NSFAS has shared a post reiterating the importance of graduates paying back their outstanding loans, as it will ensure the longevity of the scheme.
The National Student Financial Aid Scheme (NSFAS) took to Twitter on Sunday, 2 May 2021, to reiterate the importance of previously funded graduates paying back their fees. The post clarified that the payments received from previously funded students is channeled back into funding new applicants and deserving students.
In a post detailing the growing demand for NSFAS funding, the scheme stipulated, “Fee-free higher education was announced in December 2017 and implemented in the 2018 academic year. NSFAS received over 700 000 applications for the 2021 academic year and to date, over 600 000 applicants have been confirmed as eligible for funding.”
Therefore, the funds received from repayments are used to ensure that the scheme can meet the growing demand for funding. However, that is not to suggest that failure to repay funds is the only reason for the continued criticism of NSFAS. Recently, after noting the eligibility criteria, the scheme faced backlash sparked by allegations of payment failure for some students from less recognised tertiary institutions.
See the post below.
How Important is it to Repay Your NSFAS Loan? Funds received through repayments are reinjected into a new budget which allows us to fund more students. Repayment must start once a debtor is employed and earning an income that is above R30 000 per year. #UnlockSomeonesFuture
— NSFAS (@myNSFAS) May 2, 2021