Students get a new option to study and pay fees

Hassle-free study opportunities are an in thing for thousands of cash-strapped tertiary graduates that are barred from receiving their qualification due to fees that are outstanding, thanks to social impact enterprise WaFunda’s Income Share Agreement (ISA) Fund.

WaFunda is a South African social impact and financial technology enterprise dedicated to expanding access to higher education. WaFunda collaborates with public South African universities such as UCT, University of Pretoria, UKZN Stellenbosch University and University of Witswatersrand.

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According to Leana de Beer, CEO of WaFunda, this platform is designed specifically for low-income and ‘missing middle graduates who do not qualify for bursaries, have NSFAS caps or are declined for bank loans.

“This Fund is not the same as a traditional loan. Instead, it is an outcome-focused alternative to settling student debt, so that graduates can focus on what matters most, graduating and building a career for themselves,” she said.

The WaFunda ISA Fund covers all tuition costs that are then paid directly to the tertiary institution upfront and in return, graduates pay an agreed percentage of their income for a set number of months.

Head of Product at WaFunda, Duncan Patrick, said that the WaFunda ISA Funds is a contract through which a graduate receives money to pay for their education, and in exchange commits to paying a predetermined percentage of their future earnings back for a certain period.

“If a graduate earns below the threshold, or is actively job hunting, repayments are paused automatically.

“No family surety or collateral is required, and repayments start only once a graduate is earning a living wage. Payments are linked to income, so debt stays affordable, and additional assistance is provided in the form of career readiness, financial literacy and psycho-social support,” he said.  

Patrick said that to further build on this sustainable funding model, collections paid by the employed graduates are reinvested to support more students.

The key benefits for graduates:

-Income linked: Repayments adjust dynamically as the graduate’s income changes.

-Zero interest: No interest is charged on monthly repayments and there are no upfront costs.

-No barriers: No surety or existing credit history is required to access funding.

-Direct payment: The institution is paid directly to clear student accounts.

-Degree agnostic: Final-year undergraduates and postgraduates are funded across all degree types.

-Targeted support: A specific focus on supporting low-income and ‘missing middle’ students.

WaFunda’s KZN Student Co-ordinator Sibongile Kanengebiza said that they were pleased with the turnout at UKZN’s Westville Campus today where a student activation was hosted. This comes after the fund was launched last Thursday.

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“A lot of people and students came. The nice thing to see was how they were all coming in together and rallying on each other. While I was explaining to a certain group, when a new group came, the first group that came here took the role of explaining, so I like how everything is coming together. The community aspect of it, which also brings us back to what we stand for as WaFunda ISA, which is community work,” she said.

Applications for WaFunda’s ISA Fund are now open for qualifying tertiary courses and partner institutions across South Africa.

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