The National Student Financial Aid Scheme (NSFAS) has announced an increase in student allowance payments for the 2025 academic year. This decision, revealed by the Minister of Higher Education, Nobuhle Nkabane, aims to support student livelihoods by providing more financial assistance.
Minister Nkabane announced:
We have considered the cost of living which is very high as well as some of the socio-economic challenges that our people are facing every day so we have decided, working closely with USAf and NSFAS as well as student formations to adjust student allowances for this financial year to 4%.
One of the key changes is the increase in NSFAS allowances for TVET College students. Their annual allowance will rise from R10,000 to R14,600—a 46% increase.
"We are responding and we are deliberating our approach to respond to their needs," the Minister explained.
NSFAS Allowances for 2025
1. Accommodation Allowance
Students who do not live at home while studying qualify for an accommodation allowance. The maximum allowance differs for university and TVET students, with specific caps for metro and non-metro areas.
2. Living Allowance
University students funded by NSFAS, who do not stay in catered residences, receive a living allowance to cover food and other essential expenses. However, this does not apply to distance-learning students with fewer than 60 credits.
3. Accommodation and Travel Allowances
Students are eligible for either a travel or accommodation allowance, not both.
- Those living with immediate family or relatives receive a transport allowance instead of accommodation funding.
- Students in institution-owned or leased residences, as well as those in accredited private housing, receive a capped accommodation allowance.
- Institution-catered accommodation includes allowances covering housing, living expenses, and personal care.
- Health sciences students receive accommodation support for a full 12 months.
4. Learning Materials Allowance
All university students receive a learning materials allowance annually. This must be used to purchase academic books, materials, or a learning device. The amount provided depends on the actual cost of prescribed learning materials.
NSFAS Funding Process for 2025
NSFAS Administrator Freeman Nomvalo emphasized that this announcement provides certainty for institutions. He stated, "It allows institutions to load registration data, ensuring we can finalize funding decisions for students."
Currently, NSFAS has provisionally funded approximately 800,000 students for the 2025 academic year. Once their registration data is verified, funding will be confirmed, and payments will be processed.
For the 2025 academic year:
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TVET College students will receive their NSFAS allowances directly in their bank accounts.
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University students will have their allowances paid through their respective institutions.
This increase in allowances is expected to ease financial pressures on students, helping them focus on their studies without additional financial stress.
