NSFAS Mistakenly Pays Students R13,800 in April 2025 Allowances

NSFAS Mistakenly Pays Students R13,800 in April 2025 Allowances. In a recent financial blunder, the National Student Financial Aid Scheme (NSFAS) mistakenly overpaid some students during the April 2025 allowance cycle, sparking confusion, concern, and calls for urgent accountability across South Africa’s higher education landscape.

Students Receive R13,800 Instead of Split Allowance

Several TVET college students were left stunned when they noticed R13,800 deposited into their bank accounts—an amount far exceeding their usual monthly allowance. While the figure may have seemed like a windfall at first, it was quickly revealed that this sum included R10,000 earmarked for NSFAS-accredited accommodation providers.

The intended purpose of these funds was to be paid directly to landlords or student housing providers. Instead, it landed in the hands of students due to administrative discrepancies and data inconsistencies.

NSFAS Allowances

To understand the magnitude of this error, it’s essential to look at what NSFAS allowances are designed to cover. The scheme offers financial aid through bursaries and loans to qualifying students at public universities and TVET colleges in South Africa. Allowances typically include:

• Tuition and registration fees
• Transport and accommodation
• Food and living expenses
• Study materials

These funds are structured to be disbursed according to a verified student list, with accommodation and transport allowances determined based on whether a student lives in an NSFAS-accredited residence or commutes from home.

What Went Wrong?

According to NSFAS, the error occurred because of misalignment between institutional confirmations and solution partner data. Usually, institutions confirm which students are eligible for specific allowances by submitting a centralized student list.

However, some students were not reflected on this verified list and had not been officially confirmed by their institutions for accommodation eligibility. Despite this, they still received the full R13,800, which should have been split, with R10,000 sent directly to landlords.

Students Must Pay Their Landlords

NSFAS has since urged all affected students who live in NSFAS-accredited accommodation to immediately transfer R10,000 to their respective landlords. This comes with a stern warning: failure to do so could lead to eviction or deductions from future allowances.

Institutions have also been instructed to assist by:

• Notifying affected students promptly
• Providing landlord banking details
• Verifying accommodation fees
• Collecting proof of payment

NSFAS emphasized that it is the student’s responsibility to ensure the correct portion of the funds is paid to the accommodation provider.

Official Communication and Next Steps

In a statement, the financial aid scheme made it clear:

“We kindly request that students who have received funds meant for accommodation, make payments directly to their landlords. Proof of payment must be submitted to your Financial Aid Office as soon as possible.”

NSFAS also confirmed that full remittance records have been shared with all affected institutions to ensure transparency and traceability of payments.

Consequences of Non-Compliance

Students who fail to take the necessary steps may face:

• Immediate eviction from student housing
• Automatic deductions from future NSFAS payments
• Delays in receiving other allowances

This situation has placed additional stress on students who may have already spent part of the allowance without realising the funds were meant for accommodation purposes.

Institutions Urged to Step In

With student housing stability now at risk, universities and colleges have been called upon to act swiftly. They are expected to play a key role in communicating with affected students, providing necessary documentation, and supporting students during the payment recovery process.

Conclusion

This incident serves as a stark reminder of the importance of accurate data management and institutional coordination. For NSFAS, it highlights the need to strengthen oversight and communication between all parties involved in the funding process.