NSFAS Disbursement Errors Lead to Student Evictions and Financial Chaos in TVET

NSFAS Disbursement Errors Lead to Student Evictions and Financial Chaos in TVET. South Africa’s Technical and Vocational Education and Training (TVET) college sector is facing a growing accommodation crisis. At the centre of this unfolding drama is the National Student Financial Aid Scheme (NSFAS), whose disbursement errors have not only thrown students into financial disarray but also led to widespread student evictions across the country.

As of April 2025, many TVET students found themselves at odds with landlords and institutions after receiving incorrect NSFAS allowances, raising serious concerns about how the student financial aid scheme is being managed particularly when it comes to TVET accommodation.

NSFAS Allowance Disbursement Gone Wrong

On 4 April 2025, NSFAS disbursed R13,800 in allowances to various TVET students across the country. According to NSFAS spokesperson Ishmael Mnisi, this lump sum included R10,800 specifically earmarked for accommodation support. However, these payments were made to some students who had not been properly verified or approved for the allowance.

The mistake has since triggered a domino effect: students who were not eligible for the funds spent the money, while others, uncertain of the payment’s purpose, refused to pay their landlords, resulting in widespread evictions from TVET college residences, particularly in institutions like Waterberg TVET College in Limpopo.

Miscommunication and Mismanagement at Play

NSFAS has acknowledged that the allowance disbursement confusion was due to a “misunderstanding” between NSFAS, institutions, and the students themselves. According to Mnisi, the problem arose from a lack of timely verification of student accommodation eligibility from TVET institutions.

In an attempt to rectify the situation, NSFAS requested updated student lists from their “solution partners” – intermediaries responsible for managing relationships between NSFAS and the educational institutions. These lists were meant to ensure that only verified students received NSFAS-accredited accommodation allowances.

However, because some students were not confirmed in time, they were paid allowances incorrectly. Meanwhile, eligible students found themselves in limbo, struggling to secure or maintain accommodation as landlords began to lose patience.

Why Doesn’t NSFAS Pay Landlords Directly?

The issue has prompted public outcry and questions about why NSFAS does not pay TVET landlords directly, a strategy that could have prevented this crisis.

Responding to this, Mnisi said most TVET colleges lack the infrastructure needed to process and manage such payments efficiently. He added that paying students directly helps to ensure they receive the funds on time, enabling them to handle their own accommodation needs.

“By channelling payments directly into students’ accounts, NSFAS ensures that allowances are delivered in a timely manner, thereby promoting financial stability,” Mnisi said.

However, critics argue that this approach has backfired. Without proper verification and controls, money is reaching the wrong hands — with students misusing funds or simply failing to fulfil their rental obligations.

Student Evictions and Mounting Pressure on TVET Institutions

The consequences of this financial mismanagement are already being felt. At Waterberg TVET College’s Lebowakgomo campus, numerous students have been evicted due to non-payment of rent. College spokesperson Mahlako Phasha confirmed that while some students did receive their NSFAS payments, many refused to pay landlords, despite NSFAS issuing a circular urging them to do so.

A few students did submit proof of payment to the college’s Student Support Services, but this was not enough to prevent tension between students and landlords — or to reverse the growing crisis.

What Are the Current NSFAS Accommodation Allowance Caps?

To bring structure to the system, NSFAS has established specific caps for TVET accommodation allowances. These include:

• R33,000 per year for approved college accommodation (both catered and non-catered),
• R52,000 per year for private accommodation in metro areas,
• R42,640 per year for private accommodation in non-metro areas.

While these figures provide a framework, their effectiveness hinges on proper student verification, efficient payment systems, and improved communication between NSFAS, TVET institutions, and landlords.

NSFAS and Students Must Act

NSFAS is now urging students who received the R10,800 accommodation allowance to settle outstanding payments with landlords as a matter of urgency. Failure to do so may result in more evictions and further disrupt academic progress — something many South African youth can ill afford.

To avoid future crises, NSFAS and partner institutions must implement a more transparent, accountable, and structured disbursement system. Landlords, too, require clear communication and support, especially when hosting students who depend entirely on state-funded financial aid.

Conclusion

The TVET accommodation crisis is a symptom of a much larger issue within South Africa’s higher education funding landscape. While NSFAS plays a critical role in empowering disadvantaged youth to access tertiary education, recent events show that better systems and checks must be put in place.