Bursary Forgiveness Scheme – In a major breakthrough for thousands of financially struggling graduates and former students, the National Student Financial Aid Scheme (NSFAS) has officially confirmed the cancellation of over 67,000 student loans under its 2025 Bursary Forgiveness Scheme. The move, announced in early July, marks one of the most significant debt relief interventions in recent history and aims to bring renewed financial freedom to beneficiaries who have long been burdened by educational debt. The announcement, made by the Department of Higher Education and NSFAS officials, has already sent waves of relief across South Africa, particularly among low-income graduates who have struggled to repay their student loans due to unemployment or underemployment. Many had taken loans prior to NSFAS shifting to a full bursary model in recent years. These loans had remained a source of stress for thousands, with accumulated interest and default risks placing financial pressure on former students and their families. This strategic forgiveness initiative is not only a lifeline to beneficiaries, but also a signal of the government’s commitment to reducing economic inequality through education. It aligns with broader objectives of expanding access to higher education, reducing graduate debt, and supporting the country’s youth during a difficult economic period. Importantly, this 2025 scheme is targeted only at qualifying individuals, with strict criteria to ensure fairness and accountability. Now that the loan forgiveness has been activated, many students are asking: Am I on the list? How will I know if my loan has been cancelled? What are the next steps? In this detailed guide, we’ll answer all those questions and provide you with verified data, eligibility conditions, official tables, and access points to help you navigate the process with ease.
Key Highlights of the NSFAS Bursary Forgiveness Scheme 2025
The Bursary Forgiveness Scheme brings relief to thousands of previously indebted graduates. Here are the core features:
- Over 67,000 student loans officially cancelled
- Applies to historical loans from the pre-bursary NSFAS model
- Focuses on low-income beneficiaries and unemployed graduates
- Debt written off permanently, with no repayment required
- Automatic application for qualifying candidates
- Linked to 2025 financial reviews by the Department of Higher Education
- Communication sent via email/SMS to eligible beneficiaries
- Debt relief records to reflect in credit bureaus within 60 days
List of Categories Covered Under the Bursary Forgiveness Scheme
Only specific categories of former students are covered. This includes those whose financial situation meets the current NSFAS hardship benchmarks.
| Category | Covered by 2025 Scheme | Application Needed | Loan Cancellation Date | Communication Sent | Proof Required | Employment Status | NSFAS Verification Status |
|---|---|---|---|---|---|---|---|
| Unemployed Graduates | Yes | No | July 2025 | Yes | No | Unemployed | Automatically Verified |
| Low-Income Former Students | Yes | No | July 2025 | Yes | No | Varies | Financial Means Test |
| Disabled Loan Recipients | Yes | No | July 2025 | Yes | Yes (Medical) | Varies | Pre-verified |
| Students Who Defaulted Loans | Yes | No | July 2025 | Yes | No | Unemployed | Verified |
| NSFAS Alumni with No Income | Yes | No | July 2025 | Yes | No | Unemployed | Auto-Matched |
| Employed with Low Income | Conditional | Yes | Case-by-Case | Yes | Yes | Employed | Income Assessment |
| Fraudulent Applications | No | Not Eligible | N/A | N/A | N/A | N/A | Disqualified |
| Government Employees | No | Not Eligible | N/A | N/A | N/A | Employed | Not Covered |
Who Automatically Qualifies for the Relief?
Some beneficiaries do not need to apply manually. Their status has already been verified using historical NSFAS data and employment databases.
- Graduates with zero income as per SARS records
- NSFAS borrowers from 2005 to 2017 with no payments made
- Individuals with disability and no work history
- Loan holders flagged as indigent in 2024 audits
- Former TVET college students with debt before 2018
How to Check if Your NSFAS Loan Was Cancelled
NSFAS has launched a multi-channel system to help eligible beneficiaries check their status.
