The National Student Financial Aid Scheme (NSFAS) has disbursed billions in funding for the 2025 academic year to both Technical and Vocational Education and Training (TVET) colleges and universities, as revealed during a recent National Council of Provinces Committee (NCOP) meeting.
NSFAS provides bursaries and loans covering tuition, registration, and allowances for eligible students.
University Funding and Allowance Payments
NSFAS made an upfront payment of R3.7 billion to universities at the start of the 2025 academic year, representing approximately 10% of the total 2024 allocation. This sum covers various allowances, including personal care, living expenses, travel, books, and accommodation.
To expedite payments, an additional R2.18 billion was transferred on 7 March 2025.
Click Here For 2025 Allowance Amounts
Following the termination of direct payment service providers, universities are now responsible for distributing allowances. NSFAS opened its registration upload system on 3 March 2025, closing at the end of the month, enabling institutions to submit student data for allowance payments.
The upfront payment to universities was made based on the total amount of the 2024 academic year and represented an estimated 10% of the total amount paid to universities,
TVET College Funding and Allowance Payments
In contrast to universities, NSFAS will utilise its in-house banker to distribute allowances to TVET college students, who must upload their bank details to the myNSFAS platform. NSFAS paid R641 million to TVET colleges in January 2025, covering 20% of each college's annual tuition allocation.
2025 Tuition upfront payment of R641,013,350.00 made to TVET Colleges on the 10th of January 2025,
Allowance payments are based on valid registration data, with payments processed on 7 and 14 March, and another run scheduled for 28 March 2025.
Click Here For 2025 Allowance Amounts
Allowance Increases and Funding Boost
NSFAS received an additional R1.8 billion from the National Treasury. Direct university allocations increased by 1.5% to R48.4 billion, and TVET college funding rose by 4.4% to R14.2 billion. This funding increase will cover a 4% rise in NSFAS allowances, addressing the lack of increases over the past three years.
"With the general annual increase in the cost of goods and services, the value of student allowances has been diminishing. This must be balanced against the precarious fiscal position of the country where government spending remains under sustained pressure," an NSFAS representative said.
The Department of Higher Education (DHET) attributed the allowance increase to successful fund recoveries through the Close Out Project and the Special Investigating Unit (SIU).
