NELFUND Student Loan: What You Need to Know About South Africa’s Student Funding

When it comes to paying for university in South Africa, the NELFUND student loan, a government-backed funding system designed to replace NSFAS and provide more sustainable support for students in higher education. Also known as the National Education Loan Fund, it’s meant to fix the broken parts of the old system by offering clearer rules, better oversight, and more accountability. Unlike the old NSFAS model, which often left students confused about repayment or eligibility, NELFUND is built to be simpler and fairer. It’s not just about giving money—it’s about making sure that money actually helps students finish their degrees without drowning in debt later.

The NSFAS, the previous national student financial aid scheme that funded hundreds of thousands of South African students but faced criticism for delays, fraud, and poor management. Also known as National Student Financial Aid Scheme, it laid the groundwork, but its problems led to the creation of NELFUND. The new system keeps the same goal—helping low-income students get through university—but adds stricter checks on who qualifies, how funds are spent, and when repayment starts. For example, students now have to meet academic progress requirements to keep getting aid, and repayment only kicks in once they earn above a certain income threshold. This isn’t just policy jargon—it’s a real shift that affects whether you can afford textbooks, rent, or even food while studying.

What’s also changing is how private student housing fits into the picture. With private student accommodation, off-campus housing options that students rent directly, often through private landlords or companies, and now subject to new accreditation rules under NELFUND. Also known as student housing, it becoming more regulated, NELFUND won’t pay for places that don’t meet basic safety and quality standards. That means if your dorm doesn’t have running water or proper locks, it won’t be approved. This isn’t about bureaucracy—it’s about making sure your money goes to a place where you can actually live and study safely.

And while the focus is on funding, the bigger picture matters too. NELFUND isn’t just about money—it’s about access. It’s about whether a kid from a rural village in Limpopo can get the same shot at a degree as someone in Johannesburg. The system still has challenges—waiting lists, paperwork delays, and gaps in coverage for some courses—but it’s trying to fix what broke before. If you’re planning to study in 2025 or beyond, knowing how NELFUND works isn’t optional. It’s your key to staying in school without losing your future.

Below, you’ll find real updates on how this system is changing—from new rules on housing to how grants are paid out and what students are saying about the process. These aren’t press releases. These are the stories behind the policy.