Options for Financial Assistance (Grade 11 NSC Matric Life Orientation): Revision Notes
Options for Financial Assistance
Introduction
If you or your family cannot afford to pay for your studies at a higher education institution, don't worry - there are several options available to help you fund your education. Understanding these different types of financial assistance can open doors to your future career and help you achieve your academic goals.
Financial assistance programmes in South Africa are designed to ensure that lack of funds doesn't prevent talented students from accessing quality higher education. Each type of assistance has its own benefits and requirements, so it's important to understand all your options.
Types of financial assistance
There are four main types of financial assistance available to South African students:
Bursaries
A bursary is money given to you to help pay for your studies at a higher education institution. This is often the most sought-after form of financial assistance because you usually don't have to pay it back.
Where can you get bursaries from?
- Higher education institutions themselves
- Private companies and businesses (such as mining companies, banks, telecommunications companies)
- Government departments and municipalities
- Professional organisations and industry bodies
Key Bursary Requirements:
- You typically need to maintain at least a 65% average in your final year of study
- Companies often expect you to study something relevant to their business (for example, a mining company would prefer students studying geology or engineering)
- You must demonstrate financial need
How to find bursaries:
- Check the Bursary Register at your local library or higher education institution
- Visit the financial aid office of your chosen university or college
- Search online databases that list available bursaries
- Ask your school's career guidance counsellor
Study loans
A study loan is money that a bank, company, or organisation lends to you for your studies. Unlike bursaries, you must pay this money back, usually with interest.
Types of study loans:
Bank loans:
- Your parent or guardian usually applies for the loan
- The applicant must be employed and able to afford monthly repayments
- You pay back the full amount plus interest after completing your studies
Educational loans (like Eduloan):
- Cover course fees, textbooks, registration fees, and educational tools like laptops
- Specialised loans designed specifically for education costs
National Student Financial Scheme (NSFAS): NSFAS provides a more accessible option for students who need financial support:
- Provides loans to students who don't have money to study
- Shows potential for academic success
- Allows you to convert up to 40% of your loan into a bursary if you perform well academically
- More affordable repayment terms than traditional bank loans
Scholarships
A scholarship is money awarded to you because you performed exceptionally well at school, in your studies, or in sport. Scholarships recognise and reward talent and achievement.
Key features of scholarships:
- Usually based on academic merit or sporting achievement
- You don't have to pay the money back
- You must continue to perform well to keep the scholarship
- Competition is often very high
Learnerships and SETAs
A learnership is a work-study programme that pays you whilst you're learning. You study the theory at a higher education institution and apply what you learn in a real workplace.
How learnerships work:
- You sign a contract with both an employer and a higher education institution
- You may receive a full salary or an allowance (sometimes around R2,500 per month)
- You gain both qualification and work experience
- The contract ends when you complete your qualification
SETAs (Sector Education and Training Authorities):
- SETA stands for Sector Education and Training Authority
- South Africa has 21 SETAs covering different industries (agriculture, banking, construction, etc.)
- SETAs coordinate learnerships but don't provide the training themselves
- They ensure that the training meets industry standards
Special funding schemes
FET college bursary scheme
FET College Bursary Programme
The Department of Higher Education and Training offers a special bursary scheme for FET (Further Education and Training) colleges. This scheme provides full access to vocational education and training for students who are financially needy but show academic potential.
Requirements:
- Must be a South African citizen
- Must be enrolled or planning to register for a National Certificate (Vocational) qualification
- Must demonstrate financial need
- Must show academic potential (such as passing marks in Grades 11 or 12)
Your obligations with financial assistance
Understanding what you owe when you receive financial assistance is crucial for making informed decisions.
Bursary obligations
Bursary Repayment Rules:
- Regular bursaries: Usually no repayment required unless you fail your studies
- Contract bursaries: You may need to work for the company that gave you the bursary for a specific period (typically one year for every year of study funded)
- Academic requirements: You must maintain good academic performance throughout your studies
Study loan obligations
- Bank loans: You must repay the full amount plus interest when you complete your studies
- Company loans: The company may require you to work for them after graduation
- NSFAS loans: Repayment starts when you earn R30,000 or more per year. You pay 3% of your annual salary, increasing to 8% when your salary reaches R59,300 or more per year
Scholarship obligations
- You don't have to pay back scholarship money
- You must maintain excellent academic performance to keep the scholarship
- Some scholarships may have community service requirements
Learnership obligations
- No repayment required
- You must complete the full contract period
- You're expected to work diligently and learn actively
Real-life success stories
Many South African students have successfully used financial assistance to transform their lives and achieve their career goals. These programmes have enabled students from disadvantaged backgrounds to access quality higher education, develop professional skills, and build successful careers in fields like science, engineering, and geology.
Financial assistance doesn't just pay for education - it opens doors to opportunities, builds confidence, and can break cycles of poverty. Recipients often go on to make significant contributions to their communities and the broader South African economy.
Finding help and resources
There are several organisations and online resources that can help you find and apply for financial assistance. Career guidance services, school counsellors, and the financial aid offices at higher education institutions are excellent starting points for your search.
Remember to start your search early, as many applications have deadlines well before the academic year begins.
Remember!
Key Points to Remember:
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Four main types of financial assistance are available: bursaries, study loans, scholarships, and learnerships - each with different requirements and obligations.
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Bursaries are often the best option because you usually don't have to pay them back, but you may need to work for the provider or maintain good grades.
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Study loans must be repaid with interest, but schemes like NSFAS offer more affordable repayment terms and the possibility of converting part of your loan to a bursary.
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Start your search early - financial assistance applications often have deadlines months before the academic year begins.
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Your academic performance matters - most forms of financial assistance require you to maintain good grades throughout your studies.