Student Loans in South Africa: NSFAS, Bursaries and Bank Options

Are there student loans in South Africa, or only bursaries?

Mostly bursaries, with a few loans. Which one you land on depends on your household income. Under R350 000 a year, NSFAS pays as a bursary. Up to R600 000 it lends. Banks such as Standard Bank, FNB, Absa and Nedbank lend through a parent or sponsor.

Is NSFAS a loan, and who qualifies?

Mostly a bursary. The Cabinet statement carried by SAnews gives the cut-off as R350 000 a year in combined household income, for South African citizens and permanent residents. For a student with a disability it is R600 000. Households between R350 001 and R600 000 are offered an NSFAS loan. SASSA grant recipients automatically pass the income test.

The money goes to students at public universities and TVET colleges, and only for approved qualifications. A SAnews report on the 2025 cycle repeats those income bands. Dates move every year, so check my.nsfas.org.za first. Read the bursary agreement before signing it, since NSFAS can recover funds if its conditions are breached.

What is the Funza Lushaka bursary?

Funza Lushaka is a bursary for people who want to become teachers. The Department of Basic Education's Funza Lushaka page says it covers items such as tuition, accommodation or transport, daily meals, learning materials and a personal care allowance, and it prioritises subjects such as Maths, Science, Technology, Engineering and South African Indigenous languages. The department's department's 2024 call for applications says it targets young people under 30 who qualify for a Bachelor of Education.

It is not a bank loan, but it comes with conditions. Recipients sign an agreement that sets out the conditions of work in the district where they were recruited. Read that agreement closely before signing, and phone the department on 012 357 3000 or email inquiries.funzalushaka@dbe.gov.za if anything is unclear. The page lists 30 November 2026 as the closing date for returning students and 31 January 2027 for new applicants.

How do bank student loans work?

A bank student loan covers fees, accommodation and study costs, and is repaid with interest. The usual set-up is that a parent, sponsor or guardian signs as the surety or principal debtor, because a full-time student has no income. During the study years the surety typically pays interest and fees only, with capital repayment starting later. Each bank sets its own rules. The table summarises what the banks publish on their own sites.

What do banks check?

Banks look at the person who signs, because the student usually has no income. Standard Bank's student loan calculator page lists R3 000 gross a month for the surety and R5 000 for a student who pays. It also says you cannot be insolvent or under debt review. FNB's student loan page asks for a South African ID for both applicant and student and for registration at a recognised tertiary institution. Nedbank asks for proof of registration, an acceptance letter and a fee invoice, as listed in its Nedbank's student loan FAQ.

Documents differ by bank, but expect your ID, proof of registration, a fee statement from the institution, and the signer's ID, payslip and bank statements. A surety with a poor repayment record can sink the application, so it helps for them to check their credit report first.

Can you get a student loan without a surety?

Sometimes, if the student has income. Standard Bank's student loan calculator page requires a surety only if someone else is paying while you study, and sets R5 000 gross monthly income for a student who pays. Nedbank says part-time students with an income can apply without a guarantor, and Absa's study loan page allows a part-time student who is employed full-time to take the loan in their own name. A full-time student with no income and no signer will usually find bank loans closed.

Be wary of anyone advertising a loan for students that needs no income checks or asks for an upfront fee. A registered credit provider must assess affordability, and the NCR warns against paying fees before a loan is granted. Use our guide to checking NCR registration before sharing your ID with a lender.

Which option is cheapest?

A bursary costs nothing if you meet the conditions, so exhaust NSFAS, Funza Lushaka and university or employer bursaries first. A bank loan is a real debt: the interest runs while you study, and a surety's finances are tied to yours. Borrow only the shortfall, compare the personalised rate each bank offers, and keep the total repayable figure from the quote. For lenders beyond the big banks, see the lender profiles.