The National Student Financial Aid Scheme (NSFAS) says its new allowance payment plan for Technical and Vocational Education and Training (TVET) college students has reduced delays and stabilised the system.
NSFAS provides comprehensive bursaries and student loans to deserving learners enrolled in approved courses at universities and TVET colleges. This funding includes money for tuition and registration fees as well as several allowances.
Since May 2024, NSFAS has been disbursing allowances directly to students' personal bank accounts. The revised system has lowered operational costs and improved efficiency.
Stakeholders Prepare for the 2025 Academic Year
In a recent parliamentary meeting of the Committee on Higher Education, stakeholders including the Department of Higher Education and Training (DHET), Universities South Africa (USAf), the South African Union of Students (SAUS), the South African TVET Student Association (SATVETSA), and NSFAS reviewed plans for the 2025 academic year.
SATVETSA raised concerns about funding disparities between TVET college and university students. The organisation called for increased allowances to reflect rising costs, such as food and transport, and urged NSFAS to introduce funding for electronic devices to support e-learning.
Additionally, SATVETSA highlighted the need to update the Household Income Threshold. The current R350,000 limit, set in 2016, no longer accounts for South Africa's economic challenges.
Addressing TVET Accommodation and Transport Issues
NSFAS and SATVETSA have partnered to pilot a student accommodation initiative to tackle the severe housing shortage in the TVET sector. Despite progress, gaps remain. Stakeholders have emphasised the need for a clear policy framework on student housing and a centralised onboarding system to manage accommodation allocations and close loopholes in the self-allocation process.
SATVETSA suggested "off-take agreements" to encourage rural communities to develop and maintain student accommodation near TVET campuses. They also called for transport allowances for rural students, where access to reliable housing remains limited.
A unified landlord structure has also been proposed to simplify consultation and streamline resolution of housing-related issues.
Ongoing Challenges in NSFAS Registrations
Concerns persist over NSFAS's preparedness for 2025. Registrars flagged several unresolved issues from 2024, including delays in processing funding applications, late disbursements of allowances, inefficiencies in handling appeals, and difficulties with private accommodation.
NSFAS said it is working with stakeholders—including private accommodation providers, universities, and student leaders—to address these issues.
Calls for Better Appeals Processing
In the 2024 academic year, NSFAS received 193,443 appeals, but only 79,723 cases were successfully funded. Thousands of appeals remained unresolved as late as October 2024.
To improve this process, NSFAS has established an independent committee to handle appeals objectively and efficiently. The aim is to ensure faster resolutions for rejected cases.
Looking Ahead to 2025
NSFAS has committed to continued engagement with stakeholders and the implementation of measures to address persistent challenges. With these efforts, the organisation aims to better support students and ensure a smoother academic year in 2025.
