Only 2% Of NSFAS Loan Applicants Approved For Funding

Only 2% Of NSFAS Loan Applicants Approved For Funding. The National Student Financial Aid Scheme (NSFAS) plays a crucial role in making higher education accessible for thousands of South African students. However, the latest statistics reveal that only a small fraction of loan applicants for 2025 have been approved for funding. This alarming revelation has sparked concerns about financial accessibility and the challenges faced by students in securing educational funding.

NSFAS Loan Approval Statistics for 2025

During a recent National Council of Provinces Committee (NCOP) Education, Sciences and Creative Industries meeting, NSFAS confirmed that just 1,300 students had been approved for student loans in 2025. This number is significantly low compared to the 65,000 applications received when the funding period closed.

The NSFAS loan was introduced in 2024 to support missing middle students—those who do not qualify for traditional NSFAS bursaries yet cannot afford tertiary education independently. Despite the growing demand for financial aid, only 2% of applicants were approved for funding in 2025.

Why Were So Few Students Approved for NSFAS Loans?

A variety of factors contributed to the low approval rate for NSFAS loans in 2025. Understanding these reasons is crucial for prospective applicants and stakeholders looking to improve access to funding.

1. Many Applicants Qualified for NSFAS Bursaries Instead

One of the major reasons behind the low approval rate is that over 41,000 applicants actually met the eligibility criteria for an NSFAS bursary rather than a loan. NSFAS bursaries cover tuition, accommodation, and other necessary allowances for financially disadvantaged students, meaning these applicants did not require loan funding.

2. Strict Eligibility Criteria

NSFAS disclosed that only 1,321 applicants met the strict academic and financial eligibility criteria for loan funding. To qualify, students had to meet specific academic performance requirements while also proving their financial need.

Additionally, NSFAS ensured that approved students had no history of defaulting on previous student loans. Approximately 800 applicants were rejected solely due to previous loan defaults.

3. Exceeding the N+ Rule

Another factor leading to rejection was the N+ Rule, which limits the number of years a student can receive NSFAS funding. Over 1,000 students were disqualified for exceeding this limit, making them ineligible for financial aid.

4. Academic Ineligibility

An additional 2,380 applicants were rejected as they failed to meet the required academic criteria. NSFAS requires students to maintain a satisfactory academic record to continue receiving financial assistance.

5. Pending Academic Verification and ICT Processing

Despite the high rejection rate, there is still hope for some applicants. Around 8,770 applications are currently under review, pending academic verification. Furthermore, 328 applications are in progress with the ICT department, which means these students might still receive funding if their verification is successful.

NSFAS 2024 Loan Payments and 2025 Disbursements

While many students have faced rejections, NSFAS is ensuring that approved applicants receive their funds on time. The scheme confirmed that all payments for 2024 loan applicants will be finalized by 31 March 2025. These disbursements will only proceed once institutions have submitted all necessary student information to NSFAS.

For 2025, successful loan applicants can expect their payments to be processed in due course, ensuring that they can continue their academic pursuits without financial hindrance.

What This Means for Future NSFAS Loan Applicants

The stringent selection process highlights the importance of meeting eligibility criteria when applying for NSFAS funding. Prospective students must ensure that they:

• Maintain good academic standing to meet academic eligibility requirements.
• Stay informed about the N+ Rule and their funding duration limits.
• Have a clean financial record without prior loan defaults.
• Understand the distinction between NSFAS bursaries and loans to apply for the correct type of funding.

Conclusion

With only 2% of applicants securing NSFAS loans in 2025, it is evident that funding remains highly competitive. However, thousands of applications are still under review, providing a glimmer of hope for students awaiting academic verification. NSFAS continues to play a pivotal role in expanding access to higher education, but students must be proactive in meeting the necessary criteria to secure financial aid.