Student loans just like any other loans are money given to individuals but in this case students, the loans have relatively smaller interest on it. One of the main benefit of the loan is student only have to start repayment when they graduate
What is nsfas – National student Financial Aid Scheme
NSFAS, or National Student Financial Aid Scheme, was established according to the National Student Financial Aid Scheme Act of 1999 and incorporated Tertiary Education Fund of South Africa (TEFSA).
The NSFAS Act allows students to apply for financial aid, be it a bursary or student loan. These applications do, however, come with certain conditions: each student undergoes a “needs test” to determine how much financial aid they require and if they are eligible.
Difference between general student loan and NSFAS
With general student loans like capitec student loans, nedbank student loans, fundi student loans, old mutual student loans and the rest, loans are paid into the applicants bank account but with nsfas loans are paid to the higher institutions
Nsfas is also performance based, if you fail your modules NSFAS can termninate the contract