As the amount of higher education increases, students must increasingly rely on financial aid to pursue higher education in South Africa. These can be student loans, which must be paid back, or bursaries, which are rewards not repaid to the institution.
In South Africa, the National Student Financial Aid Scheme (NSFAS) is a government-backed financial aid programme that provides loans and bursaries to students from low-income families. Fundi, the leader in education finance, is another option that offers loans and bursaries to South African students.
In this article, we will explore what NSFAS vs Fundi means and provide students with information to help them make the correct choice.
Table of Contents
What is NSFAS?
NSFAS is a bursary and loan programme funded by the Department of Higher Education and Training (DHET) that supports eligible South African students in their pursuit of higher education. It provides financial assistance for public universities and Technical Vocational Education and Training (TVET) colleges in the country.
Through this scheme, NSFAS awards bursaries to qualified students at TVET colleges and offers loans to public university students. This is a key difference when comparing NSFAS vs Fundi.
Let us look at what is covered under the NSFAS bursaries and student loans.
|
Bursary |
Student Loan |
|
Registration |
Registration |
|
Tuition |
Tuition |
|
Learning materials |
Book Allowance |
|
Living allowance |
Living Allowance |
|
Personal care allowance |
Incidental/Personal Care |
|
Accommodation or travel |
Accommodation |
|
– |
Transport |
Know More About NSFAS Bursary Here!
What is Fundi?
Fundi is a specialist in private education finance and fund management solutions. It offers a range of student loans to help students beginning higher education cover tuition, accommodation, and device costs. The loans carry interest rates and follow different payment plans. These loans might also require additional loan-specific documents.
Fundi goes a step further and provides services beyond the scope of student loans. Its platform helps students find accommodations, ebooks, data plans, etc. This is a point to consider when students are comparing NSFAS vs Fundi.
While Fundi does not offer bursaries, it helps manage bursary fund distribution for companies to ensure that capital is utilised appropriately.
What are the Differences Between NSFAS and Fundi?
When considering NSFAS vs Fundi, we can see that while both work in the education sector to provide financial assistance to students, there are some key differences. While NSFAS aims to make it easier for students from low-income families to pursue higher education, fundi wants to make loans accessible to all South African students. Let us examine some differences between NSFAS and Fundi to help students make the correct decision.
|
Criteria |
NSFAS |
Fundi |
|
Type of Funding |
Government-funded bursaries and loans |
Private loans |
|
Focus of Funding |
Students from low-income families |
Not limited to low-income households |
|
Application Process |
Follows strict deadlines |
Flexible |
|
Support |
Bursaries for TVET colleges and loans for undergraduate and postgraduate programmes |
Loans for short courses, undergraduate and postgraduate programmes |
|
Repayments Terms |
Income-linked repayment |
Varies depending on the loan agreement |
|
Funding Source |
Government |
Corporate partnerships and donations |
Also Read Our Article to Know Everything About Fundi Student Loan
NSFAS vs Fundi – Eligibility Criteria Comparison
Before students are approved for financial aid from NSFAS or Fundi, they must meet the eligibility criteria. This helps to measure the need for the loan and also helps to safeguard the loan provider. From the providers’ perspective, they are receiving the guarantee that the student is enroled in an accredited institution and will have a future earning capacity to repay the loan. It also allows them to assess risk, comply with legal requirements, and provide targeted assistance.
If you are still deciding between NSFAS vs Fundi, it is essential to understand the eligibility criteria for both.
NSFAS Eligibility Criteria
To be eligible for an NSFAS bursary or loan, a student must be:
- A South African citizen or permanent resident
- Enroled or plans to enrol in a public university or TVET college
- From a household with an income of less than R350,000
- For students with disabilities, the household income should be less than R600,000
- Applying for aid during the application period
Fundi Eligibility Criteria
To be eligible for a Fundi loan, students must meet the following criteria:
- Be a South African citizen.
