Do You Have to Pay NSFAS Back – What Happens if You Don’t?

Are you dreaming of studying in a high-standard university but do not have sufficient funds? I had similar ambitions after completing matric but university fees were out of range, textbooks seemed a luxury, and paying rent was a persistent distress. In this condition, my senior advised me to apply for the National Student Financial Aid Scheme to accomplish my dreams.

NSFAS is a program launched by the government that covers the major expenses of students. The purpose of this program is to provide financial assistance to the students.

All kinds of disadvantaged students from different backgrounds can apply for NSFAS but very few applicants know that they need to pay the amount back to the government. My last remark might leave you upset but it is true, NSFAS is a loan given to students.

Do You Have to Pay NSFAS Back?

The majority of the applicants are unfamiliar with the fact that NSFAS is a loan program designed by the government to assist students. They consider that NSFAS is a bursary program that does not demand to pay back the money but when you fill out the application form of NSFAS, it shows you the entire details of the loan program.

If you do not know, it provides all the basic facilities a student requires. For example, it gives student tuition fees, registration fees, transportation and accommodation expenditures, study material, and personal care allowance. In short, a student does not need to spend a single rand of his personal amount, he can take the money from NSFAS and pay all kinds of charges.

Here, you need to know that the student must pay the amount back to the NSFAS after completing his studies. NSFAS spends thousands of rands upon a student during his studies in which his tuition fee and accommodation are the major expenditures. The amount you borrow from an NSFAS is recorded in your credit history.

When I Need to Pay Back Loan?

Maybe you are scratching your head with stress and worrying about how to pay the money back to NSFAS, you should relax. Students who are registered before 2019, do not have to repay but the applicants registered after 2019 should know that the amount they have borrowed from NSFAS is a burden upon them until they pay it. There is no specific timeframe determined by the NSFAS authorities to pay back the NSFAS money.

An applicant can return money after being employed and earning R25,000 to R30,000 per month. In case, a previously NSFAS-enrolled graduate finds a job but earns less than the mentioned amount, NSFAS does not demand him to repay his loan. In addition, if you lose your job and are unable to pay NSFAS, you can pause the repayments.

An applicant needs to pay 3% of his salary as an installment per month. If a previously enrolled graduate earns more than R59,300, he needs to pay 8% of his salary. A previously NSFAS graduate creditor needs to pay the amount until he repays the entire loan.

What Happens If You Don’t Pay Back NSFAS?

In case you do not repay the amount borrowed by the NSFAS, you can face a court trial. Repaying an NSFAS loan is essential, when an applicant is filling out and submitting the forms, he is informed by the NSFAS authorities that if he does not pay the loan back to the department, it will take legal action against him. So, there is no escape, one needs to pay the loan back and the terms are very simple so everyone whether a farmer or a low-wage employee can effortlessly return the borrowed amount.

NSFAS is a pillar of support for students who are in the stage of financial challenges and cannot pursue either education career because of money deprivation. NSFAS aims to help them by providing accommodation, free transportation, giving them meal allowance, offering them personal care allowance, and paying their university dues whether it is semester fees or registration charges.

But it also longs for repayment when the previously disadvantaged NSFAS-enrolled student finds a source of income that helps him make a handsome amount. The repayment terms are very simple and one can effortlessly return the entire borrowed amount. In case a person does not repay, the department can take legal action against him, so it is advised to repay the loan you borrowed when you find a suitable job.