NSFAS vs Edu Xtras: What Is the Main Difference Between the Two?

Acquiring enough funding to pay for college or university can be an uphill battle for most South African students. The price of university and college can include tuition fees, accommodation and food, learning materials, transport and other related expenses. This means students and families are always on the lookout for funding options to help bridge the gap and fund their studies.

You might see two names popping up on this search – Edu Xtras and NSFAS.

Despite the fact that they both deal with funding for education, there is no reason for you to think that they are the same programme. They might have different eligibility criteria, terms of funding, institutions involved, application procedures and the type of funding.

Understanding that this makes a difference is worthwhile before you go to the application desk or make a money conclusion.

What Is NSFAS?

National Student Financial Aid Scheme (NSFAS) is a bursary administered by the Department of Higher Education and Training to assist financially disadvantaged students.

Typically, the scheme can be found with students at public universities and TVET colleges.

Support can include help with the costs of study that is approved in line with funding rules, including the cost of tuition and registration, together with money to help with some living and learning costs.

As a publicly funded financial aid scheme, there are certain eligibility and other requirements which you must meet to qualify for NSFAS funding.

The scheme is not a general educational loan that everyone wishing to borrow money for their education can apply for. There are eligibility criteria which need to be satisfied before you can benefit from the scheme.

This is why understanding the official NSFAS requirements is crucial.

What Is Edu Xtras?

Now, it is not a government aid plan but a private education–financing program called Edu Xtras.

This distinction is important.

Unlike government-run student financial aid, private institutions or money lenders would not lend assistance to students according to the same household-income criteria that NSFAS uses. Rather, a private sector moneylender might look at the income of the applicant or the person undertaking the repayment of the loan to make their decision.

It depends on the product, institution, and agreement.

Students who want to use Edu Xtras should, and must, do proper due diligence of the current terms and conditions.

Specifically, they should confirm the total amount that will ultimately need to be paid back, interest/charges, timeframes, loan criteria. The terms and conditions should they change their mind and drop out.

Does 1 Mean 2: NSFAS And Edu Xtras Are Not The Same…

The main contrast between the two is the type of funding.

NSFAS is a government student financial aid system designed to help students who qualify by satisfying the relevant criteria.

Edu Xtras operates in the private education-financing space.

This also means that a student cannot falsely believe that just because they have been denied NSFAS funding they are then also approved for Edu Xtras, or that Edu Xtras is a substitute for NSFAS.

Each option has its own rules.

Students should evaluate the different funding offers they receive and not simply select a programme because of its name.

Who May Benefit From NSFAS?

NSFAS applies mostly to students from households that meet the financial eligibility criteria.

The scheme aims to improve access to higher education for students who would otherwise find it difficult to access approved public higher education.

The criteria for eligibility vary depending upon things like household income, home country, academic situation, the course and what institution you are attending.

Those conditions may differ from year to year so at a given time, students must refer to the most recent official instructions instead of old social media posts or other information from a past application cycle.

A student who passed in one year should not automatically think that the same rules will hold for the next year.

Who May Consider Private Education Finance?

Private education funding could also be applicable for students seeking funding who do not meet the criteria for a government funding scheme, or for a school or course outside the scope of the government funding options.

The disadvantage of private finance is that it can require repayment.

This is a major consideration.

Know whether you are taking a loan before applying for private scholarships.

An approved funding application isn’t always affordable.

Don’t just focus on the amount of the offer but also think about the total cost of repaying the loan.

Repayment Is an Important Difference

Yet the first thought that a student should be thinking about when looking at any private education funding is:

Q: What will my total repayments be?

This is the most useful and relevant because it provides a rather different perspective than asking how much money I have.

A funding contract can be based on interest, administration fees or other charges depending upon the model of product.

For instance, you might receive R50,000 in education finance, but the final settlement in terms of the amount to be paid back might not be R50,000.

Note for students: Please review the agreement closely before signing it.

They need to consider the interest rate, any charges, the schedule for payment, how long the agreement will last and what happens if they do not make a payment.

If any of the terms are unclear, speak to the provider to clarify what they mean. Where the terms are unclear, ask the provider for an explanation before accepting the funding.

NSFAS Can Include More Than Tuition

An additional benefit of the programme is that members can claim support for more than tuition fee costs depending on specific conditions.

The student can be eligible to receive a stipend, meant to go towards costs such as rent, food, study materials and travel, depending on the funding conditions.

This could be a real help to a student if their money problems are not just confined to university or college fees.

A student may have enough money to pay for their tuition fees but not enough to cover accommodation, food or transport.

So student funding should be viewed as a financial ‘totality’ rather than an individual invoice for tuition.

Private Funding May Work Differently

Private education financing can have different structures.

The sum offered, how it can be spent and the way payments are made will vary depending on the deal.

Some funding products may be very heavily targeted at tuition and/or other education costs.

That is why students must not assume that any private school-financing product will include accommodation, food, books and transport in the same way that a government student-support package does.

Always ask the provider for a written outline of what they intend to cover.

Institution Choice Matters

Another thing that students may want to check into is if the college they are interested in is receiving the funding that they are looking at.

NSFAS attaches itself to government universities and TVET colleges that qualify under the specific rules and conditions of eligibility.

A student studying at a private institution is not guaranteed that they will receive NSFAS funding just by studying towards a recognised qualification.

In much the same way, a private education-finance provider could have close ties to or provisions involving specific higher education providers.

Check your institution and programme are eligible before you apply.

This could lead to a student wasting time on an application for a source of funding that they can’t use for their studies.

