NSFAS Repayment Policies and Procedures

If you are a student in South Africa and have received a National Student Financial Aid Scheme (NSFAS) loan, you may be wondering what the repayment policies and procedures are. It is important to understand these guidelines so that you can properly plan for repaying your loan and avoid any penalties or legal actions that may result from defaulting on your loan. In this article, we will discuss the NSFAS repayment policies and procedures, including the repayment terms, interest rates, and consequences of defaulting on your loan.

Repayment Terms

NSFAS loans have repayment terms that vary depending on the type of loan you receive. For students who receive a bursary, the loan is converted into a bursary upon successful completion of their studies, meaning they do not have to repay the loan. However, for students who receive a loan, the repayment term is set at a maximum of 10 years.

Once you have completed your studies, you will have a grace period of six months before you have to start repaying your loan. During this period, you will not be required to make any payments, but interest will accrue on your loan. It is important to note that if you have not found employment within six months of completing your studies, you will still be required to start making payments on your loan.

Interest Rates

NSFAS loans have a low interest rate of 3% per year, which is significantly lower than most commercial loans. However, it is important to note that interest will accrue on your loan from the date of disbursement until the loan is paid in full.

Repayment Procedures

NSFAS offers several repayment options to help students manage their loan payments. The most common repayment option is a debit order, where your monthly loan repayment is automatically deducted from your bank account. This is the most convenient option as it ensures that your payments are made on time, and you do not have to worry about missing a payment.

Alternatively, you can make manual payments through electronic funds transfer (EFT) or at an NSFAS paypoint. It is important to note that if you choose to make manual payments, you need to ensure that your payments are made on time to avoid any penalties or legal actions.

Consequences of Defaulting on Your Loan

If you default on your NSFAS loan, you may face several consequences, including legal action and blacklisting. NSFAS may take legal action against you to recover the outstanding debt, which may result in a judgment being issued against you. This can have severe consequences, such as having your assets seized, your salary garnished, or being blacklisted by credit bureaus, which can negatively impact your ability to obtain credit in the future.

NSFAS may also impose penalties for late payments or missed payments. It is important to note that these penalties can add up quickly, and you may end up owing more than your original loan amount if you do not keep up with your payments.


In conclusion, if you have received an NSFAS loan, it is important to understand the repayment policies and procedures. This will help you properly plan for repaying your loan and avoid any penalties or legal actions that may result from defaulting on your loan. Remember that you have a maximum of 10 years to repay your loan, with a grace period of six months after completing your studies. The interest rate on NSFAS loans is low at 3% per year, and several repayment options are available to help you manage your payments. However, if you default on your loan, you may face severe consequences, such as legal action and blacklisting. Therefore, it is important to make your loan repayments on time and keep in touch with NSFAS if you experience any financial difficulties.

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