To close off our series on financial literacy, we thought it would be important to discuss the misconceptions that people, especially students, might have regarding student funding. By now we should all have an understanding of what is meant by financial literacy as well as how this definition extends to bursary recipients. Therefore, it is now worthy to consider and debunk the incorrect information that people might have regarding bursaries.
Who qualifies for bursaries?
There is a misconception that bursaries are only granted to top achievers and/or the most financially needy students. While this is often the case, there are also bursaries with criteria that extend to students who would be considered missing middle or above average academic performers i.e overall grade point average above 60%. It is important for students to conduct research about different types of bursaries and their requirements. These different types of bursaries include but are not limited to government, corporate as well as Broad-based Black Economic Empowerment (B-BEE) bursaries.
Students can secure these types of funding before or during their studies. This means that if you start university without a bursary, continue applying and researching as you can still secure funding to cover the rest of your university years. You can apply for the latest available bursary opportunities on the Career Wise Bursary Application Platform
Do you have to pay it back?
To answer this question, it is 1st important to understand the difference between a bursary and a student loan. The latter is defined as the amount of money that is borrowed for the purposes of furthering studies. It is a requirement that this amount is paid back including interest over once studies have been completed (i.e. student graduates) and employment has been secured to service the loan. In most cases, the student is required to repay the loan amount through monthly installments. An example of a student loan would be from the banks.
On the other hand, a bursary sponsors students financially directly or indirectly through a third-party company. A bursary covers tuition and often extends to living expenses such as accommodation, food, and books. It is important to read the bursary contract or policy to see exactly what is covered and what the expected obligation is as a student. Bursaries are awarded based on different criteria e.g. being from a specific surrounding community where the sponsor organization operates or academic discipline and performance. The majority of bursaries do not require that the student pay them back after graduating but there could be work-back the obligation.
Do you work for them after?
The terms and conditions of a bursary depending on the objective of the bursary or the type of bursary it is. The bursary contract is the best guide as it outlines all the obligations of the fundings on both the part of the sponsor and the student. For some bursaries, it is a requirement for students to pay back the funding by working for the sponsor after graduation for a time specified in the agreement. This is often considered a good thing as it guarantees students employment following the completion of their studies. However, not everyone wants to work for their funder and in those instances, depending on the agreement, a student may be bought out of their bursary agreement after graduation by the company that they want to work for.
It is important to emphasize that this requirement is all dependent on the specific type of bursary.
Multiple bursaries
Having multiple bursaries in an ethical way is permitted, while double-dipping on funding might have legal consequences. Some bursaries are capped at a certain amount and this amount might not be enough to cover the full tuition cost and accommodation for a student – in this situation another bursary may be needed to cover the shortfall. “Double Dipping” is a term for accepting compensation, funding benefits from two or more sources for the same thing, which could be regarded as unethical. A practical example is having tuition fees paid by two or more sources creating a surplus that the student will want to withdraw from the fee account. This kind of double-dipping is considered fraudulent and carries criminal consequences.
