Career Information -Financial Aid

Internal university funding

This category of financial aid is awarded to entry-level and postgraduate students. Institutions differ in their requirements, and this type of funding may include the following.

Merit awards for academic performance. Students registered for an undergraduate diploma or degree may qualify for a student merit bursary, but only if their academic performance continues to meet a required standard.

Merit awards for non-academic performance. Some merit awards may be granted for non-academic achievement — a sports bursary, for example. In this case, students will need to submit proof of their sporting achievements.

National Student Financial Aid Scheme (NSFAS)

This is probably the most frequently used financial aid service in South Africa. NSFAS is a government initiative that provides both bursaries and loans to students. Students must apply if they are studying, or wish to study, at public universities or Technical and Vocational Education and Training (TVET) colleges in South Africa.

NSFAS has three elements to its mission:

- NSFAS provides financial aid to eligible students at universities and public TVET colleges.

- NSFAS funds eligible students, offers bursaries, and ensures that past student loans are repaid so that funds can be replenished for students who need this support in the years ahead.

- NSFAS supports access to, and success in, tertiary institutions for students from underprivileged and working-class families who are commonly unable to afford further study.

Who qualifies for NSFAS funding?

- South African citizens.

- SASSA grant recipients.

- Learners whose joint household income is not more than R350,000 per year.

Additional support for students with physical limitations

Students with physical disabilities who are funded are further supported with an additional allowance. Students are encouraged to contact the Disability Unit or Financial Aid Office at their institution for further assistance, and NSFAS also offers further support in this regard.

Bursaries

Every year, several bursaries are awarded to academically deserving students. As a growing nation, many students rely on sponsorships to study further and secure a qualification for good work opportunities and a decent future. The terms "bursary" and "scholarship" are sometimes used interchangeably, but there are differences. When an organisation or government department offers a bursary, it usually comes with an agreement or contractual obligation — meaning that students who receive this type of bursary will typically need to work for the organisation for the same number of years that the funding was provided. CDPs need to inform students of these requirements before they apply.

Should students fail to honour the terms of the contract with the organisation, they will usually be required to repay the funding. Government bursaries do not usually carry a contractual obligation in the same way, but there may be a requirement that students who receive funding work in South Africa within a particular sector. These bursaries typically cover tuition and living expenses. Applying for either type of bursary is time-consuming, and students need to provide comprehensive information to prove that they are deserving and in need.

Scholarships

As mentioned, bursaries typically come with a contractual obligation, but scholarships do not follow the same rule. Scholarships are commonly offered by charitable foundations and trusts, and are provided to financially needy students who perform well academically. Scholarships are sometimes flexible, allowing students to choose what they wish to study, whereas bursaries are usually specific to a particular discipline.

Student loans available in South Africa

ABSA, FNB, Standard Bank and Nedbank, along with some private lenders, offer student loans. Practitioners need to advise students on the risks associated with loans from loan sharks — this option is strongly discouraged. To obtain a student bank loan, students will need proof of registration and will typically need an adult — a parent, guardian or relative — to stand surety for the loan. This means that the person standing surety takes responsibility for ensuring the monthly repayments are made on time. Parents and students should be made aware of the interest rates associated with student loans.

Specific bursaries for teachers

The government-funded Funza Lushaka bursary is intended to promote teaching within public schools. The Department of Basic Education (DBE) has identified certain subject areas as a national priority, and emphasis is given to these areas. The bursary covers the full cost of study for its duration, including tuition, textbooks and living expenses. Those who receive this bursary must teach at public schools for the same number of years that they received the bursary, and recipients may be placed in provinces far from home, sometimes in rural areas, with little choice over where they are assigned. This is a contractual agreement with Funza Lushaka.