Application Processes Can Differ

The application procedures for government student financing and private finance tend to differ.

NSFAS applications are submitted online through the official NSFAS platform.

You should then provide the information and evidence required and ensure that the information provided by you is correct.

Private finance providers might conduct a separate assessment.

The person to whom the payment must be made may be required to provide financial details, income records or other documentation.

Since requirements can vary, students must submit an application based on the official instructions provided by the provider – not through a third party application service.

20 Things Not to Do When Applying for NSFAS

Students need to be extra cautious when they come in contact with someone guaranteeing NSFAS funding.

There is no valid reason for any unregistered agent to promise that a student will be successful.

Students must use official NSFAS platforms and not to share any personal information with strangers.

Your ID number, bank details, passwords and personal information, etc. need to be kept safe.

Financial aid for students can be exploited by scammers seeking to prey on underprivileged young people.

What Happens If a Student Is Rejected?

If your application is rejected, you still have other choices.

Firstly, the student should read and understand the reasons why their NSFAS application was rejected and see whether there is an appeals process.

Meanwhile, the student can explore additional legal avenues of funding such as financial aid, scholarships, bursaries, and private education finance.

The trick is to weigh the options.

Switching from government financial aid to private borrowing without knowing how much it will take to pay back may lead to a financial strain.

Which Option Is More Affordable?

There isn’t a definitive answer as it depends on the student but most would say it is affordable.

In respect of an eligible student on a government-funded financial aid scheme, a significant amount of assistance can be offered by NSFAS without seeking the type of commercial repayment arrangement characteristic of private finance.

While a student who is ineligible for NSFAS wouldn’t have the same access to funding, a private education-finance solution could still allow them to study.

What matters is not just the availability of funds, however.

The student needs to ask:
How much funding do I need?
What expenses will it cover?
Do I qualify?
Will I have to repay the money?
How much will I repay altogether?
What if I stop or fail to study?
What are the consequences if I cannot repay?
Is my institution covered?
Are there additional fees?

The responses will determine whether you will have an affordable form of funding or a hard financial obligation.

Which One Should Students Choose?

Students should instead ask which programme would be “the best” for them.

If a student is NSFAS-eligible and has extensive funding to cover all costs for approved public higher education, assistance from government funding may cover needs that private tuition financing does not.

A student who is not eligible for NSFAS or who does not fall within the financial scheme’s ambit of coverage, could consider looking into private education finance as an option.

That does not make one course better for everyone.

They cater to different audiences and have different business models.

A Practical Comparison
Feature NSFAS Edu Xtras

Financial aid for students Government Higher education Private education finance
Goal(s) Help eligible students with expenditure on tertiary education Provide finance in education at the discretion of the provider
Eligibility Based on applicable NSFAS rules According to the provider’s requirements and assessment
Coverage of institutions Approved public universities and TVET colleges (subject to rules) Depends on the provider and the applicable agreement Depends on the provider and the terms of the applicable agreement.
Depending on the current NSFAS funding structure and guideline. Private lenders generally impose contractual repayments
Living-related assistance May be provided under approved allowances Varies by funding arrangements
Application Official NSFAS application process Provider-specific application and assessment
What to consider Must qualify/eligible funding criteria Cost, repayment period & affordability

The table here explains why students should not compare the two on the basis of the money alone.

It’s the framework of the money that counts.

Read the Fine Print Before Signing

Private funding agreements may impose a long-term financial obligation.

Read everything carefully before signing.

Check the amount being financed.

Check the interest rate if applicable.

Check administration or service fees.

Check when repayment begins.

Check how long repayment continues.

See the effect if the student transfers university.

See the result if the student has failed any subjects.

Observe the result when the student pauses.

And see what happens if there are non-payments.

If you do not understand a clause, ask to have it explained to you.

You should never sign a funding agreement just because you are being pressured into a payment plan.

Think Beyond This Academic Year

You may concentrate on earning enough money for registration this year.

That is understandable, but education funding should be approached as a long-term choice.

If private finance lasts for many years, the accumulated debt can grow to a substantial amount.

Hence students and families need to work out how much it will cost to complete the qualification.

It’s preferable to know what financial obligation you’re taking on when accepting funding than it is to learn the complete cost as you graduate.

The Bottom Line

NSFAS and Edu Xtras should not be seen as substitutes for one another.

The National Student Financial Aid Scheme (NSFAS) is a government student bursary programme, with specific rules that govern who qualifies and how support is administered to qualifying students at approved institutions.

Edu Xtras, by contrast, is a private education-financing provider.

If a student qualifies for assistance, NSFAS could offer a type of support that is quite different to private education finance. Outside of the criteria for NSFAS eligibility, private finance could be one of a number of options to consider.

The appropriate choice will vary according to the student’s university, level of education, financial situation and whether or not they are eligible and able to repay the amount at a later date.

Final Advice for Students

Never select the funding route based on advertisements, social media comments or false promises of unauthorized agents.

Begin with the public domain details for each programme.

Confirm whether you qualify.

Check that your institution and qualification are included.

Calculate how much money you actually need.

Keep tuition apart from housing, food, travel and other costs.

If private finance is used, calculate the total amount to be repaid and not the amount you will receive.

And bear in mind that the lowest-cost option at the outset may not be the option with the lowest total cost.

Education is worth the investment. However, when it comes to funding it, planning is also needed.

NSFAS and Edu Xtras are two ways for students to accommodate the high costs associated with furthering their studies. To ensure that you get the most from educational programmes, learn the key differences so that you and your loved ones can decide what works best for you.