Introduction The mandate of NSFAF as per Act 26 of 2000 is to provide financial assistance in the form of loan/scholarship to eligible students at approved Institutions of Higher Learning and to recover money from beneficiaries upon completion of their studies.
Introduction continue… The operation of student financial assistance in the form of Namibia Student Financial Assistance Fund (NSFAF) has come to light with effect from January The enactment of NSFAF Act 2000 (Act No. 26 of 2000) subsequently came into being and operational.
Criteria for qualifying for financial assistance A student has obtained the admittance to a course or field of study he/she wants to be financed (An approved Institution of Higher Learning); hold a grade 12 or equivalent or higher qualification
Criteria for qualifying for financial assistance continue.. Financial Assistance is provided in three different ratio (improvements made in 2012) (A) 70%: Allocated to the poor and disadvantaged students whose parents earn up to N$ , 00 (gross salary)
Criteria for qualifying for financial assistance continue… (B) 20% - Priority areas of study scholarships, as long as the applicants have been admitted to study a high priority field of studies at a recognized Institution, the student will be financially assisted although the parents combined salaries are above the threshold.
Priority fields of studies Medicine & related fields e.g Nursing, Radiography, etc Humanities (Psychology, Social Work) Education & related fields Engineering & related fields (e.g Energy, mining, architecture) Science & related fields (Natural science, computer technology, actuarial science/Actuarial Financial Mathematic) Accounting/Accounting Science (Chartered Accountant) Law (e.g. Mercantile Law, Commercial Law/Business Law, B. Comm Law, B. Juris)
Criteria for qualifying for financial assistance continue.. (C) 10% - Allocated to the two best (grade 12) perfomers per region in the form of a scholarship, irrespective of their parents income above the threshold salaries or low priority field.
Scholarships offered by foreign countries Merit base Selection criteria set up by the offering country Stipends/Air tickets Cancelation of scholarship- failure - Misbehaviour Cannot change courses after acceptance of offer.
Payments of NSFAF loans/scholarships The Payment sub-division is responsible for the payment of loans/scholarships, allocated to students, to the various Institutions of Higher Learning.
(A) Payments for new awards Payments in respect of loans/scholarships allocated to students for the first time will only be made after the students has signed the Loan contract with NSFAF and proof of registration with an approved Institution of Higher Learning has been submitted to the Fund.
Payments continue… (B) Payments of continuing students Payment will only be made to the Institutions after the Fund has received the students examination results of the previous academic year as well as proof of registration for the current academic year.
Payments continue….. Financial Assistance will be suspended in case of failure (The student/s have to repeat the year at their own cost in case of failure/unsatisfactory results).
Payment continue… Change of Course/Institution Apply in writing to the NSFAF; Change is not allowed before the approval of the NSFAF Board; The student is responsible for submitting their final results/copies of their qualifications to the NSFAF after completion of their studies.
Payment continue… Extension of loan/Scholarship Contract Extensions will be granted in cases where the student only signed the contract for less than the years that the duration of the course is. It should be applied in writing to the NSFAF.
Recovery of loans The Subdivision Loan Recovery and Breach of Contracts deals with the recovery of loan monies from the NSFAF beneficiaries on completion of their studies and upon secured employment.
Recovery continue… Loan monies is expected to be paid back when: A period of six months has lapsed since the student has completed his/her studies; *He or she has found employment; *He or she is earning a threshold salary; *He or she has not completed his/her studies but has committed breach of contract.
Debtors who are not earning threshold salaries Debtors who are not earning threshold (non-taxable) salaries at their discretion may offer to pay back the loan monies without interest. This is also applicable to debtors whose six months grace period has not lapsed.
Recovery guidelines The Subdivision Loan Recovery and Breach of Contracts under the NSFAF will determine the instalment to be paid by the beneficiary and communicate the information to the beneficiaries;
Recovery guidelines continue…. At least 15% of gross annual income minus tax and pension contribution is used to determine monthly instalments; It is required to repay the loan portion plus interest at half of the current prime rate which will be calculated from the date repayment is due;
Recovery guidelines continue… A debtor (at his/her own discretion) may pay more than the minimum amount required, and so redeem the debt sooner; In case if the NSFAF beneficiary is unable to find employment, within six months of completion of studies, he/she must inform the Fund in writing in order to receive a written postponement of loan repayment.
Mode of payments Debit order (bank deduction) Stop order (salary deduction) Direct Deposit Nampost In case of direct bank deposit proof (deposit slip) thereof should be submitted to the Fund without delay.
Suspension of interest and cancellation of loan repayments Unemployment debtors annual earnings fall below the relevant threshold salary; The debtor becomes ill/mentally ill and is declared unfit for work by a registered medical practitioner for a period longer than three months; Death
Obligations of the NSFAF Beneficiaries Provide NSFAF with updated information when changes occur; Contact the Fund for any clarifications on the activities of the Fund; Honour obligations with the Fund.
Thank you for listening, Lets look at the NSFAF Contract….
N S F A F Questions..?? OR Comments!!
PRESENTED TO THE STUDENTS AT HIGHER LEARNING INSTITUTIONS BY THE NSFAF STAFF MEMBERS DURING MARCH 2012