NSFAS, Sars to track student debtors
The National Student Financial Aid Scheme (NSFAS) is working with the South African Revenue Service (Sars) to track down beneficiaries who have defaulted on their loan repayments.
NSFAS spokesperson Kagiso Mamabolo says in terms of the NSFAS Act, Sars is obligated to disclose the employment details of a beneficiary.
"The Act stipulates that Sars must at the request of the NSFAS board, disclose a borrowers details of employment including the duration of employment," Mamabolo says.
Mamabolo says it is important that beneficiaries who have defaulted on their repayments contact NSFAS to get a statement of how much they owe.
"NSFAS loans have a discount. A total of 40% of the loan is converted into a bursary each year you pass. During your final year of studies the discount is 100%," he says.
Mamabolo says the interest is charged at 80% of the repo rate, lower than what commercial banks charge.
"Our debtors should not be afraid or ashamed to request their statements. They will be shocked to find out they owe less than what they think. You need to be earning R30 000 per annum to qualify for repayment," he says.
Mamabolo says they have raised R20 million in the last six months from over 19 000 people who are repaying their loans for the first time.
To contact NSFAS click on this link: http://bit.ly/1U8Irqb
Edited by Laila Majiet