NSFAS Distributes Billions to Universities and TVET Colleges for Student Allowance Payments

NSFAS Distributes Billions to Universities and TVET Colleges for Student Allowance Payments. The National Student Financial Aid Scheme (NSFAS) has made significant strides in ensuring financial support for students pursuing higher education in South Africa. With approximately one million students set to benefit from NSFAS funding in 2025, billions of rands have already been allocated to universities and Technical and Vocational Education and Training (TVET) colleges to prevent delays in student allowance disbursements.

NSFAS Funding Boost for 2025 Academic Year

During a recent National Council of Provinces Committee (NCOP) Education, Sciences, and Creative Industries meeting, it was revealed that NSFAS has proactively distributed funding to institutions for the 2025 academic year. The scheme provides comprehensive bursaries and student loans for eligible students enrolled in accredited academic programs. This funding covers tuition fees, registration fees, accommodation, food, and learning materials.

NSFAS Payments to Universities

To ensure a smooth transition into the new academic year, NSFAS allocated R3.7 billion to universities as an upfront payment at the beginning of 2025. These funds were earmarked for essential student allowances, including:

• Personal care
• Living expenses
• Travel allowances
• Book allowances
• Accommodation support

NSFAS clarified that this upfront payment to universities was based on the 2024 academic year’s total amount, representing approximately 10% of the total funding allocated to universities. To further streamline the allowance payment process, NSFAS’s registration upload system was opened on 3 March 2025 and is set to close at the end of March. This system allows institutions to submit student registration data to NSFAS, ensuring timely payments.

To prevent any disruptions, an additional R2.18 billion was transferred to universities on 7 March 2025.

The changes in NSFAS’ allowance payment policy saw the termination of direct payment service providers, leading to universities managing the disbursement of student allowances. As a result, multiple universities have introduced their own allowance payment structures to accommodate students efficiently.

NSFAS Payments to TVET Colleges

Unlike universities, TVET Colleges will not be directly responsible for student allowance disbursements. Instead, NSFAS has opted to use its in-house banking system to distribute funds. To receive allowances, students must upload their bank details on the myNSFAS platform to facilitate direct payments.

NSFAS has already allocated over R640 million to TVET colleges to cover the tuition fees of funded students, with the first payment made in January 2025. Specifically, a R641,013,350.00 tuition upfront payment was made to TVET colleges on 10 January 2025, covering 20% of each college’s annual tuition allocation.

Allowances and tuition payments are based on valid student registration data submitted through the registration upload system, which opened on 3 March 2025. Students whose registrations were processed by 7 March and 14 March 2025 have already received their allowance payments, with another disbursement scheduled for 28 March 2025.

Increase in NSFAS Allowance Payments for 2025

To further support students, NSFAS recently received an additional R1.8 billion from the National Treasury. This funding boost has led to an increase in allocations:

• University funding increased by 1.5%, reaching R48.4 billion
• TVET college funding increased by 4.4%, totaling R14.2 billion

One of the key elements of this funding increase is the 4% rise in student allowances for 2025, officially confirmed by NSFAS following the Minister’s announcement. The allowance increase has been widely welcomed, given that payments had remained unchanged for the past three years despite the rising cost of living.

With annual increases in tuition fees, accommodation costs, and essential goods, the financial strain on students has been mounting. The decision to boost allowances was made after careful consideration of several factors, including:

• Significant fund recoveries through the Close-Out Project
• Recoveries made by the Special Investigation Unit (SIU)
• The ongoing economic pressure on the government’s fiscal position

Conclusion

The National Student Financial Aid Scheme (NSFAS) continues to play a crucial role in higher education funding in South Africa. With billions allocated for 2025, the proactive distribution of funds to universities and TVET colleges aims to ensure seamless student support.