Student Loans in South Africa Explained (2026 Guide)

Dreaming of university but don’t know how to afford it? You’re not alone.
Every year, thousands of South African students face the same challenge — tuition, accommodation, books, and transport all add up fast.

What Is a Student Loan?

A student loan is a type of financial aid that allows you to borrow money to pay for your studies — and repay it later, usually after graduation.

The funds typically cover:

Tuition fees
Books and study materials
Accommodation and meals
Transport costs

Student loans are offered by both the government (through NSFAS) and private financial institutions such as banks and employers.

Types of Student Loans in South Africa (2026)

1️⃣ Government-Funded Loans (NSFAS)

The National Student Financial Aid Scheme (NSFAS) is South Africa’s main government program for student funding.

✅ Who qualifies:

South African citizens
Household income under R350,000 per year
Studying at a public university or TVET college

✅ Benefits:

Covers full tuition and registration
Provides allowances for accommodation, books, and meals
No repayment required if you meet academic requirements (it’s a bursary/loan hybrid)

More info: How to Apply for NSFAS 2026

Bank Student Loans

When NSFAS isn’t an option (for example, your household income is above the threshold or you attend a private institution), bank loans are your best alternative.

Major Banks Offering Student Loans:

Standard Bank
Absa Bank
Nedbank
FNB (First National Bank)

Each bank has slightly different requirements and repayment terms.

Bank Student Loan Comparison (2026)

Bank	Interest Rate (Approx.)	Repayment	Security Required
Standard Bank	Prime + 1–3%	Interest-only while studying	Parent/guardian surety
Absa Bank	Prime-linked	Interest-only while studying	Co-signer required
Nedbank	Variable (prime-linked)	After graduation	Parent or guardian
FNB	Prime + 2%	6–12 months after studies	Surety needed

Tip: Always compare total costs, not just monthly installments. Banks offer different perks like payment holidays or zero initiation fees.

Employer-Sponsored Student Loans

Some large South African employers offer study loans or bursaries for staff and their dependents.

Examples include:

Student Loan Eligibility Requirements

Before applying, make sure you meet the general criteria below.

✅ South African citizen or permanent resident
✅ Accepted (or provisionally accepted) at a recognized institution
✅ Parent, guardian, or sponsor with stable income for surety
✅ Proof of income (payslips, bank statements, etc.)
✅ Recent academic results

How Much Can You Borrow?

Loan amounts vary depending on your qualification, institution, and surety.

On average in 2026:

University students: up to R300,000 per academic year
TVET students: up to R80,000 per year
Private colleges: varies by course and duration

Banks will evaluate your (and your sponsor’s) income to decide the maximum amount.

How Student Loan Repayment Works

Repayment typically starts after you finish your studies — but during your course, you’ll usually pay only the interest.

Example:

If your loan is R100,000 at 10% interest, you’ll pay only R833/month during your studies.
After graduation, you’ll start paying back the capital plus interest.

Pro Tip: Paying a small extra amount while studying reduces total interest by thousands of rand.

Pros and Cons of Student Loans

✅ Pros	❌ Cons
Enables access to higher education	You’ll start your career with debt
Covers full study costs	Requires a surety/guarantor
Flexible repayment	Interest can accumulate
Builds credit history	Not suitable for everyone

How to Apply for a Student Loan in South Africa

Here’s the step-by-step process for 2026 applicants:

1️⃣ Choose your loan provider — Bank, employer, or government.
2️⃣ Prepare documents: ID, proof of income, acceptance letter, fee structure.
3️⃣ Complete the application form — online or at the branch.
4️⃣ Provide surety details (usually a parent/guardian).
5️⃣ Wait for approval — most banks respond within 3–7 business days.
6️⃣ Sign the agreement and funds are paid directly to your institution.

Contact Details of Major Banks

Standard Bank
Apply Here
0860 123 000

Absa Bank
Apply Here
0860 100 372

FNB
Apply Here
087 575 1111

Nedbank
Apply Here
0860 555 111

Conclusion

A student loan can open the door to your academic dreams — as long as you understand what you’re signing up for.

Compare your options carefully, borrow only what you need, and stay on top of your payments. Whether it’s NSFAS, a bank loan, or an employer program, the key is to plan smartly and stay focused on your goal: graduating debt-free and ready for success.

FAQs

1️⃣ Can I get a student loan without a guarantor?
Most banks require one, but NSFAS and some employer loans do not.

2️⃣ Do student loans cover private universities?
Yes, but only bank loans — NSFAS only funds public institutions.

3️⃣ Can I refinance my student loan later?
Yes, many banks offer student loan refinancing or consolidation to lower your monthly payments.

Student Loans in South Africa Explained (2026 Guide)