Loans are repayable to NSFAF when:

• A period of six months has lapsed since the student has completed his or 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, or he/she has negotiated or accepted different terms under the loan/grant agreement or he/she has received another loan/bursary outside the agreement.

It is required to repay the loan portion plus interest at half the prime rate in instalments of at least 15% of gross annual income minus tax and pension contribution. The maximum period for repayment must not exceed three times the number of years for which the debtor received the loan. The debtor may pay more than the minimum amount required, and so redeem the debt sooner. The debt is transferable to an employer; on condition that the amount is to be paid to the Fund within 30 days of acceptance of the arrangement. Proof of such arrangement should be submitted to the Fund. If the beneficiary is unable to find employment, within six months of completing the course, he or she must inform the NSFAF in writing in order to receive a written extension of repayment. Loan holders who fail to commence their studies are obliged to repay the money so committed with interest. (Instalments would be affected by the prime rate either on a monthly, quarterly, and half-yearly or annual basis and may be paid in arrears or advance to suit the debtor. The capital amount plus interest determines the instalment). A debtor who is not earning a threshold (non taxable) salary at his/her discretion may offer to pay back the loan without interest. This is also applicable to debtors whose six months grace period has not lapsed. 7Repayment may be made by debit order (through bank deduction), stop order (salary deduction), through any other approved institution or direct deposit to:

• Namibia Student Financial Assistance Fund (NSFAF),
• Cheque Account No.: 8 000 359 824
• Bank Windhoek
• Branch and Code: Kudu (48-21-72)

In case of direct bank deposit proof (deposit slip) thereof should be submitted to the Fund without delay. The Subdivision Loan Recovery & Breach of Contract under the NSFAF should determine the instalment to be paid by the beneficiary and communicate the information to the beneficiary and institution authorised to receive such funds. The NSFAF act provides that legal action may be instituted if employment information provided by the debtor is deliberately misleading or is intended in any way to avoid compliance with obligations under his or her loan/grant contract.

Monies payable to the NSFAF under loan contract are paid at half the current prime interest rate. Interest will be calculated from the date repayment is due. If the beneficiary in any way fails to honour his or her term of contract, the full commercial interest rate (will apply as opposed to the half prime interest rate offered to other NSFAF beneficiaries).

The NSFAF Board may decide to suspend the repayment of a loan if:

• The debtor becomes unemployed
• The debtor’s annual earnings fall below the relevant

threshold amount.

• The debtor becomes ill/mentally ill and is declared unfit for work for a period longer than three months by a registered medical practitioner.
• The debtor dies, in which case all liability for refunding of moneys would lapse provided a breach of contract did not occur before the event of death.

When a loan is suspended, interest will not accrue to the loan,