SU Bursary Loan
Stellenbosch University (SU) administers a bursary loan scheme, similar to the NSFAS bursary loan scheme. The SU Bursary Loan Scheme is funded from the institutional budget as well as from repayments. The amount of the bursary loan is determined by the NSFAS means test. The SU bursary loans have an interest of prime minus four % (prime -4%) at present.
Students who passes all their modules; qualify for a maximum rebate (conversion) of 30%. There are several donors of the University with similar bursary loans schemes. This ensures that money flows back to the University and can be utilized to fund other financially needy students.
SU bursary loans allocations are subject to the number of qualifying students and the availability of funds.
Loans parameters and repayments
Loans are granted on the bases of financial need and the size of the loan is determined by a means test. Interest is charged on the loan amount at a rate equal to the current prime lending rate of commercial banks minus 4%. The loan amount plus interest will immediately become repayable once the student's enrolment at Stellenbosch University ends. Incentives are built in. Conversions of (10%, 20% or 30%) of the loan into a bursary are made depending on the percentage of credits passed.
Measurements and eligibility criteria (means test)
Students from households with a gross income of zero to R240 000 (R350 000 since the introduction of free higher education) are normally considered as financially needy. These students are eligible for financial support on the basis of financial need, provided that they meet the minimum academic criteria. Students qualify for financial support for n + 2 years (n = minimum duration of the programme).