- Visit the official NSFAS website: www.nsfas.org.za
- Log in to your MyNSFAS portal
- Go to the “Loan Status” or “Funding History” section
- Check for the 2025 Bursary Forgiveness Update
- If your debt was cancelled, it will be labeled “Written Off”
- You may also receive an SMS or email notification by mid-July
- Alternatively, visit your former institution’s financial aid office
Step-by-Step Guide to Confirm Forgiveness Status Online
If you’re not sure how to navigate the system, here is a simple breakdown.
| Step | Action Required | Platform/Location |
|---|---|---|
| 1 | Go to www.nsfas.org.za | Web Browser |
| 2 | Click on ‘MyNSFAS Account’ | Home Page |
| 3 | Log in using ID number and password | Secure Portal |
| 4 | Navigate to ‘Funding Details’ section | User Dashboard |
| 5 | Look for ‘Loan Status’ | Inside Dashboard Panel |
| 6 | If labeled “Written Off”, your debt is cancelled | Confirmed |
| 7 | If not yet updated, check again after 15 July | Data syncing in progress |
| 8 | Still no info? Call NSFAS helpline: 08000 67327 | Weekdays 8 AM–5 PM |
What to Do If You’re Not on the Forgiven List
Even if your loan wasn’t cancelled, you still have options.
- Contact NSFAS directly for reconsideration
- Submit updated proof of income/unemployment
- Ask your previous institution to escalate the query
- Monitor your MyNSFAS portal weekly
- Submit an appeal online via official forms
- Explore other government debt rehabilitation schemes
Impact on Beneficiaries and National Economy
This forgiveness is not just personal—it has national significance. The long-term financial and psychological benefits are substantial.
- Removes pressure from 67,000+ families
- Improves credit scores and financial access
- Frees up income for job-seeking or family support
- Reduces default rates in the education loan sector
- Signals a progressive education finance strategy
- Boosts confidence in government-backed funding schemes
Future Plans and Expansion Possibilities
The Department of Higher Education has hinted that more phases may follow.
- Phase 2 may include another 40,000 loans under review
- TVET and part-time learners under assessment
- Stakeholder engagement ongoing with banks and universities
- Expanded forgiveness scheme may apply to 2026–2027
- Youth and student organisations lobbying for permanent model
Financial Cautions and Public Warnings
While the announcement has created a buzz, NSFAS has warned students against scammers.
- No fee is required to verify your status
- Do not share personal info via unofficial emails or calls
- Use only the official NSFAS website and helpline
- No third party can ‘speed up’ your forgiveness confirmation
Final List to Be Published Publicly
NSFAS will publish anonymized data of loan forgiveness soon.
| Expected Release Date | Format | Where to Access | Anonymized Fields |
|---|---|---|---|
| 18 July 2025 | PDF + Excel | www.nsfas.org.za/downloads | Yes |
| 25 July 2025 | Email Copy | Sent to Beneficiaries | Yes |
| 30 July 2025 | University Notice Boards | At select campuses | Yes |
Breakdown of Loan Forgiveness by Province
This table shows how the 67,000 loan cancellations are spread across provinces.
| Province | Total Loans Cancelled | Percentage of Total | Major Institutions Affected |
|---|---|---|---|
| Gauteng | 12,500 | 18.6% | Wits, UJ, TUT |
| Western Cape | 10,200 | 15.2% | UCT, CPUT |
| KwaZulu-Natal | 9,750 | 14.6% | UKZN, DUT |
| Eastern Cape | 8,400 | 12.5% | NMU, UFH, WSU |
| Limpopo | 6,100 | 9.1% | UL, TUT Polokwane |
| North West | 5,000 | 7.4% | NWU |
| Mpumalanga | 4,300 | 6.4% | University of Mpumalanga |
| Free State | 3,900 | 5.8% | UFS |
| Northern Cape | 2,850 | 4.2% | Sol Plaatje University |
| Other | 4,000 | 5.9% | Distance Learning, Private FETs |
This unprecedented NSFAS student loan forgiveness scheme marks a turning point in South Africa’s approach to equitable education and financial inclusion. For the 67,000 relieved students and their families, it’s not just a cancellation of debt—it’s the start of a debt-free future.
FAQs About the NSFAS Loan Forgiveness 2025
1. Do I need to apply to have my loan cancelled?
No. Most eligible beneficiaries are automatically included. Check your MyNSFAS portal.
2. When will the loan cancellation reflect on my credit record?
Within 60 working days from July 2025.
3. What if I made partial repayments before?
You may still qualify. The full amount may still be forgiven.
4. Can employed people qualify for this scheme?
Only if their income is below the threshold and they meet hardship criteria.
5. Will this affect my chances of getting future bursaries or loans?
No. In fact, it clears your record and improves your funding eligibility.