- Enroled or accepted at accredited South African institutes: universities, TVET colleges, and accredited institutions
- Must be able to provide an official acceptance letter or proof of registration
- Must pass the credit assessment
- If there is a guarantor, they must also pass the credit assessment
- Have a valid South African bank account
NSFAS vs Fundi – Application Process
To be eligible for financial aid, students must first meet the eligibility criteria and then submit a complete and correct application form. An application must always be accompanied by required documents to help verify the student’s information.
Each institute has a different application process and several required documents.
NSFAS Application Process
Students can follow these steps when applying for an NSFAS bursary or loan in South Africa.
- Visit the NSFAS website
- Create a profile on myNSFAS Portal
- Complete all the required information
- Attach all the documents
- Submit your application before the deadline
Fundi Application Process
When applying for a Fundi loan, students can follow these simple steps.
- Visit the Fundi website.
- Complete the online application
- Upload the supporting documents
- Submit your application
What are the Pros and Cons of NSFAS?
An NSFAS bursary or student loan is an excellent financial aid option for high-performing students from low-income households who want to pursue higher education. The loans do not require a guarantor, and repayments only begin once the candidate earns a specific annual salary.
It is essential to compare the pros and cons of applying for NSFAS funding to help bring clarity to the NSFAS vs Fundi debate.
|
Pros |
Cons |
|
Provides access to funding for students from low-income backgrounds |
Bursaries and loans do not include private institutions |
|
Offers bursaries and loans |
The application process can only be completed during a certain period. |
|
Repayment is based on the candidate’s income. |
Strict eligibility criteria disregard deserving students from slightly higher income brackets |
|
It aims to bridge the gap and help make education accessible to all. |
Funding is dependent on government budgets; therefore, it could fluctuate. |
|
Does not require a guarantor |
– |
What are the Pros and Cons of Fundi?
When students in South Africa decide to secure financial aid for higher education, Fundi is one of the top choices for them to consider. It aims to make student loans accessible to the general population and offers a variety of loans to cover different needs. Students can apply for a loan to cover tuition and accommodation, devices, or just tuition to help ease the cost of higher education.
Students deciding between NSFAS vs Fundi must study the pros and cons of Fundi.
|
Pros |
Cons |
|
Flexible student loan options |
Higher interest rate compared to NSFAS |
|
No deadline for the loan application |
Students might feel pressure to begin repayment |
|
Students can enrol in public and private institutes |
Credit checks might be unfavourable for some. |
|
Approval is completed within a few working days |
Less favourable loan terms when compared with government-backed loans |
|
Offers additional resources such as help finding accommodation and purchasing devices |
Some loans might require a guarantor |
Conclusion
Students should research carefully the different loan providers available to them when choosing a loan provider to fund their higher education aspirations. It is also important for students to fill in the correct details and provide all the required documents to ensure that the process is completed on time.
If students are deciding between NSFAS vs Fundi, the differences and the pros and cons list should have made it easier to select the providers that best meet their needs.
Students should check out Regenesys for the wide variety of programmes we offer in multiple academic disciplines.
NSFAS vs Fundi – FAQs
What are the main NSFAS vs FUNDI points?
The primary differences include funding sources, eligibility criteria, and the type of support offered.
What types of funding does NSFAS provide?
NSFAS offers bursaries for TVET college students and loans for public university students.
Who is eligible for NSFAS funding?
To be eligible for NSFAS, students must be South African citizens from households earning less than R300,000 per year (R600,000 for students with disabilities) and be enrolled in a public university or a TVET college.
What types of funding does Fundi provide?
Fundi provides student loans for tuition, accommodation, and other educational costs. While it does not offer bursaries directly, it manages the distribution of bursary funds for companies.
What should students consider when choosing between NSFAS and FUNDI?
Students should consider factors such as eligibility, type of funding needed, application processes, repayment terms, interest rates, and whether they plan to attend public or private institutions.
