Navigating tertiary funding can feel overwhelming. This guide breaks down the main funding routes available to South African students—NSFAS, institutional and corporate bursaries, loans, SETA support and tax incentives—and gives practical steps to apply and choose wisely.
Quick overview: funding types at a glance
- Grants & bursaries: No repayment if conditions met (academic progress, service obligations sometimes apply).
- Loans: Repayable debt—watch interest, repayment terms and co-signer requirements.
- Learnerships/SETA funding: Training + stipend; often employer-linked and skills-focused.
- Tax treatment & incentives: Employer bursaries, training reimbursements and certain study expenses have specific SARS rules—know the tax consequences. (sars.gov.za)
1. National funding: NSFAS (what it covers and who qualifies)
NSFAS is the main public funding scheme for students from low‑income households who study at public universities and TVET colleges. Key points:
- Financial thresholds: general household income threshold is aligned with the NSFAS policy (household income R350,000 or less for most applicants; higher threshold for applicants with disabilities). (application-nsfas.org.za)
- Coverage: tuition, allowances for accommodation, living, learning materials and transport—varies by year and policy updates. (nsfaslogin.org)
- Tip: confirm up-to-date criteria and application windows at NSFAS and your institution’s financial aid office; appeals and problem guides are essential reading if applications are declined. See: Career Guidance South Africa: How NSFAS Works and Who Qualifies — Step-by-Step Application and NSFAS Appeals and Problems: What South African Students Need to Know. (gov.za)
2. Institutional and corporate bursaries (no debt—if conditions met)
- Institutional bursaries: Universities and TVETs often award merit- or need-based bursaries. Deadlines and requirements vary—check institutional portals and the “top bursaries” list. See: Top Institutional and Corporate Bursaries in South Africa: Deadlines, Requirements and Tips.
- Corporate bursaries & employer-funded grants: Many companies sponsor students (often tied to post-graduation work commitments). Corporate schemes can include mentorship and internship placements—good for employability. See: Corporate Bursary Schemes in South Africa: How to Find and Apply for Employer-Funded Grants and tips on creating strong applications: How to Build a Bursary Application That Wins.
Practical note: many corporate bursaries require you to sign a contract to work for the sponsor after graduation—read the fine print.
3. Loans: bank and private student loans
- Bank student loans: Typically require affordability checks and may allow deferred repayment while studying. Interest rates and fees vary—compare total cost (interest + fees).
- Private student / bridging loans: Useful for gaps, but often more expensive. Always model total repayment across the loan term.
- When to choose a loan: If you don’t qualify for grants/bursaries or need immediate funds for registration/accommodation. Also compare against a bursary (no repayment) — see: Bursary vs Loan: Choosing the Best Financial Aid for South African Students.
4. SETAs & learnerships: skills-based funding + stipends
SETA programmes fund skills development, learnerships and industry-specific bursaries. Highlights:
- Who benefits: Employers, trainees, unemployed learners and students in scarce skills sectors. Application routes include employer/SETA portals or training providers. (sac.org.za)
- What to expect: A learnership combines workplace learning with formal training, usually with a monthly stipend; amounts vary by NQF level and programme. Plan for application requirements such as certified IDs, CVs and motivation letters. (seta-sa.co.za)
- See: SETAs Funding and Learnership Support: How to Access Skills Development Grants in South Africa.
5. Tax incentives & treatment of study funding (what SARS says)
Understanding tax rules helps avoid surprises:
- Employer bursaries and scholarships: Can be tax-exempt if they meet SARS criteria (bona fide bursary rules). However, certain bursaries granted to relatives or that exceed thresholds may be taxable; SARS provides specific examples and thresholds in employer guidance. Employers must report taxable portions on PAYE forms. (sars.gov.za)
- Deductibility of study expenses: SARS generally allows deduction of study/training costs only where they are directly related to maintaining or improving current income-earning capacity (section 11(a) principles). Costs for a new career or qualification that does not relate to current income typically aren’t deductible for employees—self-employed taxpayers have different rules. Keep accurate receipts and records (SARS may request them). (sars.gov.za)
- Practical step: if an employer funds your study, clarify whether the bursary is taxable, whether you must sign a repayment clause, and how it will be reported for PAYE. For detailed employer taxation rules and examples see the SARS Employer Guide. (sars.gov.za)
6. Compare funding options (quick reference table)
| Funding type | Eligibility | Repayment | Typical coverage | Where to apply / read more |
|---|---|---|---|---|
| NSFAS | Low‑income households (thresholds apply) | No (grant) | Tuition, allowances | NSFAS guide (application-nsfas.org.za) |
| Institutional bursary | Merit/need (varies) | No (if conditions met) | Tuition, accommodation, materials | Top Institutional and Corporate Bursaries |
| Corporate bursary | Employer criteria; often service obligation | No (may require service) | Tuition + internships | Corporate bursary schemes |
| Bank / Private loan | Credit approval | Yes (interest) | Tuition, living costs | Compare lenders; read loan T&C closely |
| SETA learnership | Sector-specific, training providers | No repayment; may require workplace tasks | Training + stipend | SETA funding guide (seta-sa.co.za) |
7. How to choose: decision checklist
- Confirm eligibility (NSFAS, bursary, SETA). (application-nsfas.org.za)
- Compare total cost of loans (interest + fees) vs benefits of bursaries.
- Read contract terms for corporate bursaries (service obligations).
- Check tax treatment if employer-funded—could affect net benefit. (sars.gov.za)
- Build a pipeline: apply to multiple bursaries, check scholarship databases and set calendar reminders for deadlines. See: Top 10 Scholarship Databases and Eligibility Checkers for South African Students — Career Guidance South Africa and Funding Checklist and Deadline Calendar for South African University Applicants.
8. Practical application tips (to improve success)
- Start early: gather certified copies of IDs, academic records, proof of household income.
- Tailor each application: answer selection criteria and align motivation to funder priorities. Templates can help—see: How to Build a Bursary Application That Wins.
- Keep records: receipts, correspondence and contracts—important for audits and SARS queries.
- If refused: use formal appeal routes (NSFAS and institutional appeals exist). See: NSFAS Appeals and Problems: What South African Students Need to Know.
Final checklist before you submit
- Eligibility proof (income, ID, acceptance letter) ✔
- Personal statement tailored to funder ✔
- Signed understanding of any post‑study obligations ✔
- Copies of all supporting documents saved and backed up ✔
- Application deadlines entered in your calendar ✔ — See the Funding Checklist and Deadline Calendar. (application-nsfas.org.za)
Funding your studies requires a mix of strategy, paperwork and persistence. Use this guide to prioritise applications (grants first), compare loan costs carefully, explore SETA learnerships for skills-based pathways, and get tax clarity from SARS when employer funding is involved. For targeted deep dives and templates, explore the linked resources throughout this article to strengthen your applications and plan your funding calendar.