NSFAS Loan Forgiveness – In a landmark announcement on October 24, 2025, the National Student Financial Aid Scheme (NSFAS) confirmed that student debt for over 67,000 beneficiaries has been officially written off. This long-awaited move comes as part of an ongoing government initiative to ease the financial burden on thousands of young South Africans who have struggled to repay their tertiary education loans. For many students, this represents not only a fresh financial start but also a boost in morale as they continue pursuing career opportunities and personal growth. The NSFAS loan forgiveness initiative is part of the Department of Higher Education’s broader plan to restructure student funding in South Africa. As economic pressures mount and unemployment remains high, student debt has become a major barrier to progression for young graduates. Recognizing this, the government and NSFAS have collaborated to introduce targeted loan cancellation measures to assist qualifying individuals, particularly those from low-income households or those unable to find stable employment after graduation. Confirmation letters have already been sent to affected students, and institutions are now working with NSFAS to update financial records accordingly. The move has been applauded by student unions, education experts, and various civil society organizations, all of whom have long campaigned for systemic change in the way student funding and debt are handled in the country. Below, we break down the details of this historic announcement, including who qualifies, how the process works, the implications for future funding, and what students should do next.
Overview of the NSFAS Loan Forgiveness Initiative
This section provides a summary of what the NSFAS loan forgiveness plan entails and who is impacted.
- Over 67,000 students’ historical debt has been wiped clean.
- Only beneficiaries with NSFAS-funded loans before the conversion to a full bursary scheme (prior to 2018) are included.
- Letters of confirmation were sent to affected students starting October 24, 2025.
- The debt relief applies only to those who met eligibility criteria, including low-income thresholds.
- NSFAS is working with universities and TVET colleges to finalize adjustments.
Key Figures: Debt Forgiveness by Province
| Province | Number of Students | Total Amount Cancelled (R) |
|---|---|---|
| Gauteng | 12,300 | 98,000,000 |
| Western Cape | 9,850 | 80,750,000 |
| KwaZulu-Natal | 11,100 | 92,500,000 |
| Eastern Cape | 8,450 | 74,000,000 |
| Limpopo | 6,200 | 58,500,000 |
| North West | 5,300 | 49,200,000 |
| Free State | 5,600 | 50,000,000 |
| Mpumalanga | 4,750 | 42,700,000 |
Who Qualifies for NSFAS Loan Cancellation?
Eligibility for this round of loan forgiveness is determined by specific criteria set out by NSFAS and the Department of Higher Education.
- Applicants must have received funding before the 2018 conversion to bursaries.
- Beneficiaries must not have earned a salary above the income threshold since graduation.
- Applicants must have completed their studies or exited the education system.
- No outstanding academic records or financial disputes with institutions.
- Automatic eligibility for social grant recipients during the period of study.
Understanding the Criteria
The criteria were developed to prioritize students from historically disadvantaged backgrounds.
| Criteria | Status |
|---|---|
| Funded before 2018 | Yes |
| Household income < R350,000 | Yes |
| No formal employment history | Yes |
| Completed studies or dropped out | Yes |
| No legal debt disputes | Yes |
How Students Are Being Notified
Communication is a key part of the debt relief process, ensuring that all qualifying students are properly informed.
- NSFAS has begun sending out official confirmation letters via email and postal services.
- Students can also check their NSFAS portal for confirmation and updates.
- Universities and colleges are assisting by issuing statements and providing lists to alumni.
- A dedicated NSFAS helpline and regional offices are available for queries.
What the Confirmation Letter Includes
The letter serves as an official notification and includes key information for affected students.
| Letter Content | Details Provided |
|---|---|
| Student Full Name | Yes |
| NSFAS Reference Number | Yes |
| Institution of Study | Yes |
| Total Amount Written Off | Yes |
| Confirmation of No Debt | Yes |
| Next Steps / No Action Needed | Yes |
What To Do If You Didn’t Receive a Letter
Not all eligible students may have received their letters immediately due to logistical delays or outdated contact information.
- Check your NSFAS account for digital copies of the letter.
- Update your contact information with NSFAS if needed.
- Reach out via the NSFAS contact center for assistance.
- If eligible, you may be included in the next wave of confirmations.
