Yes, if you drop out after you have received a NSFAS study loan, you are still liable to pay back the funding you received.
How does NSFAS repayment work?
The repayment of your NSFAS study loan is only required once you have found work. Repayments are calculated depending on your annual salary. If you make R30 000 per year, you must contribute 3% of your earnings. This increase is equivalent to an extra 1% for every R6 600 earned above R30 000 per year. When you earn R59 300 each year, the highest rate you will pay is 8%.
NSFAS drop-out definition
NSFAS defines a driop put stude as:
A student who received financial aid from NSFAS, started a qualification, has yet to attain the qualification and does not hold a current registration to achieve the qualification
NSFAS
Can NSFAS fund you again after dropping out?
Students who de-register or drop out during an academic term, and wish to resume their studies
in future academic terms, must re-apply.
Does NSFAS loan have interest?
The current interest rate for the fiscal year 2022/2023 is 4.2%. The fiscal year for NSFAS is from April 1 to March 31 of the following year. The date of leaving as recorded in the system determines whether a debtor is studying or not studying. The NSFAS interest rate is set at 80% of the repo rate and varies in response to changes in the repo rate.
For more information, see: https://www.nsfas.org.za/content/faqs.html
