and NSFAS is no different. I hope this guide has managed to help you make a decision.