NSFAS Repayment Details of Student Loan 2024-2025
NSFAS Repayment 2024-2025 – Details of NSFAS Repayment Plan of Student Loan 2024-2025.
NSFAS Repayment Details of Student Loan
How are repayments calculated?
Repayments of your student loan are based on the salary that you earn, and start once your salary is R30 000 or more per year. The repayment amount starts at a calculation of 3% of your annual salary, increasing to a maximum of 8% when your salary reaches R59 300 or more per year. For example, you will repay R900 on a salary of R30 000 a year, or R75 per month. Once your annual salary reaches R59 300 your repayment will be R4 744 a year or R395 a month. You can choose to pay more than this, so that you can pay off your loan off faster, and reduce the amount of interest you will be charged on your loan.
Interest is charged at 80% of the repo rate, which is the repurchase rate at which the Reserve Bank lends to commercial banks. NSFAS will continue to charge interest on all outstanding balances, making it imperative that you start repaying your loan as soon as possible. The interest rate is set at the beginning of every financial year (April).
How do you ensure that students pay back the money?
Students sign a legally binding loan agreement contract to repay their loans. NSFAS also works with third party organisations (e.g SARS to track down NSFAS beneficiaries who are employed and earning more than R30 000 per year and make payment arrangements.
How much do students owe, on average?
The amount owed varies, as some students might be funded for only one year while others may be funded for their whole qualification. Some students owe R10 000, others owe R150 000.
How much of the loan repayment assists in funding other students?
Every cent of a loan repayment goes towards helping other students with funding.
How much time do students have to pay back their loans?
No time limit is given for repayment, since this is determined by the salary of the debtor, and his or her ability to repay. Those who are unemployed are not expected to repay.
What happens if a student loses his/her job while still paying back their loan?
Those who are unemployed are not expected to repay, but must inform NSFAS whenever their employment status changes.
What about students who drop out during their studies?
Students who drop out are still required to repay their loan when they start earning R30 000 or more a year.
When and how is a loan converted into a bursary?
Different loans have different rules about conversion. Up to a maximum of 40% of a general loan is converted into a bursary when a student passes all of the courses they were registered for in that year. Students who apply at their institution’s Financial Aid Office to be on the NSFAS Final-Year Programme have their final-year loans converted into a 100% bursary if they pass all of their final-year courses and qualify to graduate. If they do not pass all subjects, the conversion applicable to general loans is applied.
How do these bursary conversions show on NSFAS repayments?
The bursary conversion shows as a rebate on your statement when NSFAS receives your academic results from the university. This takes place at the end of the NSFAS financial year in April.
Your academic results are used to calculate any bursary rebates: for example, 40% of your student loan will be converted into a bursary if you pass all courses; if you pass half of your courses, then 20% of the student loan will be converted into a bursary. If you don’t pass any courses, you will not receive any bursary rebate for that academic year and you will have to repay 100% of your student loan.
NSFAS Online Application 2024-2025
NSFAS Appeal 2024-2025
NSFAS Application Form 2024-2025
NSFAS Allowance 2024-2025
NSFAS Closing Date 2024-2025
NSFAS Portal 2024-2025
NSFAS Consent Form 2024-2025
NSFAS Application Status Check 2024-2025
NSFAS Application Closing Date 2024-2025
NSFAS Approved List 2024-2025
Is NSFAS a Loan or Bursary 2024-2025
NSFAS Balance 2024-2025
NSFAS Benefits 2024-2025
NSFAS Bursary Agreement 2024-2025
NSFAS Declaration Form 2024-2025
NSFAS Documents Needed 2024-2025
NSFAS How to Apply 2024-2025
NSFAS Historic Debt Form 2024-2025
NSFAS Income Requirements 2024-2025
NSFAS Interest Rate 2024-2025
NSFAS Late Application 2024-2025
NSFAS Latest News 2024-2025
NSFAS Opening Date 2024-2025
NSFAS Payment Dates 2024-2025
NSFAS Qualification Requirements 2024-2025
NSFAS Registration 2024-2025
NSFAS Repayment 2024-2025
NSFAS Terms and Conditions 2024-2025
my NSFAS Wallet 2024-2025
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