Fri. Jun 21st, 2024

Understanding the ‘Provisionally Funded’ NSFAS Loan Status

In 2024, the National Student Financial Aid Scheme (NSFAS) introduced the NSFAS Missing Middle Loan, a crucial component of their Comprehensive Student Funding Model, aimed at both undergraduate and postgraduate students who don’t qualify for NSFAS bursaries. Individuals whose NSFAS bursary applications were rejected would automatically be reconsidered for eligibility under this missing middle loan scheme.

Once an applicant submits a NSFAS loan application, they might receive a ‘provisionally funded’ NSFAS status. But what exactly does this mean, and what steps should the applicant take next?

Deciphering the ‘Provisionally Funded’ NSFAS Status:

The ‘Provisionally Funded’ status signifies that the student has been approved for funding, but NSFAS needs to complete certain processes before confirming this funding. Therefore, when a student encounters this status, it’s a positive indication that they qualify for funding.

According to Ms. Vuyokazi Mafilika, the Strategic Enablement Executive at NSFAS, being provisionally funded implies that the student qualifies based on the assessment conducted.

Next Steps:

NSFAS outlines two crucial steps that need to be completed before confirming funding for the student:

  1. Upon receiving sufficient information, NSFAS will send the pre-agreement form for the NSFAS loan. The student is required to sign this pre-agreement form, acknowledging its conditions.
  2. Subsequently, NSFAS will proceed to gather full registration information from the institution. Once obtained, NSFAS will generate a loan agreement form for the student to sign, containing the necessary surety.

Upon signing this loan agreement form, the student is officially funded. Additionally, if the student performs well academically, up to 50% of the student loan can be converted into a bursary.

Notably, NSFAS missing middle loans prioritize Science, Technology, Engineering, and Mathematics (STEM) programs, with 70% of beneficiaries allocated to these fields. The remaining 30% is designated for Humanities and social science programs.

Understanding these processes can help students navigate their NSFAS funding journey more effectively.

Read More