NSFAS Will Offer 31 000 Loans To Missing Middle Students

Approximately one million students will benefit from NSFAS bursaries in 2024. However, this is not the only group of students that will be assisted by the financial aid scheme following the launch of the Comprehensive Student Funding Model.

The National Student Financial Aid Scheme (NSFAS) is ready to implement the first phase of the Comprehensive Student Funding model. Its implementation is significant as it represents funding for the missing middle.

Higher Education Minister Blade Nzimande launched the Comprehensive Funding Model earlier this week which will see students who do not qualify for NSFAS bursaries supported by the government.

Missing middle students refer to individuals who come from households with a combined income exceeding the threshold set by NSFAS of R350,000 and don’t qualify for government-funded support. Despite exceeding the household income threshold, these students cannot afford the cost of higher education.

Nzimande announced that in phase 1 (2024) R3,8 billion will be available to support the loan scheme. R1,5 billion will come from the National Skills Fund with an additional R2,3 billion coming from the Setas. This amount is expected to fund 47% of missing middle students.

NSFAS expressed gratitude to the government for availing the funds that will ensure missing middle students are supported on their tertiary education journey.

NSFAS is grateful that the government made available R3.8 billion as the initial capitalisation fund to support the loan scheme for 2024. This amount comprises R1.5 billion from the NSF and R2.3 billion from SETAs.

The amount will fund approximately 31 884 (47%) of the estimated 68 446 missing middle

The Minister also revealed that the fund for missing middle students will grow each year so that in 10 years it will be valued at more than R42 billion.

How NSFAS Missing Middle Funding Will Work

NSFAS is known for providing comprehensive bursaries to deserving students from poor and working-class backgrounds. However, this was not always the case. Before 2018, NSFAS support was administered as a loan.

While students who fall below the household income threshold of R350,000 will qualify for an NSFAS bursary, missing middle students will not.

Missing middle students will be provided with NSFAS support in the form of a student loan.

It is unclear which students will be funded through the NSFAS student loan as the financial aid scheme is still in the process of developing eligibility criteria and conditions for funding.

NSFAS is currently developing the loan scheme eligibility criteria and conditions for funding.

Here’s What We Know So Far

Students…

• Must have an annual household income between R350,001 and R600,000
• Must be accepted to study at either TVET College or a public university
• Can apply in years 1, 2, 3 or 4
• Must achieve an average of 60% in their coursework to continue funding

If students achieve more than 70% and finish within the prescribed time, of course, they can have 50% of the loan written off, on application.

This article first appeared on The Careers Portal