Nsfas debt clearance
How do I repay the student loan?
Nsfas debt clearance : NSFAS has made repayments affordable for you. Repayments of your student loan are based on the salary that you earn, and start once your salary is R30 000 or more per year. The repayment amount starts at a calculation of 3% of your annual salary, increasing to a maximum of 8% when your salary reaches R59 300 or more per year. For example, this means you will repay R900 a year on a salary of R30 000 a year, or R75 per month. Once your annual salary is R59 300 your repayment will be R4 744 a year or R395 a month Interest is charged at 80% of the repo rate, which is the repurchase rate at which the Reserve Bank lends to commercial banks. NSFAS will continue to charge interest on all outstanding balances. It is therefore very important to start repaying your loan as soon as possible.
How are repayments calculated? -> Nsfas debt clearance
NSFAS student loans are income-contingent. This means that repayment starts only when you have an income, usually when you start working. NSFAS will send you statements showing how much you owe and how much you must pay back each month. It is your legal responsibility to keep in touch with NSFAS and to inform us of any change of address.
What is the process of paying back a loan, and how much time do students have to do this?
Students pay back based on a sliding scale of between 3% and 8% of salary. Those who are unemployed are not expected to repay. No time limit is given for repayment, since this is determined by the salary of the debtor, and his or her ability to repay.
What happens if a student loses his/her job while still paying back their loan? -> Nsfas debt clearance
Those who are unemployed are not expected to repay, but they must inform NSFAS whenever their employment status changes.
What measures are taken against students who fail to pay their debt after being funded by NSFAS?
NSFAS engages with students about the importance of repaying their debt. Agencies are also used to trace debtors and make sure they repay.
What about students who drop out during their studies?
Students who drop out are still required to repay their loan when they are in a position to do so by earning R30 000 a year.