Mediamec The National Student Financial Aid Scheme is preparing to review the eligibility requirements for its student loan programme after a surprisingly low number of successful applicants in the current academic cycle.
The possible overhaul comes after concerns emerged over the gap between the number of students applying for the loan scheme and those who ultimately qualified. While the initiative was introduced to support South Africa’s “missing middle” students, the latest figures have raised questions about whether the current income thresholds are too restrictive.
The scheme was designed for students whose household income places them above the bursary threshold but still below the level where self-funding university studies becomes realistic. However, officials are now considering whether the upper income cap should be increased to make the programme more accessible to a broader group of students.
Another concern under review is the funding split that prioritises science, technology, engineering and mathematics programmes. Although the model was created to strengthen critical skills development, the number of qualifying applicants in these fields has reportedly fallen short of expectations, placing pressure on the programme’s intended targets.
NSFAS is also expected to examine how its loan offering compares with products available from traditional financial institutions, particularly in terms of repayment flexibility and affordability for graduates entering the job market.
The current loan structure remains attractive in principle, as repayments only begin once beneficiaries start earning an income. In addition, strong academic performance can significantly reduce the final repayment burden, giving students an incentive to complete their qualifications within the minimum timeframe.
The planned review is likely to spark broader debate around higher education funding in South Africa, especially for the growing number of students who do not qualify for full bursaries but still struggle to afford tuition and living costs.
If the eligibility rules are relaxed, the move could open the door for thousands more students to access funding in future application cycles and ease the financial pressure facing middle-income households.
