The National Student Financial Aid Scheme (NSFAS) has officially announced an increase in student allowances for the 2025 academic year, marking the first adjustment in three years. This decision responds to the rising cost of living and the socio-economic challenges faced by students across South Africa.
NSFAS administrator Freeman Nomvalo confirmed the increase, emphasizing its importance for institutions: "It allows institutions now to be able to load the registration data for students enrolled. We need to get the registration data so we can finalize our funding decisions."
Higher Education Deputy Minister Dr. Nobuhle Nkabane also confirmed the increase, stating, "We have considered the cost of living, which is very high, as well as some of the socio-economic challenges our people face 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%." Notably, TVET College students will see their allowances rise considerably, from R10,000 per annum to R14,600 per annum—an impressive 46% increase.
NSFAS provides financial aid covering various expenses, including tuition fees, accommodation, transport, and study materials. Here’s how the allowances break down for the 2025 academic year:
- Accommodation allowance: Available for students living away from home, capped at different rates for metro and non-metro areas. This includes institution-owned or leased accommodation and accredited private accommodation, as well as institution-catered accommodation covering living expenses and personal care. Health science students have their accommodation covered for twelve months.
- Living allowance: Provided for university students living outside catered residences for food and essentials. Distance-learning students with fewer than sixty credits do not qualify for this allowance.
- Accommodation and travel allowances: Students can receive either travel or accommodation allowance, not both. Students living with family receive transport allowances instead of accommodation funds.
- Learning materials allowance: All university students receive this annual allowance for academic books and learning devices, based on the cost of prescribed materials.
For university students, payments will continue to flow through their institutions instead of direct bank transfers, with the aim for payments to occur by February 2025. Meanwhile, TVET college students will receive their allowances directly to their personal bank accounts, ensuring faster payments.
Currently, NSFAS has provisionally funded 800,000 students for the 2025 academic year. Funding will be finalized upon confirmation of registration data, with payment processes to begin shortly thereafter. The increase aims to relieve financial strain on students and bolster their chances for academic success.
Compounding issues facing students, late payments, and exploitation by landlords have been persistent challenges, as highlighted by Deputy Minister Nkabane and Nomvalo. Both officials have addressed these concerns during interviews, noting the need for systemic changes. "We are responding to students' needs and deliberations on how best to support them," Nkabane declared.
The increases follow the government’s response to feedback from various stakeholders across higher education institutions. This dialogue has underscored growing student accommodation issues, particularly safety concerns and allegations of exploitation by landlords. For example, troubling reports emerged from eThekwini TVET College, where landlords allegedly demanded sexual favors from students for housing.
Nomvalo responded with urgency, stating, "We have launched immediate investigations and will be addressing any wrongdoings. Those found guilty will face serious consequences, including potential blacklisting of dishonest service providers." He has also encouraged students to report similar issues through appropriate channels, reiteratively stressing the importance of safeguarding student welfare.
During her oversight visit to the University of KwaZulu-Natal, Nkabane noted students voiced numerous housing concerns, stating, "There is an impending crisis across South Africa concerning student accommodation. If neglected, this could spark widespread unrest among students." She is considering transferring management of student accommodation back to universities amid increasing dissatisfaction with current arrangements.
Nkabane remains optimistic about newly appointed NSFAS board members, affirming their capability to address the governance challenges plaguing the scheme. "We want to clean the system and leave a lasting legacy," she stated. "Efforts will focus on ensuring resources benefit the students directly and not business persons aiming to exploit the system."
Further changes are on the horizon aimed at increasing accessibility for students from disadvantaged backgrounds. Nkabane announced intentions to eliminate application fees for higher education institutions—fees perceived as barriers to entry. "No student should bear the cost of applying for education that's constitutionally theirs to access," she contended. This reform aligns with her mandate to widen educational access and equity.
To check the NSFAS application status for the 2025 academic year, students are encouraged to visit the NSFAS website, log onto the myNSFAS portal, and navigate to the application status tab. This transparency is part of NSFAS's commitment to improving service delivery.
Overall, this increase to NSFAS allowances reflects the government's prioritization of student welfare as South Africa tackles the dual challenges of economic stress and educational accessibility.