New student loan scheme poses risk to NSFAS

JOHANNESBURG - Universities South Africa has warned that a new student loan policy could overwhelm the National Student Financial Aid Scheme (NSFAS).

READ: Student union welcomes new NSFAS funding model

Until now NSFAS has been paying grants to poorer students to fund their studies.

Higher Education Minister, Blade Nzimande announced earlier it would start to provide loans to students from households with an annual income above R350,000 and R600,000 but who still cannot afford their studies – the missing middle.

The CEO of Universities South Africa, Dr Phethiwe Matutu spoke with eNCA.