Introduction: Two Pillars of Support, Two Different Missions
South Africa’s educational landscape is shaped by efforts to bridge the inequality gap and empower the youth through financial support. Among the key players in this space are NSFAS (National Student Financial Aid Scheme) and SETA (Sector Education and Training Authority). While both provide funding for education and training, they serve distinct groups and operate under different mandates.
A common question many South Africans ask is: “Are SETA and NSFAS the same thing?” The short and clear answer is: No, they are not the same. However, understanding the differences between them is essential for anyone hoping to further their studies or skills training in South Africa.
Let’s take a deep dive into what makes SETA and NSFAS different, what they offer, who they target, and how each plays a vital role in building a better future for learners across the country.
Chapter One: NSFAS – A Lifeline for the Poorest Students
What is NSFAS?
The National Student Financial Aid Scheme (NSFAS) is a government-funded programme under the Department of Higher Education and Training. It exists to help students from low-income households access higher education opportunities.
NSFAS funding covers tuition fees, accommodation, meals, books, and travel costs for students who study at public universities and TVET colleges.
Who qualifies?
NSFAS is intended for students whose combined household income is below R350,000 per year. If the applicant is disabled, the threshold is R600,000.
Students must:
- Be South African citizens
- Be accepted at a public university or TVET college
- Come from a financially needy background
- Be academically capable (as assessed by the institution)
What NSFAS Covers:
- Tuition fees (fully paid)
- Accommodation (for those staying away from home)
- Meal allowances
- Transport or travel allowance
- Personal care allowance
- Learning material (textbook) support
NSFAS is not a loan anymore; it is a full bursary for qualifying students, meaning you do not need to repay it — provided you meet the academic and administrative requirements.
Chapter Two: SETA – Building Skills for the “Missing Middle”
What is a SETA?
SETA stands for Sector Education and Training Authority. There are 21 SETAs in South Africa, each aligned to different economic sectors (e.g., Services SETA, Mining SETA, Health and Welfare SETA).
SETAs are responsible for:
- Promoting skills development
- Managing learnerships, internships, and apprenticeships
- Funding training programmes
- Accrediting training providers
SETAs were created to address the skills gap in the South African labour market. They work hand in hand with employers, training institutions, and government departments to ensure that the workforce is equipped with the practical skills needed in different sectors.
Who qualifies?
SETAs target the “missing middle” — students who do not qualify for NSFAS, but also cannot afford to pay out-of-pocket for private education or training.
This group often includes:
- Youth from working-class families
- Unemployed graduates
- People with Grade 12 but no access to university
- Those looking to reskill or upskill
What SETA Offers:
- Learnership stipends
- Bursary funding for specific studies (TVET or university)
- Internships and apprenticeships
- Skills programmes and occupational training
- Workplace placement support
SETA funding is not universal like NSFAS. You must apply when opportunities are advertised by companies or training providers partnered with a specific SETA.
Chapter Three: Comparing SETA and NSFAS – Key Differences at a Glance
| Aspect | NSFAS | SETA |
|---|---|---|
| Main Focus | Academic funding for poor students | Practical skills training for workforce readiness |
| Target Group | Students from households earning below R350,000 annually | “Missing middle” – not rich, but not poor enough for NSFAS |
| Funding Type | Bursary (previously loan) | Learnership stipends, bursaries, training support |
| Institutions Covered | Public universities and TVET colleges | Accredited private or public training providers, employers |
| Type of Programmes | Degrees, diplomas, NATED courses | Learnerships, apprenticeships, internships, short skills |
| Application Process | Centralised (via www.nsfas.org.za) | Decentralised (via companies, SETAs, training providers) |
| Repayment | No repayment required for bursary | No repayment; earn while you learn in many programmes |
| Additional Benefits | Full cost of study including accommodation, meals | Monthly stipend, workplace experience, industry exposure |
Chapter Four: Real Lives, Real Impact
Let’s follow the journeys of two young South Africans — Ayanda and Lerato — to better understand how NSFAS and SETA change lives in their own unique ways.
Ayanda’s Story – Powered by NSFAS
Ayanda is from a small rural village in Limpopo. Her mother is unemployed, and her father works part-time as a taxi driver. After passing matric with flying colours, she was accepted to study Education at the University of Limpopo.
But the joy of acceptance quickly turned into fear — how would she afford fees, books, and accommodation?
She applied for NSFAS and was approved. Over the next four years, NSFAS paid her tuition, covered her rent, and provided her with textbooks. Today, Ayanda is a qualified teacher giving back to her community — all because NSFAS gave her a chance.
Lerato’s Story – Skilled by SETA
Lerato grew up in Soweto. She completed matric but couldn’t afford university. She didn’t qualify for NSFAS either because her mother worked for the government and earned just above the threshold.
She heard about a Services SETA learnership in Business Administration, applied, and was accepted. For 12 months, she received training, practical work experience, and a monthly stipend.
When the programme ended, she was offered a full-time job at the company. Today, she is studying part-time with a bursary offered by her employer and is the breadwinner in her household.
Chapter Five: Why Both Matter in South Africa’s Future
The NSFAS vs SETA comparison is not about which is better — it’s about understanding their complementary roles. In a country where unemployment and inequality remain high, both systems are critical in their own right.
- NSFAS unlocks access to higher education for those who would otherwise be shut out due to poverty.
- SETA unlocks access to industry-relevant skills and real work experience, often leading directly to employment.
Together, they close the gap between formal education and practical skills — between classroom learning and real-world application.
Chapter Six: Which One Should You Choose?
Choose NSFAS if:
- You’re aiming for a university degree or diploma
- Your household income is below R350,000
- You are accepted into a public university or TVET college
Choose SETA if:
- You want workplace experience
- You’re interested in a learnership, internship, or apprenticeship
- You come from a working-class family and don’t qualify for NSFAS
- You want to build practical, employable skills
It’s also worth noting that you can benefit from both at different times. For instance, someone might be funded by NSFAS for university and later join a SETA learnership for workplace exposure.
Chapter Seven: Final Advice for Students and Job Seekers
1. Stay informed.
Visit websites like:
Follow their social media channels for updates, application deadlines, and programme announcements.
2. Apply early and correctly.
Missing deadlines can cost you an opportunity. Always double-check your documents and application process.
3. Be patient and persistent.
Competition is high. If you’re not successful the first time, try again. Learnerships and bursaries open throughout the year.
4. Build your own path.
Even if you don’t qualify for either NSFAS or SETA support, there are other opportunities like scholarships, online courses, and community projects.
Conclusion: Two Different Tools, One Common Goal
In summary, NSFAS and SETA are not the same, but they share a common goal: to empower South Africans through education and skills development.
- NSFAS focuses on academic learning for the financially needy
- SETA focuses on skills training and workplace readiness for the working-class or unemployed youth
Whether you’re a school leaver, a graduate, or someone looking for a second chance, understanding these funding mechanisms can help you make informed decisions about your future.
The journey of building your life through education or training may take different paths, but with tools like NSFAS and SETA, no dream is ever too far away.