Steps to Follow if You Suspect You Qualify
If you believe you meet the criteria but haven’t received a letter, follow this checklist:
- Visit the official NSFAS website and log in to your account.
- Confirm the email and phone number on file.
- Use the ‘Queries’ tab to submit a formal inquiry.
- Contact your former institution’s financial aid office.
- Follow up within 10–14 working days.
Additional Support Services Available
For students in need of guidance, several support channels have been made available.
- NSFAS Call Center: 0800 067 327
- Email Support: [email protected]
- Walk-in Centers: Located in major cities
- WhatsApp Assistance Line: +27 78 519 8006
Important Notes on Ineligibility
Students who do not qualify may still explore alternative relief or appeal processes.
- Those who earned income above the threshold post-graduation are not eligible.
- Students who defaulted on repayment agreements without communication may be disqualified.
- Non-NSFAS funded loans (such as bank loans) are not part of this cancellation.
Implications for Future NSFAS Beneficiaries
While this round of loan forgiveness applies to pre-2018 loans, it sets a significant precedent for future funding strategies.
- NSFAS continues to operate under a bursary model since 2018, with no repayment required.
- The loan forgiveness initiative may evolve into a permanent fixture for qualifying cases.
- Students currently funded don’t need to worry about loan repayments under current policy.
- The government is considering similar policies for TVET loan holders in the coming years.
Ongoing Discussions Around Permanent Debt Relief Policy
This program has reignited calls for systemic change in higher education funding in South Africa.
| Policy Proposal | Current Status |
|---|---|
| Permanent Debt Amnesty | Under consideration |
| Expansion to TVET Loans | In planning phase |
| Improved Loan-to-Bursary Conversion | Proposed by Parliament |
| Stronger University-NSFAS Integration | In pilot implementation |
Potential Risks and Limitations
Though the move is widely welcomed, experts caution that sustained funding is required.
- Risk of administrative backlog in updating student records.
- Possibility of excluded students appealing and overwhelming the system.
- Need for continued budget allocations by Treasury.
Encouraging Financial Responsibility
The NSFAS debt cancellation program also aims to promote financial literacy.
- Beneficiaries are encouraged to use this opportunity wisely.
- No additional loans or penalties will apply to written-off debt.
- Students should still track their credit profiles and maintain good standing.
Summary of NSFAS Debt Cancellation
| Category | Details |
|---|---|
| Announcement Date | 24 October 2025 |
| Number of Students Affected | 67,000+ |
| Total Debt Cancelled | R546 million+ |
| Eligibility Year Range | Loans before 2018 |
| Confirmation Method | Email, Postal, NSFAS Portal |
| Student Action Required | None if already notified |
| Further Appeals Allowed | Yes, for eligible but unnotified students |
Frequently Asked Questions (FAQs)
Q1: Do I need to apply for this NSFAS loan forgiveness?
No, eligible students were automatically selected based on internal NSFAS records and data from higher education institutions.
Q2: What if I am still studying under NSFAS?
If you were funded after 2018 under the bursary model, this debt relief does not apply, as you are not expected to repay your funding.
Q3: Can I appeal if I think I was mistakenly excluded?
Yes, NSFAS has opened an appeals process. You can submit your details online or visit a walk-in center.
Q4: Is this a once-off cancellation or will it happen again?
This round is specific to historic debt, but the government is considering further debt relief measures for other categories of students.
Q5: How will this affect my credit record?
NSFAS is coordinating with credit bureaus to ensure that the cleared debt no longer reflects negatively on affected students’ credit profiles.
Q6: Are TVET students included in this loan cancellation?
Currently, the program applies to university students, but the inclusion of TVET loan holders is under review.
Q7: Can students funded by other institutions or private banks benefit from this?
No, this loan forgiveness program is specific to NSFAS-funded loans only.
Q8: When will all affected students receive confirmation?
The process is ongoing and will continue through the end of 2025. Delays may occur due to verification procedures.
While this wave of NSFAS loan forgiveness is a monumental step in addressing the financial struggles faced by South African graduates, it is essential for beneficiaries to remain informed and proactive. If you believe you qualify but haven’t been contacted, use the provided resources to follow up. This initiative highlights a renewed commitment from the government to support accessible, debt-free higher education for all.