The difference between a loan and a bursary is that a bursary is not repayable, while a loan is repayable.
What Is A Bursary In South Africa?
In South Africa, a bursary is a financial sponsorship that is given by a company, institution or an individual to fund a student’s studies. The funds go to the expenses associated with the education of that individual only.
What Is The Meaning Of A Student Loan?
A student loan is a type of loan that is issued to a student to pay for educational expenses. Most often, a student loan is given after high school. The loans are given for the purposes of the following:
- Tuition
- Associated fees
- Books
- Supplies
- Living expenses
Are Bursaries A Loan?
No. bursaries are not loans. The bursary that you get for your studies is not repayable. However, a loan that you get for your studies is repayable. The interest rate that is payable differs from one institution to the other.
What Are The Most Common Type Of Loans?
The following are the most common type of loans:
- Student loan
- Personal loan
- Auto loan
- Mortgage loan
- Home equity loan
- Debt consolidation loan
Do Bursaries Have To Be Paid Back?
No, bursaries do not have to be paid back. A loan has to be paid back. A loan has to be paid back with interest. The interest varies from one lender to the next.
Loans are usually by banks. Other non-financial institutions can also give student loans, for example, an employer giving a study loan to an employee who is studying through distance learning.
Who Is Eligible For A Bursary?
The sponsor determines the eligibility of who qualifies for the bursary that they want to give. However, the sponsor can consider the following:
- Area of study
- Location
- Age
- Academic achievement
- Further studies
- Financial need
How Do Bursaries Work?
Here is how bursaries work:
The sponsor lays out the requirements needed for you to qualify for the bursary. Here are some of the requirements that the sponsor can ask for:
- Area of study – A sponsor can offer a bursary which is career-specific or which can be general. For example, a sponsor, who manufactures medical drugs, may want to sponsor a student who is studying pharmacy. A sponsor may also choose to sponsor any student, regardless of the field of study.
- Location – The sponsor may also require you to reside in a specific area for you to be eligible for the bursary. For example, a Cape Town-based institution may want to give back to the community that it saves. Therefore, to be eligible for the bursary, you must be from Cape Town.
- Age – Most sponsors usually define the age group that they would like to give a bursary to. The 18 -25 age groups, is popular with most sponsors. This could be because it is the age group that is in the process of laying the foundation of a career. Some sponsors may not even define the age group that they need to sponsor.
- Academic achievement – applicants may be required to have attained a certain level of academic grade. For example, a sponsor may require achievement of a Matric APS score of at least 36
- Further studies – some sponsors can only accept sponsors who have already been admitted to a tertiary institution.
- Financial need – Some sponsors give bursaries to students who are in need. Those students whose parents or guardians can not afford to pay for their tertiary education. The students must also not be receiving any funding from any other source.
Why Do Students Need Bursaries?
Students need bursaries because it lightens the burden of obtaining an education. Here are some of the reasons why students need bursaries:
- Bursaries are good for students because there is no repayment
- Bursaries help students complete their education without worrying about funding
- Some bursaries include books, residence and allowances
- Sponsors may offer internship and attachment opportunities
Which Bursaries Are Open Now?
The following bursaries are open all year round:
- Deloitte Bursary – For Chartered Accountants
- Mintek Postgraduate Bursary Programme
- EY Bursary – For Chartered Accountants
- Electrum Bursary – For Computer Science Engineering
- KPMG Bursary – For Chartered Accountants
- Beka Schreder Bursary – For Finance, Human Resources, Information Technology and Accounting
- The FASSET Bursary – For Finance bursaries
- PPC Bursaries – For mining and engineering
- Hulamin Bursaries – For Metallurgical Engineering, Electrical Engineering, Industrial Engineering, Mechanical Engineering and Accounting
- TTI Bursary – For any undergraduate degree or other Department of Higher Education and Training (DHET) recognised qualification
How Do I Apply For A Bursary?
To apply for a bursary, you need to identify the sponsor of the programme. This can be an organisation, education provider, employer or government. If you meet the requirement for the bursary, submit an application and wait for a response.
It is important that you give comprehensive answers to the information that is required. Remember that you will not be the only one applying for that opportunity.
Is A Bursary A Once-Off Payment?
No, a bursary is not a once-off payment. The money can be paid on the go for the duration of your study period. Usually, tuition fees and other associated expenses are paid directly to the college or university. If there is a provision for an out-of-pocket allowance, this can be paid on a monthly basis or per semester.
How Much Do You Get For Bursary?
The amount that you get for a bursary depends on the institution that is sponsoring you. In addition to tuition fees, here are some of the expenses that a bursary can take care of:
- Accommodation
- Meals
- Textbooks
- Food
- Learning materials
- An allowance
What Does A Full Bursary Cover?
A full bursary covers the following:
- Accommodation
- Meals
- Textbooks
- Food
- Learning materials
- An allowance
- Part-time employment when on holiday
- Full-time employment on completion of studies
Do Bursaries Give Pocket Money?
Yes, some bursaries do have pocket money allowances, while others do not have. This will entirely depend on the sponsor.
What Is Another Word For Bursary?
These are some of the words that bursary is interchanged with:
- Grant
- Award
- Scholarship
- Stipend
- Subsidy
What Is Another Word For Financial Aid?
Here are the words for Financial Aid:
- Financial Subsidy
- Financial Assistance
- Financial Backing
- Financial Support
- Financial Grant
- Financial Gift
What Is The Difference Between A Bursary And A Grant?
The difference between a bursary and a grant is that a bursary is awarded for educational purposes. A bursary is given to a student only. A bursary has no repayment. A grant is awarded for a particular purpose by a government department, trust or corporation. A grant is not repayable. The following can be recipients of a grant:
- Individuals
- Businesses
- Educational institutions
- Not-for-profit organisations
What's The Difference Between A Bursary And A Scholarship?
These terms are often used interchangeably, but they are not the same. Bursaries are awarded to students based on their background and personal circumstances, and they are non-competitive. A student must for the bursary. Scholarships are awarded by educational institutions, for example, a university.
They are based on an exceptional performance. The student is not always required to apply for them.
Author: Collin Wilbesi
Editor: Connor Bergsma
Date Published: June 22, 2022