Many South African students wonder if they can combine NSFAS funding with a student loan to cover extra costs. While NSFAS is a lifeline for thousands of students, it doesn’t always stretch far enough to cover everything. Tuition, accommodation, and basic allowances may be paid, but there are still costs like data, printing, and off-campus living expenses.
This article explores whether you can get both NSFAS and a student loan, what the official rules say, and the alternatives you might consider.
What NSFAS Covers (and Doesn’t Cover)
NSFAS (National Student Financial Aid Scheme) funds undergraduate students at public universities and TVET colleges. Here’s what it typically covers:
- Tuition fees: Fully paid if your NSFAS application is approved.
- Accommodation: University residences or accredited off-campus housing.
- Living allowance: Meals, transport, and basic learning materials.
Where the gaps often appear:
- Data and internet costs for online learning.
- Printing, stationery, and project supplies.
- Unaccredited off-campus living arrangements.
- Personal and lifestyle costs (toiletries, entertainment, etc.).
These uncovered costs often lead students to consider taking out loans to bridge the gap.
The Official NSFAS Policy on Student Loans
NSFAS used to be a loan system but is now largely a bursary—you don’t repay unless you fail or breach conditions. The scheme does have some clear rules:
- Students on NSFAS cannot receive another full bursary that duplicates its benefits.
- You must declare any additional funding you receive to your university’s financial aid office.
However, there’s a grey area: NSFAS doesn’t directly prohibit students from applying for private loans to cover extra costs. The key is transparency—double funding for tuition is not allowed, but loans for personal or uncovered expenses are not explicitly banned.
Student Loans Explained
Banks and private lenders such as Standard Bank, FNB, Nedbank, and even Capitec partnerships offer student loans. These loans differ from NSFAS in several ways:
- Repayment: You repay with interest, often starting immediately or after graduation.
- Guarantors: Most banks require a parent or guardian with a stable income to co-sign.
- Interest rates: Vary by bank, usually higher than government-linked schemes.
Key difference:
- NSFAS = Government bursary (no repayment unless conditions apply).
- Student loan = Debt (repayment with interest is guaranteed).
Can You Combine NSFAS and a Student Loan?
The short answer: Yes, but with conditions.
- NSFAS does not stop you from taking out a private or personal loan for extra expenses.
- However, banks may deny loans if you don’t have a guarantor or regular income.
- You cannot double-fund tuition fees—banks won’t pay for what NSFAS already covers.
Rule of thumb:
You can take out a loan for uncovered costs (data, printing, off-campus rent), but not for tuition already paid by NSFAS.
Alternatives Before Taking a Loan
Before applying for a loan, consider these options:
- Part-time jobs or side hustles: On-campus jobs, tutoring, or freelancing can add extra cash without debt.
- University hardship or emergency funds: Many institutions have small grants for students in financial distress.
- NGO bursaries: Check bursary databases for niche funding opportunities.
- Crowdfunding or alumni sponsorships: Platforms like BackaBuddy can help students raise funds.
These options can fill the gap without the burden of interest-bearing debt.
Pros and Cons of Taking a Loan with NSFAS
Pros:
- Covers funding gaps for off-campus living, laptops, or study materials.
- Provides peace of mind if NSFAS allowances fall short.
Cons:
- Adds debt before you’ve even graduated.
- Interest rates can grow quickly, leading to long-term repayment pressure.
- May place financial stress on family members acting as guarantors.
Expert Advice: Should You Do It?
Financial advisors generally recommend exhausting all bursary and part-time income options first. Loans should be a last resort, especially for students with no guaranteed post-graduation income.
If you must take a loan, borrow only what you absolutely need, keep records transparent, and budget for repayments in advance.
Read more: Top Tips for a Successful NSFAS Application
FAQs
1. Can NSFAS students apply for bank loans?
Yes, but you’ll need a guarantor or proof of income to qualify.
2. Will taking a loan affect my NSFAS funding?
Not usually, as long as it doesn’t duplicate tuition or allowances already paid by NSFAS.
3. Can NSFAS cover private or unaccredited accommodation?
No. You’ll need to self-fund or consider a loan for this.
4. Do banks allow loans for laptops or study equipment?
Yes. Some banks offer student loans specifically for equipment purchases.
5. What happens if I fail my modules while on NSFAS and a loan?
You may lose NSFAS funding and still be liable to repay the private loan.
6. Do I have to tell NSFAS if I take a student loan?
Yes. You should declare any additional funding to your university’s financial aid office to avoid breaching NSFAS rules.
7. Can a student loan cover living costs not included in NSFAS allowances?
Yes. Banks typically allow loans to cover rent, food, and transport not already paid for by NSFAS.
8. Will a student loan affect my credit record after graduation?
Yes. Repaying on time can help build a good credit history, but missed payments can negatively impact your credit score.
9. Can international students on NSFAS also apply for student loans?
No. NSFAS is only for South African citizens, but banks may still offer loans to foreign students with a guarantor.
10. Is it better to take a personal loan or a student loan?
Student loans often have lower interest rates and repayment terms tailored for students, making them a better option than standard personal loans.
Also check: NSFAS 2026 Applications Made Simple
NSFAS is designed to reduce the need for student loans—but it doesn’t cover every cost. If you’re facing extra expenses, it’s possible to take out a small student loan alongside NSFAS funding, but it comes with risk.
Final takeaway: Plan carefully, budget wisely, and explore all alternatives before turning to debt.
