What is the new paid parental leave

The Federal Government’s Paid Parental Leave Scheme provides up to 18 weeks of paid leave if you are having or adopting a child. Several changes are being made to the paid parental leave scheme to provide for greater flexibility and eligibility to the scheme, which had been criticized for not catering for the various ways in which parents take leave to care for newly born/adopted children (i.e. it is not just birth-mothers who will have caring responsibilities).

What’s new?

From 1 July 2023, the current entitlement to 18 weeks paid parental leave pay will be combined with the current Dad and Partner Pay entitlement to 2 weeks’ pay. This means partnered couples will be able to claim up to 20 weeks of paid parental leave between them. Parents who are single at the time of their claim can access the full 20 weeks. These changes affect employees whose baby is born or placed in their care on or after 1 July 2023.

The main changes are as follows:

  • The existing maximum 18 weeks’ parental leave pay will be combined with the two weeks’ father and partner pay to provide a single 20-week scheme, to be shared between each parent.
  • Parents will be able to receive a maximum of 18 weeks’ parental leave pay each, and a maximum of 20 weeks’ parental leave pay between them.
  • For example, one parent could receive 18 weeks’ pay, and one parent’s 2 weeks’ pay, or both parents could receive 10 weeks’ pay each, etc.
  • Employees who are single at the time they claim will be able to receive the full 20 weeks’ parental leave pay.
  • The fixed 12-week parental leave pay period (and the requirement to not return to work in order to be eligible) will be abolished, meaning that claimants can receive parental leave pay in multiple blocks, of at least a day at a time, up to two years from the birth or adoption of their child.
  • The means test for eligibility will be amended by introducing a $350,000 per annum family income test under which claimants can qualify for parental leave pay if they do not meet the individual income test.
  • Eligible fathers and partners will be able to access parental leave pay regardless of whether the birth parent meets the income test or residency requirements.

If you are eligible for the Paid Parental Leave Scheme, you still have the right to take up to 12 months of unpaid leave from your work. There is nothing to stop you from accessing both at the same time.

Services Australia is the government organisation that manages the paid parental leave scheme. For more information on the changes, visit Services Australia

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Student Loans in South Africa: How to Apply and What to Expect

For many young South Africans, accessing higher education is a dream that often comes with a financial challenge. Fortunately, several student loan optionsstrong> are available in South Africa to help fund university, college, or TVET studies. Whether you’re looking for a government loan like NSFAS or a private student loan from a bank, understanding the process is essential for success.

What Are Student Loans?

Student loans are a form of financial aid provided to eligible students to help cover tuition fees, books, accommodation, and other study-related expenses. In South Africa, these loans can come from government institutions like NSFAS or private banks such as Nedbank, Standard Bank, FNB, and Absa. Most loans offer repayment flexibility and low-interest options until you graduate.

Types of Student Loans in South Africa

  • NSFAS (National Student Financial Aid Scheme): A government-funded loan/grant program for students from low-income households. Covers tuition, housing, transport, and meals.
  • Bank Student Loans: Offered by most major banks. These are credit-based and require a guardian or parent as a co-signer.
  • Private Loan Providers: Companies like Fundi offer educational loans covering various costs such as school fees, gadgets, and textbooks.

Requirements to Qualify for a Student Loan

Each provider has its own criteria, but most South African student loans require the following:

  • Proof of South African citizenship or permanent residency
  • Proof of registration or acceptance at a recognised tertiary institution
  • Parent or guardian with a stable income to co-sign (for private loans)
  • Completed application form with supporting documents (ID, proof of income, academic records)

How to Apply for a Student Loan

To apply for a student loan in South Africa, follow these steps:

  1. Identify your loan provider: Choose between NSFAS, a bank, or a private lender.
  2. Gather necessary documents: ID copies, academic transcripts, acceptance letters, and income statements.
  3. Complete the application form online or at a branch.
  4. Await approval: Some banks offer instant decisions, while NSFAS can take a few weeks.
  5. Receive disbursement: Funds are typically paid directly to the institution or your account, depending on the lender.

Loan Amounts and Repayment

The loan amount you can receive depends on your chosen lender and financial need:

  • NSFAS: Covers full tuition, residence, books, and a personal allowance. The loan becomes a bursary if you pass all your courses.
  • Banks: Can provide up to R120,000 or more annually, depending on tuition costs and credit history.

Repayment usually starts after graduation or once you start earning an income. Bank loans may require interest-only payments during your studies. NSFAS repayment only begins when you earn above a specific income threshold.

FAQs on Student Loans in South Africa

1. Can I apply for a student loan without a parent or guardian?

For government loans like NSFAS, yes. But most banks require a financially responsible co-signer, especially for students without an income.

2. Is NSFAS a loan or a bursary?

NSFAS starts as a loan, but it converts to a bursary if you meet academic performance requirements. This means you may not have to pay it back.

3. What is the interest rate on student loans?

Private banks offer competitive rates between 5% and 12%, depending on the applicant's credit profile. NSFAS charges a much lower interest rate, usually linked to inflation.

4. What happens if I fail my courses?

If you’re funded by NSFAS and fail, your loan won’t convert into a bursary, and you’ll need to repay the full amount. Banks may continue charging interest, and your co-signer may be held liable.

5. Can I use a student loan to pay for accommodation and laptops?

Yes. Both NSFAS and many bank student loans cover costs beyond tuition, including housing, meals, textbooks, and electronic devices like laptops or tablets.

Final Thoughts

Student loans in South Africa offer a much-needed financial lifeline to thousands of students every year. Whether you're applying through **NSFAS** or a private bank, ensure you understand the **terms, interest rates, and repayment conditions** before signing any agreement. Make informed decisions today to secure your academic and financial future tomorrow.